[Congressional Record (Bound Edition), Volume 150 (2004), Part 2]
[Senate]
[Pages 2131-2142]
[From the U.S. Government Publishing Office, www.gpo.gov]




                  POVERTY REDUCTION AND PREVENTION ACT

  Mr. FRIST. I ask unanimous consent that the Senate proceed to the 
immediate consideration of Calendar No. 414, S. 1786.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant journal clerk read as follows:

       A bill (S. 1786) to revise and extend the Community 
     Services Block Grant Act, the Low-Income Home Energy 
     Assistance Act of 1981, and the Assets for Independence Act.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Health, Education, Labor, 
and Pensions, with an amendment to strike all after the enacting clause 
and inserting in lieu thereof the following:
  (Strike the part shown in black brackets and insert the part shown in 
italic.)

[[Page 2132]]



                                S. 1786

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

     [SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       [(a) Short Title.--This Act may be cited as the ``Poverty 
     Reduction and Prevention Act''.
       [(b) Table of Contents.--The table of contents of this Act 
     is as follows:

[Sec. 1. Short title; table of contents.

              [TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT

[Sec. 101. Purposes.
[Sec. 102. Definitions.
[Sec. 103. Authorization of appropriations.
[Sec. 104. Establishment of program.
[Sec. 105. Use of funds.
[Sec. 106. Application and plan.
[Sec. 107. Designation of eligible entities in underserved areas.
[Sec. 108. Tripartite boards.
[Sec. 109. Training, technical assistance, and other activities.
[Sec. 110. Monitoring.
[Sec. 111. Corrective action; termination and reduction of funding.
[Sec. 112. Fiscal controls, audits, and withholding.
[Sec. 113. Accountability and reporting requirement.
[Sec. 114. Limitations on use of funds.
[Sec. 115. Operational rule.
[Sec. 116. Discretionary authority of the secretary.
[Sec. 117. Community food and nutrition programs.
[Sec. 118. National or regional programs designed to provide 
              instructional activities for low-income youth.
[Sec. 119. Short title and conforming amendments.

              [TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

[Sec. 201. Short title.
[Sec. 202. Reauthorization.
[Sec. 203. Natural disasters and other emergencies.
[Sec. 204. Residential Energy Assistance Challenge option.
[Sec. 205. Report to Congress.

                [TITLE III--ASSETS FOR INDEPENDENCE ACT

[Sec. 301. Short title.
[Sec. 302. Reauthorization of the Assets for Independence Act.

              [TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT

     [SEC. 101. PURPOSES.

       [Section 672 of the Community Services Block Grant Act (42 
     U.S.C. 9901) is amended to read as follows:

     [``SEC. 672. PURPOSES.

       [``The purpose of this subtitle is to reduce poverty--
       [``(1) by strengthening and coordinating local efforts to 
     expand opportunities for individuals and families to become 
     economically self-sufficient and to improve and revitalize 
     the communities in which low-income Americans live, by 
     providing resources to States for support of local eligible 
     entities and their partners to--
       [``(A) plan, coordinate, and mobilize a broad range of 
     Federal, State, local, and private assistance or investment 
     in such a manner as to use these resources effectively to 
     reduce poverty and in initiatives that are responsive to 
     specific local needs and conditions;
       [``(B) organize multiple services that meet the needs of 
     low-income families and individuals, especially low-wage 
     workers and their families, and that assist them in 
     developing the assets and skills needed to become self 
     sustaining while ensuring that these services are provided 
     efficiently, in appropriate combinations, and in effective 
     sequence; and
       [``(C) design and implement comprehensive approaches to 
     assist individuals transitioning from the Temporary 
     Assistance to Needy Families Program to work;
       [``(2) by improving and revitalizing the communities in 
     which low-income Americans live by providing resources to--
       [``(A) broaden the financial resource base of initiatives 
     and projects directed to the elimination of poverty and the 
     re-development of the low-income community, including 
     partnerships with non-governmental and governmental 
     institutions to develop the community assets and services 
     that reduce poverty, such as--
       [``(i) other private, charitable, neighborhood-based, and 
     religious organizations;
       [``(ii) individual citizens, and businesses, labor, and 
     professional groups, who are able to influence the quantity 
     and quality of opportunities and services for the poor; and
       [``(iii) local government leadership; and
       [``(B) coordinate or create community-wide assets and 
     services that will have a significant, measurable impact on 
     the causes of poverty in the community and that will help 
     families and individuals to achieve economic self-
     sufficiency, and test innovative, community-based approaches 
     to attacking the causes and effects of poverty and of 
     community breakdown, including--
       [``(i) innovative initiatives to prevent and reverse loss 
     of investment, jobs, public services, and infrastructure in 
     low- and moderate-income communities; and
       [``(ii) innovative partnerships to develop the assets and 
     services that reduce poverty, as provided for in subparagraph 
     (A); and
       [``(3) by ensuring maximum participation of residents of 
     low-income communities and of members of the groups served by 
     programs under this subtitle in guiding the eligible entities 
     and in their programs funded under this subtitle to 
     ameliorate the particular problems and needs of low-income 
     residents of their communities and to develop the permanent 
     social and economic assets of the low-income community in 
     order to reduce the incidence of poverty.''.

     [SEC. 102. DEFINITIONS.

       [Section 673 of the Community Services Block Grant Act (42 
     U.S.C. 9902) is amended--
       [(1) in paragraph (1)(A)(ii), by striking ``or other 
     mechanism''; and
       [(2) in paragraph (2)--
       [(A) in the first sentence--
       [(i) by striking ``Office of Management and Budget'' and 
     inserting ``Department of Health and Human Services''; and
       [(ii) by inserting before the period the following: ``and 
     increased, as the Secretary determines appropriate, to take 
     into account higher costs-of-living for a State''; and
       [(B) by striking the last sentence and inserting the 
     following: ``Whenever a State determines that is has served 
     the objectives of the block grant program established under 
     this subtitle, the State may revise the poverty line, while 
     placing a priority in serving those who are most in need, so 
     that 125 percent of the official poverty line is the minimum 
     level that a State shall be permitted to set as its maximum 
     eligibility requirement and 60 percent of the State's median 
     income is the maximum level that a State shall be permitted 
     to set as its maximum eligibility requirement. The State may 
     revise the poverty line only upon a determination that 
     eligible entities are providing, coordinating, or partnering 
     with means-tested support services for low and moderate-
     income individuals and families above the official poverty 
     line. Nothing in this paragraph shall be construed to prevent 
     eligible entities from continuing to support individuals and 
     families during their transition from program eligibility to 
     achieve specific goals for their economic security and long-
     term self-sufficiency as long as priority is given to serving 
     the lowest income individuals who seek services.''.

     [SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

       [Section 674 of the Community Services Block Grant Act (42 
     U.S.C. 9903) is amended--
       [(1) in subsection (a), by striking ``1999 through 2003'' 
     and inserting ``2004 through 2009''; and
       [(2) in subsection (b)(2)--
       [(A) in subparagraph (A), by striking ``or associations'' 
     and inserting ``and associations''; and
       [(B) in subparagraph (B)--
       [(i) by striking ``\1/2\   of the remainder'' and inserting 
     ``not less than \1/2\ of the remainder''; and
       [(ii) by striking ``evaluation and'' and inserting 
     ``evaluation and training and technical assistance activities 
     and''.

     [SEC. 104. ESTABLISHMENT OF PROGRAM.

       [Section 675 of the Community Services Block Grant Act (42 
     U.S.C. 9904) is amended by striking ``through the program'' 
     and all that follows through the period and inserting ``to 
     States for the purpose of ameliorating the causes of poverty 
     and the conditions caused by poverty in their communities.''.

     [SEC. 105. USE OF FUNDS.

       [Section 675C(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9907) is amended--
       [(1) in paragraph (1)--
       [(A) in subparagraph (A), by striking ``entities in need of 
     such training and assistance'' and inserting ``eligible 
     entities and their statewide associations that strengthens 
     their managerial or programmatic capabilities to reduce 
     poverty''; and
       [(B) by striking subparagraphs (B) through (H), and 
     inserting the following:
       [``(B) supporting statewide coordination and communication 
     among eligible entities and State-operated or supported 
     programs and services, and other locally-operated programs 
     and services targeted to low-income individuals and their 
     children and families, so as to ensure that local eligible 
     entities' services are integrated in a manner that allows 
     such low-income individual and their families to have access 
     to as many sources of assistance as are appropriate to 
     support their progress to economic stability and self-
     sufficiency;
       [``(C) supporting innovative partnerships, programs, and 
     activities conducted by community action agencies and their 
     partners including other community-based organizations to 
     eliminate poverty, promote self-sufficiency, and promote 
     community revitalization, including asset-building programs 
     for low-income individuals, such as programs supporting 
     individual development accounts, and home or business 
     ownership;
       [``(D) analyzing the distribution of funds made available 
     under this subtitle within the State to determine if such 
     funds have been targeted to the areas of greatest need;
       [``(E) supporting State charity tax credits as described in 
     subsection (c);

[[Page 2133]]

       [``(F) supporting the identification of exemplary grantee 
     agencies or programs as Centers of Innovation and methodology 
     for disseminating innovative programs and other best 
     practices from those agencies statewide;
       [``(G) supporting the development of eligible entities' 
     partnerships with local law enforcement agencies, local 
     housing authorities, private foundations, and other public 
     and private partners; and
       [``(H) supporting other activities, consistent with the 
     purposes of this subtitle.'';
       [(2) in paragraph (2), by adding at the end the following: 
     ``. The State shall also ensure that all funds distributed 
     under subsection (a) are not used for excessive 
     administrative expenses and that all funds distributed under 
     such subsection used for salaries by a local entity are fair 
     and equitable. The State has the authority to determine the 
     appropriate level of funds distributed under subsection (a) 
     that an eligible entity shall use for administrative 
     expenses.''.

     [SEC. 106. APPLICATION AND PLAN.

       [Section 676 of the Community Services Block Grant Act (42 
     U.S.C. 9908) is amended--
       [(1) in subsection (b)--
       [(A) in the matter preceding paragraph (1), by inserting 
     ``for the Secretary's approval'' after ``to the Secretary'';
       [(B) by striking paragraphs (1) through (6) and inserting 
     the following:
       [``(1) an assurance that funds made available through the 
     grant or allotment will be used--
       [``(A) to support activities directly and through eligible 
     entities that are designed to expand opportunities for and 
     assist low-income individuals and their families (including 
     low-income workers) to become self-sufficient, including low-
     income workers, families, and individuals receiving 
     assistance under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.), homeless families and 
     individuals, migrant or seasonal farmworkers, and elderly 
     low-income individuals and families, and a description of how 
     such activities will enable the families and individuals--
       [``(i) to remove obstacles and solve problems that block 
     the achievement of self-sufficiency by organizing and 
     coordinating support for those served under paragraph (3);
       [``(ii) to secure and retain employment that provides 
     adequate income with essential benefits;
       [``(iii) to attain an adequate education, with particular 
     attention toward improving literacy and communications and 
     technical skills of the low-income families in the 
     communities involved;
       [``(iv) to make better use of available income and build 
     household assets;
       [``(v) to obtain and maintain adequate housing and a 
     suitable living environment;
       [``(vi) to obtain assistance that is needed to resolve 
     family emergencies and individual needs, to prevent further 
     hardships, and to secure economic independence; and
       [``(vii) to participate fully in the public affairs and 
     management of their communities and the governance of 
     eligible entities; and
       [``(B) to make more effective use of, and to coordinate 
     with, other programs related to the purposes of this subtitle 
     (including State welfare reform efforts);
       [``(2) a description of how the State intends to use 
     discretionary funds made available from the remainder of the 
     grant or allotment described in section 675C(b) in accordance 
     with this subtitle, including a description of how the State 
     will support innovative community-based initiatives of 
     eligible entities and their partners related to the purposes 
     of this subtitle;
       [``(3) an assurance that the State has integrated programs 
     of general relevance in its plan, to the extent appropriate 
     to the needs of low-income communities served by the eligible 
     entities, including a description of innovative community and 
     neighborhood-based initiatives such as--
       [``(A) initiatives with the goal of strengthening families 
     and encouraging effective parenting, including fatherhood 
     initiatives;
       [``(B) initiatives to assist those moving from welfare to 
     work to obtain jobs at decent wages with benefits, including 
     those low-income individuals and their families who are 
     attempting to transition off a State program carried out 
     under part A of title IV of the Social Security Act;
       [``(C) programs for the establishment of violence-free 
     zones that would involve youth development and intervention 
     models that promote youth success (such as models involving 
     youth mediation, youth mentoring, life skills training, job 
     creation, and entrepreneurship programs);
       [``(D) family literacy initiatives;
       [``(E) initiatives to increase the development of household 
     assets of individuals such as individual development accounts 
     and homeownership opportunities;
       [``(F) public and private partnerships to foster community 
     development, affordable housing, job creation, and other 
     means of building the assets of low-income communities;
       [``(G) partnerships with local law enforcement agencies, 
     which may include participation in community policing, and 
     activities to assist community residents and public safety 
     officials in the event of emergencies, including threats to 
     national security;
       [``(H) initiatives to improve economic conditions and 
     mobilize new resources in rural areas and other at-risk areas 
     to eliminate obstacles to the self sufficiency of families 
     and individuals in those communities;
       [``(I) initiatives to help reduce the concentration of 
     poverty in cities and inner suburbs and provide economic 
     opportunities for individuals and families in those areas; 
     and
       [``(J) partnerships with nonprofit or community-based 
     organizations that demonstrate effectiveness in child abuse 
     prevention, including with programs that are school-based and 
     that focus on adolescent victims, and victimizers;
       [``(4) an assurance that the State will provide 
     information, including--
       [``(A) a description of the State measurement system and 
     results for the performance goals established under section 
     678E(a)(1)(C);
       [``(B) a description of the service delivery system, for 
     services provided or coordinated with funds made available 
     through grants made under section 675C(a), targeted to low-
     income individuals and families in communities within the 
     State;
       [``(C) a description of how linkages will be developed to 
     fill identified gaps in the services, through the provision 
     of information, referrals, case management, and followup 
     consultations, and to support mobilization of new resources 
     and partnerships;
       [``(D) a description of how funds made available through 
     grants made under section 675C(a) will be coordinated with 
     other public and private resources; and
       [``(E) a description of how the local entity will use the 
     funds to support innovative community and neighborhood-based 
     initiatives related to the purposes of this subtitle;
       [``(5) an assurance that eligible entities in the State 
     will provide, on an emergency basis, for the provision of 
     such supplies and services, nutritious foods, and related 
     services, as may be necessary to counteract conditions of 
     starvation and malnutrition among low-income individuals;
       [``(6) an assurance that the State has, to avoid 
     duplication of such services, and to ensure that program gaps 
     are addressed, identified and coordinated with eligible 
     entity programs, with State and local agencies, and with 
     programs that assist low-income individuals and their 
     families, including--
       [``(A) programs carried out under part A of title IV of the 
     Social Security Act, the Workforce Investment Act, and other 
     programs designed to coordinate work-related supportive 
     services for families;
       [``(B) programs for expanding housing opportunities, 
     reducing homelessness, and developing community investment 
     projects;
       [``(C) education programs, including those for preschool 
     and school-aged children and for adults to obtain an adequate 
     education; and
       [``(D) programs designed to support youth, the homeless, 
     migrants, senior citizens, and individuals with disabilities, 
     including programs under the Low-Income Home Energy 
     Assistance Act of 1981;'';
       [(C) in paragraph (12), by striking ``not later than fiscal 
     year 2001'' and inserting ``annually'';
       [(D) in paragraph (13), by striking the period and 
     inserting ``in sufficient detail to permit verification; 
     and'';
       [(E) by adding at the end the following:
       [``(14) beginning with fiscal year 2006, and in each fiscal 
     year thereafter, an assurance that the State is using the 
     procedures described in section 678B(b) to monitor eligible 
     entities.''; and
       [(2) by striking subsection (f).

     [SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDERSERVED 
                   AREAS.

       [Section 676A(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9909(b)) is amended by adding at the end the 
     following: ``In granting such designation, the State shall 
     deem private nonprofit eligible entities that are providing 
     related services in the unserved area to be of demonstrated 
     effectiveness, consistent with the needs identified by a 
     community needs assessment.''.

     [SEC. 108. TRIPARTITE BOARDS.

       [Section 676B(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9910(b)) is amended--
       [(1) by striking ``through--'' and all that follows through 
     ``a tripartite'' in paragraph (1) and inserting ``through a 
     tripartite'';
       [(2) by striking paragraph (2);
       [(3) in subparagraph (C), by striking ``; or'' and 
     inserting a period; and
       [(4) by redesignating subparagraphs (A) through (C) as 
     paragraph (1) through (3), respectively and realigning the 
     margins of such paragraphs accordingly.

     [SEC. 109. TRAINING, TECHNICAL ASSISTANCE, AND OTHER 
                   ACTIVITIES.

       [Section 678A of the Community Services Block Grant Act (42 
     U.S.C. 9913) is amended--
       [(1) in subsection (a)(1)--
       [(A) in subparagraph (A), by striking ``corrective action'' 
     and all that follows through ``; and'' and inserting 
     ``monitoring and such additional corrective actions as may be 
     needed to strengthen the management and programmatic 
     practices of eligible entities;'';
       [(B) by striking subparagraph (B) and inserting the 
     following:
       [``(B) for State and local performance reporting and 
     program data collection activities related to programs 
     carried out under this subtitle;

[[Page 2134]]

       [``(C) for the preparation of reports provided for in 
     section 678F;
       [``(D) for the development and promulgation of a common 
     State Financial and Organizational Protocol that is required 
     to be used by States under section 678B(b); and
       [``(E) to distribute amounts in accordance with subsection 
     (c).'';
       [(2) in subsection (b)(2), by striking ``an ongoing 
     procedure for obtaining input from the national and State 
     networks of eligible entities'' and inserting ``a strategic 
     plan for annual technical assistance developed in 
     consultation with the national and State networks of eligible 
     entities regarding their management support needs''; and
       [(3) in subsection (c)(1), by striking ``management 
     information'' and all that follows through the period, and 
     inserting ``improving management information and reporting 
     systems, measuring of program results, ensuring 
     responsiveness to identified local needs, and reporting and 
     disseminating successful practices and initiatives''.

     [SEC. 110. MONITORING.

       [Section 678B of the Community Services Block Grant Act (42 
     U.S.C. 9914) is amended--
       [(1) in the section heading by striking ``OF ELIGIBLE 
     ENTITIES'';
       [(2) in subsection (a)--
       [(A) by striking the subsection heading and inserting 
     ``Monitoring of Eligible Entities'';
       [(B) in paragraph (1)--
       [(i) by inserting ``biennial'' after ``onsite''; and
       [(ii) by striking ``at least once during each 3 year 
     period'';
       [(C) by striking paragraph (2);
       [(D) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       [(E) in paragraph (2) (as so redesignated), by inserting 
     ``annual'' after ``Follow-up'';
       [(3) by redesignating subsections (b) and (c) as subsection 
     (c) and (d), respectively;
       [(4) by inserting after subsection (a) the following:
       [``(b) Financial and Organizational Assessment Protocol.--
     Beginning in fiscal year 2006, States shall implement a 
     financial and organizational assessment protocol to monitor 
     and evaluate the compliance of eligible entities with the 
     financial and administrative requirements of this section. 
     Such protocol shall incorporate the fiscal and organizational 
     review procedures and standards appropriate to the management 
     of Federal funds under this subtitle and the governance of 
     the eligible private non-profit corporations or other 
     eligible entities. The Secretary shall require the protocol 
     to be developed jointly by the States and eligible entities 
     and shall assist States in developing appropriate training 
     for personnel monitoring the uses of funds under this 
     subtitle according to the requirements of this section.''; 
     and
       [(5) in subsection (d), as so redesignated, strike the last 
     sentence and insert the following: ``The Secretary shall 
     annually submit a report including the results of the 
     evaluations conducted under this subtitle, the State 
     performance reports provided for pursuant to section 
     678E(a)(1)(C), and other material as provided by section 
     678E(b)(2) to the Committee on Education and the Workforce of 
     the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate.''.

     [SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF 
                   FUNDING.

       [Section 678C of the Community Services Block Grant Act (42 
     U.S.C. 9915) is amended--
       [(1) in subsection (a)--
       [(A) in paragraph (4), by striking ``and'' at the end; and
       [(B) by striking paragraph (5) and inserting the following:
       [``(5) if the eligible entity fails to correct the 
     deficiency, notify the entity--
       [``(A) that the State intends to initiate proceedings to 
     terminate the designation of the entity as an eligible entity 
     or to reduce, from the previous year, the proportion of the 
     total funding received by the State under this subtitle that 
     is allocated to the eligible entity;
       [``(B) that the eligible entity has the right to a hearing 
     on the record to determine if there is cause for such 
     termination or reduction in funding, as defined in section 
     676(c), and that the request for a hearing must be made in 
     writing to the State within 30 days of receipt of the notice 
     from the State; and
       [``(C) of the legal basis for the proposed termination or 
     reduction in funding, the factual findings on which the 
     proposed termination or reduction in funding is based or a 
     reference to specific findings in another document that form 
     the basis for the proposed termination or reduction in 
     funding (such as a reference to item numbers in an on-site 
     review report or instrument), and citation to any statutory 
     provisions, agreements, regulations, or State plan; and
       [``(6) if the eligible entity requests a hearing, conduct a 
     hearing on the record to determine if there is cause for 
     termination or a reduction in funding, as defined in section 
     676(c).'';
       [(2) in subsection (b)--
       [(A) by striking ``review such a determination'' and 
     inserting ``review and either approve, or disapprove and 
     reverse, such a determination'';
       [(B) by striking ``90 days'' each place that such appears 
     and inserting ``30 days''; and
       [(C) by striking ``90th day'' and inserting ``30th day''; 
     and
       [(3) in subsection (c), by adding at the end the following: 
     ``The Secretary shall continue to fund an eligible entity, in 
     an amount equal to the same proportion of total funds 
     received by the State under this subtitle as was allocated to 
     the eligible entity the previous year, until the Secretary 
     approves, or disapproves and reverses, the determination of 
     termination or reduction in funding with respect to the 
     State.''.

     [SEC. 112. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.

       [Section 678D of the Community Services Block Grant Act (42 
     U.S.C. 9916) is amended--
       [(1) in subsection (a)(1)--
       [(A) in subparagraph (C), by striking ``and'' at the end;
       [(B) by redesignating subparagraph (D) as subparagraph (F); 
     and
       [(C) by inserting after subparagraph (C), the following:
       [``(D) notwithstanding paragraph (2)(B), beginning in 
     fiscal year 2005, and not less than every 2 years thereafter, 
     each State shall submit to the Secretary a separate audit of 
     the funds appropriated under this subtitle that meets the 
     standards in paragraph (2)(A); and
       [``(E) submit full financial reports to the Secretary not 
     later than 6 months following the end of each fiscal year; 
     and''; and
       [(2) in subsection (b)(1), by adding at the end the 
     following: ``The Secretary, after providing adequate notice, 
     shall withhold administrative funds described in section 
     675C(b)(2) from any State that fails to comply with the 
     provisions of sections 678A through 678D(a), and may, after 
     an opportunity for a hearing conducted within the affected 
     State, withhold funds from the State and provide such funds 
     directly to the eligible entities in such State upon a 
     demonstration of the compliance by such entities with the 
     requirements of this subtitle.''

     [SEC. 113. ACCOUNTABILITY AND REPORTING REQUIREMENT.

       [Section 678E of the Community Services Block Grant Act (42 
     U.S.C. 9917) is amended to read as follows:

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

       [``(a) State Accountability and Reporting Requirements.--
       [``(1) Performance measurement of eligible entities.--
       [``(A) In general.--Each State that receives funds under 
     this subtitle shall participate, and shall ensure that all 
     eligible entities in the State participate, in a performance 
     measurement system, which may be a performance measurement 
     system for which the Secretary facilitated development 
     pursuant to subsection (b), or an alternative system that the 
     Secretary is satisfied meets the requirements of subsection 
     (b).
       [``(B) Local agencies.--The State may elect to have local 
     agencies that are subcontractors of the eligible entities 
     under this subtitle participate in the performance 
     measurement system. If the State makes that election, 
     references in this section to eligible entities shall be 
     considered to include the local agencies.
       [``(C) Performance measurement of states.--Not later than 1 
     year after the date of enactment of the Poverty Reduction and 
     Prevention Act, the Secretary shall establish, in 
     consultation with States and eligible entities, performance 
     standards for the State administration of block grant funds. 
     Such standards shall include standards relating to--
       [``(i) the timeliness of the availability of State plans 
     for public comment as required under section 676(a)(2)(B) and 
     of submission of such plans to the Secretary as required in 
     section 676(b);
       [``(ii) the utilization of the financial and organizational 
     assessment protocol established under section 678B(b), 
     including the training and skills of State personnel 
     responsible for such oversight, the completion of annual 
     monitoring, the identification of opportunities for 
     improvement, and the implementation of plans to enhance the 
     management capacity and infrastructure of eligible entities;
       [``(iii) the timeliness of the distribution of block grants 
     funds to eligible entities as provided in section 675C(a);
       [``(iv) the resources made available for management 
     development at eligible entities, including monitoring, 
     training, and assistance with financial management and 
     program information and assessment systems;
       [``(v) the results of State efforts to coordinate eligible 
     entity programs with other State programs for low-income 
     individuals and their families, especially participants in 
     the Temporary Assistance for Needy Families Program and other 
     working families, and to ensure the participation of eligible 
     entities in the development of statewide strategies to reduce 
     poverty; and
       [``(vi) the assistance provided to eligible entities in 
     securing private partnerships as required in section 676(b).
       [``(2) Annual report.--Each State shall annually prepare 
     and submit to the Secretary a report on the measured 
     performance of the State and the eligible entities in the

[[Page 2135]]

     State. The State shall include in the report any information 
     collected by the State relating to such performance. Each 
     State shall also include in the report an accounting of the 
     expenditure of funds received by the State through the 
     community services block grant program, including an 
     accounting of funds spent on administrative costs by the 
     State and the eligible entities, funds spent by eligible 
     entities on the direct delivery of local services, and the 
     achievement of national goals established under the 
     procedures described in this section, and shall include 
     information on the number of and characteristics of clients 
     served under this subtitle in the State, based on data 
     collected from the eligible entities. The State shall also 
     include in the report a summary describing the training and 
     technical assistance offered by the State under section 
     678C(a)(3) during the year covered by the report.
       [``(b) Local Entity Accountability and Reporting 
     Requirements.--
       [``(1) Local entity determined goals.--In order to be 
     designated as an eligible entity and to receive a grant under 
     this subtitle, a grantee shall establish grantee determined 
     goals for reducing poverty in the community, including goals 
     for--
       [``(A) leveraging community resources;
       [``(B) fostering coordination of Federal, State, local, 
     private, and other assistance; and
       [``(C) promoting community involvement.
       [``(2) Demonstration that goals were met.--In order to 
     receive a grant subsequent to the first grant that is 
     provided to an eligible entity following the date of 
     enactment of the Poverty Reduction and Prevention Act, the 
     entity shall demonstrate to the State that substantial 
     progress has been made in meeting the goals of the entity as 
     described in paragraph (1).
       [``(3) Goals or performance measures.--Any specific goals 
     or performance measures, for an individual eligible entity, 
     that are used in any monitoring or review process under this 
     subtitle, shall be--
       [``(A) determined by the entity;
       [``(B) agreed on by the State involved and the entity, 
     during the planning process leading to the grant involved; 
     and
       [``(C) incorporated into the grant agreement between the 
     State and entity for each subsequent award cycle.
       [``(c) Secretary's Accountability and Reporting 
     Requirements.--
       [``(1) Federal performance measurement.--The Secretary 
     shall establish goals for the Department of Health and Human 
     Services Office of Community Services with respect to--
       [``(A) the timeliness of the distribution of funds under 
     this subtitle, including funds for training and technical 
     assistance;
       [``(B) the monitoring of States as provided for in section 
     678D;
       [``(C) the coordination of other Office of Community 
     Service programs with the activities of States and eligible 
     entities under this subtitle; and
       [``(D) the full and timely reporting as required in this 
     section.
       [``(2) Local performance measurement.--
       [``(A) In general.--To the maximum extent practicable, the 
     Secretary shall coordinate reporting requirements for all 
     programs of the Department of Health and Human Services that 
     are managed by eligible entities so as to consolidate and 
     reduce the number of reports required relating to 
     individuals, families, and uses of grant funds, specifically 
     funds under the Head Start Act, the Low-Income Home Energy 
     Assistance Act of 1981, child care programs administered by 
     the Department, and health related service programs 
     administered by the Department.
       [``(B) Technical assistance.--The Secretary shall provide 
     technical assistance, including support for the enhancement 
     of electronic data systems, to States and to eligible 
     entities to enhance their capability to collect and report 
     data for such a system and to aid in their participation in 
     such a system.
       [``(C) Local entity performance measurement system.--The 
     Secretary shall assist in the implementation of a local 
     entity performance measurement system, and other voluntary 
     programmatic and results reporting systems, developed by 
     States, eligible entities, and their national associations 
     acting together. The Secretary and the developers of such 
     systems shall ensure that the set of measures are numerous 
     enough to cover the full range of services offered by all 
     local eligible entities. Under such a system, local eligible 
     entities shall only be compelled to collect data on the 
     subset of performance measures that reflect their community-
     specific programs and services currently adopted. Grantees 
     shall not be required under this subparagraph to alter the 
     collection of data for any reports provided for other 
     programs within the Department of Health and Human Services 
     or other Federal agencies. States shall compile annual 
     Results Oriented Management and Accountability System reports 
     for the Secretary under this subparagraph.
       [``(3) Reporting requirements.--For each fiscal year the 
     Secretary shall, directly or by grant or contract, prepare a 
     report containing--
       [``(A) a summary of the planned use of funds by each State, 
     and the eligible entities in the State, under the community 
     services block grant program, as contained in each State plan 
     submitted pursuant to section 676;
       [``(B) a description of how funds were actually spent by 
     the State and eligible entities in the State, including a 
     breakdown of funds spent on administrative costs and on the 
     direct delivery of local programs by eligible entities;
       [``(C) information on the number of entities eligible for 
     funds under this subtitle, the number of low-income persons 
     served under this subtitle, and such demographic data on the 
     low-income populations served by eligible entities as is 
     determined by the Secretary to be feasible;
       [``(D) a comparison of the planned uses of funds for each 
     State and the actual uses of the funds;
       [``(E) a summary of each State's performance results, and 
     the results for the eligible entities, as collected and 
     submitted by the States in accordance with subsection (a)(2); 
     and
       [``(F) any additional information that the Secretary 
     considers to be appropriate to carry out this subtitle, if 
     the Secretary informs the States of the need for such 
     additional information and allows a reasonable period of time 
     for the States to collect and provide the information.
       [``(4) Submission.--The Secretary shall submit to the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions of the Senate the report described in 
     paragraph (2), and any comments the Secretary may have with 
     respect to such report. The report shall include definitions 
     of direct and administrative costs used by the Department of 
     Health and Human Services for programs funded under this 
     subtitle.
       [``(5) Costs.--Of the funds reserved under section 
     674(b)(3), not more than $500,000 shall be available to carry 
     out the reporting requirements contained in paragraph (3).''.

     [SEC. 114. LIMITATIONS ON USE OF FUNDS.

       [Section 678F(c)(1) of the Community Services Block Grant 
     Act (42 U.S.C. 9918(c)(1)) is amended by inserting 
     ``religion,'' after ``race,''.

     [SEC. 115. OPERATIONAL RULE.

       [Section 679(a) of the Community Services Block Grant Act 
     (42 U.S.C. 9920(a)) is amended by inserting ``and such 
     organization meets the requirements of this subtitle'' before 
     the first period;

     [SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY.

       [Section 680 of the Community Services Block Grant Act (42 
     U.S.C. 9921) is amended--
       [(1) in subsection (a)--
       [(A) in paragraph (2)--
       [(i) by redesignating subparagraphs (B) through (E) as 
     subparagraph (D) through (G), respectively;
       [(ii) by striking subparagraph (A) and inserting the 
     following:
       [``(A) Economic development activities.--The Secretary 
     shall make grants described in paragraph (1) on a competitive 
     basis to private, nonprofit organizations that are community 
     development corporations to provide technical and financial 
     assistance for economic development activities, including 
     business, economic, and community development projects, 
     designed to address the economic needs of low-income 
     individuals and families by creating employment and business 
     development opportunities. Such assistance shall include--
       [``(i) long term loans (up to 15 years) or investments for 
     private business enterprises;
       [``(ii) providing capital to businesses owned by community 
     development corporations; and
       [``(iii) marketing and management assistance for businesses 
     providing jobs and business opportunities to low income 
     individuals.
       [``(B) Federal interest.--
       [``(i) In general.--The Secretary shall establish 
     procedures that permit a grantee who receives funds under a 
     grant to carry out this paragraph, or intangible assets 
     acquired with such funds, to become the sole owner of the 
     funds or assets before the end of the 12-year period 
     beginning at the end of the fiscal year for which the grant 
     is made.
       [``(ii) Conditions.--To be eligible to become the sole 
     owner, the grantee shall agree--
       [``(I) to use the funds or assets for the purposes and uses 
     for which the grant was made, or purposes and uses consistent 
     with this subtitle, during and after the 12-year period 
     described in clause (i), whether or not the grantee continues 
     to be supported by Federal funds; and
       [``(II) that, when the grantee no longer needs the funds or 
     assets for purposes and uses described in subclause (I), the 
     grantee shall request instructions from the Secretary about 
     the disposition of the funds or assets.
       [``(iii) Encumbering.--The grantee may not encumber the 
     assets without the approval of the Secretary.
       [``(C) Administrative requirements.--In a case in which an 
     eligible project under grant made under this section cannot, 
     for good cause, be implemented, the Secretary shall establish 
     a policy to permit the substitution of other eligible 
     projects. Such policy shall require that such project have 
     the same impact area, the same goals, and the same objectives 
     as the original project and outcomes

[[Page 2136]]

     that are substantially the same as the original project.'';
       [(iii) in subparagraph (E) (as so redesignated), by 
     striking ``community'' and inserting ``service area''; and
       [(iv) in subparagraph (G) (as so redesignated), by striking 
     ``1 percent'' and inserting ``2 percent''; and
       [(B) in paragraph (3)(B), by striking ``community'' and 
     inserting ``water and waste water''; and
       [(C) in paragraph (4), by striking ``individual and 
     families'' and inserting ``individual and their families''; 
     and
       [(2) in subsection (c), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''.

     [SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS.

       [Section 681 of the Community Services Block Grant Act (42 
     U.S.C. 9922) is amended--
       [(1) in subsection (c), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''; and
       [(2) in subsection (d), by striking ``1999 through 2003'' 
     and inserting ``2004 through 2009''.

     [SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
                   INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

       [Section 682 of the Community Services Block Grant Act (42 
     U.S.C. 9923) is amended--
       [(1) in subsection (b)(2), by striking ``or treatment''; 
     and
       [(2) in subsection (g), by striking ``$15,000,000 for each 
     of fiscal years 1999 through 2003'' and inserting 
     ``$18,000,000 for each of fiscal years 2004 through 2009''.

     [SEC. 119. SHORT TITLE AND CONFORMING AMENDMENTS.

       [(a) In General.--Section 671 of the Community Services 
     Block Grant Act (42 U.S.C. 9901 note) is amended by striking 
     ``Community Services Block Grant Act'' and inserting 
     ``Poverty Reduction and Prevention Act''.
       [(b) Conforming Amendments.--
       [(1) Community services block grant act.--The heading for 
     subtitle B of title VI of the Omnibus Budget Reconciliation 
     Act of 1981 is amended to read as follows:

       [``Subtitle B--Poverty Reduction and Prevention Program''.

       [(2) Other provisions of law.--The following provisions of 
     law are each amended by striking ``Community Services Block 
     Grant Act'' each place that such appears and inserting 
     ``Poverty Reduction and Prevention Act'':
       [(A) Section 307(a)(3)(A) of the Consolidated Farm and 
     Rural Development Act (7 U.S.C. 1927(a)(3)(A)).
       [(B) Section 5(c)(1) of the Food Stamp Act of 1977 (7 
     U.S.C. 2014(c)(1)).
       [(C) Section 201A(7) of the Emergency Food Assistance Act 
     of 1983 (7 U.S.C. 7501(7)).
       [(D) Section 172(13) of the Program for Investment in 
     Microentrepreneurs Act of 1999 (15 U.S.C. 6901(13)).
       [(E) Sections 201(b)(3), 435(o)(1)(A)(ii), and 
     435(o)(1)(B)(ii) of the Higher Education Act of 1965 (20 
     U.S.C. 1021(b)(3), 1085(o)(1)(A)(ii), and 1085(o)(1)(B)(ii)).
       [(F) Section 131(b)(2) of the Carl D. Perkins Vocational 
     and Applied Technology Education Act (20 U.S.C. 2351(b)(2)).
       [(G) Section 9109(33) of the Elementary and Secondary 
     Education Act of 1965 (20 U.S.C. 7801(33)).
       [(H) Section 231(a)(2) of the Museum and Library Services 
     Act (20 U.S.C. 9141(a)(2)).
       [(I) Sections 101(36), 112(b)(8)(A)(vii), 121(b)(1)(B)(x), 
     and 501(b)(2)(O) of the Workforce Investment Act of 1998 (29 
     U.S.C. 2801(36), 2822(b)(8)(A)(vii), and 2841(b)(1)(B)(x), 
     and 20 U.S.C. 9271((b)(2)(O)).
       [(J) Section 303(9) of the Early Learning Opportunities Act 
     (20 U.S.C. 9402(9)).
       [(K) Sections 6501(4)(B) and 6703(a)(2) of title 31, United 
     States Code.
       [(L) Section 549(c)(3)(B)(ii) of title 40, United States 
     Code.
       [(M) Section 317M(c)(3)(B)(ii) of the Public Health Service 
     Act (42 U.S.C. 247b-14(c)(3)(B)(ii)).
       [(N) Section 2110(c)(5) of the Social Security Act (42 
     U.S.C. 1397jj(c)(5)).
       [(O) Sections 102(38), 203(b)(13), 213, 306(a)(6)(C), and 
     503(b)(2) of the Older Americans Act of 1965 (42 U.S.C. 
     3002(38), 3013(b)(13), 3020d, 3026(a)(6)(C), and 
     3056a(b)(2)).
       [(P) Sections 103(a)(6), 105(b)(2)(A), 211(e)(1), and 
     421(6) of the Domestic Volunteer Service Act of 1973 (42 
     U.S.C. 4953(a)(6), 4955(b)(2)(A), 5011(e)(1), and 5061(6)).
       [(Q) Sections 2603(8) and 2607B(e)(2)(B)(i) of the Low-
     Income Home Energy Assistance Act of 1981 (42 U.S.C. 8622(8) 
     and 8626b(e)(2)(B)(i)).
       [(R) Sections 407(b)(2) and 408(a)(1)(C) of the Human 
     Services Reauthorization of 1986 (42 U.S.C. 9812a(b)(2) and 
     9925(a)(1)(C)).
       [(S) Section 630(a) of the Community Economic Development 
     Act of 1981 (42 U.S.C. 9819(a)).
       [(T) Sections 158(b) and 178(i)(1) of the National and 
     Community Service Act of 1990 (42 U.S.C. 12618(b) and 
     12638(i)(1)).
       [(U) The 5th unnumbered paragraph (relating to poverty 
     line) of section 30401 of the Community Schools Youth 
     Services and Supervision Grant Program Act of 1994 (42 U.S.C. 
     13791).

              [TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

     [SEC. 201. SHORT TITLE.

       [This title may be cited as the ``Low-Income Home Energy 
     Assistance Amendments of 2003''.

     [SEC. 202. REAUTHORIZATION.

       [(a) In General.--Section 2602(b) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 
     in the first sentence by striking ``such sums'' and all that 
     follows through the period and inserting ``and $3,400,000,000 
     for each of fiscal years 2004 through 2006, and such sums as 
     may be necessary for each fiscal year thereafter.''.
       [(b) Program Year.--Section 2602(c) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(c)) is amended 
     by inserting ``authorized'' after ``programs and 
     activities''.
       [(c) Incentive Program for Leveraging Non-Federal 
     Resources.--Section 2602(d) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621(d)) is amended--
       [(1) in paragraph (1), by striking ``1994 through 2004'' 
     and inserting ``2004 through 2010''; and
       [(2) in paragraph (2), ``1994 through 2004'' and inserting 
     ``2004 through 2010''.

     [SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES.

       [Section 2604(e) of the Low-Income Home Energy Assistance 
     Act of 1981 (42 U.S.C. 8623(e)) is amended by adding at the 
     end the following flush sentences:

     ``Notwithstanding any other provision of this section, for 
     purposes of making determinations under section 2603(1)(C), 
     if the Secretary determines that there is an increase of at 
     least 20 percent in the cost of home energy over the previous 
     5-year average for a duration of a month or more in one or 
     more States or regions, the Secretary shall declare an energy 
     emergency in the affected area and shall make available funds 
     as provided in this subsection. Notwithstanding any other 
     provision of this section, for purposes of making such 
     determinations, if the Secretary determines that the number 
     of heating degree days or cooling days for a month was more 
     than 100 above the 30-year average in one or more States or 
     regions, the Secretary shall declare an energy emergency in 
     the affected area and shall make available funds as provided 
     in this subsection.''.

     [SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.

       [(a) Evaluation.--The Comptroller General of the United 
     States shall conduct an evaluation of the Residential Energy 
     Assistance Challenge program described in section 2607B of 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8626b).
       [(b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall prepare and submit to the Committee on Education 
     and the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate a report containing--
       [(1) the findings resulting from the evaluation described 
     in subsection (a); and
       [(2) the State evaluations described in paragraphs (1) and 
     (2) of section 2607B(b) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8626b(b)).

     [SEC. 205. REPORT TO CONGRESS.

       [(a) Study.--
       [(1) In general.--The Secretary of Health and Human 
     Services shall conduct a study on the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621 et seq.)
       [(2) Requirements.--In conducting the study under 
     subparagraph (A), the Secretary of Health and Human Services 
     shall--
       [(A) evaluate the performance of the Low-Income Home Energy 
     Assistance Program, including who the program is serving, the 
     benefits of the program to recipients, and the ability of the 
     program to reduce utility arrearage and shut-offs among low-
     income households;
       [(B) develop a protocol for States to collect information 
     from energy distribution companies, including electric, 
     natural gas, heating oil, and propane companies, concerning 
     the following residential customer statistics--
       [(i) the number of accounts certified as eligible for 
     energy assistance;
       [(ii) the number of accounts certified as eligible for 
     energy assistance and that are past due;
       [(iii) the total revenue owed on accounts eligible for 
     energy assistance and that are past due;
       [(iv) the number of disconnection notices issued on 
     accounts eligible for energy assistance;
       [(v) the number of disconnections for nonpayment;
       [(vi) the number of reconnections;
       [(vii) the number of accounts eligible for energy 
     assistance and determined uncollectible; and
       [(viii) the energy burden of accounts eligible for energy 
     assistance;
       [(C) analyze the public health and safety threats of 
     hypothermia and hyperthermia due to a lack of home heating or 
     home cooling, including mortality, morbidity, and decrease in 
     caloric intake;
       [(D) analyze the affect of the standard of housing and 
     housing age on energy costs to low-income households;

[[Page 2137]]

       [(E) evaluate regional difference in cost-of-living and the 
     ability of low-income families to meet home energy 
     requirements; and
       [(F) determine the programmatic impacts of using 60 percent 
     of State median income to determine low-income households.
       [(b) Report.--Not later than 24 months after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to Congress a report containing the 
     results of the study conducted under subsection (a).
       [(c) Definition.--In this section, the term ``State'' means 
     each of the 50 States and the District of Columbia.
       [(d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subsection such sums as 
     may be necessary for each of fiscal year 2004 and 2005.
       [(e) Contracts.--Using amounts appropriated under 
     subsection (d), the Secretary of Health and Human Services 
     may enter into contracts or jointly financed cooperative 
     agreements or interagency agreements with States and public 
     agencies and private nonprofit organizations to conduct the 
     study under subsection (a).

                [TITLE III--ASSETS FOR INDEPENDENCE ACT

     [SEC. 301. SHORT TITLE.

       [This title may be cited as the ``Assets for Independence 
     Reauthorization Act''.

     [SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDEPENDENCE 
                   ACT.

       [(a) Definition of Qualified Expenses.--Section 404(8) of 
     the Assets for Independence Act (42 U.S.C. 604 note) is 
     amended--
       [(1) in subparagraph (A)--
       [(A) in the matter preceding clause (i), by inserting ``or 
     to a vendor following approval by a qualified entity upon 
     submission of an approved qualified education purchase plan'' 
     before the period; and
       [(B) by adding at the end the following:
       [``(iii) Qualified education purchase plan.--The term 
     `qualified education purchase plan' means a document that 
     explains the education item to be purchased which--
       [``(I) is approved by a qualified entity; and
       [``(II) includes a description of the good to be 
     purchased.'';
       [(2) in subparagraph (D), by striking ``eligible''; and
       [(3) by adding at the end the following:
       [``(E) Saving in idas for dependents.--Amounts paid to an 
     individual development account established for the benefit of 
     a dependent (as such terms is defined for purposes of 
     subparagraph (D)(ii)) of an eligible individual for the 
     purpose of post-secondary education.''.
       [(b) Repeal of Provision.--Section 405 of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by striking 
     subsection (g).
       [(c) Reserve Fund.--Section 407 of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended--
       [(1) in subsection (b)--
       [(A) in paragraph (1)--
       [(i) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       [(ii) by inserting before subparagraph (B) (as so 
     redesignated) the following:
       [``(A) all grant funds provided to the qualified entity 
     from the Secretary for the purpose of the demonstration 
     project as described under subsection (c)(1);'' and
       [(B) by adding at the end the following:
       [``(3) Rule of construction.--Nothing in paragraph (1)(A) 
     shall be construed to preclude a qualified entity from 
     depositing other demonstration project funds into the Reserve 
     Fund.''; and
       [(2) in subsection (d), by inserting ``the date that is 12 
     months after'' after ``upon the''.
       [(d) Use of Amounts.--Section 407(c) of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by adding at 
     the end the following:
       [``(4) Use of nonfederal funds.--
       [``(A) In general.--Notwithstanding paragraph (3), not more 
     than 20 percent of the amount of non-Federal funds committed 
     to a project as matching contributions in accordance with the 
     application submitted by the qualified entity under section 
     405(c)(4) shall be used by the qualified entity for the 
     purposes described in subparagraphs (A), (C), and (D) of 
     paragraph (1).
       [``(B) Priority.--In awarding grants under section 406(b), 
     the Secretary shall give priority to qualified entities that 
     submit applications that, with respect to the commitment of 
     non-Federal funds under section 5(c)(4), provide assurances 
     that are not to exceed 15 percent of such non-Federal funds 
     will be used by the qualified entity for the purposes 
     described in subparagraphs (A), (C), and (D) of paragraph 
     (1).''.
       [(e) Eligibility for Participation.--Section 408(a)(1) of 
     the Assets for Independence Act (42 U.S.C. 604 note) is 
     amended to read as follows:
       [``(1) Income test.--The--
       [``(A) gross income of the household is--
       [``(i) equal to or less than 200 percent of the poverty 
     line (as determined by the Office of Management and Budget);
       [``(ii) the earned income amount described in section 32 of 
     the Internal Revenue Code of 1986 (taking into account the 
     size of the household); or
       [``(iii) equal to or less than 80 percent of the Area 
     Median Income (as determined by the Department of Housing and 
     Urban Development); or
       [``(B) the modified adjusted gross income of the household 
     for the previous year does not exceed $18,000 for an 
     individual filer, $30,000 for a head of household, or $38,000 
     for a joint filer.''.
       [(f) Deposits by Qualified Entities.--Section 410 of the 
     Assets for Independence Act (42 U.S.C. 604 note) is amended--
       [(1) in subsection (a), by striking ``qualified entity--'' 
     and all that follows through the end and inserting the 
     following: ``qualified entity, a matching contribution of not 
     less than $0.50 and not more than $4 for every $1 of earned 
     income (as defined in section 911(d)(2) of Internal Revenue 
     Code of 1986) deposited in the account and interest earned on 
     that account by a project participant during that period. 
     Matching contributions shall be made--
       [``(1) from the non-Federal funds described in section 
     405(c)(4); and
       [``(2) from the grant made under section 406(b);
     ``based on a ratio relating to the sources of funds described 
     in paragraph (1) and (2) as determined by the qualified 
     entity.'';
       [(2) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively; and
       [(3) by inserting after subsection (a), the following:
       [``(b) Use of Excess Interest on Matching Funds Earned on 
     the Reserve Fund.--Interest that accrues on the matching 
     funds earned and held in the Reserve Fund, over and above the 
     interest required to match an individuals deposits and 
     interest earned in the individual development account, shall 
     be used by the qualified entity to fund existing individual 
     development accounts or additional individual development 
     accounts.''.
       [(g) Authorization of Appropriations.--Section 416 of the 
     Assets for Independence Act (42 U.S.C. 604 note) is amended 
     by striking ``and 2003'' and inserting ``and 2003, 
     $25,000,000 for fiscal year 2004, and such sums as may be 
     necessary for each of fiscal years 2005 through 2008,''.
       [(h) Application of Amendments.--In administering the 
     Assets for Independence Act (42 U.S.C. 604 note), the 
     Secretary of Health and Human Services may apply the 
     amendments made by this section to individual account holders 
     and entities that received grants under such Act either 
     before or after the date of enactment of this Act.]

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Poverty 
     Reduction and Prevention Act''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

              TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT

Sec. 101. Purposes.
Sec. 102. Definitions.
Sec. 103. Authorization of appropriations.
Sec. 104. Establishment of program.
Sec. 105. Use of funds.
Sec. 106. Application and plan.
Sec. 107. Designation of eligible entities in underserved areas.
Sec. 108. Tripartite boards.
Sec. 109. Training, technical assistance, and other activities.
Sec. 110. Monitoring.
Sec. 111. Corrective action; termination and reduction of funding.
Sec. 112. Fiscal controls, audits, and withholding.
Sec. 113. Accountability and reporting requirement.
Sec. 114. Limitations on use of funds.
Sec. 115. Operational rule.
Sec. 116. Discretionary authority of the Secretary.
Sec. 117. Community food and nutrition programs.
Sec. 118. National or regional programs designed to provide 
              instructional activities for low-income youth.

              TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

Sec. 201. Short title.
Sec. 202. Reauthorization.
Sec. 203. Natural disasters and other emergencies.
Sec. 204. Residential Energy Assistance Challenge option.
Sec. 205. Report to Congress.

                 TITLE III--ASSETS FOR INDEPENDENCE ACT

Sec. 301. Short title.
Sec. 302. Reauthorization of the Assets for Independence Act.

              TITLE I--COMMUNITY SERVICES BLOCK GRANT ACT

     SEC. 101. PURPOSES.

       Section 672 of the Community Services Block Grant Act (42 
     U.S.C. 9901) is amended to read as follows:

     ``SEC. 672. PURPOSES.

       ``The purpose of this subtitle is to reduce poverty--
       ``(1) by strengthening and coordinating local efforts to 
     expand opportunities for individuals and families to become 
     economically self-sufficient and to improve and revitalize 
     the communities in which low-income Americans live, by 
     providing resources to States for support of local eligible 
     entities and their partners to--

[[Page 2138]]

       ``(A) plan, coordinate, and mobilize a broad range of 
     Federal, State, local, and private assistance or investment 
     in such a manner as to use these resources effectively to 
     reduce poverty and in initiatives that are responsive to 
     specific local needs and conditions;
       ``(B) organize multiple services that meet the needs of 
     low-income families and individuals, especially low-wage 
     workers and their families, and that assist them in 
     developing the assets and skills needed to become self 
     sustaining while ensuring that these services are provided 
     efficiently, in appropriate combinations, and in effective 
     sequence; and
       ``(C) design and implement comprehensive approaches to 
     assist individuals transitioning from the program of block 
     grants to States for temporary assistance for needy families 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) to work;
       ``(2) by improving and revitalizing the communities in 
     which low-income Americans live by providing resources to--
       ``(A) broaden the financial resource base of initiatives 
     and projects directed to the elimination of poverty and the 
     re-development of the low-income community, including 
     partnerships with non-governmental and governmental 
     institutions to develop the community assets and services 
     that reduce poverty, such as--
       ``(i) other private, charitable, neighborhood-based, and 
     religious organizations;
       ``(ii) individual citizens, and businesses, labor, and 
     professional groups, who are able to influence the quantity 
     and quality of opportunities and services for the poor; and
       ``(iii) local government leadership; and
       ``(B) coordinate or create community-wide assets and 
     services that will have a significant, measurable impact on 
     the causes of poverty in the community and that will help 
     families and individuals to achieve economic self-
     sufficiency, and test innovative, community-based approaches 
     to attacking the causes and effects of poverty and of 
     community breakdown, including--
       ``(i) innovative initiatives to prevent and reverse loss of 
     investment, jobs, public services, and infrastructure in low- 
     and moderate-income communities; and
       ``(ii) innovative partnerships to develop the assets and 
     services that reduce poverty, as provided for in subparagraph 
     (A); and
       ``(3) by ensuring maximum participation of residents of 
     low-income communities and of members of the groups served by 
     programs under this subtitle in guiding the eligible entities 
     and in their programs funded under this subtitle to 
     ameliorate the particular problems and needs of low-income 
     residents of their communities and to develop the permanent 
     social and economic assets of the low-income community in 
     order to reduce the incidence of poverty.''.

     SEC. 102. DEFINITIONS.

       Section 673 of the Community Services Block Grant Act (42 
     U.S.C. 9902) is amended--
       (1) in paragraph (1)(A)(ii), by striking ``or other 
     mechanism''; and
       (2) in paragraph (2)--
       (A) in the first sentence--
       (i) by striking ``Office of Management and Budget'' and 
     inserting ``Department of Health and Human Services''; and
       (ii) by inserting before the period the following: ``and 
     increased, as the Secretary determines appropriate, to take 
     into account higher costs-of-living for a State''; and
       (B) by striking the last sentence and inserting the 
     following: ``Whenever a State determines that it has served 
     the objectives of the block grant program established under 
     this subtitle, the State may revise the poverty line, while 
     placing a priority in serving those who are most in need, so 
     that 125 percent of the official poverty line is the minimum 
     level that a State shall be permitted to set as its maximum 
     eligibility requirement and 60 percent of the State's median 
     income is the maximum level that a State shall be permitted 
     to set as its maximum eligibility requirement. The State may 
     revise the poverty line only upon a determination that 
     eligible entities are providing, coordinating, or partnering 
     with means-tested support services for low and moderate-
     income individuals and families above the official poverty 
     line. Nothing in this paragraph shall be construed to prevent 
     eligible entities from continuing to support individuals and 
     families during their transition from program eligibility to 
     achieve specific goals for their economic security and long-
     term self-sufficiency as long as priority is given to serving 
     the lowest income individuals who seek services.''.

     SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

       Section 674 of the Community Services Block Grant Act (42 
     U.S.C. 9903) is amended--
       (1) in subsection (a), by striking ``1999 through 2003'' 
     and inserting ``2004 through 2009''; and
       (2) in subsection (b)(2)--
       (A) in subparagraph (A), by striking ``or associations'' 
     and inserting ``and associations''; and
       (B) in subparagraph (B)--
       (i) by striking ``\1/2\ of the remainder'' and inserting 
     ``not less than \1/2\ of the remainder''; and
       (ii) by striking ``evaluation and'' and inserting 
     ``evaluation and training and technical assistance activities 
     and''.

     SEC. 104. ESTABLISHMENT OF PROGRAM.

       Section 675 of the Community Services Block Grant Act (42 
     U.S.C. 9904) is amended by striking ``through the program'' 
     and all that follows through the period and inserting ``to 
     States for the purpose of ameliorating the causes of poverty 
     and the conditions caused by poverty in their communities.''.

     SEC. 105. USE OF FUNDS.

       Section 675C(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9907(b)) is amended--
       (1) in paragraph (1)--
       (A) in subparagraph (A), by striking ``entities in need of 
     such training and assistance'' and inserting ``eligible 
     entities and their statewide associations that strengthens 
     their managerial or programmatic capabilities to reduce 
     poverty''; and
       (B) by striking subparagraphs (B) through (H) and inserting 
     the following:
       ``(B) supporting statewide coordination and communication 
     among eligible entities and State-operated or supported 
     programs and services, and other locally-operated programs 
     and services targeted to low-income individuals and their 
     children and families, so as to ensure that local eligible 
     entities' services are integrated in a manner that allows 
     such low-income individual and their families to have access 
     to as many sources of assistance as are appropriate to 
     support their progress to economic stability and self-
     sufficiency;
       ``(C) supporting innovative partnerships, programs, and 
     activities conducted by community action agencies and their 
     partners including other community-based organizations to 
     eliminate poverty, promote self-sufficiency, and promote 
     community revitalization, including asset-building programs 
     for low-income individuals, such as programs supporting 
     individual development accounts, and home or business 
     ownership;
       ``(D) analyzing the distribution of funds made available 
     under this subtitle within the State to determine if such 
     funds have been targeted to the areas of greatest need;
       ``(E) supporting State charity tax credits as described in 
     subsection (c);
       ``(F) supporting the identification of exemplary eligible 
     entities or programs as Centers of Innovation and methodology 
     for disseminating innovative programs and other best 
     practices from those agencies statewide;
       ``(G) supporting the development of eligible entities' 
     partnerships with local law enforcement agencies, local 
     housing authorities, private foundations, and other public 
     and private partners; and
       ``(H) supporting other activities, consistent with the 
     purposes of this subtitle.''; and
       (2) in paragraph (2), by adding at the end the following: 
     ``The State shall also ensure that all funds distributed 
     under subsection (a) are not used for excessive 
     administrative expenses and that all funds distributed under 
     such subsection used for salaries by a local entity are fair 
     and equitable. The State has the authority to determine the 
     appropriate level of funds distributed under subsection (a) 
     that an eligible entity shall use for administrative 
     expenses.''.

     SEC. 106. APPLICATION AND PLAN.

       Section 676 of the Community Services Block Grant Act (42 
     U.S.C. 9908) is amended--
       (1) in subsection (b)--
       (A) in the matter preceding paragraph (1), by inserting 
     ``for the Secretary's approval'' after ``to the Secretary'';
       (B) by striking paragraphs (1) through (6) and inserting 
     the following:
       ``(1) an assurance that funds made available through the 
     grant or allotment will be used--
       ``(A) to support activities directly and through eligible 
     entities that are designed to expand opportunities for and 
     assist low-income individuals and their families (including 
     low-income workers) to become self-sufficient, including low-
     income workers, families, and individuals receiving 
     assistance under part A of title IV of the Social Security 
     Act (42 U.S.C. 601 et seq.), homeless families and 
     individuals, migrant or seasonal farmworkers, and elderly 
     low-income individuals and families, and a description of how 
     such activities will enable the families and individuals--
       ``(i) to remove obstacles and solve problems that block the 
     achievement of self-sufficiency by organizing and 
     coordinating support for those served under paragraph (3);
       ``(ii) to secure and retain employment that provides 
     adequate income with essential benefits;
       ``(iii) to attain an adequate education, with particular 
     attention toward improving literacy and communications and 
     technical skills of the low-income families in the 
     communities involved;
       ``(iv) to make better use of available income and build 
     household assets;
       ``(v) to obtain and maintain adequate housing and a 
     suitable living environment;
       ``(vi) to obtain assistance that is needed to resolve 
     family emergencies and individual needs, to prevent further 
     hardships, and to secure economic independence; and
       ``(vii) to participate fully in the public affairs and 
     management of their communities and the governance of 
     eligible entities; and
       ``(B) to make more effective use of, and to coordinate 
     with, other programs related to the purposes of this subtitle 
     (including State welfare reform efforts);
       ``(2) a description of how the State intends to use 
     discretionary funds made available from the remainder of the 
     grant or allotment described in section 675C(b) in accordance 
     with this subtitle, including a description of how the State 
     will support innovative community-based initiatives of 
     eligible entities and their partners related to the purposes 
     of this subtitle;
       ``(3) an assurance that the State has integrated programs 
     of general relevance in its plan, to the extent appropriate 
     to the needs of low-income communities served by the eligible 
     entities, including a description of innovative community and 
     neighborhood-based initiatives such as--

[[Page 2139]]

       ``(A) initiatives with the goal of strengthening families 
     and encouraging effective parenting, including fatherhood 
     initiatives;
       ``(B) initiatives to assist those moving from welfare to 
     work to obtain jobs at decent wages with benefits, including 
     those low-income individuals and their families who are 
     attempting to transition off a State program carried out 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.);
       ``(C) programs for the establishment of violence-free zones 
     that would involve youth development and intervention models 
     that promote youth success (such as models involving youth 
     mediation, youth mentoring, life skills training, job 
     creation, and entrepreneurship programs);
       ``(D) family literacy initiatives;
       ``(E) initiatives to increase the development of household 
     assets of individuals such as individual development accounts 
     and homeownership opportunities;
       ``(F) public and private partnerships to foster community 
     development, affordable housing, job creation, and other 
     means of building the assets of low-income communities;
       ``(G) partnerships with local law enforcement agencies, 
     which may include participation in community policing, and 
     activities to assist community residents and public safety 
     officials in the event of emergencies, including threats to 
     national security;
       ``(H) initiatives to improve economic conditions and 
     mobilize new resources in rural areas and other at-risk areas 
     to eliminate obstacles to the self sufficiency of families 
     and individuals in those communities;
       ``(I) initiatives to help reduce the concentration of 
     poverty in cities and inner suburbs and provide economic 
     opportunities for individuals and families in those areas; 
     and
       ``(J) partnerships with nonprofit or community-based 
     organizations that demonstrate effectiveness in child abuse 
     prevention, including with programs that are school-based and 
     that focus on adolescent victims, and victimizers;
       ``(4) an assurance that the State will provide information, 
     including--
       ``(A) a description of the State measurement system and 
     results for the performance goals established under section 
     678E(a)(1)(C);
       ``(B) a description of the service delivery system, for 
     services provided or coordinated with funds made available 
     through grants made under section 675C(a), targeted to low-
     income individuals and families in communities within the 
     State;
       ``(C) a description of how linkages will be developed to 
     fill identified gaps in the services, through the provision 
     of information, referrals, case management, and followup 
     consultations, and to support mobilization of new resources 
     and partnerships;
       ``(D) a description of how funds made available through 
     grants made under section 675C(a) will be coordinated with 
     other public and private resources; and
       ``(E) a description of how the local entity will use the 
     funds to support innovative community and neighborhood-based 
     initiatives related to the purposes of this subtitle;
       ``(5) an assurance that eligible entities in the State will 
     provide, on an emergency basis, for the provision of such 
     supplies and services, nutritious foods, and related 
     services, as may be necessary to counteract conditions of 
     starvation and malnutrition among low-income individuals;
       ``(6) an assurance that the State has, to avoid duplication 
     of such services, and to ensure that program gaps are 
     addressed, identified and coordinated with eligible entity 
     programs, with State and local agencies, and with programs 
     that assist low-income individuals and their families, 
     including--
       ``(A) programs carried out under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.), the Workforce 
     Investment Act of 1998 (29 U.S.C. 2801 et seq.), and other 
     programs designed to coordinate work-related supportive 
     services for families;
       ``(B) programs for expanding housing opportunities, 
     reducing homelessness, and developing community investment 
     projects;
       ``(C) education programs, including those for preschool and 
     school-aged children and for adults to obtain an adequate 
     education; and
       ``(D) programs designed to support youth, the homeless, 
     migrants, senior citizens, and individuals with disabilities, 
     including programs under the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621 et seq.);'';
       (C) in paragraph (12)--
       (i) by striking ``not later than fiscal year 2001'' and 
     inserting ``annually''; and
       (ii) by striking ``and'' at the end;
       (D) in paragraph (13), by striking the period and inserting 
     ``in sufficient detail to permit verification; and''; and
       (E) by adding at the end the following:
       ``(14) beginning with fiscal year 2006, and in each fiscal 
     year thereafter, an assurance that the State is using the 
     procedures described in section 678B(b) to monitor eligible 
     entities.''; and
       (2) by striking subsection (f).

     SEC. 107. DESIGNATION OF ELIGIBLE ENTITIES IN UNDERSERVED 
                   AREAS.

       Section 676A(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9909(b)) is amended by adding at the end the 
     following: ``In granting such designation, the State shall 
     deem private nonprofit eligible entities that are providing 
     related services in the unserved area to be of demonstrated 
     effectiveness, consistent with the needs identified by a 
     community needs assessment.''.

     SEC. 108. TRIPARTITE BOARDS.

       Section 676B(b) of the Community Services Block Grant Act 
     (42 U.S.C. 9910(b)) is amended--
       (1) by striking ``through--'' and all that follows through 
     ``a tripartite'' in paragraph (1) and inserting ``through a 
     tripartite'';
       (2) by striking paragraph (2);
       (3) in subparagraph (C), by striking ``; or'' and inserting 
     a period; and
       (4) by redesignating subparagraphs (A) through (C) as 
     paragraph (1) through (3), respectively and realigning the 
     margins of such paragraphs accordingly.

     SEC. 109. TRAINING, TECHNICAL ASSISTANCE, AND OTHER 
                   ACTIVITIES.

       Section 678A of the Community Services Block Grant Act (42 
     U.S.C. 9913) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (A), by striking ``corrective action'' 
     and all that follows through ``; and'' and inserting 
     ``monitoring and such additional corrective actions as may be 
     needed to strengthen the management and programmatic 
     practices of eligible entities;''; and
       (B) by striking subparagraph (B) and inserting the 
     following:
       ``(B) for State and local performance reporting and program 
     data collection activities related to programs carried out 
     under this subtitle;
       ``(C) for the preparation of reports provided for in 
     section 678E;
       ``(D) for the development and promulgation of a common 
     State Financial and Organizational Protocol that is required 
     to be used by States under section 678B(b); and
       ``(E) to distribute amounts in accordance with subsection 
     (c).'';
       (2) in subsection (b)(2), by striking ``an ongoing 
     procedure for obtaining input from the national and State 
     networks of eligible entities'' and inserting ``a strategic 
     plan for annual technical assistance developed in 
     consultation with the national and State networks of eligible 
     entities regarding their management support needs''; and
       (3) in subsection (c)(1), by striking ``management 
     information'' and all that follows through the period, and 
     inserting ``improving management information and reporting 
     systems, measuring of program results, ensuring 
     responsiveness to identified local needs, and reporting and 
     disseminating successful practices and initiatives.''.

     SEC. 110. MONITORING.

       Section 678B of the Community Services Block Grant Act (42 
     U.S.C. 9914) is amended--
       (1) in the section heading by striking ``OF ELIGIBLE 
     ENTITIES'';
       (2) in subsection (a)--
       (A) by striking the subsection heading and inserting 
     ``Monitoring of Eligible Entities'';
       (B) in paragraph (1)--
       (i) by inserting ``biennial'' after ``onsite''; and
       (ii) by striking ``at least once during each 3 year 
     period'';
       (C) by striking paragraph (2);
       (D) by redesignating paragraphs (3) and (4) as paragraphs 
     (2) and (3), respectively; and
       (E) in paragraph (2) (as so redesignated), by inserting 
     ``annual'' after ``Followup'';
       (3) by redesignating subsections (b) and (c) as subsection 
     (c) and (d), respectively;
       (4) by inserting after subsection (a) the following:
       ``(b) Financial and Organizational Assessment Protocol.--
     Beginning in fiscal year 2006, States shall implement a 
     financial and organizational assessment protocol to monitor 
     and evaluate the compliance of eligible entities with the 
     financial and administrative requirements of this section. 
     Such protocol shall incorporate the fiscal and organizational 
     review procedures and standards appropriate to the management 
     of Federal funds under this subtitle and the governance of 
     the eligible private non-profit corporations or other 
     eligible entities. The Secretary shall require the protocol 
     to be developed jointly by the States and eligible entities 
     and shall assist States in developing appropriate training 
     for personnel monitoring the uses of funds under this 
     subtitle according to the requirements of this section.''; 
     and
       (5) in subsection (d), as so redesignated, by striking the 
     last sentence and inserting the following: ``The Secretary 
     shall annually submit a report including the results of the 
     evaluations conducted under this subtitle, the State 
     performance reports provided for pursuant to section 
     678E(a)(1)(C), and other material as provided by section 
     678E(b)(2) to the Committee on Education and the Workforce of 
     the House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate.''.

     SEC. 111. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF 
                   FUNDING.

       Section 678C of the Community Services Block Grant Act (42 
     U.S.C. 9915) is amended--
       (1) in subsection (a)--
       (A) in paragraph (4), by striking ``and'' at the end; and
       (B) by striking paragraph (5) and inserting the following:
       ``(5) if the eligible entity fails to correct the 
     deficiency, notify the entity--
       ``(A) that the State intends to initiate proceedings to 
     terminate the designation of the entity as an eligible entity 
     or to reduce, from the previous year, the proportion of the 
     total funding received by the State under this subtitle that 
     is allocated to the eligible entity;
       ``(B) that the eligible entity has the right to a hearing 
     on the record to determine if there is cause for such 
     termination or reduction in funding, as defined in section 
     676(c), and that the request for a hearing must be made in 
     writing to

[[Page 2140]]

     the State within 30 days of receipt of the notice from the 
     State; and
       ``(C) of the legal basis for the proposed termination or 
     reduction in funding, the factual findings on which the 
     proposed termination or reduction in funding is based or a 
     reference to specific findings in another document that form 
     the basis for the proposed termination or reduction in 
     funding (such as a reference to item numbers in an on-site 
     review report or instrument), and citation to any statutory 
     provisions, agreements, regulations, or State plan; and
       ``(6) if the eligible entity requests a hearing, conduct a 
     hearing on the record to determine if there is cause for 
     termination or a reduction in funding, as defined in section 
     676(c).'';
       (2) in subsection (b)--
       (A) by striking ``review such a determination'' and 
     inserting ``review and either approve, or disapprove and 
     reverse, such a determination'';
       (B) by striking ``90 days'' each place that it appears and 
     inserting ``30 days''; and
       (C) by striking ``90th day'' and inserting ``30th day''; 
     and
       (3) in subsection (c), by adding at the end the following: 
     ``The Secretary shall continue to fund an eligible entity, in 
     an amount equal to the same proportion of total funds 
     received by the State under this subtitle as was allocated to 
     the eligible entity the previous year, until the Secretary 
     approves, or disapproves and reverses, the determination of 
     termination or reduction in funding with respect to the 
     State.''.

     SEC. 112. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.

       Section 678D of the Community Services Block Grant Act (42 
     U.S.C. 9916) is amended--
       (1) in subsection (a)(1)--
       (A) in subparagraph (C), by striking ``and'' at the end;
       (B) by redesignating subparagraph (D) as subparagraph (F); 
     and
       (C) by inserting after subparagraph (C), the following:

       ``(D) notwithstanding paragraph (2)(B), beginning in fiscal 
     year 2004, and not less than every 4 years thereafter, each 
     State shall submit to the Secretary a separate audit of the 
     funds appropriated under this subtitle that--
       ``(i) shall apply only to--

       ``(I) State disbursement of funds to eligible entities;
       ``(II) use of funds for State administrative expenses; and
       ``(III) State disbursement of assistance provided under 
     section 680; and

       ``(ii) shall be funded--

       ``(I) first, through the funds available for administrative 
     expenses under section 675C(b)(2); and
       ``(II) second, from any funds received by the State through 
     assistance provided under section 680; and

       ``(E) submit full financial reports to the Secretary not 
     later than 6 months following the end of each fiscal year; 
     and''; and
       (2) in subsection (b)(1), by adding at the end the 
     following: ``The Secretary, after providing adequate notice, 
     shall withhold administrative funds described in section 
     675C(b)(2) from any State that fails to comply with the 
     provisions of sections 678A through 678D(a), and may, after 
     an opportunity for a hearing conducted within the affected 
     State, withhold funds from the State and provide such funds 
     directly to the eligible entities in such State upon a 
     demonstration of the compliance by such entities with the 
     requirements of this subtitle.''

     SEC. 113. ACCOUNTABILITY AND REPORTING REQUIREMENT.

       Section 678E of the Community Services Block Grant Act (42 
     U.S.C. 9917) is amended to read as follows:

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

       ``(a) State Accountability and Reporting Requirements.--
       ``(1) Performance measurement of eligible entities.--
       ``(A) In general.--Each State that receives funds under 
     this subtitle shall participate, and shall ensure that all 
     eligible entities in the State participate, in a performance 
     measurement system, which may be a performance measurement 
     system for which the Secretary facilitated development 
     pursuant to subsection (b), or an alternative system that the 
     Secretary is satisfied meets the requirements of subsection 
     (b).
       ``(B) Local agencies.--The State may elect to have local 
     agencies that are subcontractors of the eligible entities 
     under this subtitle participate in the performance 
     measurement system. If the State makes that election, 
     references in this section to eligible entities shall be 
     considered to include the local agencies.
       ``(C) Performance measurement of states.--Not later than 1 
     year after the date of enactment of the Poverty Reduction and 
     Prevention Act, the Secretary shall establish, in 
     consultation with States and eligible entities, performance 
     standards for the State administration of block grant funds. 
     Such standards shall include standards relating to--
       ``(i) the timeliness of the availability of State plans for 
     public comment as required under section 676(a)(2)(B) and of 
     submission of such plans to the Secretary as required in 
     section 676(b);
       ``(ii) the utilization of the financial and organizational 
     assessment protocol established under section 678B(b), 
     including the training and skills of State personnel 
     responsible for such oversight, the completion of annual 
     monitoring, the identification of opportunities for 
     improvement, and the implementation of plans to enhance the 
     management capacity and infrastructure of eligible entities;
       ``(iii) the timeliness of the distribution of block grants 
     funds to eligible entities as provided in section 675C(a);
       ``(iv) the resources made available for management 
     development at eligible entities, including monitoring, 
     training, and assistance with financial management and 
     program information and assessment systems;
       ``(v) the results of State efforts to coordinate eligible 
     entity programs with other State programs for low-income 
     individuals and their families, especially participants in 
     the program of block grants to States for temporary 
     assistance for needy families under part A of title IV of the 
     Social Security Act (42 U.S.C. 601 et seq.) and other working 
     families, and to ensure the participation of eligible 
     entities in the development of statewide strategies to reduce 
     poverty; and
       ``(vi) the assistance provided to eligible entities in 
     securing private partnerships as required in section 676(b).
       ``(2) Annual report.--Each State shall annually prepare and 
     submit to the Secretary a report on the measured performance 
     of the State and the eligible entities in the State. The 
     State shall include in the report any information collected 
     by the State relating to such performance. Each State shall 
     also include in the report an accounting of the expenditure 
     of funds received by the State through the community services 
     block grant program, including an accounting of funds spent 
     on administrative costs by the State and the eligible 
     entities, funds spent by eligible entities on the direct 
     delivery of local services, and the achievement of national 
     goals established under the procedures described in this 
     section, and shall include information on the number of and 
     characteristics of clients served under this subtitle in the 
     State, based on data collected from the eligible entities. 
     The State shall also include in the report a summary 
     describing the training and technical assistance offered by 
     the State under section 678C(a)(3) during the year covered by 
     the report.
       ``(b) Local Entity Accountability and Reporting 
     Requirements.--
       ``(1) Local entity determined goals.--In order to be 
     designated as an eligible entity and to receive a grant under 
     this subtitle, an entity shall establish entity-determined 
     goals for reducing poverty in the community, including goals 
     for--
       ``(A) leveraging community resources;
       ``(B) fostering coordination of Federal, State, local, 
     private, and other assistance; and
       ``(C) promoting community involvement.
       ``(2) Demonstration that goals were met.--In order to 
     receive a grant subsequent to the first grant that is 
     provided to an eligible entity following the date of 
     enactment of the Poverty Reduction and Prevention Act, the 
     entity shall demonstrate to the State that substantial 
     progress has been made in meeting the goals of the entity as 
     described in paragraph (1).
       ``(3) Goals or performance measures.--Any specific goals or 
     performance measures, for an individual eligible entity, that 
     are used in any monitoring or review process under this 
     subtitle, shall be--
       ``(A) determined by the entity;
       ``(B) agreed on by the State involved and the entity, 
     during the planning process leading to the grant involved; 
     and
       ``(C) incorporated into the grant agreement between the 
     State and entity for each subsequent award cycle.
       ``(4) Procedures.--If the State determines that a failure 
     to meet goals established under this subsection shall be a 
     basis for terminating the designation or reducing the funds 
     of an eligible entity under this subtitle, and determines 
     that an eligible entity has failed to meet the goals, the 
     procedures set forth in section 678C shall apply.
       ``(c) Secretary's Accountability and Reporting 
     Requirements.--
       ``(1) Federal performance measurement.--The Secretary shall 
     establish goals for the Department of Health and Human 
     Services Office of Community Services with respect to--
       ``(A) the timeliness of the distribution of funds under 
     this subtitle, including funds for training and technical 
     assistance;
       ``(B) the monitoring of States as provided for in section 
     678D;
       ``(C) the coordination of other Office of Community Service 
     programs with the activities of States and eligible entities 
     under this subtitle; and
       ``(D) the full and timely reporting as required in this 
     section.
       ``(2) Local performance measurement.--
       ``(A) In general.--To the maximum extent practicable, the 
     Secretary shall coordinate reporting requirements for all 
     programs of the Department of Health and Human Services that 
     are managed by eligible entities so as to consolidate and 
     reduce the number of reports required relating to 
     individuals, families, and uses of grant funds, specifically 
     funds under the Head Start Act (42 U.S.C. 9831 et seq.), the 
     Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 
     et seq.), child care programs administered by the Department, 
     and health related service programs administered by the 
     Department.
       ``(B) Technical assistance.--The Secretary shall provide 
     technical assistance, including support for the enhancement 
     of electronic data systems, to States and to eligible 
     entities to enhance their capability to collect and report 
     data for such a system and to aid in their participation in 
     such a system.
       ``(C) Local entity performance measurement system.--The 
     Secretary shall assist in the

[[Page 2141]]

     implementation of a local entity performance measurement 
     system, and other voluntary programmatic and results 
     reporting systems, developed by States, eligible entities, 
     and their national associations acting together. The 
     Secretary and the developers of such systems shall ensure 
     that the set of measures are numerous enough to cover the 
     full range of services offered by all local eligible 
     entities. Under such a system, local eligible entities shall 
     only be compelled to collect data on the subset of 
     performance measures that reflect their community-specific 
     programs and services currently adopted. Eligible entities 
     shall not be required under this subparagraph to alter the 
     collection of data for any reports provided for other 
     programs within the Department of Health and Human Services 
     or other Federal agencies. States shall compile annual 
     Results Oriented Management and Accountability System reports 
     for the Secretary under this subparagraph.
       ``(3) Reporting requirements.--For each fiscal year the 
     Secretary shall, directly or by grant or contract, prepare a 
     report containing--
       ``(A) a summary of the planned use of funds by each State, 
     and the eligible entities in the State, under the community 
     services block grant program, as contained in each State plan 
     submitted pursuant to section 676;
       ``(B) a description of how funds were actually spent by the 
     State and eligible entities in the State, including a 
     breakdown of funds spent on administrative costs and on the 
     direct delivery of local programs by eligible entities;
       ``(C) information on the number of entities eligible for 
     funds under this subtitle, the number of low-income persons 
     served under this subtitle, and such demographic data on the 
     low-income populations served by eligible entities as is 
     determined by the Secretary to be feasible;
       ``(D) a comparison of the planned uses of funds for each 
     State and the actual uses of the funds;
       ``(E) a summary of each State's performance results, and 
     the results for the eligible entities, as collected and 
     submitted by the States in accordance with subsection (a)(2); 
     and
       ``(F) any additional information that the Secretary 
     considers to be appropriate to carry out this subtitle, if 
     the Secretary informs the States of the need for such 
     additional information and allows a reasonable period of time 
     for the States to collect and provide the information.
       ``(4) Submission.--The Secretary shall submit to the 
     Committee on Education and the Workforce of the House of 
     Representatives and the Committee on Health, Education, 
     Labor, and Pensions of the Senate the report described in 
     paragraph (2), and any comments the Secretary may have with 
     respect to such report. The report shall include definitions 
     of direct and administrative costs used by the Department of 
     Health and Human Services for programs funded under this 
     subtitle.
       ``(5) Costs.--Of the funds reserved under section 
     674(b)(3), not more than $500,000 shall be available to carry 
     out the reporting requirements contained in paragraph (3).''.

     SEC. 114. LIMITATIONS ON USE OF FUNDS.

       Section 678F(c)(1) of the Community Services Block Grant 
     Act (42 U.S.C. 9918(c)(1)) is amended by inserting 
     ``religion,'' after ``race,''.

     SEC. 115. OPERATIONAL RULE.

       Section 679(a) of the Community Services Block Grant Act 
     (42 U.S.C. 9920(a)) is amended by inserting ``and such 
     organization meets the requirements of this subtitle'' before 
     the first period.

     SEC. 116. DISCRETIONARY AUTHORITY OF THE SECRETARY.

       Section 680 of the Community Services Block Grant Act (42 
     U.S.C. 9921) is amended--
       (1) in subsection (a)--
       (A) in paragraph (2)--
       (i) by redesignating subparagraphs (B) through (E) as 
     subparagraph (D) through (G), respectively;
       (ii) by striking subparagraph (A) and inserting the 
     following:
       ``(A) Economic development activities.--The Secretary shall 
     make grants described in paragraph (1) on a competitive basis 
     to private, nonprofit organizations that are community 
     development corporations to provide technical and financial 
     assistance for economic development activities, including 
     business, economic, and community development projects, 
     designed to address the economic needs of low-income 
     individuals and families by creating employment and business 
     development opportunities. Such assistance shall include--
       ``(i) long term loans (up to 15 years) or investments for 
     private business enterprises;
       ``(ii) providing capital to businesses owned by community 
     development corporations; and
       ``(iii) marketing and management assistance for businesses 
     providing jobs and business opportunities to low-income 
     individuals.
       ``(B) Federal interest.--
       ``(i) In general.--The Secretary shall establish procedures 
     that permit an eligible entity who receives funds under a 
     grant to carry out this paragraph, or intangible assets 
     acquired with such funds, to become the sole owner of the 
     funds or assets before the end of the 12-year period 
     beginning at the end of the fiscal year for which the grant 
     is made.
       ``(ii) Conditions.--To be eligible to become the sole 
     owner, the eligible entity shall agree--

       ``(I) to use the funds or assets for the purposes and uses 
     for which the grant was made, or purposes and uses consistent 
     with this subtitle, during and after the 12-year period 
     described in clause (i), whether or not the eligible entity 
     continues to be supported by Federal funds; and
       ``(II) that, when the eligible entity no longer needs the 
     funds or assets for purposes and uses described in subclause 
     (I), the eligible entity shall request instructions from the 
     Secretary about the disposition of the funds or assets.

       ``(iii) Encumbering.--The eligible entity may not encumber 
     the assets without the approval of the Secretary.
       ``(C) Administrative requirements.--In a case in which an 
     eligible project under grant made under this section cannot, 
     for good cause, be implemented, the Secretary shall establish 
     a policy to permit the substitution of other eligible 
     projects. Such policy shall require that such project have 
     the same impact area, the same goals, and the same objectives 
     as the original project and outcomes that are substantially 
     the same as the original project.'';
       (iii) in subparagraph (E) (as so redesignated), by striking 
     ``the community'' and inserting ``the service area''; and
       (iv) in subparagraph (G) (as so redesignated), by striking 
     ``1 percent'' and inserting ``2 percent'';
       (B) in paragraph (3)(B), by striking ``community'' and 
     inserting ``water and waste water''; and
       (C) in paragraph (4), by striking ``individuals and 
     families'' and inserting ``individuals and their families''; 
     and
       (2) in subsection (c), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''.

     SEC. 117. COMMUNITY FOOD AND NUTRITION PROGRAMS.

       Section 681 of the Community Services Block Grant Act (42 
     U.S.C. 9922) is amended--
       (1) in subsection (c), by striking ``Labor and Human 
     Resources'' and inserting ``Health, Education, Labor, and 
     Pensions''; and
       (2) in subsection (d), by striking ``1999 through 2003'' 
     and inserting ``2004 through 2009''.

     SEC. 118. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
                   INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

       Section 682 of the Community Services Block Grant Act (42 
     U.S.C. 9923) is amended--
       (1) in subsection (b)(2), by striking ``or treatment''; and
       (2) in subsection (g), by striking ``$15,000,000 for each 
     of fiscal years 1999 through 2003'' and inserting 
     ``$18,000,000 for each of fiscal years 2004 through 2009''.

              TITLE II--LOW-INCOME HOME ENERGY ASSISTANCE

     SEC. 201. SHORT TITLE.

       This title may be cited as the ``Low-Income Home Energy 
     Assistance Amendments of 2003''.

     SEC. 202. REAUTHORIZATION.

       (a) In General.--Section 2602(b) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended 
     in the first sentence by striking ``such sums'' and all that 
     follows through the period and inserting ``and $3,400,000,000 
     for each of fiscal years 2004 through 2006, and such sums as 
     may be necessary for each of fiscal years 2007 through 
     2010.''.
       (b) Program Year.--Section 2602(c) of the Low-Income Home 
     Energy Assistance Act of 1981 (42 U.S.C. 8621(c)) is amended 
     by inserting ``authorized'' after ``programs and 
     activities''.
       (c) Incentive Program for Leveraging Non-Federal 
     Resources.--Section 2602(d) of the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621(d)) is amended--
       (1) in paragraph (1), by striking ``1999 through 2004'' and 
     inserting ``2004 through 2010''; and
       (2) in paragraph (2), by striking ``1999 through 2004'' and 
     inserting ``2004 through 2010''.

     SEC. 203. NATURAL DISASTERS AND OTHER EMERGENCIES.

       Section 2604(e) of the Low-Income Home Energy Assistance 
     Act of 1981 (42 U.S.C. 8623(e)) is amended by adding at the 
     end the following:
     ``Notwithstanding any other provision of this section, for 
     purposes of making determinations under section 2603(1)(C), 
     if the Secretary determines that there is an increase of at 
     least 20 percent in the cost of home energy over the previous 
     5-year average for a duration of a month or more in 1 or more 
     States or regions, the Secretary shall declare an energy 
     emergency in the affected area and shall make available funds 
     as provided in this subsection. Notwithstanding any other 
     provision of this section, for purposes of making such 
     determinations, if the Secretary determines that the number 
     of heating degree days or cooling days for a month was more 
     than 100 above the 30-year average in 1 or more States or 
     regions, the Secretary shall declare an energy emergency in 
     the affected area and shall make available funds as provided 
     in this subsection.''.

     SEC. 204. RESIDENTIAL ENERGY ASSISTANCE CHALLENGE OPTION.

       (a) Evaluation.--The Comptroller General of the United 
     States shall conduct an evaluation of the Residential Energy 
     Assistance Challenge program described in section 2607B of 
     the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8626b).
       (b) Report.--Not later than 2 years after the date of 
     enactment of this Act, the Comptroller General of the United 
     States shall prepare and submit to the Committee on Education 
     and the Workforce of the House of Representatives and the 
     Committee on Health, Education, Labor, and Pensions of the 
     Senate a report containing--
       (1) the findings resulting from the evaluation described in 
     subsection (a); and
       (2) the State evaluations described in paragraphs (1) and 
     (2) of section 2607B(b) of the

[[Page 2142]]

     Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 
     8626b(b)).

     SEC. 205. REPORT TO CONGRESS.

       (a) Study.--
       (1) In general.--The Secretary of Health and Human Services 
     shall conduct a study on the Low-Income Home Energy 
     Assistance Act of 1981 (42 U.S.C. 8621 et seq.)
       (2) Requirements.--In conducting the study under 
     subparagraph (A), the Secretary of Health and Human Services 
     shall--
       (A) evaluate the performance of the Low-Income Home Energy 
     Assistance Program, including who the program is serving, the 
     benefits of the program to recipients, and the ability of the 
     program to reduce utility arrearage and shut-offs among low-
     income households;
       (B) develop a protocol for States to collect information 
     from energy distribution companies, including electric, 
     natural gas, heating oil, and propane companies, concerning 
     the following residential customer statistics--
       (i) the number of accounts certified as eligible for energy 
     assistance;
       (ii) the number of accounts certified as eligible for 
     energy assistance and that are past due;
       (iii) the total revenue owed on accounts eligible for 
     energy assistance and that are past due;
       (iv) the number of disconnection notices issued on accounts 
     eligible for energy assistance;
       (v) the number of disconnections for nonpayment;
       (vi) the number of reconnections;
       (vii) the number of accounts eligible for energy assistance 
     and determined uncollectible; and
       (viii) the energy burden of accounts eligible for energy 
     assistance;
       (C) analyze the public health and safety threats of 
     hypothermia and hyperthermia due to a lack of home heating or 
     home cooling, including mortality, morbidity, and decrease in 
     caloric intake;
       (D) analyze the affect of the standard of housing and 
     housing age on energy costs to low-income households;
       (E) evaluate regional difference in cost-of-living and the 
     ability of low-income families to meet home energy 
     requirements; and
       (F) determine the programmatic impacts of using 60 percent 
     of State median income to determine low-income households.
       (b) Report.--Not later than 24 months after the date of 
     enactment of this Act, the Secretary of Health and Human 
     Services shall submit to Congress a report containing the 
     results of the study conducted under subsection (a).
       (c) Definition.--In this section, the term ``State'' means 
     each of the 50 States and the District of Columbia.
       (d) Authorization of Appropriations.--There are authorized 
     to be appropriated to carry out this subsection such sums as 
     may be necessary for each of fiscal years 2004 and 2005.
       (e) Contracts.--Using amounts appropriated under subsection 
     (d), the Secretary of Health and Human Services may enter 
     into contracts or jointly financed cooperative agreements or 
     interagency agreements with States and public agencies and 
     private nonprofit organizations to conduct the study under 
     subsection (a).

         TITLE III--ASSETS FOR INDEPENDENCE REAUTHORIZATION ACT

     SEC. 301. SHORT TITLE.

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

     SEC. 302. REAUTHORIZATION OF THE ASSETS FOR INDEPENDENCE ACT.

       (a) Definition of Qualified Expenses.--Section 404(8) of 
     the Assets for Independence Act (42 U.S.C. 604 note) is 
     amended--
       (1) in subparagraph (A)--
       (A) in the matter preceding clause (i), by inserting ``or 
     to a vendor following approval by a qualified entity upon 
     submission of an approved qualified education purchase plan'' 
     before the period; and
       (B) by adding at the end the following:
       ``(iii) Qualified education purchase plan.--The term 
     `qualified education purchase plan' means a document that 
     explains the education item to be purchased which--

       ``(I) is approved by a qualified entity; and
       ``(II) includes a description of the good to be 
     purchased.'';

       (2) in subparagraph (D), by striking ``eligible''; and
       (3) by adding at the end the following:
       ``(E) Saving in idas for dependents.--Amounts paid to an 
     individual development account established for the benefit of 
     a dependent (as such terms is defined for purposes of 
     subparagraph (D)(ii)) of an eligible individual for the 
     purpose of postsecondary education.''.
       (b) Repeal of Provision.--Section 405 of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by striking 
     subsection (g).
       (c) Reserve Fund.--Section 407 of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) by redesignating subparagraphs (A) and (B) as 
     subparagraphs (B) and (C), respectively; and
       (ii) by inserting before subparagraph (B) (as so 
     redesignated) the following:
       ``(A) all grant funds provided to the qualified entity from 
     the Secretary for the purpose of the demonstration project as 
     described under subsection (c)(1);'' and
       (B) by adding at the end the following:
       ``(3) Rule of construction.--Nothing in paragraph (1)(A) 
     shall be construed to preclude a qualified entity from 
     depositing other demonstration project funds into the Reserve 
     Fund.''; and
       (2) in subsection (d), by inserting ``the date that is 12 
     months after'' after ``upon''.
       (d) Use of Amounts.--Section 407(c) of the Assets for 
     Independence Act (42 U.S.C. 604 note) is amended by adding at 
     the end the following:
       ``(4) Use of nonfederal funds.--
       ``(A) In general.--Notwithstanding paragraph (3), not more 
     than 20 percent of the amount of non-Federal funds committed 
     to a project as matching contributions in accordance with the 
     application submitted by the qualified entity under section 
     405(c)(4) shall be used by the qualified entity for the 
     purposes described in subparagraphs (A), (C), and (D) of 
     paragraph (1).
       ``(B) Priority.--In awarding grants under section 406(b), 
     the Secretary shall give priority to qualified entities that 
     submit applications that, with respect to the commitment of 
     non-Federal funds under section 405(c)(4), provide assurances 
     that not to exceed 15 percent of such non-Federal funds will 
     be used by the qualified entity for the purposes described in 
     subparagraphs (A), (C), and (D) of paragraph (1).''.
       (e) Eligibility for Participation.--Section 408(a)(1) of 
     the Assets for Independence Act (42 U.S.C. 604 note) is 
     amended to read as follows:
       ``(1) Income test.--The--
       ``(A) gross income of the household is equal to or less 
     than--
       ``(i) 200 percent of the poverty line (as determined by the 
     Secretary of Health and Human Services);
       ``(ii) the earned income amount described in section 32 of 
     the Internal Revenue Code of 1986 (taking into account the 
     size of the household); or
       ``(iii) 80 percent of the Area Median Income (as determined 
     by the Department of Housing and Urban Development); or
       ``(B) the modified adjusted gross income of the household 
     for the previous year does not exceed $18,000 for an 
     individual filer, $30,000 for a head of household, or $38,000 
     for a joint filer.''.
       (f) Deposits by Qualified Entities.--Section 410 of the 
     Assets for Independence Act (42 U.S.C. 604 note) is amended--
       (1) in subsection (a), by striking ``qualified entity--'' 
     and all that follows through the end and inserting the 
     following: ``qualified entity, a matching contribution of not 
     less than $0.50 and not more than $4 for every $1 of earned 
     income (as defined in section 911(d)(2) of Internal Revenue 
     Code of 1986) deposited in the account and interest earned on 
     that account by a project participant during that period. 
     Matching contributions shall be made--
       ``(1) from the non-Federal funds described in section 
     405(c)(4); and
       ``(2) from the grant made under section 406(b);
     based on a ratio relating to the sources of funds described 
     in paragraph (1) and (2) as determined by the qualified 
     entity, consistent with the requirements of section 
     407(c).'';
       (2) by redesignating subsections (b) through (e) as 
     subsections (c) through (f), respectively; and
       (3) by inserting after subsection (a), the following:
       ``(b) Use of Excess Interest on Matching Funds Earned on 
     the Reserve Fund.--Interest that accrues on the matching 
     funds earned and held in the Reserve Fund, over and above the 
     interest required to match an individual's deposits and 
     interest earned in the individual development account, shall 
     be used by the qualified entity to fund existing individual 
     development accounts or additional individual development 
     accounts.''.
       (g) Authorization of Appropriations.--Section 416 of the 
     Assets for Independence Act (42 U.S.C. 604 note) is amended 
     by striking ``and 2003,'' and inserting ``and 2003, 
     $25,000,000 for fiscal year 2004, and such sums as may be 
     necessary for each of fiscal years 2005 through 2008,''.
       (h) Application of Amendments.--In administering the Assets 
     for Independence Act (42 U.S.C. 604 note), the Secretary of 
     Health and Human Services shall apply--
       (1) the amendments made by the Assets for Independence Act 
     Amendments of 2000 to individuals who were individual 
     development account holders, and to entities that received 
     grants, under the Assets for Independence Act either before 
     or after the date of enactment of the Assets for Independence 
     Act Amendments of 2000; and
       (2) the amendments made by this section to individuals who 
     were individual development account holders, and to entities 
     that received grants, under the Assets for Independence Act 
     either before or after the date of enactment of this Act.

  Mr. FRIST. I ask unanimous consent that the committee amendment be 
agreed to, the bill as amended be read a third time and passed, the 
motion to reconsider be laid on the table, and any statements relating 
to the bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The committee amendment was agreed to.
  The bill was read the third time and passed.

                          ____________________