[House Report 108-310]
[From the U.S. Government Publishing Office]



108th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 1st Session                                                    108-310
======================================================================
 
        IMPROVING THE COMMUNITY SERVICES BLOCK GRANT ACT OF 2003

                                _______
                                

October 10, 2003.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. Boehner, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 3030]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 3030) to amend the Community Service 
Block Grant Act to provide for quality improvements, having 
considered the same, report favorably thereon with an amendment 
and recommend that the bill as amended do pass.
  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Improving the Community Services Block 
Grant Act of 2003''.

SEC. 2. COMMUNITY SERVICES BLOCK GRANT ACT AMENDMENTS.

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

``SEC. 672 PURPOSES AND GOALS.

  ``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 low-
        income communities in urban and rural areas, by providing 
        resources to States for support of local eligible entities, 
        including community action agencies and other community-based 
        organizations--
                  ``(A) to 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) to coordinate a range of services that meet the 
                needs of low-income families and individuals, that 
                support strong and healthy families, and that assist 
                them in developing the skills needed to become self 
                sustaining while ensuring that these services are 
                provided effectively and efficiently; and
                  ``(C) to design and implement comprehensive 
                approaches to assist eligible individuals in gaining 
                employment and achieving economic self-sufficiency;
          ``(2) by improving and revitalizing the low-income 
        communities in urban and rural areas by providing resources to 
        States for support of local eligible entities and their 
        partners--
                  ``(A) to broaden the resource base of initiatives and 
                projects directed to the elimination of poverty and the 
                redevelopment of the low-income community, including 
                partnerships with nongovernmental and governmental 
                institutions to develop the community assets and 
                services that reduce poverty, such as--
                          ``(i) other private, religious, charitable, 
                        and community-based organizations;
                          ``(ii) individual citizens, and business, 
                        labor, and professional groups, that are able 
                        to influence the quantity and quality of 
                        opportunities and services for the poor; and
                          ``(iii) local government leadership; and
                  ``(B) to coordinate community-wide resources 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 to 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 leverage 
                        the assets and services that reduce poverty, as 
                        provided in subparagraph (A); and
          ``(3) by ensuring maximum participation of residents of low-
        income communities and of members of the groups served by 
        grants made 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 and to develop the permanent social and economic 
        assets of the low-income community in order to reduce the 
        incidence of poverty.''.
  (b) Definitions.--Section 673(1)(A) of the Community Services Block 
Grant Act (42 U.S.C. 9902(1)(A)) is amended--
          (1) in clause (i) by striking ``and'' at the end,
          (2) in clause (ii) by striking the period at the end and 
        inserting ``; and'', and
          (3) by adding at the end the following:
                          ``(iii) that successfully develops and meets 
                        the locally determined goals described in 
                        section 678E(b)(1), as determined by the State, 
                        and meets State goals, standards, and 
                        performance requirements as provided for in 
                        section 678B(a).''.
  (c) 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) by striking ``678F'' and inserting ``678E to 
                assist States, eligible entities, and their partners in 
                projects supported by this subtitle'', and
                  (B) in subparagraph (B) by striking ``monitoring (to 
                correct programmatic deficiencies of eligible 
                entities)'' and inserting ``monitoring (including 
                technical assistance and training to correct 
                programmatic deficiencies of eligible entities)''.
  (d) Uses of Funds.--Section 675C of the Community Services Block 
Grant Act (42 U.S.C. 9907) is amended--
          (1) in subsection (a)(3)(A) by striking ``Beginning on 
        October 1, 2000, a'' and inserting ``A'', and
          (2) in subsection (b)(1)(F) by striking ``neighborhood-
        based'' and inserting ``community-based''.
  (e) Application and Plan.--Section 676 of the Community Services 
Block Grant Act (42 U.S.C. 9908) is amended--
          (1) in subsection (b)--
                  (A) by striking ``Beginning with fiscal year 2000, 
                to'' and inserting ``To'',
                  (B) in paragraph (1)--
                          (i) in subparagraph (B)--
                                  (I) by striking ``youth development 
                                programs that support'' and inserting 
                                ``youth development programs, which may 
                                include mentoring programs, that 
                                support'', and
                                  (II) by striking ``and'' at the end,
                          (ii) in subparagraph (C) by adding ``and'' at 
                        the end, and
                          (iii) by adding at the end the following:
                  ``(D) initiatives to improve economic conditions and 
                mobilize new resources in rural areas to eliminate 
                obstacles to the self-sufficiency of families and 
                individuals in rural communities;'',
                  (C) in paragraph (2) by striking ``community and 
                neighborhood-based'' and inserting ``community-based'',
                  (D) in paragraph (3)--
                          (1) in the matter preceding subparagraph (A) 
                        by striking ``information provided by eligible 
                        entities in the State, containing'' and 
                        inserting ``an assurance that the State will 
                        provide information, including'', and
                          (ii) in subparagraph (D) by striking 
                        ``community and neighborhood-based'' and 
                        inserting ``community-based'',
                  (E) in paragraph (9) by striking ``and community 
                organizations'' and inserting ``and community-based 
                organizations'',
                  (F) in paragraph (10) by striking ``community 
                organization'' and inserting ``community-based 
                organization'',
                  (G) in paragraph (12) by striking ``and'' at the end,
                  (H) by redesignating paragraph (13) as paragraph 
                (15), and
                  (I) by inserting after paragraph (12) the following:
          ``(13) an assurance that the State will take swift action to 
        improve performance or, when appropriate, to terminate the 
        funding under this subtitle of low-performing eligible entities 
        that do not meet the applicable locally determined goals 
        described in section 678E(b)(1) or do not meet the State goals, 
        standards, and requirements as provided for in section 678B(a);
          ``(14) an assurance that the State will provide a 
        justification to the Secretary if it continues to fund 
        persistently low-performing eligible entities; and'',
          (2) in subsection (c)(2) by striking ``plan, or'' and all 
        that follows through the period at the end, and inserting 
        ``plan, to meet a State requirement, as described in section 
        678C(a), or to meet the locally determined goals as described 
        in section 678E(b)(1).'', and
          (3) by striking subsection (f).
  (f) Training, Technical Assistance, and other Activities.--Section 
678A(a)(1)(A) of the Community Services Block Grant Act (42 U.S.C. 
9913(a)(1)(A)) is amended--
          (1) by inserting ``dissemination regarding best practices,'' 
        after ``technical assistance,'', and
          (2) by inserting ``(including to assist in the development of 
        reporting systems and electronic data systems)'' after 
        ``collection activities''.
  (g) Monitoring of Eligible Entities.--Section 678B of the Community 
Services Block Grant Act (42 U.S.C. 9914) is amended--
          (1) in subsection (a)--
                  (A) in the matter preceding paragraph (1) by 
                inserting ``and the locally determined performance 
                goals described in section 678E(b)(1)'' after ``a 
                State'', and
                  (B) in paragraph (3)--
                          (i) by inserting ``appropriate'' before 
                        ``goals'', and
                          (ii) by striking ``established by the 
                        State'', and
          (2) in the last sentence of subsection (c) by striking 
        ``Chairperson of the Committee on Education'' and all that 
        follows through ``Human Resources of the Senate'' and inserting 
        ``appropriate congressional committees''.
  (h) Corrective Action; Termination and Reduction of Funding.--Section 
678C(a) of the Community Services Block Grant Act (42 U.S.C. 9915(a)) 
is amended in the matter preceding paragraph (1) by striking 
``established by the State''.
  (i) Accountability and Reporting Requirements.--Section 678E of the 
Community Services Block Grant Act (42 U.S.C. 9917) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)(A) by striking ``By October 1, 
                2001, each'' and inserting ``Each'', and
                  (B) in paragraph (2)--
                          (i) in the 1st sentence by inserting 
                        ``including any activities under section 678C'' 
                        before the period at the end,
                          (ii) by striking the 2d sentence,
                          (iii) in the 3d sentence by striking 
                        ``also'', and
                          (iv) in the 3d sentence by inserting 
                        ``information on the timeliness of the 
                        distribution of block grant funds to eligible 
                        entities as provided in section 675C(a),'' 
                        after ``including'',
          (2) in subsection (b)--
                  (A) in paragraph (2) in the matter preceding 
                subparagraph (A) by striking ``beginning after 
                September 30, 1999'',
                  (B) in paragraph (3) by striking ``Committee on 
                Education'' and all that follows through ``Human 
                Resources of the Senate'' and inserting ``appropriate 
                congressional committees'',
                  (C) by adding at the end the following:
          ``(5) Coordination of reporting requirements.--To the maximum 
        extent possible, the Secretary shall coordinate reporting 
        requirements for all programs of the Department of Health and 
        Human Services managed by eligible entities so as to 
        consolidate and reduce the number of reports required about 
        individuals, families, and uses of grant funds.'', and
                  (D) by redesignating such subsection as subsection 
                (c), and
          (3) by inserting after subsection (a) the following:
  ``(b) Local Accountability and Reporting Requirements.--
          ``(1) Locally determined goals.--In order to be designated as 
        an eligible entity and to receive a grant under this subtitle, 
        an eligible entity shall establish locally determined goals for 
        reducing poverty in the community, including goals for--
                  ``(A) leveraging and mobilizing 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 for an 
        eligible entity to receive a second or subsequent grant made 
        under this subtitle after the effective date of this paragraph, 
        such entity shall demonstrate to the State that it has met the 
        goals described in paragraph (1).''.
  (j) Treatment of Beneficiaries.--Section 679 of the Community 
Services Block Grant Act (42 U.S.C. 9920) is amended by adding at the 
end the following:
  ``(f) Treatment of Beneficiaries.--In providing assistance under a 
program described in subsection (a), a religious organization shall not 
discriminate against a beneficiary, or a potential beneficiary, of such 
assistance on the basis of religion or of a religious belief.''.
  (k) Discretionary Authority of 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) in subparagraph (A) by inserting 
                        ``(including financial assistance for 
                        construction or substantial rehabilitation of 
                        buildings and facilities, and for loans or 
                        investments in private business enterprises 
                        owned by community development corporations)'' 
                        after ``assistance'',
                          (ii) by redesignating subparagraphs (B), (C), 
                        (D), and (E) as subparagraphs (D), (E), (F), 
                        and (G), respectively, and
                          (iii) by inserting after subparagraph (A) the 
                        following:
                  ``(B) Federal interest.--The Secretary shall 
                establish procedures that permit funds provided under a 
                grant made under this paragraph, or intangible assets 
                acquired with such funds, to become the sole property 
                of the grantee before the expiration of the 12-year 
                period beginning after the fiscal year for which such 
                grant is made if such grantee agrees to use such funds 
                or such property for purposes and uses consistent with 
                the purposes and uses for which such grant is made.
                  ``(C) Replacement activities.--The Secretary shall 
                establish procedures to allow a grant made under this 
                paragraph to be used by a grantee to carry out 
                activities substantially similar to the activities for 
                which such grant is made if, due to no fault of such 
                grantee, such grantee cannot carry out the activities 
                for which such grant is made. Such procedures shall 
                require that the substantially similar activities serve 
                the same impact area and have the same goals, 
                objectives, and outcomes as the activities for which 
                such grant is made.'',
                  (B) in paragraph (3)(B) by inserting ``water and 
                wastewater'' after ``community'', and
                  (C) in paragraph (4) by striking ``neighborhood-
                based'' and inserting ``community-based'', and
          (2) in subsection (c) by striking ``Chairperson of the 
        Committee on Education'' and all that follows through ``Human 
        Resources of the Senate'' and inserting ``appropriate 
        congressional committees''.
  (l) 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) in the matter preceding paragraph (1) 
        by striking ``Committee on Education'' and all that follows 
        through ``Human Resources of the Senate'' and inserting 
        ``appropriate congressional committees'', and
          (2) in subsection (d) by striking ``1999 through 2003'' and 
        inserting ``2004 through 2009''.
  (m) 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)(5)--
                  (A) by inserting ``(which may be accomplished through 
                mentoring)'' after ``youth'', and
                  (B) by inserting ``to improve academic achievement'' 
                after ``study practices'', and
          (2) in subsection (g) by striking ``1999 through 2003'' and 
        inserting ``2004 through 2009''.

SEC. 3. EFFECTIVE DATE.

  This Act and the amendments made by this Act shall take effect on the 
1st day of the 1st fiscal year beginning after the date of the 
enactment of this Act.

                                Purpose

    The purpose of H.R. 3030, Improving the Community Services 
Block Grant Act of 2003, is to reauthorize the Community 
Services Block Grant (CSBG) through fiscal year 2009. H.R. 3030 
builds upon improvements made to the program during the last 
reauthorization to promote increased quality and accountability 
for CSBG programs. The current block grant to states is working 
well to allow states to address the needs of low-income 
communities, families and individuals. H.R. 3030 aims to make 
minor improvements to current law to ensure that quality 
programs continue to serve those with the greatest need.

                            Committee Action


                                HEARINGS

    The Subcommittee on Education Reform held a hearing in 
Washington, D.C. to hear and review comments on the 
reauthorization of the Community Services Block Grant Act 
(CSBG) and the Low-Income Home Energy Assistance program 
(LIHEAP). The hearing was held on July 8, 2003 entitled 
``LIHEAP & CSBG: Providing Assistance to Low Income Families.'' 
The purpose of this hearing was to review how LIHEAP and CSBG 
have been implemented and administered since the last 
reauthorization in 1998, and to examine what had and had not 
worked in the provision of services for low-income individuals, 
families and communities. The Subcommittee heard testimony from 
Ms. Leslie Lee, LIHEAP Director, Department of Health and 
Social Services, New Castle, Delaware; Dr. Carolyn C. Drake, 
Director, Southern States Energy Board, Washington, D.C.; Dr. 
Mary Nelson, President and CEO, Bethel New Life, Inc., Chicago, 
Illinois; Mr. Michael Tubbs, Executive Director, Community 
Action Association of Alabama, Birmingham, Alabama; and Mr. 
David Bradley, Executive Director, National Community Action 
Foundation, Washington, D.C.

                           LEGISLATIVE ACTION

    On September 5, 2003, Representative Tom Osborne (R-NE), 
along with Chairman Boehner (R-OH), Subcommittee Chairman 
Castle (R-DE), Mr. Upton (R-MI), and Mr. Wilson (R-SC), 
introduced H.R. 3030, Improving the Community Services Block 
Grant Act of 2003. H.R. 3030 reauthorizes and makes amendments 
to the Community Services Block Grant Act.
    The Committee on Education and the Workforce considered 
H.R. 3030 in legislative session on October 1, 2003 during 
which two amendments were considered and adopted by voice vote. 
The Committee on Education and the Workforce, with the majority 
of the Committee present, favorably reported H.R. 3030, as 
amended, to the House of Representatives by a vote of 28-20 on 
October 1, 2003. The following is a description of the 
amendments adopted to H.R. 3030 during full Committee 
consideration:
     Representative Osborne (R-NE) offered an amendment 
in the Nature of a Substitute to make clarifying and technical 
changes to the bill; reinstate the current definition of an 
eligible entity, but require grantees to successfully develop 
and meet locally determined goals and state goals, standards, 
and performance requirements in order to continue receiving 
funds as part of the definition; include an assurance that 
states will take swift action to improve performance or defund 
low performing eligible entities; require states to provide a 
justification to the Secretary of HHS as to why they continue 
to fund persistently low-performing eligible entities; enhance 
technical training and assistance to states for the development 
of reporting systems, electronic data systems, and for carrying 
out corrective action activities and monitoring of eligible 
entities; modify the current purposes and goals of the program 
to ensure the focus of the program is to reduce poverty and 
expand opportunities for individuals and families to become 
economically self-sufficient; and enhance and streamline 
reporting requirements.
     Chairman Boehner (R-OH) offered an amendment to 
codify previous regulatory practice ensuring that program 
beneficiaries and potential program beneficiaries are not 
discriminated against on the basis of religion.

                                Summary

    The Improving the Community Services Block Grant Act of 
2003 extends the authorization for, and makes improvements to 
the Community Services Block Grant Act.

Section 1--Short title

    Section 1 of H.R. 3030 gives the short title of the bill.

Section 2--Amendments to the Community Services Block Grant Act

    Section 2 of H.R. 3030 makes amendments and improvements to 
the Community Services Block Grant Act.
    The bill modifies the purposes and goals of the act to 
ensure that the focus of the program is to reduce poverty and 
expand opportunities for individuals and families to become 
economically self-sufficient.
    The bill revises the definition of an eligible entity to 
require that eligible entities successfully develop and meet 
locally determined goals and meet the state's goals, standards 
and performance requirements in order to continue to receive 
funding and remain as an eligible entity.
    The bill retains authorization levels at such sums for CSBG 
grants and discretionary programs and $15 million for the 
National Youth Sports Program, and extends the authorizations 
through fiscal year 2009.
    The bill clarifies that the Secretary must use a portion of 
their administrative dollars for providing training and 
technical assistance to states to assist them in correcting 
programmatic deficiencies of eligible entities, and for 
corrective action and monitoring.
    The bill requires that funds granted by the state to an 
eligible entity that have not been expended by the end of the 
fiscal year to which the funds were granted remain with such 
entity for carryover into the next fiscal year.
    The bill enhances opportunities for providing youth 
mentoring activities to encourage education and academic 
achievement and youth crime prevention.
    The bill includes a provision to require states to use 
their grants to encourage initiatives to improve economic 
conditions and mobilize new resources in rural areas to 
eliminate obstacles to the self-sufficiency of families and 
individuals in rural communities.
    The bill requires states to include in their state plans an 
assurance that the state will take swift action to improve 
performance, or when appropriate, terminate the funding of low 
performing eligible entities that do not meet the locally 
determined goals, or meet the state goals, standards and 
performance requirements. States must also provide an assurance 
that they will provide a justification to the Secretary if they 
continue to fund persistently low-performing eligible entities.
    The bill requires the Secretary to provide dissemination of 
best practices to the states and to provide states with 
assistance in developing reporting systems and electronic data 
systems as part of the Secretary's technical assistance and 
training requirements.
    The bill requires states to include measured performance of 
locals with regard to locally determined goals and information 
on the timeliness of the distribution of block grant funds to 
eligible entities and on the availability of such funds as 
timely advance payments for activities approved in local plans.
    The bill requires eligible entities to develop locally 
determined goals including, leveraging and mobilizing community 
resources, fostering coordination of federal, state, local, 
private and other assistance, and promoting community 
involvement. Eligible entities are further required to 
demonstrate to the state that they have met such goals as a 
condition of continuing to be eligible and receive funding.
    The bill requires the Secretary to coordinate reporting 
requirements within CSBG with all programs of the Department of 
Health and Human Services managed by eligible entities to 
consolidate and reduce the number of reports required about 
individuals, families and uses of grant funds.
    The bill adds language to codify previous regulatory 
practice ensuring that program beneficiaries and potential 
program beneficiaries are not discriminated against on the 
basis of religion.
    The bill amends community economic development (CED) 
provisions to clarify allowable economic development 
activities.
    The bill also amends community economic development 
provisions to require the Secretary to establish procedures for 
permitting funds or intangible assets acquired by CED grants to 
become the sole property of the CDC after 12 years if the CDC 
agrees to use such funds or such property for purposes and uses 
consistent with the purposes and uses of the original grant.
    The bill further amends the CED provisions to require the 
Secretary to establish procedures to allow a CDC to carry out 
activities that are substantially similar to the original 
activities for which a grant is made, if due to no fault of the 
CDC, the CDC cannot carry out the original activities. The 
procedures must require that the substantially similar 
activities serve the same impact area and have the same goals 
and objectives as the activities of the original grant.

Section 3--Effective date

    Section 3 of H.R. 3030 sets an effective date for enactment 
of the bill.

                            Committee Views


Overview

    The Community Services Block Grant (CSBG) provides funding 
to a state-administered local network composed of nearly 1,110 
local ``eligible entities''--mostly local nonprofit community 
action agencies (CAAs)--that create, coordinate and deliver a 
broad array of programs and services to low-income Americans in 
96 percent of all counties across the country. These programs 
serve over 13 million low-income individuals and over 3.6 
million low-income families each year. Statistics show that 
poverty touches a large portion of Americans over their 
lifetime for various reasons. Over the years, CSBG has provided 
states and local communities with a flexible stream of funding 
for activities that have a ``measurable and potentially major 
impact on the causes of poverty.'' CSBG funding may be used for 
a wide-range of anti-poverty activities to help families and 
individuals achieve self-sufficiency, such as finding and 
retaining employment, obtaining adequate housing, and providing 
emergency food services.
    When reviewing the Community Services Block Grant Act for 
reauthorization, the Committee found that the CSBG remains an 
effective and essential element in the nation's effort to fight 
poverty and increase self-sufficiency among low-income 
individuals and families. The CSBG program stands out as a 
unique example of effective partnerships between federal, 
state, and local governments, as well as the private and public 
sectors of our nation's communities.
    As Mr. Michael Tubbs, Executive Director of the Community 
Action Association of Alabama stated during his testimony to 
the Subcommittee on Education Reform on July 8, 2003: ``There 
is no `quick fix' to poverty. Using the CSBG, the employees of 
our agencies are able to create partnerships that link public 
and private funding, seek out new partners, recruit hundreds of 
volunteers and manage the investment of tax dollars effectively 
and efficiently.' ''
    The CSBG program is also a true block grant to the states, 
allowing them to establish and operate anti-poverty programs 
that meet the unique needs of their low-income communities, 
families, and individuals. H.R. 3030 preserves the CSBG as a 
true state block grant program. The bill also builds upon 
improvements made to the program during the last 
reauthorization to promote increased quality and 
accountability, expand opportunities in rural areas, and 
enhance youth mentoring activities. The bill also maintains 
authorization levels for CSBG grants and discretionary programs 
at such sums, and the National Youth Sports Program at $15 
million, and extends them through FY 2009.

Purposes and goals

    The Committee wanted to reiterate and ensure the purposes 
and goals of the Community Services Block Grant Act. To that 
end H.R. 3030 adds a new statement of purpose to the act that 
stresses not only poverty reduction, but the importance of 
individualself-sufficiency, including the importance of 
transitioning off of federal programs such as Temporary Assistance for 
Needy Families, and the leveraging of federal dollars to yield 
increased community resources. The bill maintains the focus on the 
importance of broadening the resource base for programs directed to 
eliminating poverty, including a more active role for private, 
religious, charitable and community-based organizations in the 
provision of services.

Designation of eligible entities

    The community action network has generally done an 
effective job of addressing the needs of high-poverty 
communities throughout the nation. Recognizing the important 
and historical work of community action agencies, the Committee 
has maintained language in the bill grandfathering current 
eligible entities for the purpose of continuing to administer 
programs under CSBG. The Committee would like to note that the 
Improving the Community Services Block Grant Act of 2003 adds 
an additional requirement that an eligible entity must develop 
annual program goals and demonstrate that these goals are met 
as a condition of continuing to receive funding. Continuation 
of funding, which is now automatic, will be contingent upon 
grantees achieving grantee-determined goals for quality 
improvement, as well as meeting the state goals, standards and 
performance requirements as in current law. The Committee wants 
to stress that eligible entities should not automatically 
qualify and continue to receive funding simply because they 
have always done so. The Committee firmly believes that 
entities receiving federal funding should be held accountable 
for operating and providing high quality programs and services, 
especially when such programs and services are intended to 
assist those most in need. The Committee included this new 
provision to ensure that CSBG eligible entities and the 
programs under them strive for and are held accountable for 
continuous quality improvement.

Increased quality and accountability

    Central to reauthorization of the Community Services Block 
Grant Act were increased quality and accountability for CSBG 
programs. The Committee wanted to strike an important balance 
between maintaining state control over a traditional state 
block grant program, while increasing accountability to ensure 
that federal dollars are being well spent. The Improving 
Community Services Block Grant Act of 2003 does just that. In 
addition to requiring all eligible entities to meet all locally 
and state determined goals and objectives, the bill also 
requires the state to provide a justification to the Secretary 
of Health and Human Services as to why it continues to fund 
persistently low-performing eligible entities. It is the 
Committee's hope that no state will choose to continue funding 
those eligible entities that continue to be of low quality and 
under-perform, but in the event that a state does make this 
decision the legislation provides additional ``sunshine'' on 
current CSBG activities in order to drive improvement in local 
programs.

Training, technical assistance and corrective action

    As part of the many proposals and comments the Subcommittee 
and Committee received from the CSBG community were requests to 
provide more resources for training and technical assistance to 
assist states in carrying out corrective action and monitoring 
of eligible entities as well as for developing reporting 
systems and electronic data systems for reporting and data 
collection activities. Since current law seems to be working 
well, the Committee made minor changes to the act to continue 
to encourage efforts by the states to ensure that the needs of 
eligible entities and programs related to improving program 
quality are addressed. To that end the bill includes language 
in the appropriate places to clarify that funds must be used 
for training and technical assistance for carrying out 
corrective action and monitoring of eligible entities. The bill 
also adds language to current law to specify that funding can 
be used for such activities as developing reporting systems and 
electronic data systems. In addition, the bill includes an 
assurance that states will take swift action to improve 
performance, or when appropriate, defund low performing 
grantees that do not meet locally determined goals or state 
goals, standards and performance requirements in an effort to 
give states more authority for taking corrective action to make 
improvements, reducing the funding of, or terminating low-
performing eligible entities. The Committee would like to 
emphasize that states should be taking immediate action to make 
improvements upon finding cause for the need of corrective 
action of an eligible entity, even if the end result is a 
reduction in funding or termination of such eligible entity.

Coordination of reporting requirements

    In an effort to decrease the administrative burden on 
states and local eligible entities while still allowing for 
full oversight of all program requirements, the Committee 
included a provision in the bill that requires the Secretary of 
Health and Human Services to coordinate, to the maximum extent 
possible, reporting requirements for a variety of federal 
programs, including the Community Services Block Grant, Head 
Start, Low-Income Home Energy Assistance Program, the Child 
Care and Development Block Grant, and other services under the 
direction of the Secretary. It is the Committee's hope that by 
easing some administrative burdens on states and local eligible 
entities they will better be able to focus their efforts on 
providing high quality programs and serving the needs of their 
constituencies.

Expand rural opportunities

    The Improving the Community Services Block Grant Act of 
2003 expands opportunities for states to use CSBG funding for 
initiatives to improve economic conditions and mobilize new 
resources in rural areas to eliminate obstacles to the self-
sufficiency of families and individuals in rural communities. 
The Committee recognizes that poverty knows no boundaries and 
rural areas also have needs for CSBG programs and services. By 
expanding these opportunities to rural communities the 
Committee wants to emphasize that rural areas are in need of 
CSBG programs and services as much as urbanareas and want to 
ensure that states have the appropriate resources to guarantee that 
rural areas are properly served.

Enhance youth mentoring opportunities

    The Improving Community Services Block Grant Act of 2003 
also enhances opportunities for youth mentoring. Language is 
included to specific provisions in the bill to clarify that in 
carrying out youth development initiatives such initiatives may 
include youth mentoring activities. Youth development programs 
are designed to address the needs of youth in low-income 
communities and to support such activities as encouraging 
education, drug and alcohol abuse prevention and youth crime 
prevention. The Committee wanted to enhance mentoring 
opportunities because research proves that mentoring works. 
Evaluation research completed by Public/Private Ventures 
scientifically demonstrated what most of us know through 
experiences--that mentoring dramatically improves the lives of 
children. Youth with mentors are 46 percent less likely to 
begin using illegal drugs, 52 percent less likely to skip 
school, and 33 percent less likely to get into fights. Students 
with mentors reported greater confidence in their performance 
at school and better relationships with their families. The 
Committee firmly believes what the research shows and wants to 
continue to support and encourage youth mentoring opportunities 
where appropriate.

Role of faith-based providers

    Faith-based organizations participating in the CSBG program 
are allowed under current provisions in the CSBG program to 
maintain their religious character. In fact, the CSBG program 
specifically preserves the rights of faith-based organizations 
under Section 702(a) of Title VII of the Civil Rights Act of 
1964, as amended in 1972 (42 U.S.C. Sec. 2000e-1(a)) to 
maintain their religious character. When a faith-based group 
seeks to staff its program in accordance with its faith, it is 
not engaging in discrimination which is appropriately forbidden 
by law; but instead is exercising its right to maintain its 
religious character as protected under this law and under civil 
rights laws. Faith-based organizations cannot be expected to 
sustain their religious mission without the ability to employ 
individuals who share the tenets and practices of their faith 
because it is that faith that motivates them to serve their 
neighbors in need. Without protecting this right to continue to 
staff on a religious basis, faith-based organizations may 
withdraw from providing services rather than compromising their 
religious character--to the loss of desperate people in need 
currently being served by this program.
    The last reauthorization of CSBG, signed into law by then 
President Bill Clinton, specifically stated that religious 
organizations that receive federal funds in the form of grants 
or contracts do not lose their Title VII right to maintain 
their religious identity. President Clinton also signed into 
law three other acts--the Substance Abuse and Mental Health 
Services Administration Act, the Personal Responsibility and 
Work Opportunities Reconciliation Act and the Community Renewal 
Tax Relief Act--which had similar provisions protecting the 
rights of faith-based organizations.
    The Committee has included a provision to codify previous 
regulatory practice ensuring that program beneficiaries and 
potential program beneficiaries are not discriminated against 
on the basis of religion. The language included in the bill 
mirrors the language adopted in the final regulations on 
September 22, 2003. As reported in the Federal Register, the 
Department of Health and Human Services noted that ``[i]t was 
not the intent of Congress to permit religious discrimination 
in the treatment of beneficiaries and the CSBG Act charitable 
choice provisions adequately protect beneficiaries from 
discrimination.'' The Committee concludes, as did the 
Department of Health and Human Services, that this new language 
is sufficient to protect the religious freedom of 
beneficiaries.
    CSBG has a proud history of inclusion of faith-based 
organizations in the coordination of poverty reduction 
services, and having those organizations improve the lives of 
those in need. The Committee believes that this tradition of 
inclusion should continue and rejected attempts to add new 
barriers to faith-based organizations who are already serving 
under this program. The Committee believes that any federal 
legislation governing federal social service funds should 
continue to protect the rights of religious organizations to 
hire in accordance with their faith when they take part in 
federal social service efforts.

Discretionary programs

    In addition to the block grant itself, the Community 
Services Block Grant Act authorizes several related national 
activities and programs that are funded at the discretion of 
the Secretary of Health and Human Services. These programs and 
activities include among others, community economic 
development, rural community facilities, and community food and 
nutrition. The Improving Community Services Block Grant Act of 
2003 adds language to the community economic development 
program to clarify and codify policies for administrating the 
program.

National Youth Sports program

    The National Youth Sports program is also a separate 
discretionary grant program authorized as part of CSBG. Under 
this program the Secretary is authorized to make an annual 
grant to a national, non-profit organization to provide summer 
recreational, sport, and educational enrichment services to 
youth from low-income families. The program includes high 
quality sports instruction and enrichment instruction and 
information on matters relating to the well-being of youth, 
including educational and study habits support. Instructional 
activities supported under this program must be carried out on 
the campus of an institution of higher education. No 
significant changes were made to the program under H.R. 3030
    The Committee wants to clarify that institutions of higher 
education are only required to treat medical conditions that 
have occurred because of the participants' direct involvement 
in the program's activities, i.e., sprained ankles or broken 
bones. It is notthe Committee's intent to require that 
institutions of higher education be responsible for medical conditions 
that are not a direct result of participation in the program.

                      Section-by-Section Analysis


Section 1. Short Title

    Cites the short title as Improving the Community Services 
Block Grant Act of 2003.

Section 2. Community Service Block Grant Act amendments

    Amends the Community Service Block Grant Act in the 
following ways:
    Subsection 2(a). Purposes and Goals. Amends Section 672 of 
the Community Service Block Grant Act (42 U.S.C. 9901). Sets 
forth the purposes and goals of this bill, and outlines ways in 
which they are to be met.
    Subsection 2(b). Definitions. Amends Section 673(1)(A) of 
the Community Service Block Grant Act (42 U.S.C. 9902(1)(A)). 
Modifies and adds to the definitions under this act.
    Subsection 2(c). Authorization of Appropriations. Amends 
Sections 674 of the Community Service Block Grant Act (42 
U.S.C. 9903). Authorizes funds to carry out this act through 
updating the applicable fiscal years and adding language that 
includes training and technical assistance for monitoring in 
the Secretary's assistance to states.
    Subsection 2(d). Uses of Funds. Amends Section 675C of the 
Community Service Block Grant Act (42 U.S.C. 9907). Eliminates 
outdated language and changes language from ``neighborhood-
based'' to ``community-based.''
    Subsection 2(e). Application and Plan. Amends Section 676 
of the Community Service Block Grant Act (42 U.S.C. 9908). Adds 
language to include mentoring programs as youth development 
programs, to include initiatives promoting self-sufficiency and 
removing obstacles to that goal, and to strengthen the 
accountability of eligible entities. Under this language, 
states must require eligible entities to meet locally 
determined goals and states also must take action against or 
explain a lack of action against low-performing eligible 
entities. Removes outdated language.
    Subsection 2(f). Training, Technical Assistance, and other 
Activities. Amends Section 678A(a)(1)(A) of the Community 
Service Block Grant Act (42 U.S.C. 9913(a)(1)(A)). Adds 
language to include dissemination of information and assistance 
in development of reporting and electronic data systems as 
allowable expenditures by the Secretary under this section.
    Subsection 2(g). Monitoring of Eligible Entities. Amends 
Section 678B of the Community Service Block Grant Act (42 
U.S.C. 9914). Adds locally determined performance goals as a 
consideration for the states when conducting reviews. Changes 
language to remove outdated nomenclature.
    Subsection 2(h). Corrective Action; Termination and 
Reduction of Funding. Amends Section 678C(a) of the Community 
Service Block Grant Act (42 U.S.C. 9915(a)). Removes language 
requiring ``appropriate standards, goals, and other 
requirements,'' as well as performance objectives and other 
guidelines that are used in judging deficiencies, to be 
determined solely by the state.
    Subsection 2(i). Accountability and Reporting Requirements. 
Amends Section 678E of the Community Service Block Grant Act 
(42 U.S.C. 9917). Removes outdated language. Adds language to 
include in the states' report to the Secretary any corrective 
actions taken by the state and information on fund distribution 
timelines. Adds language encouraging the coordination of 
reporting requirements for those Department of Health and Human 
Services programs that are managed by eligible entities. Adds 
language requiring eligible entities to establish locally 
determined goals and reach those goals in order to receive a 
grant and continue eligible status.
    Subsection 2(j). Treatment of Beneficiaries. Amends Section 
679 of the Community Service Block Grant Act (42 U.S.C. 9920). 
Adds new language preventing an eligible entity that receives 
federal funds under this act from discriminating against a 
beneficiary or prospective beneficiary on the basis of 
religion.
    Subsection 2(k). Discretionary Authority of the Secretary. 
Amends Section 680 of the Community Service Block Grant Act (42 
U.S.C. 9921). Adds language to clarify community economic 
development activities. Adds language to allow grantees to 
retain assets obtained as long as such assets are being used 
for the same or similar purposes. Adds language allowing the 
grantee more flexibility in the use of funds provided that the 
funds are used for substantially similar activities. Adds 
language to include water and waste water treatment as 
community facility needs, and changes outdated language.
    Subsection 2(l). Community Food and Nutrition Programs. 
Amends Section 681 of the Community Service Block Grant Act (42 
U.S.C. 9922). Changes outdated language.
    Subsection 2(m). National or Regional Programs Designed to 
Provide Instructional Activities for Low-Income Youth. Amends 
Section 682 of the Community Service Block Grant Act (42 U.S.C. 
9923). Changes outdated language, adds language to suggest 
mentoring as a technique to increase the well-being of youth, 
and to include improved academic achievement as a desired 
outcome of these programs.

Section 3. Effective date

    Sets forth the effective date of the act and amendments 
made to the act as the first day of the first fiscal year 
beginning after the date of enactment of the act.

                       Explanation of Amendments

    The Amendment in the Nature of a Substitute is explained in 
the body of this report.

              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch. H.R. 3030 reauthorizes the Community Services Block 
Grant (CSBG) by building upon improvements made to the program 
during the last reauthorization to promote increased quality 
and accountability for CSBG programs. The bill does not prevent 
legislative branch employees' coverage under this legislation.

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement of 
whether the provisions of the reported bill include unfunded 
mandates. H.R. 3030 reauthorizes the Community Services Block 
Grant (CSBG) by building upon improvements made to the program 
during the last reauthorization to promote increased quality 
and accountability for CSBG programs. As such, the bill does 
not contain any unfunded mandates.


                             Correspondence

                                  House of Representatives,
                                   Washington, DC, October 7, 2003.
Hon. John Boehner,
Chairman, Committee on Education and the Workforce,
Rayburn House Office Building, Washington, DC.
    Dear Mr. Chairman: Due to other legislative duties, I was 
unavoidably detained during Committee consideration of H.R. 
3030, ``Improving the Community Services Block Grant Act of 
2003.'' Consequently, I missed roll call number 3, the vote on 
final passage of the bill. Had I been present, I would have 
voted against the bill.
    I would appreciate your including this letter in the 
Committee Report to accompany H.R. 3030. Thank you for your 
attention to this matter.
            Sincerely,
                                            Ruben Hinojosa,
                                                Member of Congress.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
(2)(b)(1) of rule X of the Rules of the House of 
Representatives, the Committee's oversight findings and 
recommendations are reflected in the body of this report.

   New Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974 and with respect to 
requirements of 3(c)(3) of rule XIII of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following cost estimate 
for H.R. 3030 from the Director of the Congressional Budget 
Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                   Washington, DC, October 7, 2003.
Hon. John A. Boehner,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 3030, the 
Improving the Community Services Block Grant Act of 2003.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Donna Wong.
            Sincerely,
                                       Douglas Holtz-Eakin,
                                                          Director.
    Enclosure.

H.R. 3030--Improving the Community Services Block Grant Act of 2003

    Summary: H.R. 3030 would reauthorize programs created under 
the Community Services Block Grant Act. These programs are 
currently authorized through October 31, 2003, by the 
Continuing Appropriations Act (Public Law 108-84).
    CBO estimates that authorizations under the bill would 
total $679 million in 2004 and about $4.3 billion over the 
2004-2009 period, assuming that annual levels are adjusted for 
inflation when specific amounts are not provided. (Without such 
inflation adjustments, the authorizations would total about $4 
billion over the 2004-2009 period.) CBO estimates that 
appropriations of the authorized levels would result in outlays 
of $3.9 billion over the 2004-2009 period, if inflation 
adjustments are included (and about $3.6 billion without 
inflation adjustments).
    H.R. 3030 does not contain any intergovernmental or 
private-sector mandates as defined in the Unfunded Mandates 
Reform Act (UMRA) and would impose no significant costs on 
state, local, or tribal governments.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 3030, with inflation adjustments, is 
shown in the following table. The costs of this legislation 
fall within budget function 500 (education, training, 
employment, and social services).

----------------------------------------------------------------------------------------------------------------
                                                                 By fiscal year, in millions of dollars--
                                                         -------------------------------------------------------
                                                           2003    2004    2005    2006    2007    2008    2009
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION
 Spending Under Current Law:
    Budget Authority \1\................................     670       0       0       0       0       0       0
    Estimated Outlays...................................     669     321      34       7       0       0       0
Proposed Changes:
    Community Services Block Grant:
        Estimated Authorization Level...................       0     657     670     684     698     714     729
        Estimated Outlays...............................       0     342     631     670     690     705     721
    Community Food and Nutrition Programs:
        Estimated Authorization Level...................       0       7       8       8       8       8       8
        Estimated Outlays...............................       0       4       7       8       8       8       8
    Youth Sports:
        Authorization Level.............................       0      15      15      15      15      15      15
        Estimated Outlays...............................       0       8      14      15      15      15      15
    Total Proposed Changes:
        Estimated Authorization Level...................       0     679     692     707     721     737     752
        Estimated Outlays...............................       0     353     652     692     713     728     744
Total Spending Under H.R. 3030:
    Budget Authority/Authorization Level \1\............     670     679     692     707     721     737     752
    Estimated Outlays...................................     669     674     686     699     713     728     744
----------------------------------------------------------------------------------------------------------------
Note.--Components may not sum to totals because of rounding.
\1\ The 2003 level is the amount appropriated for that year for the Community Services Block Grant, Community
  Food and Nutrition, and Youth Sports program.


    Basis of Estimate: For this estimate, CBO assumes H.R. 3030 
will be enacted this fall and that the estimated authorization 
amounts will be appropriated for each fiscal year. The 
estimated outlays reflect CBO's current assumptions about 
spending patterns in the authorized programs.
    H.R. 3030 would reauthorize programs created under the 
Community Service Block Grant Act. Both the Community Services 
Block Grant (CSBG) and Community Food and Nutrition programs 
would be reauthorized at such sums as may be necessary for 2004 
through 2009. In the CSBG and Community Food and Nutrition 
programs, CBO's estimate of authorized levels is the 2003 
appropriated amount inflated in later years. The Youth Sports 
program has a specified authorization level of $15 million 
annually.
    CBO estimates that H.R. 3030 would authorize the 
appropriation of $679 million in 2004, assuming that the 2003 
amounts for the CSBG and Community Food and Nutrition programs 
are adjusted for inflation. CBO estimates that the bill would 
authorize total funding of $4.3 billion over the 2004-2009 
period, assuming inflation adjustments. Appropriation of the 
authorized amounts would result in outlays of $353 million in 
the first year and $3.9 billion over the six-year period. 
(Without inflation adjustments, the increased authorizations 
would result in outlays of $3.6 billion over the six years.)

Community Services Block Grant program

    The CSBG program provides grants to states to provide a 
range of services to reduce poverty, including employment 
assistance, education, housing assistance, nutrition, energy, 
emergency services, health, and substance abuse assistance. CBO 
estimates the authorization of such sums as necessary for the 
CSBG program would be about $657 million in 2004 and $4.2 
billion over the 2004-2009 period, with resulting outlays of 
$3.8 billion over the six years. Funding for the program in 
2003 is $646 million.

Community Food and Nutrition program

    The Community Food and Nutrition program provides grants to 
private and public agencies at the state and local level to 
coordinate existing food assistance resources and to develop 
innovative approaches to meet the nutrition needs of low-income 
people. CBO estimates the authorization of such sums as 
necessary for this program would be $7 million in 2004 and $47 
million over the 2004-2009 period, with resulting outlays of 
$42 million over those six years. The program is funded at $7 
million in 2003.

Youth Sports

    The Youth Sports program provides an annual grant to a 
national, nonprofit organization to operate the National Youth 
Sports program. The grantee contracts with colleges and 
universities to provide sports instruction and enrichment 
activities (career and education counseling, study skills, and 
drug abuse and nutrition services) to low-income youths in a 
summer program. The bill would reauthorize the current program 
at $15 million annually forthe 2004-2009 period. Total funding 
for the six-year period would be $90 million, with resulting outlays of 
about $82 million over that period. The program is funded at $17 
million in 2003.
    Intergovernmental and private-sector impact: H.R. 3030 does 
not contain any intergovernmental or private-sector mandates as 
defined in UMRA. States would need to continue to monitor 
eligible entities and assist them in developing local goals, 
but any costs incurred by state, local, or tribal governments 
would result from complying with grant conditions.
    Estimate prepared by: Federal Costs: Donna Wong. Impact on 
State, Local, and Tribal Governments: Sarah Puro. Impact on the 
Private Sector: Meenakshi Fernandes.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Statement of General Performance Goals and Objectives

    In accordance with Clause (3)(c) of House rule XIII, the 
goal of H.R. 3030 is to reauthorize the Community Services 
Block Grant (CSBG) by building upon improvements made to the 
program during the last reauthorization to promote increased 
quality and accountability for CSBG programs. The Committee 
expects the Department of Health and Human Services to comply 
with H.R. 3030 and implement the changes to the law in 
accordance with the changes.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress in the 
Constitution to enact the law proposed by H.R. 3030. The 
Committee believes that the amendments made by this bill, which 
authorize appropriations for Community Service Block Grant 
programs, are within Congress' authority under Article I, 
section 8, clause 1 of the Constitution.

                           Committee Estimate

    Clauses 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 3030. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

                   COMMUNITY SERVICES BLOCK GRANT ACT


           Subtitle B--Community Services Block Grant Program

SEC. 671. SHORT TITLE.

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

[SEC. 672. PURPOSES AND GOALS.

  [The purposes of this subtitle are--
          [(1) to provide assistance to States and local 
        communities, working through a network of community 
        action agencies and other neighborhood-based 
        organizations, for the reduction of poverty, the 
        revitalization of low-income communities, and the 
        empowerment of low-income families and individuals in 
        rural and urban areas to become fully self-sufficient 
        (particularly families who are attempting to transition 
        off a State program carried out under part A of title 
        IV of the Social Security Act (42 U.S.C. 601 et seq.)); 
        and
          [(2) to accomplish the goals described in paragraph 
        (1) through--
                  [(A) the strengthening of community 
                capabilities for planning and coordinating the 
                use of a broad range of Federal, State, local, 
                and other assistance (including private 
                resources) related to the elimination of 
                poverty, so that this assistance can be used in 
                a manner responsive to local needs and 
                conditions;
                  [(B) the organization of a range of services 
                related to the needs of low-income families and 
                individuals, so that these services may have a 
                measurable and potentially major impact on the 
                causes of poverty in the community and may help 
                the families and individuals to achieve self-
                sufficiency;
                  [(C) the greater use of innovative and 
                effective community-based approaches to 
                attacking the causes and effects of poverty and 
                of community breakdown;
                  [(D) the maximum participation of residents 
                of the low-income communities and members of 
                the groups served by programs assisted through 
                the block grants made under this subtitle to 
                empower such residents and members to respond 
                to the unique problems and needs within their 
                communities; and
                  [(E) the broadening of the resource base of 
                programs directed to the elimination of poverty 
                so as to secure a more active role in the 
                provision of services for--
                          [(i) private, religious, charitable, 
                        and neighborhood-based organizations; 
                        and
                          [(ii) individual citizens, and 
                        business, labor, and professional 
                        groups, who are able to influence the 
                        quantity and quality of opportunities 
                        and services for the poor.]

SEC. 672 PURPOSES AND GOALS.

  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 low-income communities in urban and rural 
        areas, by providing resources to States for support of 
        local eligible entities, including community action 
        agencies and other community-based organizations--
                  (A) to 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) to coordinate a range of services that 
                meet the needs of low-income families and 
                individuals, that support strong and healthy 
                families, and that assist them in developing 
                the skills needed to become self sustaining 
                while ensuring that these services are provided 
                effectively and efficiently; and
                  (C) to design and implement comprehensive 
                approaches to assist eligible individuals in 
                gaining employment and achieving economic self-
                sufficiency;
          (2) by improving and revitalizing the low-income 
        communities in urban and rural areas by providing 
        resources to States for support of local eligible 
        entities and their partners--
                  (A) to broaden the resource base of 
                initiatives and projects directed to the 
                elimination of poverty and the redevelopment of 
                the low-income community, including 
                partnerships with nongovernmental and 
                governmental institutions to develop the 
                community assets and services that reduce 
                poverty, such as--
                          (i) other private, religious, 
                        charitable, and community-based 
                        organizations;
                          (ii) individual citizens, and 
                        business, labor, and professional 
                        groups, that are able to influence the 
                        quantity and quality of opportunities 
                        and services for the poor; and
                          (iii) local government leadership; 
                        and
                  (B) to coordinate community-wide resources 
                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 to 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 
                        leverage the assets and services that 
                        reduce poverty, as provided in 
                        subparagraph (A); and
          (3) by ensuring maximum participation of residents of 
        low-income communities and of members of the groups 
        served by grants made 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 and to 
        develop the permanent social and economic assets of the 
        low-income community in order to reduce the incidence 
        of poverty.

SEC. 673. DEFINITIONS.

  In this subtitle:
          (1) Eligible entity; family literacy services.--
                  (A) Eligible entity.--The term ``eligible 
                entity'' means an entity--
                          (i) that is an eligible entity 
                        described in section 673(1) (as in 
                        effect on the day before the date of 
                        enactment of the Coats Human Services 
                        Reauthorization Act of 1998) as of the 
                        day before such date of enactment or is 
                        designated by the process described in 
                        section 676A (including an organization 
                        serving migrant or seasonal farmworkers 
                        that is so described or designated); 
                        [and]
                          (ii) that has a tripartite board or 
                        other mechanism described in subsection 
                        (a) or (b), as appropriate, of section 
                        676B[.]; and
                          (iii) that successfully develops and 
                        meets the locally determined goals 
                        described in section 678E(b)(1), as 
                        determined by the State, and meets 
                        State goals, standards, and performance 
                        requirements as provided for in section 
                        678B(a).

           *       *       *       *       *       *       *


SEC. 674. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated such 
sums as may be necessary for each of fiscal years [1999 through 
2003] 2004 through 2009 to carry out the provisions of this 
subtitle (other than sections 681 and 682).
  (b) Reservations.--Of the amounts appropriated under 
subsection (a) for each fiscal year, the Secretary shall 
reserve--
          (1) * * *
          (2) 1\1/2\ percent for activities authorized in 
        sections 678A through [678F] 678E to assist States, 
        eligible entities, and their partners in projects 
        supported by this subtitle, of which--
                  (A) * * *
                  (B) \1/2\ of the remainder of the amount 
                reserved by the Secretary under this paragraph 
                shall be used by the Secretary to carry out 
                evaluation and to assist States in carrying out 
                corrective action activities and [monitoring 
                (to correct programmatic deficiencies of 
                eligible entities)] monitoring (including 
                technical assistance and training to correct 
                programmatic deficiencies of eligible 
                entities), as described in sections 678B(c) and 
                678A; and

           *       *       *       *       *       *       *


SEC. 675C. USES OF FUNDS.

  (a) Grants to Eligible Entities and Other Organizations.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Recapture and redistribution of unobligated 
        funds.--
                  (A) Amount.--[Beginning on October 1, 2000, 
                a] A State may recapture and redistribute funds 
                distributed to an eligible entity through a 
                grant made under paragraph (1) that are 
                unobligated at the end of a fiscal year if such 
                unobligated funds exceed 20 percent of the 
                amount so distributed to such eligible entity 
                for such fiscal year.

           *       *       *       *       *       *       *

  (b) Statewide Activities.--
          (1) Use of remainder.--If a State uses less than 100 
        percent of the grant or allotment received under 
        section 675A or 675B to make grants under subsection 
        (a), the State shall use the remainder of the grant or 
        allotment under section 675A or 675B (subject to 
        paragraph (2)) for activities that may include--
                  (A) * * *

           *       *       *       *       *       *       *

                  (F) supporting innovative programs and 
                activities conducted by community action 
                agencies or other [neighborhood-based] 
                community-based organizations to eliminate 
                poverty, promote self-sufficiency, and promote 
                community revitalization;

           *       *       *       *       *       *       *


SEC. 676. APPLICATION AND PLAN.

  (a) * * *
  (b) State Application and Plan.--[Beginning with fiscal year 
2000, to] To be eligible to receive a grant or allotment under 
section 675A or 675B, a State shall prepare and submit to the 
Secretary an application and State plan covering a period of 
not less than 1 fiscal year and not more than 2 fiscal years. 
The plan shall be submitted not later than 30 days prior to the 
beginning of the first fiscal year covered by the plan, and 
shall contain such information as the Secretary shall require, 
including--
          (1) an assurance that funds made available through 
        the grant or allotment will be used--
                  (A) * * *
                  (B) to address the needs of youth in low-
                income communities through [youth development 
                programs that support] youth development 
                programs, which may include mentoring programs, 
                that support the primary role of the family, 
                give priority to the prevention of youth 
                problems and crime, and promote increased 
                community coordination and collaboration in 
                meeting the needs of youth, and support 
                development and expansion of innovative 
                community-based youth development programs that 
                have demonstrated success in preventing or 
                reducing youth crime, such as--
                          (i) * * *
                          (ii) after-school child care 
                        programs; [and]
                  (C) to make more effective use of, and to 
                coordinate with, other programs related to the 
                purposes of this subtitle (including State 
                welfare reform efforts); and
                  (D) initiatives to improve economic 
                conditions and mobilize new resources in rural 
                areas to eliminate obstacles to the self-
                sufficiency of families and individuals in 
                rural communities;
          (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 and neighborhood-based] community-based 
        initiatives related to the purposes of this subtitle;
          (3) [information provided by eligible entities in the 
        State, containing] an assurance that the State will 
        provide information, including--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) a description of how the local entity 
                will use the funds to support innovative 
                [community and neighborhood-based] community-
                based initiatives related to the purposes of 
                this subtitle, which may include fatherhood 
                initiatives and other initiatives with the goal 
                of strengthening families and encouraging 
                effective parenting;

           *       *       *       *       *       *       *

          (9) an assurance that the State and eligible entities 
        in the State will, to the maximum extent possible, 
        coordinate programs with and form partnerships with 
        other organizations serving low-income residents of the 
        communities and members of the groups served by the 
        State, including religious organizations, charitable 
        groups, [and community organizations] and community-
        based organizations;
          (10) an assurance that the State will require each 
        eligible entity in the State to establish procedures 
        under which a low-income individual, [community 
        organization] community-based organization, or 
        religious organization, or representative of low-income 
        individuals that considers its organization, or low-
        income individuals, to be inadequately represented on 
        the board (or other mechanism) of the eligible entity 
        to petition for adequate representation;

           *       *       *       *       *       *       *

          (12) an assurance that the State and all eligible 
        entities in the State will, not later than fiscal year 
        2001, participate in the Results Oriented Management 
        and Accountability System, another performance measure 
        system for which the Secretary facilitated development 
        pursuant to section 678E(b), or an alternative system 
        for measuring performance and results that meets the 
        requirements of that section, and a description of 
        outcome measures to be used to measure eligible entity 
        performance in promoting self-sufficiency, family 
        stability, and community revitalization; [and]
          (13) an assurance that the State will take swift 
        action to improve performance or, when appropriate, to 
        terminate the funding under this subtitle of low-
        performing eligible entities that do not meet the 
        applicable locally determined goals described in 
        section 678E(b)(1) or do not meet the State goals, 
        standards, and requirements as provided for in section 
        678B(a);
          (14) an assurance that the State will provide a 
        justification to the Secretary if it continues to fund 
        persistently low-performing eligible entities; and
          [(13)] (15) information describing how the State will 
        carry out the assurances described in this subsection.
  (c) Funding Termination or Reductions.--For purposes of 
making a determination in accordance with subsection (b)(8) 
with respect to--
          (1) * * *
          (2) a termination, the term ``cause'' includes the 
        failure of an eligible entity to comply with the terms 
        of an agreement or a State [plan, or to meet a State 
        requirement, as described in section 678C(a).] plan, to 
        meet a State requirement, as described in section 
        678C(a), or to meet the locally determined goals as 
        described in section 678E(b)(1).

           *       *       *       *       *       *       *

  [(f) Transition.--For fiscal year 2000, to be eligible to 
receive a grant or allotment under section 675A or 675B, a 
State shall prepare and submit to the Secretary an application 
and State plan in accordance with the provisions of this 
subtitle (as in effect on the day before the date of enactment 
of the Coats Human Services Reauthorization Act of 1998), 
rather than the provisions of subsections (a) through (c) 
relating to applications and plans.]

           *       *       *       *       *       *       *


SEC. 678A. TRAINING, TECHNICAL ASSISTANCE, AND OTHER ACTIVITIES.

  (a) Activities.--
          (1) In general.--The Secretary shall use amounts 
        reserved in section 674(b)(2)--
                  (A) for training, technical assistance, 
                dissemination regarding best practices, 
                planning, evaluation, and performance 
                measurement, to assist States in carrying out 
                corrective action activities and monitoring (to 
                correct programmatic deficiencies of eligible 
                entities), and for reporting and data 
                collection activities (including to assist in 
                the development of reporting systems and 
                electronic data systems), related to programs 
                carried out under this subtitle; and

           *       *       *       *       *       *       *


SEC. 678B. MONITORING OF ELIGIBLE ENTITIES.

  (a) In General.--In order to determine whether eligible 
entities meet the performance goals, administrative standards, 
financial management requirements, and other requirements of a 
State and the locally determined performance goals described in 
section 678E(b)(1), the State shall conduct the following 
reviews of eligible entities:
          (1) * * *

           *       *       *       *       *       *       *

          (3) Followup reviews including prompt return visits 
        to eligible entities, and their programs, that fail to 
        meet the appropriate goals, standards, and requirements 
        [established by the State].

           *       *       *       *       *       *       *

  (c) Evaluations by the Secretary.--The Secretary shall 
conduct in several States in each fiscal year evaluations 
(including investigations) of the use of funds received by the 
States under this subtitle in order to evaluate compliance with 
the provisions of this subtitle, and especially with respect to 
compliance with section 676(b). The Secretary shall submit, to 
each State evaluated, a report containing the results of such 
evaluations, and recommendations of improvements designed to 
enhance the benefit and impact of the activities carried out 
with such funds for people in need. On receiving the report, 
the State shall submit to the Secretary a plan of action in 
response to the recommendations contained in the report. The 
results of the evaluations shall be submitted annually to the 
[Chairperson of the Committee on Education and the Workforce of 
the House of Representatives and the Chairperson of the 
Committee on Labor and Human Resources of the Senate] 
appropriate congressional committees as part of the report 
submitted by the Secretary in accordance with section 
678E(b)(2).

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

  (a) Determination.--If the State determines, on the basis of 
a final decision in a review pursuant to section 678B, that an 
eligible entity fails to comply with the terms of an agreement, 
or the State plan, to provide services under this subtitle or 
to meet appropriate standards, goals, and other requirements 
[established by the State] (including performance objectives), 
the State shall--
          (1) * * *

           *       *       *       *       *       *       *


SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

  (a) State Accountability and Reporting Requirements.--
          (1) Performance measurement.--
                  (A) In general.--[By October 1, 2001, each] 
                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).

           *       *       *       *       *       *       *

          (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 including any activities under section 678C. 
        [Prior to the participation of the State in the 
        performance measurement system, 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 information on 
        the timeliness of the distribution of block grant funds 
        to eligible entities as provided in section 675C(a), an 
        accounting of funds spent on administrative costs by 
        the State and the eligible entities, and funds spent by 
        eligible entities on the direct delivery of local 
        services, and shall include information on the number 
        of and characteristics of clients served under this 
        subtitle in the State, based on data collected from the 
        eligible entities. The State shall also include in the 
        report a summary describing the training and technical 
        assistance offered by the State under section 
        678C(a)(3) during the year covered by the report.
  (b) Local Accountability and Reporting Requirements.--
          (1) Locally determined goals.--In order to be 
        designated as an eligible entity and to receive a grant 
        under this subtitle, an eligible entity shall establish 
        locally determined goals for reducing poverty in the 
        community, including goals for--
                  (A) leveraging and mobilizing 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 for 
        an eligible entity to receive a second or subsequent 
        grant made under this subtitle after the effective date 
        of this paragraph, such entity shall demonstrate to the 
        State that it has met the goals described in paragraph 
        (1).
  [(b)] (c) Secretary's Accountability and Reporting 
Requirements.--
          (1) * * *
          (2) Reporting requirements.--At the end of each 
        fiscal year [beginning after September 30, 1999], the 
        Secretary shall, directly or by grant or contract, 
        prepare a report containing--
                  (A) * * *

           *       *       *       *       *       *       *

          (3) Submission.--The Secretary shall submit to the 
        [Committee on Education and the Workforce of the House 
        of Representatives and the Committee on Labor and Human 
        Resources of the Senate] appropriate congressional 
        committees 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) Coordination of reporting requirements.--To the 
        maximum extent possible, the Secretary shall coordinate 
        reporting requirements for all programs of the 
        Department of Health and Human Services managed by 
        eligible entities so as to consolidate and reduce the 
        number of reports required about individuals, families, 
        and uses of grant funds.

           *       *       *       *       *       *       *


SEC. 679. OPERATIONAL RULE.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Treatment of Beneficiaries.--In providing assistance 
under a program described in subsection (a), a religious 
organization shall not discriminate against a beneficiary, or a 
potential beneficiary, of such assistance on the basis of 
religion or of a religious belief.

SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.

  (a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
          (1) * * *
          (2) Community economic development.--
                  (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 (including 
                financial assistance for construction or 
                substantial rehabilitation of buildings and 
                facilities, and for loans or investments in 
                private business enterprises owned by community 
                development corporations) for economic 
                development activities designed to address the 
                economic needs of low-income individuals and 
                families by creating employment and business 
                development opportunities.
                  (B) Federal interest.--The Secretary shall 
                establish procedures that permit funds provided 
                under a grant made under this paragraph, or 
                intangible assets acquired with such funds, to 
                become the sole property of the grantee before 
                the expiration of the 12-year period beginning 
                after the fiscal year for which such grant is 
                made if such grantee agrees to use such funds 
                or such property for purposes and uses 
                consistent with the purposes and uses for which 
                such grant is made.
                  (C) Replacement activities.--The Secretary 
                shall establish procedures to allow a grant 
                made under this paragraph to be used by a 
                grantee to carry out activities substantially 
                similar to the activities for which such grant 
                is made if, due to no fault of such grantee, 
                such grantee cannot carry out the activities 
                for which such grant is made. Such procedures 
                shall require that the substantially similar 
                activities serve the same impact area and have 
                the same goals, objectives, and outcomes as the 
                activities for which such grant is made.
                  [(B)] (D) Consultation.--The Secretary shall 
                exercise the authority provided under 
                subparagraph (A) after consultation with other 
                relevant Federal officials.
                  [(C)] (E) Governing boards.--For a community 
                development corporation to receive funds to 
                carry out this paragraph, the corporation shall 
                be governed by a board that shall consist of 
                residents of the community and business and 
                civic leaders and shall have as a principal 
                purpose planning, developing, or managing low-
                income housing or community development 
                projects.
                  [(D)] (F) Geographic distribution.--In making 
                grants to carry out this paragraph, the 
                Secretary shall take into consideration the 
                geographic distribution of funding among States 
                and the relative proportion of funding among 
                rural and urban areas.
                  [(E)] (G) Reservation.--Of the amounts made 
                available to carry out this paragraph, the 
                Secretary may reserve not more than 1 percent 
                for each fiscal year to make grants to private, 
                nonprofit organizations or to enter into 
                contracts with private, nonprofit or for-profit 
                organizations to provide technical assistance 
                to aid community development corporations in 
                developing or implementing activities funded to 
                carry out this paragraph and to evaluate 
                activities funded to carry out this paragraph.
          (3) Rural community development activities.--The 
        Secretary shall provide the assistance described in 
        paragraph (1) for rural community development 
        activities, which shall include providing--
                  (A) * * *
                  (B) grants to multistate, regional, private, 
                nonprofit organizations to enable the 
                organizations to provide training and technical 
                assistance to small, rural communities 
                concerning meeting their community water and 
                wastewater facility needs.
          (4) Neighborhood innovation projects.--The Secretary 
        shall provide the assistance described in paragraph (1) 
        for neighborhood innovation projects, which shall 
        include providing grants to [neighborhood-based] 
        community-based private, nonprofit organizations to 
        test or assist in the development of new approaches or 
        methods that will aid in overcoming special problems 
        identified by communities or neighborhoods or otherwise 
        assist in furthering the purposes of this subtitle, and 
        which may include providing assistance for projects 
        that are designed to serve low-income individuals and 
        families who are not being effectively served by other 
        programs.

           *       *       *       *       *       *       *

  (c) Annual Report.--The Secretary shall compile an annual 
report containing a summary of the evaluations required in 
subsection (b) and a listing of all activities assisted under 
this section. The Secretary shall annually submit the report to 
the [Chairperson of the Committee on Education and the 
Workforce of the House of Representatives and the Chairperson 
of the Committee on Labor and Human Resources of the Senate] 
appropriate congressional committees.

SEC. 681. COMMUNITY FOOD AND NUTRITION PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Report.--For each fiscal year, the Secretary shall 
prepare and submit, to the [Committee on Education and the 
Workforce of the House of Representatives and the Committee on 
Labor and Human Resources of the Senate] appropriate 
congressional committees, a report concerning the grants made 
under this section. Such report shall include--
          (1) * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for each of fiscal years [1999 through 2003] 2004 
through 2009.

SEC. 682. NATIONAL OR REGIONAL PROGRAMS DESIGNED TO PROVIDE 
                    INSTRUCTIONAL ACTIVITIES FOR LOW-INCOME YOUTH.

  (a) * * *
  (b) Program Requirements.--Any instructional activity carried 
out by an eligible service provider receiving a grant under 
this section shall be carried out on the campus of an 
institution of higher education (as defined in section 1201(a) 
of the Higher Education Act of 1965 (20 U.S.C. 1141(a))) and 
shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (5) enrichment instruction and information on matters 
        relating to the well-being of youth (which may be 
        accomplished through mentoring), to include educational 
        opportunities and information on study practices to 
        improve academic achievement, education for the 
        prevention of drug and alcohol abuse, and information 
        on health and nutrition, career opportunities, and 
        family and job responsibilities.

           *       *       *       *       *       *       *

  (g) Authorization of Appropriations.--There are authorized to 
be appropriated $15,000,000 for each of fiscal years [1999 
through 2003] 2004 through 2009 for grants to carry out this 
section.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    The Community Services Block Grant (CSBG) is a relatively 
small--but extremely important program for more than one 
thousand communities nationwide and millions of families. Its 
purpose is to alleviate poverty by funding initiatives that 
fight the causes of poverty, such as unemployment, inadequate 
housing, poor nutrition, and lack of educational opportunity. 
The unifying characteristic of CSBG-funded programs is that 
they provide people and communities with the resources and 
skills they need to become self-sufficient. CSBG is designed to 
give local entities flexibility to design innovative programs 
that respond to individual family needs and help people to 
self-sufficiency by providing the core funding for local 
delivery systems to help low-income individuals and families 
with services such as employment and training programs, micro-
business development, family development, senior services, 
local community and economic development projects. Local 
communities use CSBG to help individuals obtain employment 
skills, access to home ownership and health insurance. It is 
also used to increase a community's new housing facilities, 
economic development and job creation, and public service 
improvements such as safer streets, lighting, parks, senior 
centers and recreation facilities.
    Employment and living conditions are extremely difficult 
for America's poor. According to Census data, the nation's 
poverty rate is rising so that now more than 12% of Americans 
live in poverty--that means more than 34 million people. Child 
poverty rose by more than 600,000 last year and the depth of 
poverty is at its highest rate since statistics were first kept 
in 1979. Recent unemployment figures are equally troubling. The 
Department of Labor reports that nearly 100,000 workers lost 
their jobs just last month and 3.3 million workers have lost 
their jobs since January 2001. The value of work also continues 
to decline. The value of the minimum wage will soon be at its 
lowest value in 50 years. Working full-time at the minimum wage 
places families in poverty. Given the current economic 
situation in this country, the reauthorization of a program 
whose central purpose is to minimize the effects of poverty and 
to maximize self-sufficiency of millions of people in poverty 
is critically important.
    H.R. 3030, ``Improving the Community Services Block Grant 
Act of 2003'', as reported strengthens and improves the CSBG 
program. H.R. 3030 enhances accountability on the local, State 
and Federal levels, and gives extra emphasis to CSBG's top 
priority--reducing poverty. The provisions' improving 
accountability should mean better service delivery and higher 
quality services for people and communities. The Minority 
strongly supports the CSBG program and the provisions in the 
reported legislation and believes they will help improve the 
quality of services to low-income individuals and families so 
that communities can more effectively move people toward self-
sufficiency.
    However, because H.R. 3030 fails to correct provisions in 
current laws that allow discrimination against beneficiaries of 
services based on religion and permits religious organizations 
receiving funds under this Act to discriminate in employment 
based on religion, the Minority opposes the reported bill. 
While we agree with the Majority that these provisions have 
existed in current law for five years, we cannot condone the 
continuation of discriminatory policies in any context.
    Representative Woolsey, Van Hollen, Payne and Andrews 
offered a three-part amendment during the full Committee markup 
of H.R. 3030 that would have provided the appropriate 
protections for beneficiaries and employees. first, the 
amendment ensured that beneficiaries of services and employees 
would be protected against religious discrimination through the 
insertion of ``religion'' in Sec. 678F(c). Second, the 
amendment deleted the offending provisions in current law that 
extends the exemption in Title VII of the Civil Rights Act to 
faith-based organizations participating in the Community 
Services Block Grant. The exemption in Title VII exempts 
religious organizations from the prohibition on discriminating 
in employment based on religion. Lastly, the amendment 
reinforced the requirement that religious organizations 
receiving funds under this Act, ``carry out such program, or 
shall provide such assistance, in a lawful and secular 
manner.'' \1\
---------------------------------------------------------------------------
    \1\ Woolsey et al Amendment offered October 1, 2002.
---------------------------------------------------------------------------
    The Majority's interpretation of the Title VII exemption 
for religious organizations, as well as their reliance on Bowen 
v. Kendrick to support their position, is unfortunately 
misguided. The Civil Rights Act of 1964 clearly states that 
religious organizations otherwise covered by Title VII may use 
religion as a criterion in their hiring, firing, promotion, and 
other employment practices; and they may do so not only with 
respect to employees engaged in religious activities but also 
those engaged in purely secular activities. For example, when a 
Catholic church hires a priest, it can of course require that 
the job applicant be Catholic. The exemption is a common sense 
provision for religious organizations within the context of 
positions that are paid for with private funds. We contend that 
this exemption is not valid when it applies to employment in 
social service programs that are directly funded by taxpayers 
such as the Community Services Block Grant. This view is 
consistent with current jurisprudence on this issue.\2\
---------------------------------------------------------------------------
    \2\ Dodge v. Sullivan.
---------------------------------------------------------------------------
    Similarly, Bowen does not support the application of the 
Title VII exemption for federally funded employment positions. 
The Majority cites the decision in Bowen v. Kendrick to make 
their claims:

          Faith-based organizations cannot be expected to 
        sustain their religious mission without the ability to 
        employ individuals who share the tenets and practices 
        of their faith because it is that faith that motivates 
        them to serve neighbors in trouble. In Bowen v. 
        Kendrick the United States Supreme Court upheld a 
        program allowing federal funds to be given to faith-
        based organizations for family counseling, including 
        faith-based organizations that required their employees 
        to follow religious directives. Without the right to 
        continue to hire on a religious basis, religious 
        organizations are likely to simply withdraw from 
        federal social service efforts altogether, to the 
        detriment of people in need everywhere.\3\
---------------------------------------------------------------------------
    \3\ House Committee Report--Majority Views.

    The Majority consistently has declined to recognize the 
question at issue in Bowen v. Kendrick--whether the adolescent 
Family Life Act was unconstitutional under the Establishment 
Clause. Indeed, the Majority wrongly interprets Bowen v. 
Kendrick by suggesting it affirms a religious organization's 
``right to hire on a religious basis.'' However, the Court did 
not consider employment practices in its deliberations. The 
Court did find that religious organizations could participate 
in government-funded programs and explicitly upholds the 
Supreme Court's proscription against using government money to 
fund any services that are not provided in a ``lawful, secular 
manner.'' The Woolsey amendment is almost word-for-word from 
the majority opinion in which the court held that religious 
organizations could participate in the federal program only if 
they carry out their functions ``in a lawful, secular manner''. 
Such a provision is necessary to ensure that services of the 
Community Services Block Grant program are administered in a 
constitutional manner. We continue to have serious concerns 
about this Administration's ability to fund faith-based 
organizations in a way that meets current constitutional 
standards as set out in Bowen.
    The Majority claims that the extension of the exemption in 
Title VII is necessary to prevent faith-based providers from 
withdrawing from the program. We disagree. Faith-based 
providers of social services have participated in CSBG and 
other federally funded programs prior to the application of the 
Title VII extension. Indeed, we strongly support the right of 
religious institutions to preserve the integrity of their own 
religious character when it comes to religious activities. We 
disagree, however, that it is healthy for American society, or 
in conformance with basic American principles of fairness and 
equal treatment under the law, for the federal government to 
provide funds for secular purposes to any organization that 
would then use these funds in a discriminatory fashion on 
religious grounds. In fact, in a poll conducted in 2001 by the 
Pew Research Center and the Pew Forum on Religion and Public 
Life on President Bush's faith-based initiative, 78% of those 
polled shared this view.
    The Majority points out in their views that former 
President Clinton signed four other laws which include 
provisions that extend the exemption in Title VII to faith-
based providers of federally funded services. However, the 
legislative history of this provision reveals that his 
endorsement of this Act is not indicative of the views of that 
Administration relating to this provision. It is important to 
note that the previous Administration questioned the legality 
of Sec. 679 at the time of enactment, in particular commenting, 
``The Department of Justice advises, however, that the 
provision that allows religiously affiliated organizations to 
be providers under CSBG would be unconstitutional if and to the 
extent it were construed to permit governmental funding of 
``pervasively sectarian'' organizations, as that term has been 
defined by the courts.\4\ In other words, pervasively sectarian 
organizations, by definition exempted from Title VII and 
permitted to discriminate in hiring based on religion, were 
considered ineligible to participate in programs funded by the 
Community Services Block Grant by the previous Administration. 
Moreover, there was little debate in Congress on this provision 
on the whole. This Committee did not vote on this provision in 
1998 when CSBG was last authorized. The House did not vote on 
this provision during its consideration. Ultimately, it was 
inserted during conference negotiations between the House and 
the Senate, which gave the House no opportunity to take a 
separate vote on this issue.
---------------------------------------------------------------------------
    \4\ President's Message.
---------------------------------------------------------------------------
    The Majority rejected the Woolsey et al amendment by a vote 
of 22-24.
    Representative Andrews offered a second-degree amendment to 
the Woolsey amendment to codify recently released Federal 
regulations for Sec. 678F and Sec. 679 of the Community 
Services Block Grant. While the amendment contained legislative 
language similar to statutory provisions in the 1996 law 
authorizing the Temporary Assistance for Needy Families Grant 
(P.L. 104-193), the Children's Health Act (P.L. 106-310) and 
the Community Renewal Tax Relief Act (P.L. 106-554), 
prohibiting discrimination against a beneficiary of services 
``on the basis of religion, a religious belief, a refusal to 
hold a religious belief, or to actively participate in a 
religious practice'', the Majority rejected this amendment, 22-
23.
    The Boehner amendment to prohibit discrimination against 
beneficiaries based on religion or religious belief was 
accepted by the Committee, yet it falls short of the Andrews 
amendment in several important ways. The Boehner amendment 
fails to cover a range of actions and activities that restrict 
religious freedom. For example, requiring a participant to 
listen to a sermon or Bible story as a condition for receiving 
services in CSBG programs would not explicitly violate the CSBG 
statute, but would violate the Constitution and the holding in 
Bowen v. Kendrick.
    The Community Services Block Grant continues to serve as a 
critical resource for families and communities in need. It 
provides crucial seed money for activities such as assisting 
low-income families with employment skills, senior services and 
community economic development programs. We believe it is 
unconscionable that the majority would permit thousands of 
dedicated hard-working community service employees to be 
dismissed or refused employment based solely on their religious 
affiliation or beliefs.

                                   George Miller.
                                   Chris Van Hollen.
                                   Susan Davis.
                                   Betty McCollum.
                                   Rush Holt.
                                   Tim Ryan.
                                   Carolyn McCarthy.
                                   Raul M. Grijalva.
                                   Donald M. Payne.
                                   Robert E. Andrews.
                                   Denise L. Majette.
                                   Ron Kind.
                                   Danny K. Davis.
                                   Timothy Bishop.
                                   Dale E. Kildee.
                                   Dennis J. Kucinich.
                                   John F. Tierney.
                                   Ed Case.
                                   Lynn Woolsey.
                                   Ruben Hinojosa.
                                   Major R. Owens.

                                
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