Text: H.R.6222 — 111th Congress (2009-2010)All Information (Except Text)

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Introduced in House (09/28/2010)


111th CONGRESS
2d Session
H. R. 6222


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


IN THE HOUSE OF REPRESENTATIVES

September 28, 2010

Mr. McGovern introduced the following bill; which was referred to the Committee on Ways and Means, and in addition to the Committees on Education and Labor and Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned


A BILL

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

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

SECTION 1. Short title; table of contents.

(a) Short title.—This Act may be cited as the “National Opportunity and Community Renewal Act”.

(b) Table of contents.—The table of contents of this Act is as follows:


Sec. 1. Short title; table of contents.

Sec. 2. Findings.

Sec. 3. Purposes.

Sec. 4. Definitions.

Sec. 101. National Opportunity Board.

Sec. 102. Local Opportunity Boards.

Sec. 201. Establishment.

Sec. 202. Duration.

Sec. 203. Local opportunity funds.

Sec. 204. Grant awards.

Sec. 205. Waiver program.

Sec. 206. Tax incentives.

Sec. 207. Application and administration.

Sec. 301. Community renewal savings.

Sec. 302. Community tax incentives.

Sec. 303. Renewal employer refundable credit.

Sec. 304. Unrelated business taxable income deduction.

Sec. 305. Qualified community renewal contribution.

Sec. 306. High school graduation tax credit.

Sec. 307. Modified new markets tax credit.

Sec. 308. Earned income tax credit.

Sec. 309. Community renewal bonds.

Sec. 310. Anti-corruption provision.

Sec. 401. Client advocacy competition.

Sec. 402. Evaluation competition.

Sec. 501. Report to Congress.

Sec. 601. Authorization of appropriations.

SEC. 2. Findings.

Congress makes the following findings:

(1) Recent data found that 43,600,000 Americans were living in poverty, with nearly 15,500,000 children living in poverty.

(2) The 2009 Federal Poverty Level for a household of 4 was set at $22,050.

(3) The Federal Government alone spends approximately $700,000,000,000 on poverty programs, with an additional $200,000,000,000 expended by States.

(4) Poverty in America has changed remarkably since the last major transformative policy debate on the issue.

(5) The 1996 welfare reform bill ultimately did not create new systems nor did it drive market-based solutions.

(6) The economic downturn has exposed the weakness of poverty reduction programs that are not market-driven.

(7) Effective and meaningful investment in poverty prevention programs will result in greater efficiencies at the Federal level.

SEC. 3. Purposes.

It is the purpose of this Act to—

(1) establish a National Competition for Community Renewal to allow eligible communities to draw upon existing and supplemental resources to design and implement innovative poverty reduction and prevention programs;

(2) significantly reduce the number of people in America living in poverty while also reducing the total amount of Federal dollars spent on poverty reduction;

(3) refocus poverty-related services toward an asset model that enables and supports each individual to reach his or her full potential; and

(4) encourage innovation in designing poverty reduction and prevention services and models in American communities, and to assess the successes and failures of innovative designs and non-traditional service delivery models.

SEC. 4. Definitions.

In this Act:

(1) BOARD.—The term “Board” means the National Opportunity Board established under section 101.

(2) ELIGIBLE AREA.—The term “eligible area” means a city, county, town, township, parish, village, or other general purpose political subdivision of a State, including the District of Columbia and insular areas, that meets criteria to be established under this Act by the Board.

(3) HOLISTIC.—The term “holistic” means encompassing health, education, labor, housing, justice and food.

(4) HUMAN DEVELOPMENT INDEX.—The term “Human Development Index” means a summary composite index that measures an area’s average achievements in 3 basic aspects of human development (health, knowledge, and a decent standard of living) and is currently calculated on a global scale by the United Nations Development Program and other organizations.

(5) LOCAL GOVERNING BODY.—The term “local governing body” means the executive office of any city, county, town, township, parish, village, or other general purpose political subdivision of a State, including the District of Columbia and insular areas.

(6) LOCAL OPPORTUNITY PLAN.—The term “Local Opportunity Plan” means a detailed spending plan, to be developed by the Local Opportunity Board and submitted to the National Opportunity Board under guidelines to be established by the National Opportunity Board.

(7) NATIONAL COMPETITION.—The term “National Competition” means the National Competition for Community Renewal established under title II.

(8) PROGRAM PERIOD.—The term “program period” means a period of 5 years, beginning on the date of the selection of an eligible area by the Board.

(9) QUALIFIED AREA.—The term “qualified area” means an eligible area that has been approved under the National Competition by the Board.

(10) QUALIFIED MILITARY INSTALLATION.—The term “qualified military installation” means any military installation or facility the number of members of the Armed Forces of the United States assigned to which, as of the date of enactment of this Act, is not less than 1,000.

(11) RESPONSIBLE LOCAL OFFICIAL.—The term “responsible local official” means the local official appointed by the Local Opportunity Board to administer the funds in the local opportunity fund for the qualified area involved. Such official shall be so appointed if such official is responsible for administering the majority of funding under the waived programs specified under section 203(b)(2)(B) for the area involved.

(12) RURAL AREA.—The term “rural area” means an eligible area within a public use microdata area that meets the definition of “rural area” as determined by the Census Bureau for the most recent Census for which data is available.

SEC. 101. National Opportunity Board.

(a) Establishment.—There is established a bipartisan, independent entity to be known as the “National Opportunity Board” to develop and administer the National Competition.

(b) Composition.—The Board shall be composed of 7 members, of which—

(1) 1 member shall be the President's Domestic Policy Advisor;

(2) 1 member shall be appointed by the President in consultation with the Majority and Minority leaders of the House of Representatives and the Senate, who shall serve as the Chair of the Board;

(3) 1 member shall be appointed by the Minority Leader of the Senate in consultation with the Minority Leader of the House of Representatives, who shall serve as the Vice-Chair of the Board;

(4) 1 member shall be appointed by the senior Democratic member of the Senate leadership;

(5) 1 member shall be appointed by the senior Republican member of the Senate leadership;

(6) 1 member shall be appointed by the senior Democratic member of the House of Representatives leadership; and

(7) 1 member shall be appointed by the senior Republican member of the House of Representatives leadership.

(c) Appointments.—The members appointed to the Board under subsection (b) shall, to the extent practicable, include—

(1) representatives of non-profit organizations;

(2) members of the poverty reduction advocacy community;

(3) experts in the area of philanthropic giving; and

(4) members with experience relative to local government administration.

(d) Ex officio members.—

(1) IN GENERAL.—The following individuals or their designees shall serve as ex officio members of the Board:

(A) The Secretary of Health and Human Services;

(B) The Secretary of Commerce;

(C) The Secretary of Housing and Urban Development;

(D) The Secretary of Labor;

(E) The Secretary of Agriculture; and

(F) The Attorney General.

(2) LIMITATIONS.—Ex officio members of the board shall—

(A) not have a vote with respect to the activities of the Board; and

(B) be required to attend all meetings of the Board.

(3) DESIGNEES.—An individual who is not at least an Assistant Secretary may not be designated to serve as an ex officio member of the Board under paragraph (1).

(e) Dismissal, quorum, vacancies.—

(1) IN GENERAL.—Each member of the Board appointed under subsection (b) shall serve for a term of 6 years, except that—

(A) a member of the Board may be removed by a unanimous vote of all remaining voting members of the Board, and only for cause;

(B) if an individual is appointed to fill a vacancy occurring prior to the expiration of the term of the individual’s predecessor, that individual shall serve only for the remainder of the predecessor’s term; and

(C) any such appointment to fill a vacancy shall be made within 60 days after the vacancy occurs and shall be made in the same manner in which the original appointment was made.

(2) QUORUM.—A majority of the members of the Board appointed under subsection (b) shall constitute a quorum to conduct business.

(3) MEETINGS.—The Board shall meet at the call of the Chair or a majority of the members appointed under subsection (b), and commence operations as soon as practicable and after its initial meeting.

(f) Duties.—

(1) GUIDELINES FOR THE NATIONAL COMPETITION.—The Board shall design and establish written guidelines for establishing and implementing the National Competition, including the following:

(A) Criteria for establishing eligible areas, including—

(i) to the extent practicable, the use by the Board of the Human Development Index or the Supplemental Poverty Measurement to be established by the Census Bureau as a criteria for determining eligible areas; and

(ii) the demonstrated ability of a Local Opportunity Board to provide local matching funds as established under section 204(e).

(B) Application requirements to enable eligible areas to apply for grants and other assistance under the National Competition, including the design and content of the Local Opportunity Plan, as described in subsection 102(d)(1).

(C) Criteria for evaluating applications submitted under the National Competition.

(D) Eligible program development costs.

(E) Criteria for accountability measures for eligible areas selected to participate in the National Competition.

(F) Reporting requirements for eligible areas selected to participate in the National Competition.

(2) RULEMAKING.—The Board shall have the authority to promulgate regulations for establishment and administration of the National Competition.

(3) ADMINISTRATION OF NATIONAL COMPETITION.—The Board shall administer the National Competition, including—

(A) awarding funding and waivers to eligible areas based on developed criteria; and

(B) evaluating the performance of participating eligible areas in accordance with this section.

(4) EVALUATIONS.—

(A) IN GENERAL.—Not later than 3 years after the date of enactment of this Act, and annually thereafter, the Local Opportunity Board shall submit to the National Opportunity Board a comprehensive report on the implementation of a spending plan as described in section 102(d)(1)(A).

(B) CANCELLATION OF AWARD.—Based on information received in the report under subparagraph (A), the National Opportunity Board may revoke funding and access to benefits provided under title II if the Board determines that—

(i) the Local Opportunity Board of the qualified area fails to provide the information required under subparagraph (A), or the information provided by the chief elected official is inadequate;

(ii) the Local Opportunity Board of the qualified area failed to comply with the provisions established under the Local Opportunity Plan as established under section 102(d)(1); or

(iii) the Local Opportunity Board of the qualified area failed to meet any additional criteria to be established by the National Opportunity Board.

(C) REPAYMENT OF AMOUNTS.—The National Opportunity Board may, in accordance with this subsection, require a qualified area to repay any amounts that were not expended by the qualified area in accordance with the Local Opportunity Plan as established under section 102(d)(1), and any such funds shall be returned to the general fund of the Treasury.

(D) GUIDELINES.—The National Opportunity Board shall establish guidelines for the conduct of an independent audit, after the second program year, of any qualified area participating in the National Competition. Such guidelines shall require that the qualified area be audited in accordance with generally accepted auditing standards by independent certified public accountants and that all books, accounts, financial records, reports, and files necessary to facilitate the audits shall be made available to the person or persons conducting the audits.

(g) Personnel matters.—

(1) COMPENSATION AND EXPENSES.—

(A) IN GENERAL.—Except as provided in this paragraph, a member of the Board shall serve without compensation.

(B) TRAVEL EXPENSES.—Each member of the Board shall be reimbursed for travel and per diem in lieu of subsistence expenses during the performance of duties of the Board while away from home or his or her regular place of business, in accordance with applicable provisions under subchapter I of chapter 57 of title 5, United States Code.

(C) FEDERAL EMPLOYEES.—A member of the Board who is an officer or employee of the Federal Government shall serve without compensation in addition to the compensation received for the services of the member as an officer or employee of the Federal Government.

(2) STAFF.—Subject to such rules as the Board may prescribe, the Chair of the Board, without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and subchapter III of chapter 53 of such title (relating to classification and General Schedule pay rates), may appoint and fix the pay of a staff director and such other personnel as may be necessary to enable the Board to carry out its functions; except that no rate of pay fixed under this subsection may exceed the maximum rate of basic pay payable for GS–15 of the General Schedule.

(3) STAFF OF FEDERAL AGENCIES.—Upon request of the Chair of the Board, the head of any department or agency described under section 101(d) may detail, on a non-reimbursable basis, any of the personnel of that department or agency to the Board to assist it in carrying out its functions under this Act.

(h) Authorization of appropriations.—For the purposes of carrying out this section, there are authorized to be appropriated $1,000,000 for fiscal year 2011, and $2,500,000 each of fiscal years 2012 through 2016.

SEC. 102. Local Opportunity Boards.

(a) Establishment.—To be eligible to receive funds under this Act, the chief elected official of an eligible area shall establish a Local Opportunity Board.

(b) Composition.—The Local Opportunity Board shall consist of not more than 5 members, to be appointed by the chief elected official of the eligible area, and shall include representatives of—

(1) State government;

(2) non-elected community leaders, particularly those providing poverty-related services, including advocates and experts; and

(3) the head of the lead agency (or his or her designee) in one or more of the following programs operating in the eligible area—

(A) health programs;

(B) labor programs;

(C) housing programs;

(D) agriculture programs;

(E) justice programs; or

(F) commerce programs.

(c) Chair.—The members of the Local Opportunity Board shall select a Chair form among such members.

(d) Duties.—The Local Opportunity Board shall—

(1) develop and submit to the Board a Local Opportunity Plan, that at a minimum includes—

(A) a detailed spending plan for any funds approved under the National Competition by the Board;

(B) a description of how the spending plan meets the criteria listed for grant eligibility as defined by the Board and including the criteria listed in section 205(a);

(C) a description of coordination with other Federal, State, and local government assistance programs available in the jurisdiction in which the eligible area is located; and

(D) any other elements as required by the Board;

(2) submit an application (including the Local Opportunity Plan), pursuant to guidelines established by the Board, to the Board for approval; and

(3) establish a reporting system, as described in section 101(f)(1)(F), through which the Chair of the Local Opportunity Board shall report to the National Opportunity Board in compliance with that subsection.

SEC. 201. Establishment.

The Board shall develop and publish guidelines for the establishment of the National Competition for Community Renewal to provide for the awarding of competitive grants, targeted waivers, and targeted tax incentives.

SEC. 202. Duration.

The National Competition shall be effective beginning with the first fiscal year that begins after the date of enactment of this Act and ending after the fifth such fiscal year.

SEC. 203. Local opportunity funds.

(a) Establishment.—To be eligible to receive assistance under this Act, the Local Opportunity Board for the qualified area shall—

(1) establish a local opportunity fund; and

(2) otherwise comply with the requirements of this section.

(b) Amounts in fund.—

(1) IN GENERAL.—Prior to awarding a grant to a qualified area under section 204, the Local Opportunity Board of the qualified area shall have established a local opportunity fund.

(2) DEPOSITS.—There shall be deposited into the local opportunity fund the following:

(A) Any funds provided to the qualified area under the grant program established under section 204.

(B) Funds made available for use during the program period in the qualified area under the following:

(i) The Community Services Block Grant Act (42 U.S.C. 9901 et seq.).

(ii) The Head Start Act (42 U.S.C. 9831 et seq.).

(iii) The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

(iv) The supplemental nutrition assistance program under the Richard B. Russell National School Lunch Act (7 U.S.C. 2011 et seq.).

(v) The Weatherization Assistance for Low-Income Persons Program under the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).

(vi) The Jobs Corps program under subtitle C of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2881 et seq.).

(vii) The Temporary Assistance to Needy Families Program under title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(viii) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).

(C) Any matching funds provided by the qualified area.

(c) Accounting regulations.—The Board shall promulgate regulations with respect to accounting for the amounts in the local opportunity funds established under subsection (a).

(d) Use of funds.—The responsible local official shall have a fiduciary responsibility to administer funds in the local opportunity fund established under subsection (a)—

(1) in accordance with the Local Opportunity Plan (as approved by the Board); and,

(2) notwithstanding the provisions of law referred to in subsection (b)(2)(B).

(e) State funds.—The Local Opportunity Plan described in section 102(d)(1) shall provide satisfactory assurance that Federal funds and assistance made available under this title shall not be comingled with State funds, except as provided for under subsection (b)(2)(C).

SEC. 204. Grant awards.

(a) Authorization.—The Board shall award competitive grants to qualified areas that meet criteria to be established by the Board.

(b) Administration.—Amount made available under a grant under this section to a qualified area shall be deposited in the local opportunity fund established by the chief elected official for the qualified area.

(c) Amount.—The amount of a grant under this section shall not exceed $10,000,000.

(d) Use of amounts.—The responsible local official shall have a fiduciary responsibility to administer funds in accordance with the priorities established in the Local Opportunity Plan by the Local Opportunity Board and approved by the National Opportunity Board.

(e) Matching fund.—

(1) IN GENERAL.—The Board may require a qualified area to provide non-Federal matching funds with respect to grants awarded under this section, except that the amount of any matching requirements shall not exceed the amount of the grant award.

(2) SLIDING SCALE.—The amount of matching funds required under paragraph (1) shall be established based on a sliding scale that takes into account—

(A) the poverty of the population to be targeted by the qualified entity; and

(B) the ability of the qualified entity to obtain such matching funds.

(3) IN-KIND CONTRIBUTIONS.—The Board shall permit qualified areas to comply with a matching requirement under paragraph (2) in whole or in part with in-kind contributions, including administrative expenses.

SEC. 205. Waiver program.

(a) Establishment.—The Board shall develop and publish guidelines to provide for a waiver of the application of any or all of the provisions of law described in subsection (c), with respect to a qualified area under the National Competition.

(b) Authorization.—The Board shall grant a waiver to a qualified areas that has been selected by the Board as a winner under the National Competition.

(c) Provisions of law To be waived.—The provisions of law described in this subsection are the following:

(1) The Community Services Block Grant Act (42 U.S.C. 9901 et seq.).

(2) The Head Start Act (42 U.S.C. 9831 et seq.).

(3) The Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.).

(4) The supplemental nutrition assistance program under the Richard B. Russell National School Lunch Act (7 U.S.C. 2011 et seq.).

(5) The Weatherization Assistance for Low-Income Persons Program under the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.).

(6) The Jobs Corps program under subtitle C of title I of the Workforce Investment Act of 1998 (29 U.S.C. 2881 et seq.).

(7) The Temporary Assistance to Needy Families Program under title IV of the Social Security Act (42 U.S.C. 601 et seq.).

(8) The Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.).

(d) Hold harmless.—Notwithstanding any other provision of law, the amount received by an individual under this Act in any program year shall not be less than the amount that individual would otherwise have received under any provision of law described in subsection (c) during such year.

SEC. 206. Tax incentives.

A qualified area that is selected to participate in the National Competition by the Board shall be eligible for targeted tax incentives as established under title III.

SEC. 207. Application and administration.

(a) Design principles.—In approving an application for participation in the National Competition under this title, the Board may give preference to eligible areas that include the creation of an individual opportunity plan (as described in subsection (b)) as well as the following design principles as contained in the Local Opportunity Plan (as established in section 102(d)(1)):

(1) Basing poverty reduction and prevention services on the Human Development Index as a measure of the level of poverty for individuals and households.

(2) A model of poverty reduction and prevention that includes the varying levels of service for individuals and is adjusted to reflect the needs of individuals and households at different stages of poverty. The different levels of service may be structured to reflect the following levels of assistance:

(A) For low-income individuals and families requiring services to prevent reliance on more expensive government programs, services shall focus on intervention, including such services as mortgage assistance, debt relief, housing and voucher assistance, and job development and placement.

(B) For low-income individuals and families currently relying on at least one government program for basic needs such as food or housing, services shall be tailored to meet specific needs identified in a unique individual opportunity plan adopted by intensive client advocacy.

(C) For individuals at or below the Federal Poverty Guidelines, the continued provision of long term services shall be made available.

(3) An individual opportunity plan (as provided for in subsection (b).

(4) Intensive client advocacy, as defined in guidelines to be developed and published by the Board.

(5) Detailed evaluation practices, as defined in guidelines to be developed and published by the Board.

(b) Individual opportunity plans.—The Board shall develop and publish guidelines for the establishment of individual opportunity plans, which, at a minimum shall consist of—

(1) an assessment of the unique strengths and needs of the individual and the identification of services appropriate to meet such needs; and

(2) a written individualized opportunity plan developed by a multidisciplinary team, including a description of measurable results and outcomes expecting to be achieved as a result of implementation of the plan.

(c) Participation in National Competition.—The Board shall select a total of 10 qualified areas for participation in the National Competition. Such areas shall include—

(1) not less than 3 rural areas as defined by this Act; and,

(2) not less than 1 qualified area that is located in a county in which a qualified military installation or a county adjacent to a qualified military installation is located.

SEC. 301. Community renewal savings.

(a) In general.—Each Local Opportunity Board shall implement a method to calculate the community renewal savings achieved through the implementation of its Local Opportunity Plan.

(b) Community renewal savings.—For the purposes of this Act, the term “community renewal savings” means the present dollar value of the total Federal and State funds directly or indirectly saved by the Local Opportunity Board for individuals successfully assisted through the Local Opportunity Plan.

(c) Factors.—The community renewal savings shall be measured by criteria identified by the Local Opportunity Board in valuing the effectiveness of each program in the Local Opportunity Plan, but shall include the following:

(1) Present dollar value of increasing the income of an individual successfully assisted by a Local Opportunity Plan.

(2) Present dollar value of an individual graduating high school.

(3) Funds expended by the jurisdiction to assist an individual in each Local Opportunity Plan.

(4) Funds expended if an individual does not graduate high school.

(d) Allocation.—The community renewal savings of a Local Opportunity Board shall be allocated as following:

(1) 50 percent to reduce the public deficit.

(2) 25 percent to fund community tax incentives.

(3) 25 percent to fund, reinvest in, and expand programs and services under this Act.

(e) Program cost-Benefit ratio.—Each Local Opportunity Board shall calculate the program cost-benefit ratio for each program under the Local Opportunity Plan, which shall be the ratio of—

(1) the cost of the program measured by dollars; over

(2) the benefit of the program expressed in dollars.

(f) Example.—The program cost-benefit ratio of a job training program is equal to the cost of the program in dollars over the amount the program raises the earnings of the enrollee during his or her lifetime, taking into account what the individual would have earned without the job training program using local job market data.

SEC. 302. Community tax incentives.

(a) In general.—A dollar amount equal to 25 percent of the community renewal savings shall be allocated to the community tax incentives.

(b) Community tax incentives.—The community tax incentives shall consist of the following:

(1) Renewal employer refundable credit.

(2) Unrelated business taxable income deduction.

(3) Qualified community renewal contribution.

(4) High school graduation tax credit.

(5) Modified new markets tax credit.

(6) Community renewal bonds.

SEC. 303. Renewal employer refundable credit.

(a) In general.—In the case of any taxable year during the program period, there shall be allowed a current year business credit in the amount of $3,000 under section 38(b) of the Internal Revenue Code of 1986, with respect to each retained worker employed by a qualified opportunity employer with respect to which subsection (b)(4) is first satisfied during such taxable year.

(b) Retained worker.—For purposes of this section, the term “retained worker” means any individual—

(1) whose principal place of abode is within the qualified area;

(2) substantially all of the services performed by such individual during the taxable year are rendered within the qualified area;

(3) who begins employment with a qualified opportunity employer after the commencement of the program period;

(4) who certifies by signed affidavit, under penalties of perjury, that such individual has not been employed for more than 40 hours during the 90-day period ending on the date such individual begins such employment;

(5) who is not employed by the qualified opportunity employer to replace another employee of such employer unless such other employee separated from employment voluntarily or for cause;

(6) who is not an individual described in section 51(i)(1) of the Internal Revenue Code of 1986 (applied by substituting “qualified opportunity employer” for “taxpayer” each place that term appears);

(7) who was employed by the qualified opportunity employer on any date during the taxable year;

(8) who was so employed by the qualified opportunity employer for a period of not less than 52 consecutive weeks;

(9) whose wages (as defined in section 3401(a) of the Internal Revenue Code of 1986) for such employment during the last 26 weeks of such period equaled at least 110 percent of such wages for the first 26 weeks of such period; and

(10) who receives health benefits at least equal to essential health benefits, as defined under section 1302 of the Patient Protection and Affordable Care Act.

(c) Qualified opportunity employer.—

(1) IN GENERAL.—For purposes of this section, the term “qualified opportunity employer” means any employer—

(A) having a place of business in the qualified area;

(B) subject to remit withholding and employment taxes to the United States; and

(C) designated by the Local Opportunity Board, at its sole discretion, as a qualified opportunity employer based on its hiring standards, employee benefits, and employee retention statistics.

(2) TYPES OF QUALIFIED OPPORTUNITY EMPLOYERS.—A qualified opportunity employer includes any person employing individuals within the qualified area as long as such person meets the requirements under paragraph (1) and is not limited to persons subject to income tax under subpart A of the Internal Revenue Code of 1986.

(d) Limitation on carrybacks.—No portion of the unused credit under section 38 of the Internal Revenue Code of 1986 for any taxable year which is attributable to the increase in the current year business credit under this section may be carried to a taxable year beginning before the date of the enactment of this section.

SEC. 304. Unrelated business taxable income deduction.

(a) In general.—In the case of any taxable year during the program period, there shall be allowed a deduction under section 512(a) of the Internal Revenue Code of 1986 equal to the amount of 25 percent for any community renewal expenditure during such taxable year.

(b) Community renewal expenditure.—For purposes of this section, the term “community renewal expenditure” means an expenditure made by a qualified opportunity organization in furtherance of a qualified opportunity program or service.

(c) Qualified opportunity organization.—For purposes of this section, the term “qualified opportunity organization” means an organization—

(1) which is described in section 501(c)(3) of the Internal Revenue Code of 1986 and is exempt from tax under section 501(a) of such Code (other than a private foundation, as defined in section 509(a) of such Code, which is not an operating foundation, as defined in section 4942(j)(3) of such Code); and

(2) is designated by the Local Opportunity Board as being an eligible recipient of qualified community renewal contributions based on the programs and services it proposes to offer in furtherance of the Local Opportunity Plan.

(d) Qualified opportunity program or service.—For purposes of this section, the term “qualified opportunity program or service” means a program or service conducted by a qualified opportunity organization that is designated by the Local Opportunity Board as contributing importantly in accomplishing the Local Opportunity Plan.

SEC. 305. Qualified community renewal contribution.

(a) In general.—In the case of any taxable year during the program period, there shall be allowed a charitable contribution deduction under section 170(a) of the Internal Revenue Code of 1986 equal to the amount of 120 percent of any qualified community renewal contribution donated during such taxable year.

(b) Qualified community renewal contribution.—For purposes of this section, the term qualified “community renewal contribution” means a charitable contribution of property described in section 170(c) of the Internal Revenue Code of 1986, by an individual or corporation to a qualified opportunity organization (as defined in section 304(c)).

(c) Increased charitable contribution deduction limitation.—For the purposes of this section, section 170 of the Internal Revenue Code of 1986 is applied—

(1) in the flush language of subsection (b)(1)(A), by substituting “75 percent” for “50 percent”; and

(2) in subsection (b)(2)(A), by substituting “15 percent” for “10 percent”.

(d) Exclusion from alternative minimum taxable income.—In any taxable year during which a qualified community renewal contribution is properly claimed or carried over, the amount of such qualified community renewal contribution shall not be included in limiting the claimant’s total itemized deductions under the Internal Revenue Code of 1986 (other than under subsection (c)) and shall be excluded from the claimant’s calculation of alternative minimum taxable income under such Code.

SEC. 306. High school graduation tax credit.

(a) In general.—In the case of any taxable year during the program period, there shall be allowed to any eligible graduate or any taxpayer claiming an eligible graduate as a dependent a credit against tax imposed by subtitle A of the Internal Revenue Code of 1986 of a high school graduation tax credit in the amount of $500.

(b) Eligible graduate.—For the purposes of this section, the term “eligible graduate” means any individual who graduates from a qualified opportunity school.

(c) Qualified opportunity school.—For the purposes of this section, the term “qualified opportunity school” means—

(1) a secondary school located in the qualified area that includes grade 12; and

(2) is designated by the Local Opportunity Board as a qualified opportunity school based on certain predetermined criteria, such as the average graduation rate.

(d) No limitation.—The high school graduation tax credit shall be considered a refundable tax credit under the Internal Revenue Code of 1986 and is allowable based solely on the requirements stated in this section.

SEC. 307. Modified new markets tax credit.

(a) In general.—In the case of any taxable year during the program period, the term “low-income community” as defined in section 45D of the Internal Revenue Code of 1986 shall include the area within a qualified area.

(b) Qualified equity investment.—A qualified equity investment made pursuant to section 45D of the Internal Revenue Code of 1986 in a qualified area in accordance with subsection (a) shall qualify as such at the time of investment and shall not fail to be considered a qualified equity investment upon termination of the National Competition for Community Renewal.

SEC. 308. Earned income tax credit.

(a) In general.—In the case of any taxable year during the program period, the Local Opportunity Board may submit to the National Opportunity Board revisions to section 32 of the Internal Revenue Code of 1986 that modify the eligibility or percentage requirements, or both, of the earned income tax credit allowable to individuals residing in the qualified area.

(b) Adoption.—The National Opportunity Board, in its sole discretion, may approve all or part of the modifications to the earned income tax credit by the Local Opportunity Board. The National Opportunity Board shall base its decision to approve the Local Opportunity Board’s proposed revisions to the earned income tax credit on comprehensive data presented to the National Opportunity Board that the proposed revisions will better serve the individuals residing in the qualified area.

(c) Termination.—At the end of the program period, any revisions made to the earned income tax credit requirements under the authority granted in this section shall terminate and individuals residing in the qualified area shall be subject to the provisions as stated in section 32 of the Internal Revenue Code of 1986.

(d) Reports.—By the end of each subsequent year following a taxable year of the program period, the Local Opportunity Board shall report to the National Opportunity Board the number of persons filing and the amount of credit allowed under the approved revisions to the earned income tax credit as compared with the same statistics in taxable years before the commencement of the program period.

SEC. 309. Community renewal bonds.

(a) In general.—The National Opportunity board, acting through the Local Opportunity Boards, is hereby granted the authority to act on behalf of the Secretary of Treasury to issue and sell community renewal bonds in face value increments of $100 up to a maximum amount of $50,000,000 to assist the financing of Local Opportunity Plans. Community renewal bonds shall bear a coupon rate of 25 percent.

(b) Community renewal bonds.—Community renewal bonds shall be backed by the full faith and credit of the United States Government.

(c) Allocation.—Proceeds from the sale of community renewal bonds shall be allocated evenly among the Local Opportunity Boards.

(d) Term.—Community renewal bonds shall have a maturity date of 7 years from the date of issuance.

(e) Repayment.—Repayment of community renewal bonds allocated to each Local Opportunity Board shall be made from a portion of the community renewal savings allocated to the community tax incentives for such Board.

SEC. 310. Anti-corruption provision.

It shall be unlawful for any person—

(1) to claim a community renewal incentive who does not meet the requirements set forth in this Act; and

(2) to use funds appropriated under this Act for any purpose for which such funds were not authorized.

SEC. 401. Client advocacy competition.

(a) In general.—The Board shall be authorized to establish and administer a program to award competitive grants, in the amount of $5,000,000, to eligible entities to provide for the development of a client advocacy and consumer services technology platform.

(b) Eligible entity.—The Board shall establish criteria that an entity must comply with to be considered an eligible entity for purposes of this section

(c) Priority consideration.—The Board shall establish criteria for the awarding of grants under this section and shall give priority consideration to eligible entities that establish a platform which shall include—

(1) single source data entry that will be imported into multiple data entry points;

(2) a user-friendly interface;

(3) data that is interoperable across numerous programs;

(4) calculations based on the Human Development Index or another alternative poverty measurement;

(5) security requirements;

(6) assisting the case manager and consumer with establishing short and long term goals; and

(7) low-cost or cost-effective replication abilities.

(d) Client advocacy and consumer services technology.—In awarding grants under this section the Board shall give preference to those eligible entities that are, on the date of enactment of this Act, operating a client advocacy and consumer services technology platform.

SEC. 402. Evaluation competition.

(a) In general.—The Board shall be authorized to establish and administer a program to award competitive grants, in the amount of $5,000,000, to eligible entities to provide for the development of a social services evaluation method.

(b) Eligible entity.—The Board shall establish criteria that an entity must comply with to be considered an eligible entity for purposes of this section, with preference to be given to those entities in academia or research-oriented fields.

(c) Social service evaluation.—The Board shall establish criteria for the awarding of grants under this section and may consider, in establishing such criteria, the extent to which the proposed social service evaluation method to be developed under the grant would uniquely measure social service interventions with high predictability for programs that will be successful when serving a high volume of individuals.

SEC. 501. Report to Congress.

(a) Board.—Not later than 1 year after the end of the third and fifth fiscal years during which the program under this Act is implemented, the Board shall submit to the Congress a report that—

(1) summarizes all activities carried out under this Act; and

(2) sets forth any findings, conclusions, or recommendations of the Board as a result of such activities.

(b) Government accountability office.—Not later the end of the third and the fifth fiscal year during which the program under this Act is implemented, the Comptroller General of the United States shall submit a report to Congress that contains—

(1) a description of the savings in Federal programs accrued as a result of this Act;

(2) a description of the success and effectiveness of the reforms contained in this Act; and

(3) recommendations for improvement in the administration of the programs under this Act.

SEC. 601. Authorization of appropriations.

For the purposes of carrying out this Act, there are authorized to be appropriated $125,000,000 for the first fiscal year in which the National Competition is implemented, and for each of the five succeeding fiscal years.