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Calendar No. 414
108th Congress Report
SENATE
1st Session 108-210
======================================================================
POVERTY REDUCTION AND PREVENTION ACT
_______
November 24, 2003.--Ordered to be printed
_______
Mr. Gregg, from the Committee on Health, Education, Labor, and
Pensions, submitted the following
R E P O R T
[To accompany S. 1786]
The Committee on Health, Education, Labor, and Pensions, to
which was referred the bill (S. 1786) to revise and extend the
Community Services Block Grant Act, the Low-Income Home Energy
Assistance Act of 1981, and the Assets for Independence Act,
having considered the same, reports favorably thereon with an
amendment and recommends that the bill (as amended) do pass.
CONTENTS
Page
I. Summary of the bill..............................................1
II. Background and need for legislation..............................3
III. Legislative history and committee action.........................8
IV. Explanation of legislation and committee views...................9
V. Cost estimate...................................................17
VI. Application of law to the legislative branch....................20
VII. Regulatory impact statement.....................................21
VIII.Section-by-section analysis.....................................21
IX. Changes in existing law.........................................26
I. Summary of the Bill
The Poverty Reduction and Prevention Act of 2003
reauthorizes and makes improvements in the Community Services
Block Grant Act, the Low Income Home Energy Assistance Act of
1981 and the Assets for Independence Act.
Title I of the bill reauthorizes the Community Services
Block Grant (CSBG) program at such sums as may be necessary for
fiscal years 2004 through 2009. The reauthorization gives
particular attention to clarifying and strengthening the
purposes of the Community Services Block Grant program.
Emphasis is given to the development of partnerships that both
reduce the risk of individuals and families from becoming or
remaining poor, or that change the communities in which the
poor live, so as to reduce conditions of poverty, such as
inadequate services and infrastructure, crime, or substandard
housing, and to build assets and economics that will provide
economic opportunity and a decent living environment. The local
community governance, a unique requirement for Community
Action, is given new emphasis.
The future measurement of the results of CSBG programs is
expected to reflect the degree to which each of the three
principal goals is achieved by the programs designed to meet
them, including community improvements and maintenance of
representative and active community governance.
Title II reauthorizes the Low Income Home Energy Assistance
Program at $3.4 billion for fiscal years 2004 through 2006, and
then such sums as may be necessary for fiscal years 2007
through 2010. In addition, it authorizes a $600 million
emergency fund for each fiscal year and includes language
defining new circumstances, which warrant the release of
additional funding. It authorizes the leveraging incentive
program at $30 million for fiscal years 2004 through 2010. The
legislation also requires the Secretary to conduct a study on
the program and develop a protocol for States to collect
information from energy distribution companies on a variety of
residential customer statistics.
Title III reauthorizes the IDA demonstration program for an
additional 5 years, appropriating $25 million for fiscal year
2004 and ``such sums'' for each year through fiscal year 2008.
The amendments make small changes to improve the scope and
quality of the program's administration: increasing flexibility
over the use of nonFederal funding, expanding eligibility
requirements, extending unused ``earned'' match funds, and
adjusting technical details. The amendments apply to current
and future individual account holders and entities.
The amendment of Section (a)(1) gives grantees the option
of verifying all postsecondary education payments, allowing for
the provision of related educational material (e.g., computers
or books).
The amendment in Section 302(a)(3) permits accountholders
to save in a postsecondary education IDA for their children or
dependents.
Section 302(g) strikes the grandfathering provision, as it
is no longer necessary given the ongoing nature of the program.
In Section 302(c)(1), the reauthorization allows nonFederal
funds to be held in a separate account from the Reserve Fund,
providing greater flexibility in optimizing these resources.
Section 302(c)(2) allows those individuals who have not yet
purchased an asset to maintain their IDA until doing so, under
a 12 month no cost extension, to ensure participants have time
to locate appropriate assets.
Section 302(d) allows up to 20 percent of nonFederal
funding to be used at the discretion of the AFIA grantees for
program/operating costs. However, funding priority will be
given to those grantees using no more than 15 percent for such
purposes. This will allow greater private flexibility in
developing the most effective and comprehensive programs while
ensuring maximum resources are committed to program
participants for the asset developments promoted under the act.
Section 302(e) expands the current eligibility standards to
include Adjusted Gross Income ($18,000 single filer, $30,000
head of household, $28,000 for joint filers) and Area Median
Income (AMI), individuals with incomes equal to or less than 80
percent of AMI.
(For example, 200 percent of the Federal Poverty Line is
$36,488, across the United States. In rural Hamilton, AL, 80
percent of the AMI is $30,240. Yet in Manchester, NH, 80
percent of the AMI is $54,560, well above the Federal Poverty
Line.) These changes allow AFIA programs to cooperate better
with other government programs serving low and moderate income
families (e.g., HUD's HOME Investment Partnership programs) and
account for local and geographic variations.
The original legislation required all earned interest be
deposited in the IDA of each individual or into a parallel
account. Section 302(f)(3) allows grantees discretion in how
they calculate interest earned on match funds, and where there
is excess interest income on match funds, allows those funds to
be used to match additional IDAs.
The program is reauthorized for 5 years, through fiscal
year 2008. $25 million will be appropriated for 2004 and ``such
sums'' as may be necessary for each year through 2008.
The amendments of this section shall be applicable to
current individual account holders and grantees. The Secretary
of HHS shall also apply the amendments of 2000 to individual
account holders and entities that received grants before or
after the act's enactment.
II. Background and Need for Legislation
A. COMMUNITY SERVICES BLOCK GRANT ACT
The Community Services Block Grant (CSBG) dates back to
1964, when the Economic Opportunity Act established the War on
Poverty and authorized the independent Office of Economic
Opportunity (OEO). One of the most significant OEO programs was
the ``community action program,'' under which a nationwide
network of local Community Action Agencies (CAAs) was
developed. The law stipulated that each Community Action
Program must provide services and activities having a
``measurable and potentially major'' impact on alleviating the
causes and effects of poverty. The law further required that
each CAA be governed by a tripartite board, composed equally of
local elected officials; low income individuals from the
community; and members of business, industry, labor, religious,
law enforcement, education, or other major groups and interests
in the community served. The local boards identify the causes
of local poverty problems and design services they believe have
the greatest potential for success in dealing with the problems
of poverty and oversee the leadership and direction of the
agencies.
In 1975, OEO was renamed the Community Services
Administration (CSA) and continued to operate as an independent
agency with its chief function being the administration of the
nationwide network of CAAs. In 1981, CSA was abolished and
replaced by the CSBG, to be administered by HHS. When CSA was
abolished, it was administering nearly 900 CAAs, about 40 local
Community Development Corporations, and several small
categorical programs that were typically operated by local
CAAs.
The CSBG Act was established in 1981 as a partial response
to President Reagan's proposal to consolidate CSA with 11 other
social services programs into a block grant to States. Congress
rejected this proposal and instead created two new block
grants--the Social Services Block Grant, under Title XX of the
Social Security Act; and the CSBG, which consists of activities
previously administered by CSA. The CSBG Act was enacted as
part of the Omnibus Budget Reconciliation Act of 1981 (P.L. 97-
35), and has been reauthorized five times--in 1984 under P.L.
98-558, in 1986 under P.L. 99-425, in 1990 under P.L. 101-501,
in 1994 under P.L. 103-252 and in 1998 under P.L. 105-285.
Under the CSBG framework, States have the responsibility of
providing overall direction to eligible entities for achieving
programmatic results, supporting strong, modern management
systems and coordination among programs, and ensuring that
programs have adopted appropriate management and accountability
measures.
Each State designates a State agency to administer the
block grant. State CSBG administrators distribute not less than
90 percent of the funds available to eligible entities in the
form of grants. Eligible entities consist of approximately
1,100 local service providers in 50 States, the U.S.
Territories, the District of Columbia and the Commonwealth of
Puerto Rico. These entities, which include private nonprofit
CAAs, units of local government, migrant and seasonal farm
worker organizations, Indian Tribes, and limited purpose
agencies, are referred to as ``eligible entities.'' The vast
majority of the eligible entities are Community Action Agencies
(CAAs) which make up approximately 90 percent of the entities
receiving CSBG funds.
The broad, overall goal of the 1964 Community Action
Program to assist low income people to overcome the problems of
poverty, has not changed. However, the means by which eligible
entities have pursued this goal have evolved as communities
face changing local needs and challenges; as the social and
economic causes of poverty have changed; and as different
approaches for combating poverty have been tested, refined and
developed. Under the CSBG, decisions regarding the needs of low
income communities and the steps needed to meet their needs are
made at the local level. There, Community Action Agencies, in
coordination with other community groups and community based
organizations, conduct periodic assessments of community needs,
inventory available resources, and organize appropriate
programs and activities.
B. LOW INCOME HOME ENERGY ASSISTANCE
Energy costs account for a sizable portion of living
expenses for low income households. To help low income
families, senior citizens and disabled individuals meet the
rising cost of home energy, the Low Income Home Energy
Assistance Program was established in 1980 under the Home
Energy Assistance Act, part of the Crude Oil Windfall Profit
Tax Act of 1980 (P.L. 96-223). LIHEAP grew out of several one
year programs established from 1974 to 1979 primarily to deal
with energy-related emergencies. The LIHEAP program has been
reauthorized six times--in the Omnibus Budget Reconciliation
Act of 1981, the Human Services Reauthorization Act of 1984,
the Human Services Reauthorization Act of 1986, the Human
Services Reauthorization Act of 1990, the Human Services
Reauthorization Act of 1994 and the Coats Human Services
Reauthorization Act of 1998. The basic design and intent of the
program remains essentially the same as the 1974 program.
Grants are made to States, the District of Columbia, U.S.
territories and commonwealths, and Indian tribal organizations.
Federal requirements are minimal and leave most important
decisions to the grantees.
The Low Income Home Energy Assistance Program (LIHEAP)
gives States annual grants to assist low income households,
particularly those with the lowest incomes that pay a high
proportion of household income for home energy, to meet their
immediate home energy needs, to make residential energy bills
more affordable and to prevent household energy crises by
activities such as reducing costs through payment to, or on
behalf of, eligible households; obtaining lower costs for the
fuels purchased by eligible households; and, providing other
services that reduce the energy burdens of low income
households. Federal law limits eligibility to households with
incomes which do not exceed the greater of 150 percent of the
Federal poverty income guidelines or 60 percent of the State
median income. States may adopt lower income limits, but all
households with income below 110 percent of the poverty
guidelines must receive assistance.
The 1998 Act authorized LIHEAP at such sums as necessary
for fiscal years 2000 and 2001 and $2 billion for each fiscal
year 2002 through 2004. In addition, the act authorized a $600
million emergency fund for each fiscal year and included new
language defining the circumstances under which natural
disasters and other emergencies warrant the release of
additional funding under Section 2602(e). It authorized the
leveraging incentive program at $30 million for fiscal years
2000 through 2004 and retained language allowing States to
target the households with the highest energy burdens.
For many low income families, disabled individuals and
senior citizens, home energy costs are unaffordable. Without
energy assistance, many low-income households would have to
choosebetween heating and other vital necessities such as food,
medicine, rent or mortgage. These families often carry a higher energy
burden than most Americans. In fiscal year 2000, the average household
had energy expenditures of $1,293 and a mean individual burden of 6.1
percent of income. Low income households--households with annual
incomes under the LIHEAP income maximum of the greater of 150 percent
of the poverty level or 60 percent of State median income--had energy
expenditures of $1,099. While the expenditures are 15 percent less than
the average household, the mean individual energy burden for low income
households was 12.1 percent, about twice as much as the burden for the
average household. Energy expenditures for LIHEAP recipient households
were $1,077 and the mean individual energy burden was 14.8 percent,
almost 3 percentage points higher than the average low income
household. In fiscal year 2000, home heating was 30 percent of the
residential energy bill for low income households and home cooling was
seven percent. LIHEAP benefits, while critical, cover a small portion
of low income households' energy costs.
Low-income families who lack home energy because they
cannot pay their bills face risks, such as reduced caloric
intake in winter, fire, or eviction that can lead to
homelessness. According to data supplied by the Department of
Health and Human Services (HHS), an estimated 4.8 million
households received winter heating/crisis assistance in fiscal
year 2001. This is only 17 percent of the more than 29 million
eligible households. Of the households receiving assistance in
fiscal year 2000, about 34 percent had at least one member 60
years or older, about 36 percent included at least one disabled
member and about 21 percent included at least one child five
years or younger. LIHEAP is part of the vital social safety net
for low income households and senior citizens living on a fixed
income.
C. ASSETS FOR INDEPENDENCE ACT
The Assets for Independence Act (AFIA) of 1998, originally
authored by Senator Dan Coats, authorized a demonstration
program ``to determine the social, civic, psychological and
economic effects that Individual Development Account (IDA)
savings accounts can have on low income individuals and their
families.'' The program encourages low income families to save
money for starting a business, purchasing a home, or investing
in a college education. The demonstration program expired at
the end of fiscal year 2003.
The savings rate and asset ownership levels of low and
moderate income individuals are markedly low. The committee
recognizes that as many as 25 percent of all U.S. households or
individuals have insufficient net worth to subsist for three
months at the poverty level. Over the last 20 years, research
has shown that holding assets, especially in the form of
homeownership, is associated with enhanced property
maintenance, and increased social and civic involvement. Asset
ownership is also associated with decreased economic strains on
households, increased educational attainment among children,
decreased intergenerational poverty, and healthier and more
satisfied parents.
Communities that have established and implemented IDA
programs funded with the Assets for Independence Act are
significantly improving the lives of their lower income
members. Across the country, IDAs have spurred over $14.5
million in savings, $22.5 million in match funding, and over
$130.6 million in loans leveraged for homeownership, small
businesses, and education. As the largest single funding source
of match dollars, the Assets for Independence Act provides the
core support necessary to enable thousands to save to build
assets.
Data indicates that the demonstration program has been
highly successful in engaging qualified entities and enrolling
individuals. Federal funding, with matching contributions from
nonFederal sources, was granted to 38 qualified entities in the
program's first year of existence, fiscal year 1999. The number
of grantees more than doubled to 77 in fiscal year 2003,
enabling Health and Human Services (HHS) to give out all but $2
million of its $25 million annual grant money. The fiscal year
1999 accountability report from HHS reveal characteristics of
2,153 individual account holders: 84 percent were female, 42
percent were African-American and 37 percent were Caucasian, 94
percent represented the working population (age 18-55), and 51
percent were single.
Feedback from HHS and AFIA grantees suggests that minor
changes in the reauthorization will improve the quality of the
program's administration over the next 5 years. Broadly, the
needed modifications include increased flexibility for program
and operation support, eligibility standards, the use of
``earned'' match funds, and a few technical adjustments.
Current law requires all post secondary education expenses
be paid directly to an eligible education institute. This
excludes education related material (e.g., computers or books),
which may be essential to achieving a college education. AFIA
grantees have proposed broadening the requirement to include
such related materials, with the provision that the grantees
verify the payments.
The original AFIA legislation required IDAs to be available
only for the purposes of the eligible individual. Feedback from
the IDA community suggests an interest in allowing individual
account holders to save in a post secondary education IDA for
their children or dependents.
The original demonstration program grandfathered similar
existing statewide programs (in Indiana and Pennsylvania) to
streamline the formal application process while the program was
still being established. Now that the IDA program is underway,
State entities must formally apply and meet the criteria set
forth in the statute.
Current law requires all funds, Federal and nonFederal,
connected with the demonstration project to be housed in the
Reserve Fund. Grantees have found this requirement
unnecessarily restricts nonFederal funds, hindering compliance
with funding guidelines from various nonFederal funding sources
and preventing the sound investment of those funds.
AFIA grantees are authorized to conduct IDA projects for 5-
year periods and then unused, ``earned'' match funds are
transferred to the Federal Government. This deadline has caused
problems for individuals who have saved for an asset, but for a
variety of reasons have not yet secured one (e.g., job loss or
delay in finding an appropriate home).
Current law requires nonFederal funding to be used for the
same purposes and in the same ratio as the Federal funds (no
more than 15 percent for program/operating costs). Grantees
have requested more discretion over the use of nonFederal funds
for program and operation costs. Grantees claim this autonomy
will allow programs to better meet accountholder needs, enroll
more individuals, and more aggressively use AFIA funding.
Original eligibility standards include: (1) 200 percent of
poverty rate, (2) Earned Income Tax Credit (EITC) guidelines,
and (3) Temporary Assistance for Needy Families (TANF)
guidelines. These standards cause some difficulties for AFIA
programs as they cooperate with other programsserving low and
moderate income families (e.g., HUD's HOME Investment Partnership
programs) and fail to effectively account for local and geographic
variations.
Originally, all earned interest had to be deposited in the
IDA of each individual or into a parallel account. Excess
interest, interest earned from the Reserve Fund as opposed to
interest earned in IDAs, accrues at substantially greater rates
as the larger amount of money is held over a longer period of
time. Grantees suggest requiring that ``excess interest'' to be
rolled over to fund existing IDAs and/or for new IDAs.
The committee reviewed these--and a number of other
suggestions, comments, and concerns from--various stakeholders
in developing the reauthorization of AFIA.
III. Legislative History and Committee Action
On October 28, 2003, Senators Alexander and Dodd introduced
S. 1786, the Poverty Reduction and Prevention Act, a bill to
reauthorize the Community Services Block Grant, the Low Income
Home Energy Assistance Program, and to authorize the Assets for
Independence Act. On October 29, 2003 the Committee on Health,
Education, Labor and Pensions met in executive session to
consider S. 1786 as a manager's substitute amendment. No
amendments were offered. The bill was voted favorably out of
the committee.
Hearing
On July 10, 2003, the Senate Subcommittee on Children and
Families held a hearing on the Reauthorization of the Community
Services Block Grant program. Two panels of witnesses were
heard. The Honorable Wade Horn, Assistant Secretary for
Children and Families, Department of Health and Human Services,
spoke on the first panel and testified as to the
Administration's views on the reauthorization of the program.
The second panel of witnesses included directors of Community
Action Agencies and individuals who have benefited from CSBG
services. The witnesses were David Bradley, Executive Director
of the National Community Action Foundation, Nathaniel Best
from Knoxville, Tennessee, Michael Saucier from Berlin, New
Hampshire, Winifred Octave from Worcester, Massachusetts and E.
Phillip McKain, President and CEO of CTE, Inc. in Stamford,
Connecticut. The second panel addressed the following four
themes:
1. CSBG assists working poor families address
immediate needs and achieve self-sufficiency. CSBG
enables Community Action Agencies to coordinate a
variety of services and leverage multiple funding
sources to provide a comprehensive approach to helping
families address the causes--and effects--of poverty,
and reach goals on the path to long term economic
independence and self sufficiency.
2. CSBG is serving the ``new poor'' who are facing
poverty due to unexpected events. These include the
non-traditional poor, such as middle-class families who
never expected to be on the receiving end of help, but
are hit by an unexpected crisis--a plant closing, a
layoff, a major injury or illness. These families
strongly prefer to work with a community based agency
and not ``welfare.''
3. CSBG assists ``special populations,'' including
the hard-to-serve and those for whom conventional
approaches fail. These individuals require outreach to
inform them of the assistance available to them, and
tailored responses to address their needs.
4. CSBG supports sustained efforts to change low
income communities. These strategies include economic
development, job creation, community revitalization,
investment in youth (community centers and after school
programs), public transit, rural facilities, and crime
reduction. Because of the CSBG, these strategies are
informed and directed by a unique coalition of low
income community residents, often current or past
participants in programs, together with business,
charitable, and local government leaders.
The Assets for Independence Act of 1998, Public Law 105-
285, authorized the IDA program on October 10, 1998.
Public Law 106-554 (42 U.S.C. 604 note), enacted December
21, 2000, amended the Act with a few minor changes.
AFIA was again amended for a purely technical detail on
January 8, 2002, in Public Law 107-110.
IV. Explanation of Legislation and Committee Views
A. COMMUNITY SERVICES BLOCK GRANT PROGRAM
1. Additional language on administrative costs
CSBG remains unique for its flexibility as the resource
local agencies may use to build partnerships and change
communities in addition to providing direct family services.
The committee recognizes that the CSBG funded activities
classified as ``Linkages,'' including outreach to community
residents and potential partners, and the inclusion of new
community organizations and projects, are program services
funded by CSBG. Also included in program services are
activities that coordinate multiple services, those that
mobilize new funding for local programs, and those that develop
local governance resources. States are expected to assist in
distinguishing these activities from administrative costs in
order to ensure the unique local functions CSBG funds are not
in appropriately restricted.
It is the intent of the committee that activities directly
related to the purposes of the Community Services Block Grant
Act not be included in any measure of administrative
activities. Specifically, activities that address the linkages,
leveraging, and mobilizing required by the CSBG Act should be
considered program activities, similar to the direct provision
of services.
The Community Services Block Grant Act requires that
Community Action Agencies foster partnerships, conduct
outreach, mobilize the community to bring about change,
leverage various funding sources to meet their mission, and
create new, innovative programs to address the needs of their
communities. As stated in the CSBG Information Memorandum No.
37 issued by the Office of Community Services on December 10,
1999:
``Direct'' program costs can be specifically identified
with delivery of a particular project, service, or activity
undertaken by a grantee to achieve an outcome intended by the
funding program. For CSBG, such direct costs derive from the
funding objectives specified in the reauthorizing statute, and
from the goals and outcome measures in the ROMA system required
by that statute. Under the CSBG reauthorization and national
ROMA goals, eligible programmatic activities explicitly include
efforts to coordinate and strengthen a range of local programs
and services that combat poverty. These efforts often entail
planning and management functions that facilitate integrated
approaches among more categorical public, private, and non-
profit entities within a community.
Clarification should be provided, if necessary, to ensure
States and eligible entities follow these practices.
In the committee's July 9, 2003 hearing on the CSBG Act
reauthorization, several examples of these direct program
activities unique to CSBG were presented.
Mr. Michael Saucier spoke about the programs that Tri-
County Community Action in Berlin, New Hampshire offered when
the paper mill in their community closed, laying off over 800
workers among a population of 11,000. TCCAP provided a variety
of initiatives that spurred economic development, retrained
workers, provided emergency assistance for families, and
created new jobs. As stated in the materials provided by the
agency to accompany Mr. Saucier's testimony:
It is important to note that these community based
partnerships and resource coalitions and other across the three
counties would not be possible without the flexible capacity
which CSBG provides to Tri-County CAP and the communities it
serves. The Economic Development Director, who plays a key role
in all the projects, is jointly funded by Tri-County CAP
through CSBG and by the City of Berlin. The City did not have
this capacity before CSBG made it possible. The Project
Director for downtown redevelopment is CSBG funded enabling her
to identify, tap and coordinate funds which, by themselves, do
not provide this capability and which, without coordination,
are insufficient for the task. CSBG has proven to be the
indispensable element in these community building efforts.
Ms. Winifred Octave, now a member of the tripartite board
of directors for the Worcester Community Action Council (WCAC)
in Worcester, Massachusetts, spoke about the integrated
retraining, job support, and homeownership services coordinated
for her and her three children so that they might be able to
achieve self sufficiency and economic independence. Ms. Octave
had lost her job as a legal secretary when the law firm closed
and sought help for the first time. In materials provided by
Ms. Patsy Lewis, Executive Director of WCAC, to accompany Ms.
Octave's testimony, the unique activities that CSBG supports
are described as follows:
Community Services Block Grant (CSBG) is the ``core''
funding for WCAC and our most important source of support. CSBG
is used to leverage other public and private funds ($20 for
each $1 from CSBG), ``pilot'' new programs, support important
services that are not funded (or are under funded) and support
community services beyond the Worcester Community Action
Council.
Other examples of activities funded with CSBG provided by
WCAC included the following:
Three years ago WCAC piloted a twelve week Energy Auditors'
Training program to prepare low income and unemployed residents
for positions in utility companies and/or energy conservation
programs. CSBG was the funding source for developing the
curriculum and supporting staff. Of our first class of four,
three graduates immediately found employment in energy related
fields. Two months ago one of the graduates of our second class
responded to our ad for an auditor. She just started to work
for WCAC as an Energy Auditor and she will be an excellent
addition to the staff and the Energy field. CSBG made her
employment possible.
In collaboration with four other Massachusetts Community
Action agencies, WCAC received a grant from the Office of
Community Services to start an Individual Development Account
(IDA) project to assist 25 low income families save toward home
ownership. The coordinator for the project is paid from CSBG
and the money raised from Federal and private sources goes
toward the matched savings accounts.
In testimony provided by Phillip McKain, the President and
CEO of CTE, the Community Action Agency for the communities of
Stamford, Greenwich, and Darien, Connecticut, Mr. McKain
described mobilizing activities that clearly should not be
considered administrative:
In Stamford, given the leadership role we have played in
the past, the community asked us to form an Affordable House
Collaborative to help put affordable housing in the
policymaking agenda for the city. Working with the business
leaders, labor representatives, faith leaders, nonprofit and
private housing developers, public officials, and community
advocates, we were able to approach city government and get
housing on the agenda. The Mayor established a Task Force,
which produced recommendations for changes in zoning
regulations to facilitate the production of affordable housing.
Stamford now has incentives and regulations that will produce
affordable units for low to moderate income workers who are the
lifeblood of a sustainable community.
In a July 10, 2003 letter to Senator Alexander from Lois
Smith, the Executive Director of Upper East Tennessee Human
Development Agency, Inc. (UETHDA), the use of CSBG to develop a
program to address an unmet need was described. The efforts to
assess the need, develop the program, leverage the resources
and implement the services should not be considered
administrative activities. Excerpts from the letter include the
following:
Over the past few years the agency has received numerous
requests for assistance for families without drinkable running
water and or septic systems in the eight-county region of
northeast Tennessee. When a low income family would inquire if
UETHDA could assist with these problems, we had to refer them
to USDA Rural Development. USDA provides elderly households
with a mix of grant dollars (as available) and low interest
loans to assist with housing renovations including septic
installation and construction of wells.
Our staff, conducted extensive funding research to
determine what other assistance was available for individual
homeowners to secure adequate drinking water. Really the only
available source determined in our areas was that same USDA--
Rural Development. Now, we have an approved plan for using CSBG
funds, to invest in financial assistance for new septic systems
for low income homeowners and for the construction of water
wells and assistance with items to make the water drinkable.
Under our partnership agreement, USDA does the needs and
eligibility assessment; their experts determine the work plan
for a property and invest up to $6500 in grant money for septic
systems and housing/plumbing repairs. In the many cases where
their grant falls short, we can provide up to $1500 for a well
and up to $2000 for a septic system. Once the work is
completed, USDA inspectors will complete a final report that is
forwarded to UETHDA as verification the work is completed and
payment is rendered to the vendor. The amount of CSBG dollars
UETHDA is using only a portion of the total dollars needed to
complete the process. Unfortunately, many who qualify for
partial USDA support will not qualify for our program because
the 125 percent poverty ceiling for CSBG shuts many elderly
social security recipients out of CSBG programs; we can offer
many of our other services, however. * * * The UETHDA outreach/
neighborhood service center staff will assess the additional
service needs of families in our water project using our
comprehensive intake process, and we link them to any
appropriate services to increase their self-sufficiency,
whether delivered at our agency or by others in the community.
2. ROMA and accountability
The legislation increases accountability of local, State
and Federal CSBG programs along several dimensions. Fiscal and
administrative accountability is strengthened at all levels of
government in Section 678E. The Department will establish and
report on goals for its timely distribution of funds and
effective oversight of State programs, as well as on its
implementation of other Block Grant provisions. The Secretary
is provided with additional tools to ensure States correct any
deficiencies that appear during HHS reviews. The States will,
with the support of the Department and input from the local
agency network, design and implement a common State financial
and organizational assessment protocol that provides minimum
standards for local agency fiscal and administrative
performance. The States will also establish and report on their
objectives for effective management of CSBG, including State
goals set forth in Section 678E(a)(1)(C), as well as their
support for the development of modern local information and
management systems and timely distribution of CSBG funds. The
States will biennially submit to HHS an audit of State use and
distribution of CSBG funds to permit oversight of the Block
Grant as distinct from all HHS grants combined. States shall
fund this audit with CSBG funds provided to the State to meet
administrative costs, which are capped at five percent of the
total annual allocation to the State.
Local eligible entities have been given a more precise
timetable for correcting any operational deficiencies
identified by the State and for implementing a corrective
action plan with the support of the State program.
A second form of program accountability is the requirement
for that local eligible entities' annual CSBG plans include
locally-determined annual goals for at least three types of
activities: mobilizing or ``leveraging'' community resources;
coordinating programs and funding from public and private
sector resources; and promoting involvement of residents of the
community at large and the low income community served. If a
State makes an assessment that termination or reduction of an
eligible entity's funding is warranted based on the degree to
which these goals are substantially achieved, taking into
account changing local conditions, the determination and due
process procedures clearly articulated in Section 678C shall
apply.
Third, accountability for progress toward long-term poverty
reduction, the purpose of the Block Grant, is also strengthened
by the legislation. The CSBG Results-Oriented Management and
Accountability (ROMA) system, together with the CSBG
Information System, was fully designed following the 1998
reauthorization and pioneered by the local and State CSBG
agencies. ROMA's purpose is not only to record the multiple
resources coordinated locally to assist individuals and
families and to change communities, but also to measure the
intermediate and longer term effects of the work that CSBG
supports. The ongoing development of ROMA will reflect the
promise of collaborative State and local approaches that will
bring 21st Century experience and skills to bear on the
difficult challenges of reducing and preventing poverty. In
particular, the committee acknowledges the value of the
voluntary expansion of the CSBG Information System by the State
and local agencies so that the reports cover programs supported
by nonFederal resources and results of activities that have
only indirect support from CSBG. This is a significant
contribution to management of these programs and also to the
future practice of real world performance based management of
complex social programs.
The bill provides an alternative to the approach originally
suggested by the Department. Rather than establishing Federally
determined performance goals and measures for State and local
programs and centralizing the reporting system in the
Department, the legislation provides for the further
development and implementation of the ROMA CSBG Information
System under the guidance of the existing successful State and
local partnership at the national level. Section 678E requires
that States provide reports on their local and State programs
and on CSBG's results, but preserves their discretion to
develop the systems collectively. Funding for the Department's
support of these efforts is expanded to permit the network to
build on its success.
The purpose of ROMA is to collect measures of the results
of the set of expenditures that local agencies have chosen to
be appropriate to their communities and have contracted with
their State to undertake. Unlike the reports on the new,
required annual plan goals, ROMA can also test alternative
innovative approaches to the challenge of reducing and
preventing poverty and can provide information that allows
improvement or rejection of new initiatives, and even of new
ways to measure.
The bill anticipates that the annual nationwide report on
CSBG results will be further refined by the States and eligible
entities, acting together with their national associations, to
better reflect the degree to which many diverse local programs
achieve the three primary goals laid out for the CSBG.
Development of more comprehensive reports showing similar types
of activity grouped by the goal, which they seek to achieve,
and including all significant, CSBG-supported activities in the
State, is currently in progress. The committee recognizes that
the simplification of the goals of the act may require
development and testing of new reports and urges the Secretary
to provide such support as is needed, particularly for
expansion of measurement tools to capture the outcomes of
projects that improve local communities and build community
assets, and of reports to measure success in achieving maximum
feasible participation of the community's residents in
governance of CSBG programs.
3. Community Economic Development program
The bill includes a number of amendments to the
Discretionary Authority of the Secretary and the Community
Economic Development program. The amendments codify current HHS
and Office of Community Service policy regarding disposition of
intangible assets. These amendments provide that the grant is
the property of the grantee and allow the grantee to retain any
intangible asset acquired with grant funds provided under this
section after the grant period expires so long as such assets
are used to infuse capital into the community in furtherance of
the grant purposes. If the grantee no longer needs the grant
funds or the intangible asset, the grantee is required to seek
instructions from the Secretary.
The amendments also clarify policy regarding so-called
replacement grants. This provision gives the Secretary the
authority to continue to provide the obligated funds to a
grantee for a new project when the original project, which was
the basis of the grant, has changed. In certain instances,
events beyond the control of the grantee make completion of a
project infeasible. If such events occur after the end of the
fiscal year, funds are returned to the Treasury. The amendment
permits the grantee to use the funds for a revised project
provided that the Secretary determines that the revised project
benefits the same population, and remains in the same community
as the original grant.
Finally, the amendments elaborate on the purpose of
Community Economic Development grants and clarify the use of
grant funds authorized under this section.
B. LOW-INCOME HOME ENERGY ASSISTANCE PROGRAM
The committee reaffirms the central purpose of the Low-
Income Home Energy Assistance Program (LIHEAP) as providing
assistance to eligible households in meeting their energy
bills. Low income households continue to have difficulty in
affording the cost of home energy and essential goods and
services. The costs of residential energy continue to be high
in relation to their incomes. The committee believes that
LIHEAP is a critical program for low income households, and
therefore, increased the authorization for LIHEAP from $2
billion to $3.4 billion for fiscal years 2004 through 2006 and
such sums as necessary for fiscal years 2007 through 2010.
Currently, the program serves only 17 percent of the eligible
households. The committee believes that funding should be
increased to meet more of the unmet need. According to the
National Energy Assistance Directors Association, an increase
of funding to $3.4 billion would raise the percentage of
eligible households served to 32 percent.
The LIHEAP program is ``forward-funded'' and the committee
anticipates that LIHEAP will be reauthorized in 2009. Forward
funding allows States to plan more efficiently, and therefore,
more economically. State LIHEAP directors begin planning in
spring and early summer for the upcoming year. Without forward
funding, State directors are unable to plan program outreach or
leverage resources as effectively. Forward funding will also
ensure that States have the necessary funding to open their
programs at the beginning of the fiscal year in order to
provide timely assistance to low income families who cannot
afford to wait.
The committee continues to recognize the need in times of
crisis for emergency funds to be released by the President and
the legislation authorizes $600 million for fiscal years 2004
through 2010 to meet emergency home energy needs. The committee
is concerned that emergency funds appropriated in fiscal years
2001 and 2002 were not distributed to States despite requests
from Congress and Governors for the release of funds. In the
future, it would be advisable for the Secretary to inform
Congress and seek appropriate counsel from this authorizing
committee about the release of emergency funds.
The legislation includes a new trigger mechanism whereby
the Secretary shall declare an emergency in the event of
extreme weather changes or increases in energy costs.
Specifically, the trigger would be activated if the number of
heating degree days or cooling days for a month was more than
100 above the 30 year average in one or more States or regions,
or if there is an increase of at least 20 percent in the cost
of home energy over the previous 5 year average for a duration
of a month or more in one or more States or regions. In such an
event, the Secretary must determine an appropriate level of
funds to be distributed to that region. The Secretary has
discretion in this matter as to the amount of funds to be
distributed based on the extent of the need of that State or
region.
The 1998 Coats Act clarified the term emergency to mean a
natural disaster; a significant home energy supply shortage or
disruption; a significant increase in the cost of home energy,
as determined by the Secretary; a significant increase in home
energy disconnections reported by a utility, a State regulatory
agency, or another agency with necessary data; a significant
increase in participation in a public benefit program such as
the Food Stamps program; a significant increase in unemployment
or layoffs; or any other event meeting criteria as the
Secretary may determine to be appropriate. The committee
encourages the Secretary to consider all factors defined in the
statute when making decisions about the release of emergency
funds.
Since 1996, 25 percent of leveraging funds have been set
aside for the Residential Energy Assistance Challenge (REACh)
program. This program allows grantees to test initiatives
designed to help eligible clients reduce their energy
vulnerability. The committee urges the Secretary to give
priority to initiatives that coordinate multiple resources, are
replicable and are of sufficient size to indicate their impact.
The committee also urges the Secretary to disseminate
information about the evaluated results of REACh initiatives.
The committee has asked the Comptroller General to conduct an
evaluation of the REACh program and report its findings within
two years of the date of enactment of this Act.
The legislation also directs the Secretary to conduct a
study on the LIHEAP program. It further directs the Secretary
to develop a protocol for States to collect information from
energy distribution companies on a variety of residential
customer statistics. Volatile natural gas, electricity and fuel
oil prices in recent years have exacerbated the energy burden
crises facing low-income households. Reports from many States
indicate that many electric and natural gas utility
distribution companies have over the past year experienced high
levels of customer arrearages leading to increased service
termination for nonpayment. The loss of vital home energy
constitutes a serious threat to health, safety and well being
of households. Reliable and consistent data on customer
arrearage and termination would help formulate State and
national policies to address these problems. The National
Association of Regulatory Utility Commissioners and the
National Energy Assistance Directors Association support
efforts to encourage State public utility commissions to
collect arrearage and shut-off data to help document the energy
assistance needs of low income households. The committee
believes that helping families prior to disconnection would
prevent safety and health concerns surrounding a household
without energy services. The committee urges the Secretary to
monitor arrearage trends nationwide and consider a significant
increase in arrearage rates as part of the disconnection
criteria. The study is to be submitted to Congress not later
than 24 months after the date of enactment of this act.
C. ASSETS FOR INDEPENDENCE ACT
The reauthorization maintains current law with respect to
Federal and nonFederal funding matches, a 1:1 ratio. The
committee believes this most faithfully maintains the original
intent of the program: a full and equal Federal/community
partnership in addressing the economic development needs of
lowincome families.
Currently, nonFederal funds must be used for the same
purposes and in the same ratio as the Federal funds (no more
than 15 percent for program/operating costs). The proposed
change to current law would allow up to 20 percent of
nonFederal funding to be used at the discretion of the AFIA
grantees for program/operating costs. However, funding priority
will be given to those grantees using no more than 15 percent
for such purposes. This will allow greater private flexibility
in developing the most effective and comprehensive programs
while ensuring maximum resources are committed to program
participants for the asset developments promoted under the act.
V. Cost Estimate
U.S. Congress,
Congressional Budget Office,
Washington, DC, November 21, 2003.
Hon. Judd Gregg,
Chairman, Committee on Health, Education, Labor, and Pensions,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for S. 1786, the Improving
the Poverty Reduction and Prevention Act.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Donna Wong.
Sincerely,
Elizabeth M. Robinson
(For Douglas Holtz-Eakin, Director).
Enclosure.
S. 1786--Poverty Reduction and Prevention Act
Summary: S. 1786 would reauthorize programs created under
the Community Services Block Grant Act, the Low-Income Home
Energy Assistance Act of 1981, and the Assets for Independence
Act.
CBO estimates that new authorizations under the bill would
total $2.1 billion in 2004 and about $26.5 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
$24.8 billion over the 2004-2009 period.) CBO estimates that
appropriations of the necessary amounts would result in outlays
of $23.0 billion over the 2004-2009 period, if inflation
adjustments are included (and about $22.4 billion without
inflation adjustments).
S. 1786 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 S. 1786, with inflation adjustments, is
shown in the following table. The costs of this legislation
fall within budget functions 500 (education, training,
employment, and social services) and 600 (income security).
----------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
-------------------------------------------------------
2003 2004 2005 2006 2007 2008 2009
----------------------------------------------------------------------------------------------------------------
SPENDING SUBJECT TO APPROPRIATION
Spending Under Current Law:
Budget Authority/Authorization Level\1\............. 2,483 2,650 0 0 0 0 0
Estimated Outlays................................... 2,723 2,466 686 54 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 18 18 18 18 18 18
Estimated Outlays............................... 0 9 17 18 18 18 18
Low-Income Home Energy Assistance:
Estimated Authorization Level................... 0 1,400 4,050 4,050 4,121 4,198 4,275
Estimated Outlays............................... 0 639 3,024 3,703 3,803 3,877 3,954
Low-Income Home Energy Assistance Studies:
Estimated Authorization......................... 0 * * * 0 0 0
Estimated Outlays............................... 0 * * * 0 0 0
Individual Development Accounts:
Authorization Level............................. 0 25 25 26 27 27 0
Estimated Outlays............................... 0 1 24 25 26 27 13
Total Proposed Changes:
Estimated Authorization Level................... 0 2,107 4,771 4,786 4,871 4,964 5,030
Estimated Outlays............................... 0 1,006 3,703 4,424 4,545 4,635 4,714
Total Spending Under S. 1786:
Budget Authority/Authorization Level................ 2,483 4,757 4,771 4,786 4,871 4,964 5,030
Estimated Outlays................................... 2,723 3,473 4,388 4,478 4,545 4,635 4,714
----------------------------------------------------------------------------------------------------------------
\1\ The 2003 level is the amount appropriated for that year for the Community Services Block Grant, Community
Food and Nutrition, Youth Sports, Low-Income Home Energy Assistance, and Individual Development Accounts
programs. The 2004 level is the amount authorized under current law for the Low-Income Home Energy Assistance
Program. No full-year 2004 appropriation has been enacted yet.
Notes.--Components may not sum to totals because of rounding. * = Less than $500,000.
Basis of estimate
For this estimate, CBO assumes S. 1786 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.
S. 1786 would reauthorize programs created under the
Community Service Block Grant Act, the Low-Income Home Energy
Assistance Act of 1981, and the Assets for Independence Act.
The Low-Income Home Energy Assistance Program (LIHEAP) is
authorized through 2004 while the others are currently
authorized through November 21, 2003, by the Continuing
Appropriations Act (Public Law 108-107).
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. For those
two programs, the estimated authorization levels are equal to
the 2003 appropriation level plus adjustments for inflation.
The bill contains specific authorizations in 2004 for the
LIHEAP, Youth Sports, and Individual Development Accounts
programs.
CBO estimates that S. 1786 would authorize additional
appropriations of $2.1 billion 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 $26.5 billion over the 2004-2009
period, assuming annual adjustments for anticipated inflation.
Appropriation of the authorized amounts would result in outlays
of $1.0 billion in the first year and $23.0 billion over the
six-year period. (Without inflation adjustments, the increased
authorizations would total $25.8 billion over the six years,
with outlays of $22.4 billion over that period.)
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 $657 million in 2004 and about $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 was $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 was 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 $18 million annually for the 2004-2009 period. Total funding
for the six-year period would be $108 million, with resulting
outlays of about $98 million over that period. The program was
funded at $17 million in 2003.
Low-income home energy assistance
The legislation would raise the current law authorization
for LIHEAP for 2004, permanently extend the basic State grant
and emergency grant programs, and continue the incentive grant
program through fiscal year 2010. Assuming appropriation of the
authorized amounts, CBO estimates that implementing this
provision would cost about $639 million in 2004, and $19.0
billion over the 2004-2009 period.
Under current law, a total of $2.65 billion is authorized
to be appropriated for fiscal year 2004. These funds include
$2.0 billion for the basic formula grant for States to provide
energy assistance for low-income households, $50 million for
grants to States to develop nonFederal energy resources and for
Residential Energy Assistance Challenge (REACh) grants, and
$600 million for additional energy assistance for emergency
needs. S. 1786 would increase the authorization for the basic
formula grant for States to $3.4 billion in fiscal year 2004,
and extend this authorized level through fiscal year 2006. The
bill would authorize the appropriation of such sums as may be
necessary after 2006, which CBO estimates as the 2006 amount
adjusted for inflation. The extension of the basic formula
grant automatically extends the authorization of the emergency
funding at $600 million peryear. The emergency funds are made
available only after a formal request by the President that includes a
designation of the amount requested as an emergency requirement as
defined in the Balanced Budget and Emergency Deficit Control Act.
The bill requires two new studies--a study by the General
Accounting Office on the effectiveness of the REACh program,
and a study by the Department of Health and Human Services on
how to improve the performance and effectiveness of the LIHEAP
program--for which CBO estimates the total costs would be less
then $500,000 over the 2004-2006 period.
Individual development accounts
The bill would reauthorize the Individual Development
Accounts program and authorize the appropriation of $25 million
in 2004 and such sums as may be necessary in each year from
2005 through 2008. This program provides matching funds to
qualified low-income individuals who save to encourage more
savings. Accounts can be used to purchase a first home, for
higher education expenses or for small business capitalization.
Appropriations for the program were $25 million for 2003.
Intergovernmental and private-sector impact: S. 1786
contains no intergovernmental or private-sector mandates as
defined in UMRA. States would be given greater flexibility in
managing grants but would need to continue to monitor eligible
entities and assist them in developing local goals; any costs
incurred by State, local, or tribal governments would result
from complying with grant conditions.
Previous CBO estimates: On October 7, 2003, CBO transmitted
a cost estimate for H.R. 3030, the Improving the Community
Services Block Grant Act of 2003, as ordered reported by the
House Committee on Education and the Workforce on October 1,
2003. H.R. 3030 would reauthorize the CSBG, Community Food and
Nutrition, and Youth Sports programs. Our estimates of
authorizations of appropriations for the CSBG and Community
Food and Nutrition programs are identical to those provided for
H.R. 3030. The specified authorization for the Youth Sports
program is $3 million per year higher than the level specified
in H.R. 3030.
On September 15, 2003, CBO transmitted a cost estimate for
H.R. 7, the Charitable Giving Act of 2003, as ordered reported
by the House Committee on Ways and Means on September 9, 2003.
That bill would reauthorize the Individual Development Accounts
program. The two bills contain identical authorizations of
appropriations for that program.
On May 1, 2003, CBO transmitted a cost estimate for H.R.
1644, the Energy Policy Act of 2003, as ordered reported by the
House Committee on Energy and Commerce on April 8, 2003. H.R.
1644 would reauthorize LIHEAP at the same levels as S. 1786
through 2006, but would not extend the program beyond that.
Estimate prepared by: Federal Costs: CSBG and Assets for
Independence--Donna Wong. Low-Income Home Energy Assistance--
Michael Carson. 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.
VI. Application of Law to the Legislative Branch
Section 102(b)(3) of Public Law 104-1, the Congressional
Accountability Act (CAA) requires a description of the
application of this bill to the legislative branch. S. 1786
authorizes various Federal human services programs and does not
amend any act that applies to the legislative branch.
VII. Regulatory Impact Statement
The committee has determined that there will be de minimus
changes in the regulatory burden imposed by this bill.
VIII. Section-by-Section Analysis
Section 1. Short title
This act may be cited as the Poverty Reduction and
Prevention Act.
Section 101. Purposes and goals
This section amends section 672 to clarify and strengthen
the purposes of the Community Services Block Grant Act.
Reducing poverty is emphasized as the primary purpose of the
act, and the manner in which this purpose is to be achieved is
clearly articulated. These key strategies include: (1)
Coordinated efforts by local eligible entities utilizing
multiple Federal, State, local and private resources to help
low-income individuals and families achieve self-sufficiency;
(2) efforts to improve and revitalize low-income communities
through developing community assets and coordinating services
that will have a measurable impact on the causes of poverty;
and (3) ensuring maximum feasible participation of the poor in
developing the Community Agencies' response to poverty in their
communities.
Section 102. Definitions
This section amends section 673 to clarify that the
Department of Health and Human Services defines the poverty
line and the poverty line may be revised by the Secretary to
take into account higher costs of living. It also gives the
States greater flexibility in determining who is eligible to
receive services, while placing a priority on those who are
most in need. It stipulates that 125 percent of the official
poverty line is the minimum level a State can set as its
maximum eligibility requirement and 60 percent of State median
income is the maximum level a State can set as its maximum
eligibility requirement.
Section 103. Authorization of appropriations
This section amends section 674 by reauthorizing the
program at such sums as may be necessary for fiscal years 2004
through 2009.
Section 104. Establishment of program
This section amends section 675 to clarify that grants to
the States under this program are for the purpose for
ameliorating the causes of poverty, as well as the conditions
caused by poverty.
Section 105. Use of funds
This section amends section 675C(b) to re-prioritize how
the States should use any remaining funds from sections 675A or
675B. It stipulates that the States should use these funds (A)
to provide for training and technical assistance to eligible
entities that strengthen their managerial or programmatic
capabilities to reduce poverty, (B) to support statewide
coordination and communication among eligible entities and
State-operated or supported programs and services and other
locally-operated programs and services targeted to low-income
individuals and their children and families, (C) to continue to
support innovative partnerships, programs and activities
conducted by Community Action Agencies and their partners
including other community-based organizations to eliminate
poverty, promote self-sufficiency and promote community
revitalization, (D) to continue to analyze the distribution of
funds to make sure the funds have been targeted to those who
are in the greatest need, (E) to continue to support State
charity tax credits, (F) to support the identification of
exemplary entities as Centers of Innovation, (G) to support the
development of eligible entities' partnerships with local law
enforcement agencies, local housing authorities, private
foundations and other public and private partners and (H) to
continue other activities as consistent with CSBG.
This section further stipulates that the States must ensure
that funds distributed under section 675C(a) are not used for
excessive administrative expenses and that these funds used for
salaries by local entities are fair and appropriate.
Section 106. Application and plan
This section amends section 676 to allow that additional
items be included in a State's application and plan to the
Secretary for grants made under section 675A and 675B. Among
these is an assurance that the State will use funds to support
activities to expand opportunities for low-income individuals
and their families and to assist them in becoming self-
sufficient, that the State has integrated programs of general
relevance to the extent appropriate to the needs of low-income
communities, that the State will provide a description of its
measurement performance system, that the State has identified
and coordinated with eligible entity programs, and that the
State, beginning in FY2006, has implemented a Financial and
Organizational Assessment Protocol as described in section
678B.
Section 107. Designation of eligible entities in underserved areas
This section amends section 676A(b) to ensure that entities
that are granted special consideration are of demonstrative
effectiveness and consistent with the needs identified by a
community needs assessment.
Section 108. Tripartite boards
This section amends section 676B(b) to ensure that the
tripartite board is the mechanism for determining consideration
of eligible entities.
Section 109. Training, technical assistance, and other activities
This section amends section 678A to ensure that funds
provided for in section 674(b)(2) also are used for the
development of a common State Financial and Organizational
Assessment.
Section 110. Monitoring
This section amends section 678B to stipulate that the
State shall conduct full onsite biennial reviews of local
entities, follow-up annual reviews and implement a Financial
and Organizational Assessment Protocol to monitor and evaluate
the compliance of eligible entities. It further instructs the
Secretary to annually submit a report on the results of this
evaluation.
Section 111. Corrective action; Termination and reduction of funding
This section amends section 678C to provide that certain
measures take place if an eligible entity does not correct a
deficiency after a State has informed the entity of that
deficiency. It stipulates that the State needs to notify the
entity that the State intends to initiate proceedings to
terminate or reduce funding and that it has a right to a
hearing on record as defined in section 676(c). It further
instructs the Secretary to continue to fund an eligible entity
until the Secretary approves or disapproves and reverses, the
determination of termination or reduction in funding with
respect to the State.
Section 112. Fiscal controls, audits, and withholdings
The section amends section 678D to provide that the States
submit a separate audit of CSBG funds to the Secretary. The
audit shall be confined to funds at the State level, and focus
only upon disbursements to local eligible entities, State
administrative funds, and the disbursement of State
discretionary funds. The cost of such audit shall be paid for
out of State CSBG administrative funds; however, if additional
funds are needed because administrative funds are dedicated to
other CSBG purposes, then the State shall use the State's
discretionary funds.
In addition, State financial reports shall be submitted to
the Secretary no later than 6 months following the end of each
fiscal year.
If a State fails to comply to meet the requirements in
sections 678A through 678D(a), then the Secretary shall
withhold funds as described in section 675C(b)(2) until the
Secretary determines it is compliant.
Section 113. Accountability and reporting requirements
This section amends section 678E to provide that any
performance standards for State administration of the Block
Grant are to be established by the Secretary, in consultation
with the States.
The annual CSBG plans of local eligible entities shall
include locally-determined annual goals for three types of
activities: mobilizing or ``leveraging'' community resources;
coordinating programs and funding from public and private
sector resources; and promoting involvement of the community.
If a State makes an assessment that termination or reduction of
an eligible entity's funding is warranted based on the degree
to which these goals are substantially achieved, taking into
account changing local conditions, the determination and due
process procedures clearly articulated in section 678C shall
apply.
The Department shall also establish and report on goals for
its timely distribution of funds, effective oversight of State
programs, coordination of other Office of Community Services
programs with the activities of CSBG, and full and timely
reporting.
The legislation calls upon the Secretary to coordinate
reporting requirements of Health and Human Services programs
administered by eligible entities to reduce the number of
reports relating to individuals and families served, as well as
the uses of grant funds. Technical assistance, including
resources to enhance electronic data systems, shall be provided
to States and eligible entities to enhance data collection and
reporting in this coordinated system.
The legislation also provides for the further development
and implementation of the Results Oriented Management
Assessment System and the CSBG Information System under the
guidance of the existing successful State and local partnership
at the national level. Measures developed under this system
shall be numerous enough to cover the range of services
administered by eligible entities, yet eligible entities shall
only be compelled to collect data on measures that reflect
their current community-specific programs. The collection of
data for reports required by other Federal programs is not
required to be altered. States are required to report annually
on their local and State programs and on CSBG's results.
Funding for the Secretary's annual reporting requirement is
increased from $350,000 to $500,000 to permit the network to
build on its success.
Section 114. Limitations on use of funds
This section amends section 678F by inserting ``religion''
after ``race.''
Section 115. Operational rule
This section amends section 679 to ensure that any programs
that receive assistance under this Act meet the requirements as
provided for in the Act.
Section 116. Discretionary authority of the Secretary
This section amends section 680 to codify current HHS and
Office of Community Services policy regarding disposition of
intangible assets.
The amendments also clarify policy regarding so-called
replacement grants. This provision gives the Secretary the
authority to continue to provide the obligated funds to a
grantee for a new project when the original project, which was
the basis of the grant, has changed. In certain instances,
events beyond the control of the grantee make completion of a
project infeasible. Ifsuch events occur after the end of the
fiscal year, funds are returned to the Treasury. The amendment permits
the grantee to use the funds for a revised project provided that the
Secretary determines that the revised project benefits the same
population, and remains in the same community as the original grant.
Finally, the amendments elaborate on the purpose of
Community Economic Development grants and clarify the use of
grant funds authorized under this section.
Section 117. Community food and nutrition programs
This section re-authorizes section 681 for fiscal years
2004 through 2009.
Section 118. National or religion program designed to provide
instructional activities for low-income youth
This section re-authorizes section 682 for fiscal years
2004 through 2009 at $18,000,000.
Section 201. Short title
This Title may be cited as the ``Low-Income Home Energy
Assistance Amendments Act of 2003.''
Section 202. Reauthorization
This section reauthorizes the program at $3,400,000,000 for
fiscal years 2004 through 2006 and then at such sums as may be
necessary through fiscal year 2010.
Section 203. Natural disasters and other emergencies
This section includes a new trigger mechanism whereby the
Secretary shall declare an emergency in the event of extreme
weather changes or increases in energy costs. Specifically, the
trigger would be activated if the number of heating degree days
or cooling days for a month was more than 100 above the 30-year
average in one or more states or regions, or if there is an
increase of at least 20 percent in the cost of home energy over
the previous 5-year average for a duration of a month or more
in one or more States or regions. In such an event, the
Secretary must determine an appropriate level of funds to be
distributed to that region. The Secretary has discretion in
this matter as to the amount of funds to be distributed based
on the extent of the need of that State or region.
Section 204. Residential energy assistance challenge option
This section reauthorizes section 302 of this Act.
Section 205. Report to Congress
This section directs the Secretary to conduct a study on
the LIHEAP program. It further directs the Secretary to develop
a protocol for States to collect information from energy
distribution companies on a variety of residential customer
statistics.
Section 301. Short title
Section 301 provides the short title of the title, the
Assets for Independence Reauthorization Act.
Section 302. Reauthorization of the Assets for Independence Act
Section 302 amends the Assets for Independence Act (42
U.S.C. 604 note) to give grantees the option of verifying all
postsecondary education payments, allowing for the provision of
related educational material. Accountholders may save in a
postsecondary education IDA for their children or dependents.
This section repeals the grandfathering of statewide programs.
Qualified entities may hold non-Federal funds in a separate
account from the Reserve Fund. This section also provides a 12-
month no-cost extension for accountholders to maintain their
IDA until able to purchase an asset. It permits up to 20
percent of non-Federal funds be used at the discretion of AFIA
grantees for program and operating costs, but gives priority to
those grantees using no more than 15 percent for such purposes.
This section broadens the eligibility standards to include
Adjusted Gross Income ($18,000 single filer, $30,000 head of
household, or $38,000 for joint filers) and 80 percent of the
Area Median Income. It requires ``excess interest'' earned on
the Reserve Fund to be rolled over into existing IDAs and/or
for new IDAs. The program is reauthorized through fiscal year
2008; allotting $25,000,000 for fiscal year 2004 and such sums
as may be necessary for each of the following years. The
Secretary of Health and Human Services shall apply these
amendments and those made in 2000 to individual account holders
and entities that received grants either before or after the
date of enactment of this Act.
IX. Changes in Existing Law
In compliance with rule XXVI paragraph 12 of the Standing
Rules of the Senate, the following provides a print of the
statute or the part or section thereof to be amended or
replaced (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
SEC. 671. SHORT TITLE.
* * * * * * *
[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) throughout--
[(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.
The purpose of this subtitle is to reduce poverty--
(1) by strengthening and coordinating local efforts
to expand opportunities for individuals and families to
become economically self-sufficient and to improve and
revitalize the communities in which low-income
Americans live, by providing resources to States for
support of local eligible entities and their partners
to--
(A) plan, coordinate, and mobilize a broad
range of Federal, State, local, and private
assistance or investment in such a manner as to
use these resources effectively to reduce
poverty and in initiatives that are responsive
to specific local needs and conditions;
(B) organize multiple services that meet the
needs of low-income families and individuals,
especially low-wage workers and their families,
and that assist them in developing the assets
and skills needed to become self sustaining
while ensuring that these services are provided
efficiently, in appropriate combinations, and
in effective sequence; and
(C) design and implement comprehensive
approaches to assist individuals transitioning
from the program of block grants to States for
temporary assistance for needy families under
part A of title IV of the Social Security Act
(42 U.S.C. 601 et seq.) to work;
(2) by improving and revitalizing the communities in
which low-income Americans live by providing resources
to--
(A) broaden the financial resource base of
initiatives and projects directed to the
elimination of poverty and the re-development
of the low-income community, including
partnerships with non-governmental and
governmental institutions to develop the
community assets and services that reduce
poverty, such as--
(i) other private, charitable,
neighborhood-based, and religious
organizations;
(ii) individual citizens, and
businesses, labor, and professional
groups, who are able to influence the
quantity and quality of opportunities
and services for the poor; and
(iii) local government leadership;
and
(B) coordinate or create community-wide
assets and services that will have a
significant, measurable impact on the causes of
poverty in the community and that will help
families and individuals to achieve economic
self-sufficiency, and test innovative,
community-based approaches to attacking the
causes and effects of poverty and of community
breakdown, including--
(i) innovative initiatives to prevent
and reverse loss of investment, jobs,
public services, and infrastructure in
low- and moderate-income communities;
and
(ii) innovative partnerships to
develop the assets and services that
reduce poverty, as provided for in
subparagraph (A); and
(3) by ensuring maximum participation of residents of
low-income communities and of members of the groups
served by programs under this subtitle in guiding the
eligible entities and in their programs funded under
this subtitle to ameliorate the particular problems and
needs of low-income residents of their communities and
to develop the permanent social and economic assets of
the low-income community in order to reduce the
incidence of poverty.
* * * * * * *
SEC. 673. DEFINITIONS.
In this subtitle:
(1) Eligible entity; family literacy services.--
(A) Eligible entity.--The term ``eligible
entity'' means an entity--
(i) * * *
(ii) that has a tripartite board [or
other mechanism] described in
subsection (a) or (b), as appropriate,
of section 676B.
* * * * * * *
(2) Poverty line.--The term ``poverty line'' means
the official poverty line defined by the [Office of
Management and Budget] Department of Health and Human
Services based on the most recent data available from
the Bureau of the Census and increased, as the
Secretary determines appropriate, to take into account
higher costs-of-living for a State. The Secretary shall
revise annually (or at any shorter interval the
Secretary determines to be feasible and desirable) the
poverty line, which shall be used as a criterion of
eligibility in the community services block grant
program established under this subtitle. The required
revision shall be accomplished by multiplying the
official poverty line by the percentage change in the
Consumer Price Index for All Urban Consumers during the
annual or other interval immediately preceding the time
at which the revision is made. [Whenever a State
determines that it serves the objectives of the block
grant program established under this subtitle, the
State may revise the poverty line to not to exceed 125
percent of the official poverty line otherwise
applicable under this paragraph.] Whenever a State
determines that it has served the objectives of the
block grant program established under this subtitle,
the State may revise the poverty line, while placing a
priority in serving those who are most in need, so that
125 percent of the official poverty line is the minimum
level that a State shall be permitted to set as its
maximum eligibility requirement and 60 percent of the
State's median income is the maximum level that a State
shall be permitted to set as its maximum eligibility
requirement. The State may revise the poverty line only
upon a determination that eligible entities are
providing, coordinating, or partnering with means-
tested support services for low and moderate-income
individuals and families above the official poverty
line. Nothing in this paragraph shall be construed to
prevent eligible entities from continuing to support
individuals and families during their transition from
program eligibility to achieve specific goals for their
economic security and long-term self-sufficiency as
long as priority is given to serving the lowest income
individuals who seek services.
* * * * * * *
SEC. 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.--* * *
(1) * * *
(2) 1\1/2\ percent for activities authorized in
sections 678A through 678F, of which--
(A) not less than \1/2\ of the amount
reserved by the Secretary under this paragraph
shall be distributed directly to eligible
entities, organizations, [or associations] and
associations described in section 678A(c)(2)
for the purpose of carrying out activities
described in section 678A(c); and
(B) [\1/2\ of the remainder] not less than
\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] evaluation and training and technical
assistance activities and to assist States in
carrying out corrective action activities and
monitoring (to correct programmatic
deficiencies of eligible entities), as
described in sections 678B(c) and 678A; and
* * * * * * *
SEC. 675. ESTABLISHMENT OF BLOCK GRANT PROGRAM.
The Secretary is authorized to establish a community
services block grant program and make grants [through the
program to States to ameliorate the causes of poverty in
communities within the States.] to States for the purpose of
ameliorating the causes of poverty and the conditions caused by
poverty in their communities.
* * * * * * *
SEC. 675C. USES OF FUNDS.
(a) Grants to Eligible Entities and Other Organizations.--
* * * * * * *
(b) Statewide Activities.--
(1) Use of remainder.--* * *
(A) providing training and technical
assistance to those [entities in need of such
training and assistance] eligible entities and
their statewide associations that strengthens
their managerial or programmatic capabilities
to reduce poverty;
[(B) coordinating State-operated programs and
services, and at the option of the State,
locally-operated programs and services,
targeted to low-income children and families
with services provided by eligible entities and
other organizations funded under this subtitle,
including detailing appropriate employees of
State or local agencies to entities funded
under this subtitle, to ensure increased access
to services provided by such State or local
agencies;
[(C) supporting statewide coordination and
communication among eligible entities;
[(D) analyzing the distribution of funds made
available under this subtitle within the State
to determine if such funds have been targeted
to the areas of greatest need;
[(E) supporting asset-building programs for
low-income individuals, such as programs
supporting individual development accounts;
[(F) supporting innovative programs and
activities conducted by community action
agencies or other neighborhood-based
organizations to eliminate poverty, promote
self-sufficiency, and promote community
revitalization;
[(G) supporting State charity tax credits as
described in subsection (c); and
[(H) supporting other activities, consistent
with the purposes of this subtitle.]
(B) supporting statewide coordination and
communication among eligible entities and
State-operated or supported programs and
services, and other locally-operated programs
and services targeted to low-income individuals
and their children and families, so as to
ensure that local eligible entities' services
are integrated in a manner that allows such
low-income individual and their families to
have access to as many sources of assistance as
are appropriate to support their progress to
economic stability and self-sufficiency;
(C) supporting innovative partnerships,
programs, and activities conducted by community
action agencies and their partners including
other community-based organizations to
eliminate poverty, promote self-sufficiency,
and promote community revitalization, including
asset-building programs for low-income
individuals, such as programs supporting
individualdevelopment accounts, and home or
business ownership;
(D) analyzing the distribution of funds made
available under this subtitle within the State
to determine if such funds have been targeted
to the areas of greatest need;
(E) supporting State charity tax credits as
described in subsection (c);
(F) supporting the identification of
exemplary grantee agencies or programs as
Centers of Innovation and methodology for
disseminating innovative programs and other
best practices from those agencies statewide;
(G) supporting the development of eligible
entities' partnerships with local law
enforcement agencies, local housing
authorities, private foundations, and other
public and private partners; and
(H) supporting other activities, consistent
with the purposes of this subtitle.
(2) Administrative cap.--No State may spend more than
the greater of $55,000 or 5 percent, of the grant
received under section 675A or State allotment received
under section 675B for administrative expenses,
including monitoring activities. Funds to be spent for
such expenses shall be taken from the portion of the
grant under section 675A or State allotment that
remains after the State makes grants to eligible
entities under subsection (a). The cost of activities
conducted under paragraph (1)(A) shall not be
considered to be administrative expenses. The startup
cost and cost of administrative activities conducted
under subsection (c) shall be considered to be
administrative expenses. The State shall also ensure
that all funds distributed under subsection (a) are not
used for excessive administrative expenses and that all
funds distributed under such subsection used for
salaries by a local entity are fair and equitable. The
State has the authority to determine the appropriate
level of funds distributed under subsection (a) that an
eligible entity shall use for administrative expenses.
* * * * * * *
SEC. 676. APPLICATION AND PLAN.
(a) Designation of Lead Agency.--
(1) Designation.--* * *
* * * * * * *
(b) State Application and Plan.--Beginning with 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 for the Secretary's approval 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) to support activities that are designed
to assist low-income families and individuals,
including families and individuals receiving
assistance under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.),
homeless families and individuals, migrant or
seasonal farmworkers, and elderly low-income
individuals and families, and a description of
how such activities will enable the families
and individuals--
[(i) to remove obstacles and solve
problems that block the achievement of
self-sufficiency (including self-
sufficiency for families and
individuals who are attempting to
transition off a State program carried
out under part A of title IV of the
Social Security Act);
[(ii) to secure and retain meaningful
employment;
[(iii) to attain an adequate
education, with particular attention
toward improving literacy skills of the
low-income families in the communities
involved, which may include carrying
out family literacy initiatives;
[(iv) to make better use of available
income;
[(v) to obtain and maintain adequate
housing and a suitable living
environment;
[(vi) to obtain emergency assistance
through loans, grants, or other means
to meet immediate and urgent family and
individual needs; and
[(vii) to achieve greater
participation in the affairs of the
communities involved, including the
development of public and private
grassroots partnerships with local law
enforcement agencies, local housing
authorities, private foundations, and
other public and private partners to--
[(I) document best practices
based on successful grassroots
intervention in urban areas, to
develop methodologies for
widespread replication; and
[(II) strengthen and improve
relationships with local law
enforcement agencies, which may
include participation in
activities such as neighborhood
or community policing efforts;
[(B) to address the needs of youth in low-
income communities through youth development
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) programs for the establishment
of violence-free zones that would
involve youth development and
intervention models (such as models
involving youth mediation, youth
mentoring, life skills training, job
creation, and entrepreneurship
programs); and
[(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);
[(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 initiatives related to
the purposes of this subtitle;
[(3) information provided by eligible entities in the
State, containing--
[(A) a description of the service delivery
system, for services provided or coordinated
with funds made available through grants made
under section 675C(a), targeted to low-income
individuals and families in communities within
the State;
[(B) a description of how linkages will be
developed to fill identified gaps in the
services, through the provision of information,
referrals, case management, and followup
consultations;
[(C) a description of how funds made
available through grants made under section
675C(a) will be coordinated with other public
and private resources; and
[(D) a description of how the local entity
will use the funds to support innovative
community and neighborhood-based initiatives
related to the purposes of this subtitle, which
may include fatherhood initiatives and other
initiatives with the goal of strengthening
families and encouraging effective parenting;
[(4) an assurance that eligible entities in the State
will provide, on an emergency basis, for the provision
of such supplies and services, nutritious foods, and
related services, as may be necessary to counteract
conditions of starvation and malnutrition among low-
income individuals;
[(5) an assurance that the State and the eligible
entities in the State will coordinate, and establish
linkages between, governmental and other social
services programs to assure the effective delivery of
such services to low-income individuals and to avoid
duplication of such services, and a description of how
the State and the eligible entities will coordinate the
provision of employment and training activities, as
defined in section 101 of such Act, in the State and in
communities with entities providing activities through
statewide and local workforce investment systems under
the Workforce Investment Act of 1998;
[(6) an assurance that the State will ensure
coordination between antipoverty programs in each
community in the State, and ensure, where appropriate,
that emergency energy crisis intervention programs
under title XXVI (relating to low-income home energy
assistance) are conducted in such community;]
(1) an assurance that funds made available through
the grant or allotment will be used--
(A) to support activities directly and
through eligible entities that are designed to
expand opportunities for and assist low-income
individuals and their families (including low-
income workers) to become self-sufficient,
including low-income workers, families, and
individuals receiving assistance under part A
of title IV of the Social Security Act (42
U.S.C. 60 et seq.), homeless families and
individuals, migrant or seasonal farmworkers,
and elderly low-income individuals and
families, and a description of how such
activities will enable the families and
individuals--
(i) to remove obstacles and solve
problems that block the achievement of
self-sufficiency by organizing and
coordinating support for those served
under paragraph (3);
(ii) to secure and retain employment
that provides adequate income with
essential benefits;
(iii) to attain an adequate
education, with particular attention
toward improving literacy and
communications and technical skills of
the low-income families in the
communities involved;
(iv) to make better use of available
income and build household assets;
(v) to obtain and maintain adequate
housing and a suitable living
environment;
(vi) to obtain assistance that is
needed to resolve family emergencies
and individual needs, to prevent
further hardships, and to secure
economic independence; and
(vii) to participate fully in the
public affairs and management of their
communities and the governance of
eligible entities; and
(B) to make more effective use of, and to
coordinate with, other programs related to the
purposes of this subtitle (including State
welfare reform efforts);
(2) a description of how the State intends to use
discretionary funds made available from the remainder
of the grant or allotment described in section 675C(b)
in accordance with this subtitle, including a
description of how the State will support innovative
community-based initiatives of eligible entities and
their partners related to the purposes of this
subtitle;
(3) an assurance that the State has integrated
programs of general relevance in its plan, to the
extent appropriate to the needs of low-income
communities served by the eligible entities, including
a description of innovative community and neighborhood-
based initiatives such as--
(A) initiatives with the goal of
strengthening families and encouraging
effective parenting, including fatherhood
initiatives;
(B) initiatives to assist those moving from
welfare to work to obtain jobs at decent wages
with benefits, including those low-income
individuals and their families who are
attempting to transition off State program
carried out under part A of title IV of the
Social Security Act (42 U.S.C. 601 et seq.);
(C) programs for the establishment of
violence-free zones that would involve youth
development and intervention models that
promote youth success (such as models involving
youth mediation, youth mentoring, life skills
training, job creation, and entrepreneurship
programs);
(D) family literacy initiatives;
(E) initiatives to increase the development
of household assets of individuals such as
individual development accounts and
homeownership opportunities;
(F) public and private partnerships to foster
community development, affordable housing, job
creation, and other means of building the
assets of low-income communities;
(G) partnerships with local law enforcement
agencies, which may include participation in
community policing, and activities to assist
community residents and public safety officials
in the event of emergencies, including threats
to national security;
(H) initiatives to improve economic
conditions and mobilize new resources in rural
areas and other at-risk areas to eliminate
obstacles to the self sufficiency of families
and individuals in those communities;
(I) initiatives to help reduce the
concentration of poverty in cities and inner
suburbs and provide economic opportunities for
individuals and families in those areas; and
(J) partnerships with nonprofit or community-
based organizations that demonstrate
effectiveness in child abuse prevention,
including with programs that are school-based
and that focus on adolescent victims, and
victimizers;
(4) an assurance that the State will provide
information, including--
(A) a description of the State measurement
system and results for the performance goals
established under section 678E(a)(1)(C);
(B) a description of the service delivery
system, for services provided or coordinated
with funds made available through grants made
under section 675(a), targeted to low-income
individuals and families in communities within
the State;
(C) a description of how linkages will be
developed to fill identified gaps in the
services, through the provision of information,
referrals, case management, and followup
consultations, and to support mobilization of
new resources and partnerships;
(D) a description of how funds made available
through grants made under section 675C(a) will
be coordinated with other public and private
resources; and
(E) a description of how the local entity
will use the funds to support innovative
community and neighborhood-based initiatives
related to the purposes of this subtitle;
(5) an assurance that eligible entities in the State
will provide, on an emergency basis, for the provision
of such supplies and services, nutritious foods, and
related services, as may be necessary to counteract
conditions of starvation and malnutrition among low-
income individuals;
(6) am assurance that the State has, to avoid
duplication of such services, and to ensure that
program gaps are addressed, identified and coordinated
with eligible entity programs, with State and local
agencies, and with programs that assist low-income
individuals and their families, including--
(A) programs carried out under part A of
title IV of the Social Security Act (42 U.S.C.
601 et seq.), the Workforce Investment Act of
1998 (29 U.S.C. 2801 et seq.), and other
programs designed to coordinate work-related
supportive services for families;
(B) programs for expanding housing
opportunities, reducing homelessness, and
developing community investment projects;
(C) education programs, including those for
preschool and school-aged children and for
adults to obtain an adequate education; and
(D) programs designed to support youth, the
homeless, migrants, senior citizens, and
individuals with disabilities, including
programs under the Low-Income Home Energy
Assistance Act of 1981 (42 U.S.C. 8621 et
seq.);
* * * * * * *
(12) an assurance that the State and all eligible
entities in the State will, [not later than fiscal year
2001] annually, 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) information describing how the State will carry
out the assurances described in this subsection[.] in
sufficient detail to permit verification; and
(14) beginning with fiscal year 2006, and in each
fiscal year thereafter, an assurance that the State is
using the procedures described in section 678B(b) to
monitor eligible entities.
(C) * * *
* * * * * * *
[(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. 676A. DESIGNATION AND REDESIGNATION OF ELIGIBLE ENTITIES IN
UNSERVED AREAS.
(a) Qualified Organization in or Near Area.--
(1) In general.--* * *
* * * * * * *
(b) Special Consideration.--In designating an eligible
entity under subsection (a), the chief executive officer shall
grant the designation to an organization of demonstrated
effectiveness in meeting the goals and purposes of this
subtitle and may give priority, in granting the designation, to
eligible entities that are providing related services in the
unserved area, consistent with the needs identified by a
community-needs assessment. In granting such designation, the
State shall deem private nonprofit eligible entities that are
providing related services in the unserved area to be of
demonstrated effectiveness, consistent with the needs
identified by a community needs assessment.
* * * * * * *
SEC. 676B. TRIPARTITE BOARDS.
(a) Private Nonprofit Entities.--
(1) Board.--* * *
* * * * * * *
(b) Public Organizations.--In order for a public
organization to be considered to be an eligible entity for
purposes of section 673(1), the entity shall administer the
community services block grant program [through--
[(1) a tripartite] through a tripartite board, which
shall have members selected by the organization and
shall be composed so as to assure that not fewer than
\1/3\ of the members are persons chosen in accordance
with democratic selection procedures adequate to assure
that these members--
[(A)] (1) are representative of low-income
individuals and families in the neighborhood
served;
[(B)] (2) reside in the neighborhood served;
and
[(C)] (3) are able to participate actively in
the development, planning, implementation, and
evaluation of programs funded under this
subtitle[; or].
[(2) another mechanism specified by the State to
assure decisionmaking and participation by low-income
individuals in the development, planning,
implementation, and evaluation of programs funded under
this subtitle.]
* * * * * * *
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,
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, related to programs
carried out under this subtitle; and]
monitoring and such additional corrective
actions as may be needed to strengthen the
management and programmatic practices of
eligible entities;
[(B) to distribute amounts in accordance with
subsection (c).]
(B) for State and local performance reporting
and program data collection activities related
to programs carried out under this subtitle;
(C) for the preparation of reports provided
for in section 678E;
(D) for the development and promulgation of a
common State Financial and Organizational
Protocol that is required to be used by States
under section 678B(b); and
(E) to distribute amounts in accordance with
subsection (c).
* * * * * * *
(b) Terms and Technical Assistance Process.-- * * *
(1) * * *
(2) incorporate mechanisms to ensure responsiveness
to local needs, including [an ongoing procedure for
obtaining input from the national and State networks of
eligible entities] a strategic plan for annual
technical assistance developed in consultation with the
national and State networks of eligible entities
regarding their management support needs.
(c) Distribution Requirement.--
(1) In general.--The amounts reserved under section
674(b)(2)(A) for activities to be carried out under
this subsection shall be distributed directly to
eligible entities organizations, or associations
described in paragraph (2) for the purpose of improving
program quality (including quality of financial
management practices), [management information and
reporting systems, and measurement of program results,
and for the purpose of ensuring responsiveness to
identified local needs.] improving management
information and reporting systems, measuring of program
results, ensuring responsiveness to identified local
needs, and reporting and disseminating successful
practices and initiatives.
* * * * * * *
SEC. 678B. MONITORING [OF ELIGIBLE ENTITIES].
(a) [In General] Monitoring of Eligible Entities.--In order
to determine whether eligible entities meet the performance
goals, administrative standards, financial management
requirements, and other requirements of a State, the State
shall conduct the following reviews of eligible entities:
(1) A full onsite biennial review of each such entity
[at least once during each 3-year period].
[(2) An onsite review of each newly designated entity
immediately after the completion of the first year in
which such entity receives funds through the community
services block grant program.]
[(3)] (2) Followup annual reviews including prompt
return visits to eligible entities, and their programs,
that fail to meet the goals, standards, and
requirements established by the State.
[(4)] (3) Other reviews as appropriate, including
reviews of entities with programs that have had other
Federal, State, or local grants (other than assistance
provided under this subtitle), terminated for cause.
(b) Financial and Organizational Assessment Protocol.--
Beginning in fiscal year 2006, States shall implement a
financial and organizational assessment protocol to monitor and
evaluate the compliance of eligible entities with the financial
and administrative requirements of this section. Such protocol
shall incorporate the fiscal and organizational review
procedures and standards appropriate to the management of
Federal funds under this subtitle and the governance of the
eligible private non-profit corporations or other eligible
entities. The Secretary shall require the protocol to be
developed jointly by the States and eligible entities and shall
assist States in developing appropriate training for personnel
monitoring the uses of funds under this subtitle according to
the requirements of this section.
[(b)] (c) Requests.--The State may request training and
technical assistance from the Secretary as needed to comply
with the requirements of this section.
[(c)] (d) Evaluation 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 as part of
the report submitted by the Secretary in accordance with
section 678E(b)(2).] The Secretary shall annually submit a
report including the results of the evaluations conducted under
this subtitle, the State performance reports provided for
pursuant to section 678E(a)(1)(C), and other material as
provided by section 678E(b)(2) to the Committee on Education
and the Workforce of the House of Representatives and the
Committee on Health, Education, Labor, and Pensions of the
Senate.
* * * * * * *
SEC. 678C. CORRECTIVE ACTION; TERMINATION AND REDUCTION OF FUNDINGS.
(a) Determination.--* * *
(1) * * *
* * * * * * *
(4)(A) * * *
(B) not later than 30 days after receiving from an
eligible entity a proposed quality improvement plan
pursuant to subparagraph (A), either approve such
proposed plan or specify the reasons why the proposed
plan cannot be approved; [and]
[(5) after providing adequate notice and an
opportunity for a hearing, initiate proceedings to
terminate the designation of or reduce the funding
under this subtitle of the eligible entity unless the
entity corrects the deficiency.]
(5) if the eligible entity fails to correct the
deficiency, notify the entity--
(A) that the State intends to initiate
proceedings to terminate the designation of the
entity as an eligible entity or to reduce, from
the previous year, the proportion of the total
funding received by the State under this
subtitle that is allocated to the eligible
entity;
(B) that the eligible entity has the right to
a hearing on the record to determine if there
is cause for such termination or reduction in
funding, as defined in section 676(c), and that
the request for a hearing must be made in
writing to the State within 30 days of receipt
of the notice from the State; and
(C) of the legal basis for the proposed
termination or reduction in funding, the
factual findings on which the proposed
termination or reduction in funding is based or
a reference to specific findings in another
document that form the basis for the proposed
termination or reduction in funding (such as a
reference to item numbers in an on-site review
report or instrument), and citation to any
statutory provisions, agreements, regulations,
or State plan; and
(6) if the eligible entity requests a hearing,
conduct a hearing on the record to determine if there
is cause for termination or a reduction in funding, as
defined in section 676(c).
(b) Review.--A determination to terminate the designation
or reduce the funding of an eligible entity is reviewable by
the Secretary. The Secretary shall, upon request, [review such
a determination] review and either approve, or disapprove and
reverse, such a determination. The review shall be completed
not later than [90 days] 30 days after the Secretary receives
from the State all necessary documentation relating to the
determination to terminate the designation or reduce the
funding. If the review is not completed within [90 days] 30
days, the determination of the State shall become final at the
end of the [90th day] 30th day.
(c) Direct Assistance.--Whenever a State violates the
assurances contained in section 676(b)(8) and terminates or
reduces the funding of an eligible entity prior to the
completion of the State hearing described in that section and
the Secretary's review as required in subsection (b), the
Secretary is authorized to provide financial assistance under
this subtitle to the eligible entity affected until the
violation is corrected. In such a case, the grant or allotment
for the State under section 675A or 675B for the earliest
appropriate fiscal year shall be reduced by an amount equal to
the funds provided under this subsection to such eligible
entity. The Secretary shall continue to fund an eligible
entity, in an amount equal to the same proportion of total
funds received by the State under this subtitle as was
allocated to the eligible entity the previous year, until the
Secretary approves, or disapproves and reverses, the
determination of termination or reduction in funding with
respect to the State.
* * * * * * *
SEC. 678D. FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
(a) Fiscal Controls, Procedures, Audits, and Inspections.--
(1) In general.--* * *
(A) * * *
* * * * * * *
(C) subject to paragraph (2), prepare, at
least every year, an audit of the expenditures
of the State of amounts received under this
subtitle and amounts transferred to carry out
the purposes of this subtitle; [and]
(D) notwithstanding paragraph (2)(B),
beginning in fiscal year 2005, and not less
than every 2 years thereafter, each State shall
submit to the Secretary a separate audit of the
funds appropriated under this subtitle that
meets the standards in paragraph (2)(A);
(E) submit full financial reports to the
Secretary not later than 6 months following the
end of each fiscal year; and
[(D)] (F) make appropriate books, documents,
papers, and records available to the Secretary
and the Comptroller General of the United
States, or any of their duly authorized
representatives, for examination, copying, or
mechanical reproduction on or off the premises
of the appropriate entity upon a reasonable
request for the items.
* * * * * * *
(b) Withholding.--
(1) In general.--The Secretary shall, after providing
adequate notice and an opportunity for a hearing
conducted within the affected State, withhold funds
from any State that does not utilize the grant or
allotment under section 675A or 675B in accordance with
the provisions of this subtitle, including the
assurances such State provided under section 676. The
Secretary, after providing adequate notice, shall
withhold administrative funds described in section
675C(b)(2) from any State that fails to comply with the
provision of sections 678A through 678D(a), and may,
after an opportunity for a hearing conducted within the
affected State, withhold funds from the State and
provide such funds directly to the eligible entities in
such State upon a demonstration of the compliance by
such entities with the requirements of this subtitle.
* * * * * * *
[SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
[(A) State Accountability and Reporting Requirements.--
[(1) Performance measurement.--
[(A) In general.--By October 1, 2001, each
State that receives funds under this subtitle
shall participate, and shall ensure that all
eligible entities in the State participate, in
a performance measurement system, which may be
a performance measurement system for which the
Secretary facilitated development pursuant to
subsection (b), or an alternative system that
the Secretary is satisfied meets the
requirements of subsection (b).
[(B) Local agencies.--The State may elect to
have local agencies that are subcontractors of
the eligible entities under this subtitle
participate in the performance measurement
system. If the State makes that election,
references in this section to eligible entitles
shall be considered to include the local
agencies.
[(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. 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 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) Secretary's Accountability and Reporting
Requirements.--
[(1) Performance measurement.--The Secretary, in
collaboration with the States and with eligible
entities throughout the Nation, shall facilitate the
development of one or more model performance
measurement systems, which may be used by the State and
by eligible entities to measure their performance in
carrying out the requirements of this subtitle and in
achieving the goals of their community action plans.
The Secretary shall provide technical assistance,
including support for the enhancement of electronic
data systems, to States and to eligible entities to
enhance their capability to collect and report data for
such a system and to aid in their participation in such
a system.
[(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) a summary of the planned use of funds by
each State, and the eligible entities in the
State, under the community services block grant
program, as contained in each State plan
submitted pursuant to section 676;
[(B) a description of how funds were actually
spent by the State and eligible entities in the
State, including a breakdown of funds spent on
administrative costs and on the direct delivery
of local services by eligible entities;
[(C) information on the number of entities
eligible for funds under this subtitle, the
number of low-income persons served under this
subtitle, and such demographic data on the low-
income populations served by eligible entities
as is determined by the Secretary to be
feasible;
[(D) a comparison of the planned uses of
funds for each State and the actual uses of the
funds;
[(E) a summary of each State's performance
results, and the results for the eligible
entities, as collected and submitted by the
States in accordance with subsection (a)(2);
and
[(F) any additional information that the
Secretary considers to be appropriate to carry
out this subtitle, if the Secretary informs the
States of the need for such additional
information and allows a reasonable period of
time for the States to collect and provide the
information.
[(3) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives of the Committee on Labor and Human
Resources of the Senate the report described in
paragraph (2) and any comments the Secretary may have
with respect to such report. The report shall include
definitions of direct and administrative costs used by
the Department of Health and Human Services for
programs funded under this subtitle.
[(4) Costs.--Of the funds reserved under section
674(b)(3), not more than $350,000 shall be available to
carry out the reporting requirements contained in
paragraph (2).]
SEC. 678E. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
(a) State Accountability and Reporting Requirements.--
(1) Performance measurement of eligible entities.--
(A) In general.--Each State that receives
funds under this subtitle shall participate,
and shall ensure that all eligible entities in
the State participate, in a performance
measurement system, which may be a performance
measurement system for which the Secretary
facilitated development pursuant to subsection
(b), or an alternative system that the
Secretary is satisfied meets the requirements
of subsection (b).
(B) Local agencies.--The State may elect to
have local agencies that are subcontractors of
the eligible entities under this subtitle
participate in the performance measurement
system. If the State makes that election,
references in this section to eligible entities
shall be considered to include the local
agencies.
(C) Performance measurement of states.--Not
later than 1 year after the date of enactment
of the Poverty Reduction and Prevention Act,
the Secretary shall establish, in consultation
with States and eligible entities, performance
standards for the State administration of block
grant funds. Such standards shall include
standards relating to--
(i) the timeliness of the
availability of State plans for public
comment as required under section
676(a)(2)(B) and of submission of such
plans to the Secretary as required in
section 676(b);
(ii) the utilization of the financial
and organizational assessment protocol
established under section 678B(b),
including the training and skills of
State personnel responsible for such
oversight, the completion of annual
monitoring, the identification of
opportunities for improvement, andthe
implementation of plans to enhance the management capacity and
infrastructure of eligible entities;
(iii) the timeliness of the
distribution of block grants funds to
eligible entities as provided in
section 675C(a);
(iv) the resources made available for
management development at eligible
entities, including monitoring,
training, and assistance with financial
management and program information and
assessment systems;
(v) the results of State efforts to
coordinate eligible entity programs
with other State programs for low-
income individuals and their families,
especially participants in the program
of block grants to States for temporary
assistance for needy families under
part A of title IV of the Social
Security Act (42 U.S.C. 601 et seq.)
and other working families, and to
ensure the participation of eligible
entities in the development of
statewide strategies to reduce poverty;
and
(vi) the assistance provided to
eligible entities in securing private
partnerships as required in section
676(b).
(2) Annual report.--Each State shall annually prepare
and submit to the Secretary a report on the measured
performance of the State and the eligible entities in
the State. The State shall include in the report any
information collected by the State relating to such
performance. Each State shall also include in the
report an accounting of the expenditure of funds
received by the State through the community services
block grant program, including an accounting of funds
spent on administrative costs by the State and the
eligible entities, funds spent by eligible entities on
the direct delivery of local services, and the
achievement of national goals established under the
procedures described in this section, and shall include
information on the number of and characteristics of
clients served under this subtitle in the State, based
on data collected from the eligible entities. The State
shall also include in the report a summary describing
the training and technical assistance offered by the
State under section 678C(a)(3) during the year covered
by the report.
(b) Local Entity Accountability and Reporting
Requirements.--
(1) Local entity determined goals.--In order to be
designated as an eligible entity and to receive a grant
under this subtitle, a grantee shall establish grantee
determined goals for reducing poverty in the community,
including goals for--
(A) leveraging community resources;
(B) fostering coordination of Federal, State,
local, private, and other assistance; and
(C) promoting community involvement.
(2) Demonstration that goals were met.--In order to
receive a grant subsequent to the first grant that is
provided to an eligible entity following the date of
enactment of the Poverty Reduction and Prevention Act,
the entity shall demonstrate to the State that
substantial progress has been made in meeting the goals
of the entity as described in paragraph (1).
(3) Goals or performance measures.--Any specific
goals or performance measures, for an individual
eligible entity, that are used in any monitoring or
review process under this subtitle, shall be--
(A) determined by the entity;
(B) agreed on by the State involved and the
entity, during the planning process leading to
the grant involved; and
(C) incorporated into the grant agreement
between the State and entity for each
subsequent award cycle.
(c) Secretary's Accountability and Reporting
Requirements.--
(1) Federal performance measurement.--The Secretary
shall establish goals for the Department of Health and
Human Services Office of Community Services with
respect to--
(A) the timeliness of the distribution of
funds under this subtitle, including funds for
training and technical assistance;
(B) the monitoring of States as provided for
in section 678D;
(C) the coordination of other Office of
Community Service programs with the activities
of States and eligible entities under this
subtitle; and
(D) the full and timely reporting as required
in this section.
(2) Local performance measurement.--
(A) In general.--To the maximum extent
practicable, the Secretary shall coordinate
reporting requirements for all programs of the
Department of Health and Human Services that
are managed by eligible entities so as to
consolidate and reduce the number of reports
required relating to individuals, families, and
uses of grant funds, specifically funds under
the Head Start Act (42 U.S.C. 9831 et seq.),
the Low-Income Home Energy Assistance Act of
1981 (42 U.S.C. 8621 et seq.), child care
programs administered by the Department, and
health related service programs administered by
the Department.
(B) Technical assistance.--The Secretary
shall provide technical assistance, including
support for the enhancement of electronic data
systems, to States and to eligible entities to
enhance their capability to collect and report
data for such a system and to aid in their
participation in such a system.
(C) Local entity performance measurement
system.--The Secretary shall assist in the
implementation of a local entity performance
measurement system, and other voluntary
programmatic and results reporting systems,
developed by States, eligible entities, and
their national associations acting together.
The Secretary and the developers of such
systems shall ensure that the set of measures
are numerous enough to cover the full range of
services offered by all local eligible
entities. Under such a system, local eligible
entities shall only be compelled to collect
data on the subset of performance measures that
reflect their community-specific programs and
services currently adopted. Grantees shall not
be required under this subparagraph to alter
the collection of data for any reports provided
for other programs within the Department of
Health and Human Services or other Federal
agencies. States shall compile annual Results
Oriented Management and Accountability System
reports for the Secretary under this
subparagraph.
(3) Reporting requirement.--For each fiscal year the
Secretary shall, directly or by grant or contract,
prepare a report containing--
(A) a summary of the planned use of funds by
each State, and the eligible entities in the
State, under the community services block
grantprogram, as contained in each State plan submitted pursuant to
section 676;
(B) a description of how funds were actually
spent by the State and eligible entities in the
State, including a breakdown of funds spent on
administrative costs and on the direct delivery
of local programs by eligible entities;
(C) information on the number of entities
eligible for funds under this subtitle, the
number of low-income persons served under this
subtitle, and such demographic data on the low-
income populations served by eligible entities
as is determined by the Secretary to be
feasible;
(D) a comparison of the planned uses of funds
for each State and the actual uses of the
funds;
(E) a summary of each State's performance
results, and the results for the eligible
entities, as collected and submitted by the
States in accordance with subsection (a)(2);
and
(F) any additional information that the
Secretary considers to be appropriate to carry
out this subtitle, if the Secretary informs the
States of the need for such additional
information and allows a reasonable period of
time for the States to collect and provide the
information.
(4) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House
of Representatives and the Committee on Health,
Education, Labor, and Pensions of the Senate the report
described in paragraph (2), and any comments the
Secretary may have with respect to such report. The
report shall include definitions of direct and
administrative costs used by the Department of Health
and Human Services for programs funded under this
subtitle.
(5) Costs.--Of the funds reserved under section
674(b)(3), not more than $500,000 shall be available to
carry out the reporting requirements contained in
paragraph (3).
* * * * * * *
SEC. 678F. LIMITATIONS ON USE OF FUNDS.
(A) Construction of Facilities.--
(1) Limitations.--* * *
* * * * * * *
(c) Nondiscrimination.--
(1) In general.--No person shall, on the basis of
race, religion, color, national origin, or sex be
excluded from participation in, be denied the benefits
of, or be subjected to discrimination under, any
program or activity funded in whole or in part with
funds made available under this subtitle. Any
prohibition against discrimination on the basis of age
under the Age Discrimination Act of 1975 (42 U.S.C.
6106 et seq.) or with respect to an otherwise qualified
individual with a disability as provided in section 504
of the Rehabilitation Act of 1973 (29 U.S.C. 794), or
title II of the Americans with Disabilities Act of 1990
(42 U.S.C. 12131 et seq.) shall also apply to any such
program or activity.
* * * * * * *
SEC. 679. OPERATIONAL RULE.
(a) Religious Organizations Included as Nongovernmental
Providers.--For any program carried out by the Federal
Government, or by a State or local government under this
subtitle the government shall consider, on the same basis as
other nongovernmental organizations, religious organizations to
provide the assistance under the program, so long as the
program is implemented in a manner consistent with the
Establishment Clause of the first amendment to the Constitution
and such organization meets the requirements of this subtitle.
Neither the Federal Government nor a State or local government
receiving funds under this subtitle discriminate against an
organization that provides assistance under, or applies to
provide assistance under, this subtitle, on the basis that the
organization has a religious character.
* * * * * * *
SEC. 680. DISCRETIONARY AUTHORITY OF THE SECRETARY.
(a) Grants, Contracts, Arrangements, Loans and
Guarantees.--
(1) In general.--* * *
(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 for economic
development activities designed to address the
economic needs of low-income individuals and
families by creating employment and business
development opportunities.]
(A) Economic development activities.--The
Secretary shall make grants described in
paragraph (1) on a competitive basis to
private, nonprofit organizations that are
community development corporations to provide
technical and financial assistance for economic
development activities, including business,
economic, and community development projects,
designed to address the economic needs of low-
income individuals and families by creating
employment and business development
opportunities. Such assistance shall includ--
(i) long term loans (up to 15 years)
or investments for private business
enterprises;
(ii) providing capital to businesses
owned by community development
corporations; and
(iii) marketing and management
assistance for businesses providing
jobs and business opportunities to low-
income individuals.
(B) Federal interest.--
(i) In general.--The Secretary shall
establish procedures that permit a
grantee who receives funds under a
grant to carry out this paragraph, or
intangible assets acquired with such
funds, to become the sole owner of the
funds or assets before the end of the
12-year period beginning at the end of
the fiscal year for which the grant is
made.
(ii) Conditions.--To be eligible to
become the sole owner, the grantee
shall agree--
(I) to use the funds or
assets for the purposes and
uses for which the grant was
made, or purposes and uses
consistent with this subtitle,
during and after the 12-year
period described in clause (i),
whether or not the grantee
continues to be supported by
Federal funds; and
(II) that, when the grantee
no longer needs the funds or
assets for purposes and uses
described in subclause (I), the
grantee shall request
instructions from the Secretary
about the disposition of the
funds or assets.
(iii) Encumbering.--The grantee may
not encumber the assets without the
approval of the Secretary.
(C) Administrative requirements.--In a case
in which an eligible project under grant made
under this section cannot, for good cause, be
implemented, the Secretary shall establish a
policy to permit the substitution of other
eligible projects. Such policy shall require
that such project have the same impact area,
the same goals, and the same objectives as the
original project and outcomes that are
substantially the same as the original project.
[(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] the service area
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]
2 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.--* * *
(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
waste water 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 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]
individuals and their 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] Health, Education,
Labor, and Pensions of the Senate.
* * * * * * *
SEC. 681. COMMUNITY FOOD AND NUTRITION PROGRAMS.
(a) Grants.--* * *
* * * * * * *
(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] Health, Education, Labor, and
Pensions of the Senate, 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) General Authority.--* * *
(b) Program Requirements.--* * *
(1) * * *
(2) an initial medical examination and follow-up
referral [or treatment], without charge, for youth
during their participation in such activity;
* * * * * * *
(g) Authorization of Appropriations.--There are authorized
to be appropriated [$15,000,000 for each of fiscal years 1999
through 2003] $18,000,000 for each of fiscal years 2004 through
2009 for grants to carry out this section.
* * * * * * *
LOW-INCOME HOME ENERGY ASSISTANCE ACT OF 1981
* * * * * * *
HOME ENERGY GRANTS AUTHORIZED
Sec. 2602. (a) * * *
(b) There are authorized to be appropriated to carry out
the provisions of this title (other than section 2607A),
$2,000,000,000 for each of fiscal years 1995 through 1999,
[such sums as may be necessary for each of fiscal years 2000
and 2001, and $2,000,000,000 for each of fiscal years 2002
through 2004.] and $3,400,000,000 for each of fiscal years 2004
through 2006, and such sums as may be necessary for each of
fiscal years 2007 through 2010. The authorizations of
appropriations contained in this subsection are subject to the
program year provisions of subsection (c).
(c) Amounts appropriated under this section for any fiscal
year for programs and activities authorized under this title
shall be made available for obligation in the succeeding fiscal
year.
(d)(1) There is authorized to be appropriated to carry out
section 2607A, $30,000,000 for each of fiscal years [1999
through 2004], 2004 through 2010 except as provided in
paragraph (2).
(2) For any of fiscal years [1999 through 2004] 2004
through 2010 for which the amount appropriated under subsection
(b) is not less than $1,400,000,000, there is authorized to be
appropriated $50,000,000 to carry out section 2607A.
STATE ALLOTMENTS
Sec. 2604. (a)(1)(A) * * *
* * * * * * *
(e) Notwithstanding subsections (a) through (d), the
Secretary may allot amounts appropriated pursuant to section
2602(e) to one or more than one State. In determining whether
to make such an allotment to a State, the Secretary shall take
into account the extent to which the State was affected by the
natural disaster or other emergency involved, the availability
to the State of other resources under the program carried out
under this title or any other program, and such other factors
as the Secretary may find to be relevant. Not later than 30
days after making the determination, but prior to releasing an
allotted amount to a State, the Secretary shall notify Congress
of the allotments made pursuant to this subsection.
Notwithstanding any other provision of this section for
purposes of making determinations under section 2603(1)(C), if
the Secretary determines that there is an increase of at least
20 percent in the cost of home energy over the previous 5-year
average for a duration of a month or more in 1 or more States
or regions, the Secretary shall declare an energy emergency in
the affected area and shall make available funds as provided in
this subsection. Notwithstanding any other provision of this
section, for purposes of making such determinations, if the
Secretary determines that the number of heating degree days or
cooling days for a month was more than 100 above the 30-year
average in 1 or more States or regions, the Secretary shall
declare an energy emergency in the affected area and shall make
available funds as provided in this subsection.
* * * * * * *
TITLE 42, UNITED STATES CODE ANNOTATED
* * * * * * *
ASSETS FOR INDEPENDENCE ACT
SEC. 401. SHORT TITLE.
* * * * * * *
SEC. 404. DEFINITIONS.
In this title:
(1) Applicable period.--* * *
* * * * * * *
(8) Qualified expenses.--* * *
(A) Postsecondary educational expenses.--
Postsecondary educational expenses paid from an
individual development account directly to an
eligible educational institution or to a vendor
following approval by a qualified entity upon
submission of an approved qualified education
purchase plan. In this subparagraph:
(i) Postsecondary educational
expenses.--* * *
* * * * * * *
(iii) Qualified education purchase
plan.--The term ``qualified education
purchase plan'' means a document that
explains the education item to be
purchased which--
(I) is approved by a
qualified entity; and
(II) includes a description
of the good to be purchased.
* * * * * * *
(D) Transfers to idas of family members.--
Amounts paid from an individual development
account directly into another such account
established for the benefit of an [eligible]
individual who is--
(i) * * *
(ii) * * *
(E) Saving in idas for dependents.--Amounts
paid to an individual development account
established for the benefit of a dependent (as
such terms is defined for purposes of
subparagraph (D)(ii)) of an eligible individual
for the purpose of postsecondary education.
* * * * * * *
SEC. 405. APPLICATIONS.
(a) Announcement of Demonstration Projects.--* * *
* * * * * * *
[(g) Grandfathering of Existing Statewide Programs.--Any
statewide individual asset-building program that is carried out
in a manner consistent with the purposes of this title [this
note], that is established under State law as of the date of
enactment of this Act [Oct. 27, 1998], and that as of such date
is operating with an annual State appropriation of not less
than $1,000,000 in non-Federal funds, shall be deemed to meet
the eligibility requirements of this subtitle [sic; probably
should be ``title'', meaning ``this note''], and the entity
carrying out the program shall be deemed to be a qualified
entity. The Secretary shall consider funding the statewide
program as a demonstration project described in this subtitle
[sic; probably should be ``title'', meaning ``this note'']. In
considering the statewide program for funding, the Secretary
shall review an application submitted by the entity carrying
out such statewide program under this section, not withstanding
the preference requirements listed in subsection (d). Any
program requirements under sections 407 through 411 [of this
note] that are inconsistent with State statutory requirements
in effect on the date of enactment of this Act [Oct. 27, 1998],
governing such statewide program, shall not apply to the
program.]
* * * * * * *
SEC. 407. RESERVE FUND.
(a) Establishment.--* * *
(b) Amounts in Reserve Fund.--
(1) In general.--* * *
(A) all grant funds provided to the qualified
entity from the Secretary for the purpose of
the demonstration project as described under
subsection (c)(1);
[(A)] (B) all funds provided to the qualified
entity from any public or private source in
connection with the demonstration project; and
[(B)] (C) the proceeds from any investment
made under subsection (c)(2).
(2) Uniform accounting regulations.--* * *
(3) Rule of construction.--Nothing in paragraph
(1)(A) shall be construed to preclude a qualified
entity from depositing other demonstration project
funds into the Reserve Fund.
(c) Use of Amounts in the Reserve Fund.--
(1) In general.--* * *
* * * * * * *
(4) Use of non-federal funds.--
(A) In general.--Notwithstanding paragraph
(3), not more than 20 percent of the amount of
non-Federal funds committed to a project as
matching contributions in accordance with the
application submitted by the qualified entity
under section 405(c)(4) shall be used by the
qualified entity for the purposes described in
subparagraphs (A), (C), and (D) of paragraph
(1).
(B) Priority.--In awarding grants under
section 406(b), the Secretary shall give
priority to qualified entities that submit
applications that, with respect to the
commitment of non-Federal funds under section
405(c)(4), provide assurances that not to
exceed 15 percent of such non-Federal funds
will be used by the qualified entity for the
purposes described in subparagraphs (A), (C),
and (D) of paragraph (1).
(d) Unused Federal Grant Funds Transferred to the Secretary
When Project Terminates.--Notwithstanding subsection (c), upon
the date that is 12 months after the termination of any
demonstration project authorized under this section, the
qualified entity conducting the project shall transfer to the
Secretary an amount equal to--
* * * * * * *
SEC. 408. ELIGIBILITY FOR PARTICIPATION.
(a) In General.--* * *
[(1) Income test.--The adjusted gross income of the
household is equal to or less than 200 percent of the
poverty line (as determined by the Office of Management
and Budget) or the earned income amount described in
section 32 of the Internal Revenue Code of 1986 [26
U.S.C.A. Sec. 32] (taking into account the size of the
household).]
(1) Income test.--The--
(A) gross income of the household is equal to
or less than--
(i) 200 percent of the poverty line
(as determined by the Secretary of
Health and Human Services);
(ii) the earned income amount
described in section 32 of the Internal
Revenue Code of 1986 (taking into
account the size of the household); or
(iii) 80 percent of the Area Median
Income (as determined by the Department
of Housing and Urban Development); or
(B) the modified adjusted gross income of the
household for the previous year does not exceed
$18,000 for an individual filer, $30,000 for a
head of household, or $38,000 for a joint
filer.
* * * * * * *
SEC. 410. DEPOSITS BY QUALIFIED ENTITIES.
(a) In General.--Not less than once every 3 months during
each project year, each qualified entity under this title [this
note] shall deposit in the individual development account of
each individual participating in the project, or into a
parallel account maintained by the [qualified entity--
[(1) from the non-Federal funds described in section
405(c)(4) [of this note], a matching contribution of
not less than $0.50 and not more than $4 for every $1
of earned income (as defined in section 911(d)(2) of
the Internal Revenue Code of 1986) [26 U.S.C.A.
Sec. 911(d)(2)] deposited in the account by a project
participant during that period;
[(2) from the grant made under section 406(b) [of
this note], an amount equal to the matching
contribution made under paragraph (1); and
[(3) any interest that has accrued on amounts
deposited under paragraph (1) or (2) on behalf of that
individual into the individual development account of
the individual or into a parallel account maintained by
the qualified entity.] qualified entity, a matching
contributions of not less than $0.50 and not more than
$4 for every $1 of earned income (as defined in section
911(d)(2) of Internal Revenue Code of 1986) deposited
in the account and interest earned on that account by a
project participant during that period. Matching
contribution shall be made--
(1) from the non-Federal funds described in section
405(c)(4); and
(2) from the grant made under section 406(b); based
on a ratio relating to the sources of funds described
in paragraph (1) and (2) as determined by the qualified
entity, consistent with the requirements of section
407(c).
(b) Use of Excess Interest on Matching Funds Earned on the
Reserve Fund.--Interest that accrues on the matching funds
earned and held in the Reserve Fund, over and above the
interest required to match an individual's deposits and
interest earned in the individual development account, shall be
used by the qualified entity to fund existing individual
development accounts or additional individual development
accounts.
[(b)] (c) Limitation on Deposits for an Individual.--Not
more than $2,000 from a grant made under section 408(b) [of
this note] shall be provided to any one individual over the
course of the demonstration project
[(c)] (d) Limitation on Deposits for a Household.-- * * *
[(d)] (e) Withdrawal of Funds.-- * * *
[(e)] (f) Reimbursement.--
* * * * * * *
SEC. 416 AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
title [this note], $25,000,000 for each of fiscal years 1999,
2000, 2001, 2002, [and 2003,] and 2003, $25,000,000 for fiscal
year 2004, and such sums as may be necessary for each of fiscal
years 2005 through 2008, to remain available until expended.
* * * * * * *
