Community Economic Opportunity Act of 2014 - Revises the Community Services Block Grant Act, reauthorizing and extending the Act and its community services block grant program at specified levels for FY2014-2018, and at unspecified levels for FY2019-2023.
Prescribes requirements for a Community Action Innovations Program.
Eliminates requirements for: (1) community food and nutrition programs, (2) national or regional programs designed to provide instructional activities for low-income youth, and (3) demonstration partnership agreements addressing the needs of the poor.
[Congressional Bills 113th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3854 Introduced in House (IH)]
113th CONGRESS
2d Session
H. R. 3854
To amend the Community Services Block Grant Act to reauthorize and
modernize the Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
January 13, 2014
Mr. Fitzpatrick (for himself, Ms. McCollum, and Mr. Costa) introduced
the following bill; which was referred to the Committee on Education
and the Workforce
_______________________________________________________________________
A BILL
To amend the Community Services Block Grant Act to reauthorize and
modernize the Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Economic Opportunity Act
of 2014''.
SEC. 2. REAUTHORIZATION.
The Community Services Block Grant Act (42 U.S.C. 8 9901 et seq.)
is amended to read as follows:
``Subtitle B--Community Services Block Grant Program
``SEC. 671. SHORT TITLE.
``This subtitle may be cited as the `Community Services Block Grant
Act'.
``SEC. 672. PURPOSES.
``The purposes of this subtitle are--
``(1) to reduce poverty in United States communities by
supporting the activities of community action agencies that
reduce the causes and conditions of poverty and persistent
economic insecurity by--
``(A) providing individuals and families with
opportunities to become economically secure; and
``(B) developing new economic opportunities in the
communities in which low- and moderate-income
individuals live; and
``(2) to accomplish the objectives described in paragraph
(1) by--
``(A) strengthening community capabilities for
identifying poverty conditions and opportunities to
alleviate such conditions and planning Federal, State,
local, and other assistance, including private
resources, related to the reduction of poverty so that
resources can be used in a manner responsive to local
needs and conditions;
``(B) organizing and coordinating multiple services
and resources so as to have a measurable and
significant impact on the causes of poverty in the
community and to help families and individuals find and
utilize opportunities to become economically secure;
``(C) using innovative community-based approaches
to attack the causes and effects of poverty and to
build community social and economic assets;
``(D) empowering residents to respond to the unique
problems and needs within their communities through
civic participation and partnerships;
``(E) broadening the sources and number of
resources directed to the elimination of poverty, so as
to promote statewide, regional, and local partnerships
that--
``(i) achieve the purposes of this
subtitle; and
``(ii) include--
``(I) private, religious,
charitable, and neighborhood-based
organizations;
``(II) individuals, businesses,
labor organizations, professional
organizations, and other organizations
engaged in expanding opportunities for
all individuals; and
``(III) local government leaders;
and
``(F) by ensuring the maximum feasible
participation of residents of low-income communities
and of members of the groups served by programs,
projects, and services under this subtitle, in advising
and assessing the eligible entities and in designing
their programs, projects, and services funded under
this subtitle.
``SEC. 673. DEFINITIONS.
``In this subtitle:
``(1) Community action agency; community services network
organization; eligible entity.--
``(A) Community action agency.--The term `community
action agency' means an eligible entity (which meets
the requirements of paragraph (1) or (2), as
appropriate, of section 681(c)) that is a public
charity (other than an organization described in
section 509(a)(4) of the Internal Revenue Code of 1986)
and that delivers multiple programs, projects, or
services to a variety of low-income groups.
``(B) Community services network organization.--The
term `community services network organization' means
any of the following organizations funded under this
subtitle--
``(i) a grantee;
``(ii) an eligible entity; or
``(iii) an organization organized by
multiple grantees or eligible entities, that is
governed by a Board of Directors of which at
least \3/4\ of the members--
``(I) are employees or other
designees of such a grantee or eligible
entity; and
``(II) are selected by an open and
democratic process by the members of
the organization.
``(C) Eligible entity.--The term `eligible entity'
means an entity--
``(i) that is an eligible entity described
in section 673(1) as in effect on October 26,
1998, or has been designated by the process
described in section 681(a) (including an
organization serving migrant or seasonal
farmworkers that is so described or
designated); and
``(ii) that has a tripartite board or other
mechanism described in paragraph (1) or (2), as
appropriate, of section 681(c).
``(2) Community action program plan.--community action
program plan means a detailed plan, including a budget, for
expenditures of funds appropriated for a fiscal year under this
title for the activities supported directly or indirectly by
such funds.
``(3) Community action strategic plan.--The term `community
action strategic plan' means a plan that is adopted as the
policy of an eligible entity and that--
``(A) establishes goals for a period of not less
than 4 years that are based on meeting needs identified
by the entity in consultation with the residents of the
community through a process of comprehensive community
needs assessment;
``(B) provides detail on how all activities of an
eligible entity under this subtitle will contribute to
meeting such goals including, but not limited to, how
such entity will use funding received under this
subtitle to reduce the impact of the causes of poverty
in the community; and
``(C) specifies how such activities will be
managed, funded, and measured by the performance
measurement system of such entity.
``(4) Grantee.--The term `grantee' means a recipient of a
grant under section 677 or 678 or a corresponding provision of
this subtitle (as in effect on the day before the date of
enactment of the Community Economic Opportunity Act of 2014).
``(5) Performance benchmark.--The term `performance
benchmark' means a measurable objective for the operations and
activities set out in a community action program plan or a
State plan under this subtitle. Such annual objectives may be
part of, but not the entirety of, the outcomes identified by
the performance measurement system in which a community
services network organization participates.
``(6) Performance measurement system.--The term
`performance measurement system' means a management information
system that collects and reports information about the outcomes
of activities and investments funded in whole or in part with
funds appropriated under this subtitle, including but not
limited to annual performance benchmarks, compares the actual
outcomes with the intended outcomes, and is used as a basis for
management decisions regarding future use of resources provided
under this subtitle.
``(7) Poverty line.--
``(A) In general.--The term `poverty line' means
the official poverty line defined by the Office of
Management and Budget, based on the most recent data
available from the Bureau of the Census, subject to
subparagraphs (C) and (D). The Secretary shall revise
the poverty line annually (or at any shorter interval
the Secretary determines to be feasible and desirable).
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.
``(B) Community services block grant eligibility
criterion.--Subject to subparagraphs (C) and (D), the
poverty line, as defined in subparagraph (A), shall be
used as a criterion of eligibility in the community
services block grant program established under this
subtitle.
``(C) Waivers for state use of higher eligibility
level.--Whenever a community action plan provides that
a program, project, or service funded under this
subtitle requires use of a higher eligibility standard
than the standard otherwise applicable under this
paragraph, for the purpose of ensuring (for the
purposes of this subtitle) coordination of activities
carried out under with other programs or activities of
eligible entities that are delivered to low-income
individuals, the State shall, as part of the annual
application described in section 680, apply to the
Secretary for a waiver that allows use of that standard
with respect to that program, project, or service, and
the Secretary may approve the waiver pursuant to the
procedures in section 680.
``(D) Procedures for continued eligibility.--A
State may establish procedures to ensure that a
participant in a program, project, or service funded
under this subtitle remains eligible to participate as
long as the participant is successfully progressing
towards achievement of the goals of the program,
project, or service, regardless of the participant's
continuing eligibility under subparagraphs (A) through
(C).
``(9) Private, nonprofit organization.--The term `private
nonprofit organization' includes a religious organization to
which the provisions of section 690 shall apply.
``(10) Public charity.--The term `public charity' means a
domestic or foreign organization that is--
``(A) described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under section 501(a) of such Code; and
``(B) described in paragraph (1), (2), (3), or (4)
of section 509(a) of the Internal Revenue Code of 1986.
``(11) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``(12) Service area.--The term service area means the
unique geographic area which the State has designated as the
area to be served by an eligible entity.
``(13) State.--The term `State' means any of the several
States, the District of Columbia, the Commonwealth of Puerto
Rico, Guam, the United States Virgin Islands, American Samoa,
or the Commonwealth of the Northern Mariana Islands.
``SEC. 676. ESTABLISHMENT OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.
``(a) .--The Secretary is authorized to establish a community
services block grant program and to make grants through the program,
under sections 677 and 678 to States to support local community action
program plans carried out by eligible entities to ameliorate the
conditions that cause poverty in the communities served by such
entities.
``(b) The Secretary is authorized to carry out other community
programs described in section 693 of this title.
``(c) Uniform Administrative Requirements.--Notwithstanding any
other provision of the Omnibus Budget Reconciliation Act of 1981
(Public Law 97-35), funds appropriated under this subtitle shall be
subject to the Uniform Administrative Requirements for Grants and
Cooperative Agreements to State, Local, and Tribal Governments (part 92
of title 45, Code of Federal Regulations or any corresponding similar
regulation or ruling) and all other Federal laws and regulation related
to intergovernmental financial transactions and to administration of
federally funded grants and cooperative agreements between States and
nonprofit organizations.
``SEC. 677. GRANTS TO TERRITORIES.
``(a) Apportionment.--The Secretary shall apportion the amount
reserved under section 692(c)(1) for each fiscal year on the basis of
need to eligible jurisdictions, among Guam, American Samoa, the United
States Virgin Islands, and the Commonwealth of the Northern Mariana
Islands.
``(b) Grants.--The Secretary shall make a grant to each eligible
jurisdiction to which subsection (a) applies for the amount apportioned
under subsection (a).
``SEC. 678. ALLOTMENTS AND GRANTS TO STATES.
``(a) Allotments in General.--From the amount appropriated under
section 692(a) for each fiscal year and remaining after the Secretary
makes the reservations required by section 692(c), the Secretary shall
allot to each eligible State (subject to section 679), an amount that
bears the same ratio to such remaining amount as the amount received by
the State for fiscal year 1981 under section 221 of the Economic
Opportunity Act of 1964 bore to the total amount received by all States
for fiscal year 1981 under such section, except as provided in
subsection (b).
``(b) Minimum Allotments.--
``(1) In general.--The Secretary shall allot to each State
not less than \1/2\ of 1 percent of the amount appropriated
under section 692(a) for such fiscal year except as provided in
section 692(c)(1).
``(2) Years with greater available funds.--If the amount
appropriated under section 692(a) for a fiscal year and
remaining after the Secretary makes the reservations required
by section 692(b) exceeds $850,000,000, no State shall receive
under this section less than \3/4\ of 1 percent of the
remaining amount.
``(c) Grants and Payments.--Subject to section 679, the Secretary
shall make grants to eligible States for the allotments described in
subsections (a) and (b). The Secretary shall make payments for the
grants in accordance with section 6503(a) of title 31, United States
Code.
``(d) Definition.--In this section, the term `State' does not
include Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
``SEC. 679. PAYMENTS TO INDIAN TRIBES.
``(a) Definitions.--In this section:
``(1) Indian.--The term `Indian' means a member of an
Indian tribe or of a tribal organization.
``(2) Indian tribe; tribal organization.--The terms `Indian
tribe' and `tribal organization' mean a tribe, band, or other
organized group recognized in the State in which the tribe,
band, or group resides, or considered by the Secretary of the
Interior, to be an Indian tribe or an Indian organization for
any purpose.
``(b) Reservation.--
``(1) Application.--Paragraph (2) shall apply only if, with
respect to any State, the Secretary--
``(A) receives a request from the governing body of
an Indian tribe or tribal organization within such
State that assistance under this subtitle be made
available directly to such tribe or organization; and
``(B) determines that the members of such Indian
tribe or tribal organization would be better served by
means of grants made directly to such tribe or
organization to provide benefits under this subtitle.
``(2) Amount.--The Secretary shall reserve from amounts
allotted to a State under section 678 for a fiscal year, not
less than the amount that bears the same ratio to the State
allotment for the fiscal year as the population of all eligible
Indians for whom a determination has been made under paragraph
(1)(B) bears to the population of all individuals eligible for
assistance through a grant made under section 678 to such
State.
``(c) Awards.--The amount reserved by the Secretary on the basis of
a determination made under subsection (b)(1)(B) shall be made available
by grant to the Indian tribe or tribal organization serving the Indians
for whom the determination has been made under subsection (b)(1)(B).
``(d) Plan.--In order for an Indian tribe or tribal organization to
be eligible for a grant award for a fiscal year under this section, the
tribe or organization shall submit to the Secretary a plan for such
fiscal year that meets such criteria as the Secretary may prescribe by
regulation.
``(e) Alternative Performance Measurement System.--The Secretary
may promulgate alternative requirements for tribal implementation of
the requirements of section 680(c).
``SEC. 680. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PROGRAM
PLANS AND APPLICATIONS.
``(a) State Lead Agency.--
``(1) Designation.--The chief executive officer of a State
desiring to receive a grant under section 677 or 678 shall
designate, in an application submitted to the Secretary under
subsection (b), an appropriate State agency that agrees to
comply with the requirements of paragraph (2), to act as a lead
agency for purposes of carrying out State activities under this
subtitle.
``(2) Duties of lead state agencies.--The lead agency
shall--
``(A) be authorized by the chief executive officer
to convene State agencies and coordinate--
``(i) information and activities funded
under this subtitle; and
``(ii) information and activities of any
State agencies whose State programs are
intended to reduce poverty, including agencies
administering resources that support
development of jobs and housing in communities;
``(B) develop the State plan to be submitted to the
Secretary under subsection (b), which shall be based
primarily on the community action program plans of
eligible entities, submitted to the State as a
condition of receiving funding under this subtitle for
approval by the State;
``(C) assist eligible entities--
``(i) in conducting periodic comprehensive
community needs assessments, not less often
than every 4 years;
``(ii) in developing community action
program plans; and
``(iii) in developing community action
strategic plans;
``(D) coordinate plans for the activities of the
State and other organizations under this subtitle, and
activities of recipients of training or technical
assistance with the community action program plans;
``(E) in conjunction with the development of the
State plan as required under subsection (b)--
``(i) hold at least one hearing in the
State on the proposed plan, to provide to the
public an opportunity to comment on the public
record on the proposed use and distribution of
funds under the plan; and
``(ii) not less than 15 days prior to the
hearing, distribute notice of the hearing and a
copy of the proposed plan statewide to the
public and directly to the chief executive
officer and the chairperson of the Board of
Directors of the eligible entities (or
designees) and any subgrantees (or designees)
and other interested parties;
``(F) not less often than every 3 years, in
conjunction with the development of the State plan,
hold at least 1 legislative hearing;
``(G) conduct reviews of eligible entities as
required under section 684;
``(H) adopt and report on State performance
benchmarks, as described in section 680(c); and
``(I) provided further that, in the event a lead
agency chooses to exercise its option to delegate one
or more of its duties to another organization by
contract, grant, or cooperative agreement, such
delegation shall not include its duties under
subsection (G).
``(b) State Application for State Program and State Plan.--
Beginning with the first fiscal year following the transition year, to
be eligible to receive a grant under section 677 or 678, a State shall
prepare and submit to the Secretary for approval an application
containing a State plan covering a period of not more than two fiscal
years. The application 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) a description of the manner in which funds made
available through the grant under section 677 or 678 will be
used to carry out the State activities described in section
680A(b) and the State's community action program plans;
``(2) a summary of the community action program plans of
the eligible entities serving the State;
``(3) an assurance that each plan responds to needs
identified in the comprehensive community needs assessment for
the service area assigned to the entity and is consistent with
one or more purposes described in section 672 and that the plan
has been adopted by the governing body of each eligible entity;
``(4) an assurance that the State has approved all such
community action program plans that are consistent with the
purposes and requirements of this subtitle;
``(5) at the State's option, a statewide strategic plan
that--
``(A) includes the State's strategy for
implementing its responsibilities under section 680(a);
and
``(B) may include the community action strategic
plans of the eligible entities and such other matters
as the State shall determine to be necessary to
complete its strategic plan;
``(6) a description of the State's performance measurement
system;
``(7) a plan for the State's oversight of eligible
entities, including, but not limited to--
``(A) the training provided to State over-sight
personnel regarding Federal law, regulations and
policy, and applicable State practices;
``(B) the policies and procedures adopted for the
State's monitoring:
``(C) the State's system for implementing the
training and, when necessary, requiring a corrective
action plan for eligible entities;
``(D) the management training and technical
assistance made available to eligible entities; and
``(E) the method used for assessing the quality of
such training;
``(8) an assurance that any eligible entity in the State
that received, in the previous fiscal year, funding through a
grant made under section 677 or 678 will not have such funding
withheld, nor reduced below the proportional share of funding
the entity received from the State in the previous fiscal year,
nor eliminated--
``(A) except according to the procedures set forth
in subsection (b), (c), (d), or (e) of section 685; or
``(B) unless the Secretary, in approving an
application under this section, approves a change in
the proportional distribution of funds under section
680(A)(a)(1) when included as part of a State's
application submitted under section 680(b);
``(9) a description of the State's requirements that ensure
that each eligible entity serving the State establishes
procedures that permit low-income individuals, or a community
organization or religious organization, that considers low-
income individuals or the organization, respectively, to be
inadequately represented on the Board of Directors of the
eligible entity, to petition for adequate representation of
such individuals or organization, respectively, on the Board;
``(10) a description of the State's requirements, and
financial or other support, for each community action program
plan and community action strategic plan of an eligible entity
in the State and for the comprehensive community needs
assessment described in subsection (a)(2)(C) on which the
community action program plans are based, which assessment may
be coordinated with community needs assessments conducted for
programs other than the program carried out under this
subtitle;
``(11) an assurance that the State and all eligible
entities in the State will participate in a performance
measurement system that meets the requirements of this
subtitle, and a description of the management and program
information that will be used to measure State and eligible
entity performance in achieving the goals of the State plan and
the community action program plans, respectively; and
``(12) an assurance that the State's performance
measurement system for eligible entities is based, for each
eligible entity, upon the results of implementing the entity's
own community action program plan and the achievement of the
goals of the plan and performance benchmarks described in
subsection (c) as adjusted, if necessary, for changes in
available funding.
``(c) State Performance Requirements and Benchmarks.--
``(1) Performance requirements.--Consistent with the
requirements of section 687, following the transition period
described in subsection 691(a), in order to be eligible for a
grant under section 677 or 678, each State shall adopt
performance requirements and the performance benchmarks
described in paragraph (2), to be included as part of the
performance measurement system described in section 687 and
shall provide related training for State personnel carrying out
a State program under this subtitle.
``(2) Annual state performance benchmarks.--Each State
shall include in the State plan submitted under subsection (b),
for each fiscal year after the transition period, performance
measurements for lead agency management quality including those
promulgated by the Secretary, and the State annual performance
benchmarks regarding programmatic activities described in
section 680A(b) and other performance measures which shall
include--
``(A) indicators of timely distribution and
effective management of Federal funds by the lead
agency and of the compliance with the requirements for
State personnel and for management of activities funded
under this subtitle (other than this subsection); and
``(B) indicators concerning the results of
activities funded by the State under this subsection.
``(d) Approval.--The Secretary shall notify the chief executive
officer of each State submitting an application containing a State plan
under this section, of the approval, disapproval, or approval in part,
of the application, within 30 days after receiving the application.
``(1) In the event of a partial approval, the Secretary's
notification shall include a description of changes necessary
for final approval but the Secretary shall not require
submission of the State strategic plan described in subsection
(b)(4). In the event of such partial approval, the Secretary
may allow grantee use of funds for activities included in the
portions of the plan which the Secretary has approved.
``(2) In the event a State application fails to be approved
in whole or in part before the end of the third month of the
State program covered by such plan the Secretary may allocate
funds as provided in section 685(b)(3)(C).
``(e) Revision and Inspection.--
``(1) Revisions.--The chief executive officer of a State
may revise a State plan submitted under this section and shall
submit an application containing the revised plan to the
Secretary for approval according to the procedures described in
subsections (b) and (c).
``(2) Public inspection.--Each plan and revision to a State
plan prepared under this section shall be distributed for
public inspection as required under subsection (a)(2)(E), but a
State application for merger incentive funds shall not be
considered a revision.
``(f) Application for Community Action Program and Community Action
Program Plan.--Beginning with the first fiscal year following the
transition year, to be eligible to receive a subgrant under section
680A(a), each eligible entity shall prepare and submit to the State for
approval an application containing a community action program plan or
plans covering a period of not more than two fiscal years. Such
application shall be submitted no later than 90 days before the date
for submission of the State application to the Secretary. The
application shall contain information on the intended implementation of
the eligible entity's activities, including demonstrating--
``(1) how the program--
``(A) meets needs identified in the most recent
comprehensive community needs assessment, and is
consistent with the entity's community action strategic
plan for that period; and
``(B) achieves the purposes of this subtitle
through programs, projects, and services, which may
include the activities described in section 683.
``(2) Eligible entity performance requirements and
benchmarks.--Not later than the end of the period described in
section 691(a), each eligible entity participating in a program
funded under this subtitle shall--
``(A) adopt performance benchmarks that include
indicators concerning attainment of the goals of the
entity's annual community action program plans
described in section 673(2), indicators of timely and
effective management of Federal and other funds, and
indicators of compliance with the requirements of this
subtitle;
``(B) participate in a statewide performance
measurement system under section 687, including--
``(i) contributing to reports on indicators
of results as measured by the statewide system;
``(ii) establishing and tracking
performance on indicators concerning attainment
of the goals of the entity's community action
strategic plan and community action program
plan;
``(ii) measuring the entity's performance
regarding governance, organizational
development, and professional development of
agency personnel; and
``(iv) establishing an internal management
system that incorporates information regarding
results into subsequent plans, procedures, and
budgets; and
``(C) conduct community-wide comprehensive
community needs assessments including assessments of
local opportunities to reduce poverty and use the
results as a basis for community action strategic
plans, for programs, projects, and services provided by
the entity, for public engagement in addressing the
causes of poverty and the expansion of local economic
opportunities, and for the development of linkages
among partners that will reinforce initiatives funded
under this subtitle.
``SEC. 680A. STATE AND LOCAL USES OF FUNDS.
``(a) State Subgrants to Eligible Entities and Other
Organizations.--
``(1) In general.--A State that receives a grant under
section 677 or 678 shall reserve 2 percent of the funds made
available through the grant for the Community Action
Innovations Program described in subsection (c) and, of the
remainder, use not less than 90 percent to make subgrants to
eligible entities to enable the entities to implement programs,
projects, or services for a purpose described in section 672.
``(2) Obligational requirements.--
``(A) Date of obligation.--The State shall obligate
the funds from the portion described in paragraph (1)
to make subgrants under paragraph (1) not later than
the later of--
``(i) the 30th day after the date on which
the State receives from the Secretary a Notice
of Funding Availability for the State's
approved State application under section 680;
or
``(ii) the first day of the State program
year for which such funds are approved to be
expended under the State application.
``(B) Availability.--Funds allocated to eligible
entities through subgrants made in accordance with
paragraph (1) for a fiscal year shall be available for
obligation by the eligible entity during that fiscal
year and the succeeding fiscal year, subject to
paragraph (3).
``(3) Recapture and redistribution of unobligated funds.--
``(A) Recapturing funds.--A State may recapture and
redistribute funds distributed to an eligible entity
for a fiscal year through a subgrant made under
paragraph (1) that are unobligated at the end of the
fiscal year if such unobligated funds exceed 20 percent
of the amount of funds so distributed to such eligible
entity for such fiscal year unless the community action
program plan approved by the State included a higher
percentage of unobligated funds.
``(B) Redistributing funds.--In redistributing
funds recaptured in accordance with this paragraph, a
State shall redistribute such funds to another eligible
entity that is a community action agency and is capable
of providing services similar to the services provided
by the original recipient of funds in the area served.
If no such community action agency is available, the
State may redistribute the funds to a private,
nonprofit organization that has demonstrated capacity
to deliver similar services to residents of the
community and that is located in that service area, for
activities consistent with the objectives of this
subtitle.
``(b) Statewide Activities.--
``(1) Use of remainder.--
``(A) In general.--A State that receives a grant
under section 677 or 678 shall, after carrying out
subsection (a), use the remainder of the grant funds
for activities described in the State's application
approved by the Secretary under section 680(b) as
described in subparagraphs (B) and (C) and for
administrative expenses subject to the limitations in
paragraph (2).
``(B) Training and technical assistance.--After
applying subsection (a) and subparagraph (C), the State
may use the remaining grant funds for the purposes of--
``(i) providing to eligible entities
training and technical assistance and resources
to respond to specific statewide or regional
conditions that create economic insecurity,
including, but not limited to, emergency
conditions;
``(ii) supporting professional development
activities for eligible entities that enhance
the skills of their local personnel (including
skills of members of the board of directors of
such entities) that such personnel need to
manage private, nonprofit organizations,
including skills for designing and delivering
effective support to individuals seeking
opportunities for economic security, and skills
for designing and managing programs, projects,
or services that lead to change in the economic
and social assets and opportunities of the
community, giving priority to activities
carried out through partnerships of the
organizations with institutions of higher
education;
``(iii) supporting information and
communication resources for the comprehensive
community needs assessments described in
section 680(a)(2)(C);
``(iv) supporting performance measurement
systems consistent with the requirements of
sections 680(c) and 682(b), including
establishing systems to measure the
effectiveness of training delivered under
clause (i), and publishing the results of
measurements taken under the systems;
``(v) promoting coordination and
cooperation among eligible entities in the
State including supporting activities of a
statewide association of community services
network organizations; and
``(vi) supporting the activities of private
non-profit organizations which meet the
purposes of this title and which coordinate
such activities with community services network
organizations in the State.
``(C) Innovative projects to reduce poverty.--
``(i) In general.--The State shall use
amounts reserved under section 680A(a)(1) for a
Community Action Innovations Program to award
subgrants, contracts, or cooperative agreements
to eligible entities, or their associations, to
carry out innovative projects to test or
replicate promising new practices designed to
reduce poverty conditions and to disseminate
the results of such projects for public use.
``(ii) Expenses.--The funds reserved for
projects under this subparagraph may be used
for reasonable expenses, of States and
subgrantees, associated with administration of
such projects and dissemination of their
results.
``(iii) Awards and obligation.--A State
shall award and obligate funds reserved for
projects under this subparagraph during the
first program year for which the funds are
appropriated. Funds provided under this
subparagraph shall remain available until
expended for an innovative project if the
period for that expenditure is specified in an
approved plan described in subparagraph (D) for
that innovative project.
``(iv) Matching requirements.--In the case
of innovative projects that are funded in part
by funds authorized under a Federal law other
than this subtitle, that includes requirements
for matching the Federal funds with non-Federal
funds, funds made available under this
subsection may be deemed to be local funding
for purposes of requirements of such law.
``(v) Real property.--Land or facilities
improved through a project receiving an award
under this subparagraph, for which the amount
of the award is less than 50 percent of the
total project cost, shall not be subject to the
provisions of section 688(a).
``(vi) Eligibility.--Activities funded
under this section may include participants
with incomes not exceeding 80 percent of the
area median income.
``(D) Plan for state use of training, technical
assistance, and innovation funds.--To be eligible to
use grant funds as described in subparagraph (B) or
(C), each State shall submit, not later than the end of
the transition period described in section 691(a), as
part of the annual State plan submitted under section
680(b), a training, technical assistance, and
innovation plan, developed in consultation with the
community service network organizations in the State,
that--
``(i) shall cover up to 2 years; and
``(ii) shall set forth information
describing the way the requirements of that
subparagraph will be implemented and a quality
assurance system for providers of the training,
technical assistance, or innovation project
involved.
``(2) Administrative cap.--
``(A) Limitation.--No State may spend more than 5
percent of the remainder of the funds after the
reservation for the State community action innovations
fund as described in section 680A(a)(1) for
administrative expenses.
``(B) Definition.--In this paragraph, the term
`administrative expenses'--
``(i) means the costs incurred by the
State's lead agency for carrying out planning
and management activities, including
monitoring, oversight, and reporting as
required by this Act; and
``(ii) does not include the cost of
activities conducted under paragraph (1)(B)
other than monitoring.
``(c) Eligible Entity Use of Funds.--An eligible entity that
receives a subgrant under section 680A(a) shall use the subgrant funds
to carry out a community action program plan with programs, projects,
and services that shall include--
``(1) the activities described in section 680(a)(2)(C)
regarding periodic assessment of poverty conditions and
opportunities to alleviate such conditions in connection with
convening community-wide planning activities; and activities
that achieve greater participation of the residents of the
communities served in the affairs of the community and the
organization and one of more of the activities in subsection
(2) or (3);
``(2) programs, projects, or services that are designed to
assist low-income individuals and families by providing access
to local opportunities for achieving and maintaining economic
security, which may include opportunities for the individuals
and families--
``(A) to secure and retain meaningful employment at
a family-supporting wage;
``(B) to secure an adequate education, improve
literacy and language ability, and obtain job-related
skills;
``(C) to make better use of available income and
build assets;
``(D) to obtain and maintain adequate housing and a
healthy living environment, including addressing the
heath care needs of individuals and families with
services and through changes in local institutions and
workplaces (including institutions and workplaces
managed by the eligible entity); and
``(E) to obtain emergency materials or other
assistance to meet immediate individual or community
urgent needs and prevent greater or more prolonged
economic instability; and
``(3) programs, projects, or services that improve living
conditions, increase employment, and expand other economic
opportunities in the community served, which may include--
``(A) activities that develop and maintain
partnerships for the purpose of changing community,
economic, and social conditions of poverty, between the
eligible entity and--
``(i) State and local public entities (such
as schools, institutions of higher education,
housing authorities, and law enforcement
agencies); and
``(ii) private partners, including
statewide and local businesses, associations of
private employers, and private charitable and
civic organizations;
``(B) activities that establish linkages among
organizations for coordinating initiatives, services,
and investments so as to avoid duplication, and
maximize the effective use of community resources for
creating economic opportunity, including developing
lasting social and economic assets; and
``(C) activities that mobilize new investments in
the community to reduce the incidence of poverty,
including developing lasting social and economic
assets.
``SEC. 681. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
``(a) Designation and Redesignation of Eligible Entities in
Unserved Areas.--
``(1) In general.--If any geographic area of a State is
not, or ceases to be, served by an eligible entity the lead
agency shall, in consultation with local officials and
organizations representing the area, solicit one or more
applications and designate a new community action agency to
provide programs, projects, or services to the area that is--
``(A) a community action agency that is
geographically located in an area within reasonable
proximity of or contiguous to the unserved area that is
already providing similar programs, projects, or
services, and that has demonstrated financial capacity
to manage and account for Federal funds; or
``(B) if no community action agency described in
subparagraph (A) is available, a private, nonprofit
organization (which may include an eligible entity)
that is geographically located in, or in reasonable
proximity to, the unserved area and that is capable of
providing a broad range of programs, projects, or
services designed to achieve the purposes of this
subtitle as stated in section 672.
``(2) Requirement.--In order to serve as the eligible
entity for the service area, an entity described in paragraph
(1) shall agree to ensure that the governing board of directors
of the entity will meet the requirements of subsection
(b)(1)(C).
``(3) Community.--A service area referred to in this
subsection or a portion thereof shall be treated as a community
for purposes of this subtitle.
``(b) Mergers of Eligible Entities.--
``(1) In general.--If two or more eligible entities
determine that the geographic areas of a State which they serve
can be more effectively served under a single corporate
structure, a State shall assist in developing a plan for
implementing such merger, including a budget for transitional
costs not to exceed two years duration, and, upon approving
such plans, may notify the Secretary that the entities are in
need of and eligible for funds from the merger incentive fund
established in section 683(a)(1)(B)(iv).
``(2) Plans.--States may establish requirements for merger
plans and for a determination that the merged entity, or
entities, will be capable of conducting a program consistent
with the comprehensive needs assessments for the areas served.
``(c) Tripartite Boards.--
``(1) Private, nonprofit organizations.--
``(A) Board.--In order for a private, nonprofit
organization to be considered to be an eligible entity
for purposes of section 673(1), the entity shall be
governed by a tripartite board of directors described
in subparagraph (C) that fully participates in the
development, planning, implementation, oversight, and
evaluation of the program, project, or service carried
out or provided through the subgrant made under section
680A(a) and all activities of the entity.
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the entity.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) \1/3\ of the members of the board are
elected public officials holding office on the
date of selection, or their representatives;
``(ii)(I) not fewer than \1/3\ of the
members are persons chosen in accordance with
democratic selection procedures adequate to
assure that the members referred to in this
clause are representative of low-income
individuals and families in the service area;
and
``(II) each member who is a representative
of low-income individuals and families and is
also selected to represent a specific subarea
under subclause (I) resides in such area; and
``(iii) the remainder of the members are
representatives of business, industry, labor,
religious, educational, charitable, or other
significant private groups in the community.
``(D) Expertise.--The eligible entity shall ensure
that the members of the board include or have direct
access to individuals with expertise in financial
management, accounting, and law.
``(E) Compliance with tax-exempt and other
requirements.--The board of a private, nonprofit
organization shall ensure that the board operates and
conducts activities under the subgrant made under
section 680A(a) in a manner that complies with--
``(i) the requirements for maintaining tax-
exempt status under section 501(a) of the
Internal Revenue Code of 1986 (26 U.S.C.
501(a)) regarding the governance of charities
under section 501(c)(3) of the Internal Revenue
Code of 1986 (26 U.S.C. 501(c)(3)); and
``(ii) applicable requirements of State
law.
``(2) Public organizations.--
``(A) Board.--In order for a public organization to
be considered to be an eligible entity for purposes of
section 673(1), the organization shall administer a
program, project, or service under the supervision of a
tripartite board of directors described in subparagraph
(C).
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the
organization.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) not more than \1/3\ of the members of
the board are employees of the unit of
government in which the organization is
located, including elected officials;
``(ii)(I) not fewer than \1/3\ of the
members are persons chosen in accordance with
democratic selection procedures adequate to
assure that the members referred to in this
clause are representative of low-income
individuals and families in the service area;
and
``(II) each member who is a representative
of low-income individuals and families and is
also selected to represent a specific subarea
under subclause (I) resides in such area; and
``(iii) the remainder of the members are
representatives of business, industry, labor,
religious, educational, charitable, or other
significant private groups in the community.
``(D) Expertise.--The organization shall ensure
that the members of the board include individuals with
expertise in financial management, accounting, and law.
``(E) Compliance with state requirements and
policy.--The board of a public organization shall
ensure that the board operates in a manner that
complies with State requirements for open meetings,
financial transparency, and State open records policy.
``(c) Operations and Duties of the Board.--The duties of a board
described in paragraph (1) or (2) of subsection (b) shall include--
``(1) in the case of a board for a private, nonprofit
organization that is an eligible entity, having and legal and
financial responsibility for administering overseeing the
eligible entity, including making proper use of Federal funds;
``(2) ensuring that the guidance regarding organizational
performance disseminated by the Secretary under section
682(c)(8) is implemented;
``(3) adopting practices that assure active, independent,
and informed governance of the eligible entity, including
establishing a limited number of terms for officers and
adopting a code of ethical conduct for members;
``(4) participating in each comprehensive community needs
assessment, developing and adopting as a policy for the
corresponding eligible entity a community action strategic
plan, including provisions for the use of funds under this
subtitle, and preparing the community action program plan for
the use of funds under this subtitle;
``(5) ensuring that the eligible entity manages its
activities based on a system of performance management;
``(6) ensuring compliance by the eligible entity with
Federal, and applicable State and local, laws, including
regulations;
``(7) overseeing financial management, accounting, and
reporting policies, and complying with laws regarding financial
statements, including--
``(A) selecting an auditor; and
``(B) monitoring corrective action required by
audit findings and taking other necessary actions to
enable the eligible entity to comply with accounting
policies and laws about financial statements;
``(8) reviewing all major financial expenditures of the
eligible entity, including annually approving the eligible
entity's operating budget;
``(9) reviewing all major policies of the eligible entity,
including--
``(A) conducting annual performance reviews; and
``(B) conducting assessments of the eligible
entity's progress in carrying out programmatic and
fiscal provisions in the community action program plan,
and in taking any corrective action;
``(10) adopting personnel policies and procedures,
including policies and procedures for hiring, annual
evaluation, compensation, and termination, of the Executive
Director of the eligible entity; and
``(11) adopting and periodically updating written conflict
of interest policies for members of the board.
``SEC. 682. OFFICE OF COMMUNITY SERVICES.
``(a) Office.--
``(1) The Secretary shall establish an Office of Community
Services in the Department of Health and Human Services
(referred to in this subtitle as the `Department') to carry out
the functions of this subtitle.
``(2) The Office shall be headed by a Director (referred to
in this subtitle as the `Director').
``(b) Grants, Contracts, and Cooperative Agreements.--The
Secretary, acting through the Director, shall carry out the functions
of this subtitle through grants, contracts, or cooperative agreements.
``(c) Duties, Management, and Integration.--The Secretary shall--
``(1) coordinate the activities of all personnel and
contractors of the Department, concerning monitoring (including
inspecting) eligible entities that receive subgrants under this
subtitle and are funded or monitored by an office of the
Department other than the Office of Community Services, in
order to efficiently organize oversight visits, inspections,
and audits of such entities by conducting joint oversight
operations, as practicable;
``(2) promulgate skill requirements, for Department
officials with responsibility for monitoring and approving
State programs under this subtitle, regarding the knowledge,
skills, and abilities required to assess and provide technical
assistance regarding the operations of private, nonprofit
organizations responsible for implementing multiple Federal and
other community-based initiatives;
``(3) ensure that personnel and contractors of the
Department with responsibility for State programs under this
subtitle acquire the knowledge, skills, and abilities described
in paragraph (2);
``(4) establish minimum requirements for the knowledge and
skills of State personnel responsible for overseeing the
activities authorized by this subtitle;
``(5) promulgate performance indicators for State
management of the funds, operations and programmatic
requirements of this subtitle;
``(6) establish and publish uniform procedures for use by
Federal and State monitors of the activities authorized by this
subtitle;
``(7) promulgate regulations with respect to the procedures
for State and local corrective action plans described in
section 687 (including promulgating a definition of a serious
deficiency for purposes of that section) to ensure prompt
resolution of deficiencies and adherence to the uniform
administrative requirements described in section 676(b); and
``(8) disseminate or cause to be disseminated guidance
regarding the organizational practices and performance of
eligible entities developed jointly by the Director and the
community services network organizations.
``(d) Federal Performance Benchmarks.--The Secretary shall, prior
to the beginning of each fiscal year, publish Federal performance
benchmarks for the Office of Community Services for such year, which
shall include targets for--
``(1) the timeliness of--
``(A) apportionments and allotments of appropriated
funds to States; and
``(B) the use of funds reserved pursuant to section
692(b);
``(2) the timeliness of approvals or notifications
concerning State plans and plan revisions described in section
680;
``(3) the timeliness of scheduled monitoring of States and
implementation of State corrective action plans described in
section 687;
``(4) the implementation of the requirements of the uniform
administrative requirements described in section 676(b) by the
Department, the States, and other grantees;
``(5) the implementation of the requirements for
coordinated audits and monitoring by multiple offices of the
Department;
``(6) the improvement achieved by Federal personnel in
acquiring the knowledge, skills, and abilities described in
subsection (c)(2) and needed to effectively carry out
subsection (c)(1);
``(7) the progress made by the Office of Community Services
in achieving each of the requirements of this subtitle; and
``(8) the timeliness of reports required by this subtitle.
``SEC. 683. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.
``(a) Activities.--
``(1) The Secretary shall, in accordance with the plan
described in subsection (d)(2)--
``(A) use amounts reserved under section
692(c)(2)(A) for training, technical assistance,
planning, evaluation, and performance measurement,
through States and other community services network
organizations to assist in--
``(i) development or replication of
innovative initiatives;
``(ii) carrying out professional
development activities that expand the capacity
of eligible entities;
``(iii) carrying out performance
measurement, reporting, and data collection
activities related to programs carried out
under this subtitle; and
``(iv) correcting programmatic
deficiencies, including such deficiencies of
eligible entities; and
``(B) the Secretary shall distribute the amounts
reserved under section 692(c)(2)(B) directly to States,
eligible entities, or other community services network
organizations and their partners, including
institutions of higher education, that carry out
activities to achieve the goals of the plan described
in subsection (b)(2) for--
``(i) professional development for key
personnel;
``(ii) activities to improve program and
financial management practices (including
practices related to performance management
information systems);
``(iii) activities that train individuals
and organizations to effectively address the
needs of low-income families and communities
through place-based strategies for coordinated
investment and integrated service delivery; and
``(iv) provided that 7.5 percent of such
reserved amount remain available until the end
of the second quarter of the year for which
funds are appropriated for grants by the
Secretary which shall be awarded to States upon
approval of an application by the State as
described in section 680(b) for funds to
support the one-time costs incurred by two or
more eligible entities for legal, financial and
other activities required to effect a merger of
operations and programs that achieves greater
efficiency and impact for the use of funds
appropriated under this subtitle. Any funds not
designated for such merger incentives by the
end of the second quarter of the fiscal year
shall be available for other authorized
purposes of this subsection.
``(b) Limitation.--None of the funds allocated under subsection (a)
may be used for expenses or salaries of Federal employees.
``(c) Grants, Contracts, and Cooperative Agreements.--The
activities described in paragraph (1)(A) shall be carried out by the
Secretary through grants, contracts, or cooperative agreements with
appropriate entities, which shall include all statewide associations of
eligible entities that meet the requirements for receipt of Federal
funds.
``(d) Training and Technical Assistance Process.--
``(1) In general.--In order to determine the training,
technical assistance, and other activities to be provided or
supported under subsection (a), the Secretary, acting through
the Director, shall develop and carry out the strategic plan
described in paragraph (2), and the activities described in
paragraph (3).
``(2) Office of community services strategic training
plan.--
``(A) In general.--Not less often than every fourth
year the Secretary, acting through the Director and in
consultation with community service network
organizations, shall develop, publish, and carry out a
strategic plan for the use of funds reserved for use
under section 692(c)(2).
``(B) Contents.--Such a plan shall describe--
``(i) the activities that will be supported
(including their goals), the partnerships, if
any, required to conduct such activities, the
role of each partner participating, the system
for delivering the intended results, and the
timing of such activities;
``(ii) the manner in which the plan ensures
that the Secretary complies with each
requirement of this subtitle related to
training and technical assistance;
``(iii) the manner in which the plan
reflects coordination of activities funded
under this section with related training and
technical assistance provided by the
Department, especially for programs, projects,
and services other than those funded under this
subtitle operated by eligible entities;
``(iv) the manner in which the results of
such activities will be measured;
``(v) quality standards for training and
trainers to ensure that only effective training
is funded under this section; and
``(vi) to the maximum extent feasible, how
the activities funded under this section
address--
``(I) the needs of eligible
entities and State lead agencies
relating to skills and techniques to
ensure the quality (including quality
of financial management practices) of
programs, projects, and services
supported under this subtitle; and
``(II) other professional
development needs of the eligible
entities related to carrying out this
subtitle.
``(3) Evaluation of training and technical assistance.--The
Secretary, acting through the Director--
``(A) shall establish a procedure for evaluating
the quality and effectiveness of training and technical
assistance provided under this section related to
professional development, local organizational
development and management including, but not limited
to financial management, and State government
management; and
``(B) shall use the results of the evaluations as
significant criteria for selecting recipients of funds
under this section.
``SEC. 684. STATE MONITORING OF ELIGIBLE ENTITIES.
``(a) Monitoring by States.--In order to determine whether eligible
entities receiving subgrants under this subtitle meet performance
benchmarks described in section 680(f)(2), administrative standards,
financial management requirements, and other requirements under this
subtitle, the State shall conduct the following reviews of eligible
entities:
``(1) A full onsite review of each eligible entity at least
once during each 3-year period.
``(2) An onsite review of each newly designated eligible
entity immediately after the completion of the first year in
which such entity receives funds through the community services
block grant program under this subtitle.
``(3) Follow-up reviews, including onsite reviews scheduled
in a corrective action plan (including return visits), within a
calendar quarter for eligible entities with programs, projects,
or services that fail to meet the State's performance criteria,
standards, financial management requirements, and other
significant requirements established under this subtitle.
``(4) Other reviews as appropriate, including reviews of
eligible entities with programs, projects, and services that
have had other Federal, State, or local grants (other than
assistance provided under this subtitle) terminated for cause.
``(b) Training and Technical Assistance for Monitoring.--The State
may request training and technical assistance from the Secretary as
needed to comply with the requirements of this section.
``SEC. 685. EVALUATIONS; CORRECTIVE ACTION; WITHHOLDING, REDUCTION, OR
ELIMINATION OF FUNDING.
``(a) Evaluations of States by the Secretary.--
``(1) In general.--The Secretary shall conduct, in not
fewer than \1/3\ of the States in each fiscal year, evaluations
(including investigations) of State compliance with this
subtitle, including requirements relating to the use of funds
received under this subtitle, and especially with respect to
compliance with the requirements of State plans submitted under
section 680(b) and the uniform administrative requirements
described in section 676(b) as applied to funds received under
this subtitle.
``(2) Report to states.--The Secretary shall submit, to
each State evaluated, a report containing--
``(A) the results of such evaluation; and
``(B)(i) recommendations for improvements designed
to enhance the benefit and impact of the activities
carried out with such funds; and
``(ii) in the event a serious deficiency is found
regarding a State's compliance with this subtitle,
including requirements relating to the use of funds
received under this subtitle, a proposed corrective
action plan that meets the requirements of subsection
(b)(2)(B).
``(3) State response.--Not later than 45 days after
receiving a report under paragraph (2)--
``(A) a State that received recommendations under
paragraph (2)(B)(i) shall submit to the Secretary a
plan of action in response to the recommendations; and
``(B) a State that received a proposed corrective
action plan under paragraph (2)(B)(ii) shall carry out
the State's responsibilities under subsection (b)(2).
``(4) Report to congress.--The Secretary shall submit the
results of the evaluations annually, as part of the report
submitted by the Secretary in 6 accordance with section
689(b)(2).
``(b) Determination of State Failure To Comply.--
``(1) Duties of the secretary.--If the Secretary finds, on
the basis of an evaluation pursuant to subsection (a), that
there is a serious deficiency regarding a State's compliance
with this subtitle, the Secretary shall--
``(A) inform the State, through the report
described in subsection (a)(2) and any proposed
corrective action plan submitted under subsection
(a)(2)(B), of the deficiency;
``(B) provide assistance consistent with section
685 and subsection (c);
``(C) with respect to each identified serious
deficiency, require that the State--
``(i) correct the deficiency immediately if
the Secretary finds that the deficiency
threatens the ability of eligible entities to
carry out their community action program plans
or threatens the integrity of Federal funds; or
``(ii) correct the deficiency not later
than 90 days after the identification of the
deficiency if the Secretary finds, in the
discretion of the Secretary, that such a 90-day
period is reasonable, in light of the nature
and magnitude of the deficiency; and
``(D) require that the State carry out--
``(i) the corrective action plan prepared
by the Secretary under subsection
(a)(2)(B)(ii); or
``(ii) a State-proposed corrective action
plan that is approved under paragraph (2)(C).
``(2) Corrective action plans.--
``(A) In general.--A State that is found under
paragraph (1) to have a serious deficiency shall--
``(i) agree to implement the corrective
action plan proposed by the Secretary under
subsection (a)(2)(B)(ii); or
``(ii) propose to the Secretary a different
corrective action plan, developed by the State
in a timely manner that the State will
implement upon approval by the Secretary under
subparagraph (C).
``(B) Contents.--Any corrective action plan
proposed under this paragraph shall specify--
``(i) the serious and other deficiencies to
be corrected;
``(ii) the actions to be taken to correct
such deficiencies; and
``(iii) the timetable for accomplishment of
the corrective actions specified, which shall
provide that each serious deficiency is
corrected by not later than 90 days after the
date the State received notice of the finding
under subsection (a) and of the specific
deficiency to be corrected.
``(C) Approval processes.--
``(i) In general.--Not later than 15 days
after the Secretary receives a State proposed
corrective action plan in accordance with
subparagraph (A), the Secretary shall act--
``(I) by approving the proposed
plan; or
``(II) by notifying the State that
the proposed plan cannot be approved,
providing the reasons for the
disapproval, and proposing an
alternative corrective action plan.
``(ii) State response.--
``(I) In general.--A State whose
corrective action plan has not been
approved under clause (i) shall respond
by agreeing to implement the
alternative corrective action plan, or
by submitting a different proposed
corrective action plan not later than
15 days after receiving notification
from the Secretary under clause (i).
``(II) Inadequate different
proposed plan.--If the Secretary
determines the different proposed plan
to be inadequate, the Secretary shall
use the procedures to withhold funding
described in paragraph (3)(A) until the
State and the Secretary agree on, and
the State implements a satisfactory
corrective action plan. If the
Secretary makes that determination, the
Director, pursuant to paragraph (3)(C),
shall ensure that the affected funds
are obligated and made available to
eligible entities on the same schedule
as the State would have been required
to follow if the Secretary had not made
the determination.
``(3) Enforcement.--
``(A) Withholding of funding.--If the Secretary
determines that a State fails to meet the requirements
of this subsection, including a failure to comply with
the terms of a corrective action plan described in
subsection (a)(2)(B) or approved under paragraph (2) or
a failure to correct a serious deficiency in accordance
with the timing requirements of paragraph (1)(C), the
Secretary may initiate proceedings to withhold all or a
portion of the amount of the funding described in
section 680A(b)(2)(A), including prohibiting the State
from using other funds awarded under this subtitle to
carry out the activities described in such section,
until the State complies with all requirements of this
subsection.
``(B) Reduction or elimination of funding.--If the
Secretary determines, on the basis of a final decision
in a review conducted under this section that a State
fails to meet the requirements of this subsection, the
Secretary may, after providing adequate notice and an
opportunity for a hearing, initiate proceedings to
reduce or eliminate the amount of funding described in
section 680A(b)(2)(A), including prohibiting the State
from using other funds awarded under this subtitle to
carry out the activities described in such section,
unless the State corrects the failure to meet the
requirements.
``(C) Use of funds.--
``(i) If the Secretary delays, reduces, or
eliminates funding to a State under
subparagraph (B), the Secretary shall award the
amount of the funding to eligible entities and/
or community services network organizations in
the State, to carry out the activities
described in section 680A(b).
``(ii) In the event a State elects not to
receive funding under this subtitle, including
a refusal to submit a plan meeting the
Secretary's requirements, the Secretary shall
provide funding directly by grant or
cooperative agreement to eligible entities in
good standing at the end of the last fiscal
year for which the State received an allocation
under this subtitle.
``(4) Training and technical assistance.--The Secretary
shall provide training and technical assistance to States with
respect to the development or implementation of the States'
corrective action plans.
``(c) Determination of Local Agency Failure To Comply.--
``(1) Corrective action by local agencies.--If the State
determines, on the basis of a review pursuant to section 684 or
section 686, that there is a serious deficiency regarding an
eligible entity's compliance with this subtitle, the State
shall--
``(A) inform the entity of the serious deficiencies
that shall be corrected and provide technical
assistance for the corrective action;
``(B) with respect to each identified serious
deficiency, require that the eligible entity--
``(i) correct the deficiency immediately if
the State finds that the deficiency threatens
the ability of the eligible entity to carry out
the entity's community action program plan or
threatens the integrity of Federal funds;
``(ii) correct the deficiency not later
than 90 days after the identification of the
deficiency if the State finds that such a 90-
day period is reasonable, in light of the
nature and magnitude of the deficiency; or
``(iii) in the discretion of the State
(taking into consideration the seriousness of
the deficiency and the time reasonably required
to correct the deficiency), comply with the
requirements of paragraph (2) concerning a
corrective action plan;
``(C) initiate proceedings to withhold, reduce, or
eliminate the funding described in section 680A(a)
including, in the case of elimination of funding,
terminating the designation under this subtitle of the
eligible entity unless the entity corrects the
deficiency as required; and
``(D) ensure that the State's definitions,
procedures, and requirements under this section
regarding serious deficiencies of eligible entities are
in accordance with policies and regulations promulgated
by the Secretary to implement the uniform
administrative requirements described in section 676(b)
with respect to this subtitle.
``(2) Local corrective action plans.--
``(A) In general.--An eligible entity that is found
to have a serious deficiency under paragraph (1) shall
develop, in a timely manner, a corrective action plan
that shall be subject to the approval of the State, and
that shall specify--
``(i) the deficiencies to be corrected;
``(ii) the actions to be taken to correct
such deficiencies; and
``(iii) the timetable for accomplishment of
the corrective actions specified.
``(B) Approval process.--
``(i) In general.--Not later than 15 days
after the State receives an entity's proposed
corrective action plan in accordance with
subparagraph (A), the State shall review the
proposed plan and act--
``(I) by approving the proposed
plan; or
``(II) by notifying the entity that
the proposed plan cannot be approved,
providing the reasons for the
disapproval, and proposing an
alternative corrective action plan.
``(ii) Entity's response.--An entity whose
corrective action plan has not been approved
under clause (i) shall respond by agreeing to
implement the alternative corrective action
plan, or by submitting a different proposed
corrective action plan, not later than 10
working days after receiving notification from
the State under clause (i).
``(iii) Inadequate different proposed
plan.--If the State determines the different
proposed plan to be inadequate, the State may
withhold funding as described in paragraph (3)
until the entity implements a satisfactory
corrective action plan.
``(3) Final decision.--If the State determines, on the
basis of a final decision in a review conducted under section
684(a)(3), that an eligible entity fails to comply with the
terms of a corrective action plan under paragraph (2) relating
to correction of a serious deficiency for the eligible entity,
the State may, after providing adequate notice and an
opportunity for a hearing, initiate proceedings to withhold,
reduce, or eliminate the funding provided under section 680A(a)
to the eligible entity (including, in the case of elimination
of funding, terminating the designation under this subtitle of
the eligible entity) unless the entity corrects the serious
deficiency.
``(4) Training and technical assistance.--The State shall
provide training and technical assistance to eligible entities
with respect to the development or implementation of the
entities' corrective action plans.
``(5) Special circumstance.--In the event the State has
credible evidence that funds have been expended with fraudulent
or other criminal intent, funding may be suspended while the
procedures to review such evidence are conducted by appropriate
investigative entities or until the State determines funds will
not be at risk, whichever is earlier.
``(d) Review.--
``(1) In general.--A State's determination under subsection
(c) to terminate such designation or reduce such funding of an
eligible entity may be reviewed by the Secretary. The Secretary
shall, upon request, by a community services network
organization, review such a determination. The review shall be
completed not later than 60 days after the Secretary receives
from the State all necessary documentation relating to the
determination except as provided in paragraph (2).
``(2) Failure to provide documentation.--If the State fails
to provide such documentation within 30 days after the
Secretary's request, the State may not expend funds for the
purposes described in section 680A(b)(2) until the State
provides such documentation. The Secretary shall respond to the
State with a decision not later than 30 days after receiving
the documentation.
``(e) Direct Assistance.--Whenever the Secretary determines that a
State has violated the assurances described in paragraphs (8), (11), or
(12) of section 680(b) and has withheld, reduced, or eliminated the
funding provided under section 680A(a) to an eligible entity prior to
the completion of the State proceedings described in subsection (c)(3)
and the Secretary's review as required in subsection (d), the Secretary
shall provide financial assistance under this subtitle to the eligible
entity until the violation is corrected by the State. In such a case,
the grant for the State under section 677 or 678 for the earliest
appropriate fiscal year shall be reduced by an amount equal to the
financial assistance provided under this subsection to such eligible
entity.
``SEC. 686. STATE AND LOCAL FISCAL CONTROLS, AUDITS, AND WITHHOLDING.
``(a) Fiscal Controls, Procedures, Audits, and Inspections.--
``(1) In general.--A State that receives funds under this
subtitle shall--
``(A) establish fiscal control and fund accounting
procedures necessary to assure the proper disbursal of
and accounting for Federal funds paid to the State
under this subtitle, including procedures for
monitoring the funds provided under this subtitle;
``(B) subject to paragraphs (2) and (3), prepare,
not less than once each year, an audit of the
expenditures of the State of amounts received under
this subtitle; and
``(C) 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.
``(2) Independent entity.--Subject to paragraph (3), each
audit required by paragraph (1)(B) shall be conducted by an
entity independent of any agency administering activities or
services under this subtitle and shall be conducted in
accordance with generally accepted accounting principles.
``(3) Single audit requirements.--
``(A) In general.--Any audit under this subsection
shall be conducted in the manner and to the extent
provided in chapter 75 of title 31, United States Code
(commonly known as the `Single Audit Act Amendments of
1986') except in the event a serious financial
deficiency is identified.
``(B) Serious financial deficiency.--In the event
that such a deficiency is identified, the Secretary
shall order--
``(i) an audit conducted as described in
subparagraph (A); or
``(ii) an audit of each of the accounts
involved, in accordance with paragraphs (2) and
(4).
``(4) Submission of copies.--Not later than 30 days after
the completion of each such audit in a State, the chief
executive officer of the State shall submit copies of such
audit, at no charge, to any eligible entity that was the
subject of the audit, to the legislature of the State, and to
the Secretary.
``(5) Repayments.--If the Secretary, after review of the
audit, finds that a State has not expended an amount of funds
in accordance with this subtitle, the State shall immediately
use an amount of State funds equal to the amount of improperly
expended funds for the original purposes for which the grant
funds were intended.
``(6) Response to complaints.--The Secretary shall respond
in an expeditious and speedy manner to complaints of a
substantial or serious nature that a State has failed to use
grant funds received under section 677 or 678 in accordance
with the provisions of this subtitle.
``(7) Investigations.--Whenever the Secretary determines
that there is a pattern of complaints regarding failures
described in paragraph (6) or a complaint of a serious
deficiency concerning any State, the Secretary shall conduct an
investigation of the use of the funds received under this
subtitle by such State in order to ensure compliance with the
provisions of this subtitle.
``(b) State Funds.--
``(1) Corrective action plan.--In the event the Secretary
withholds, reduces, or eliminates funding pursuant to section
685(b)(3)(A), the Secretary shall subsequently make the
withheld, reduced, or eliminated funding available to the State
not later than 90 days after the date for correction of the
serious deficiency specified in such plan if the State complies
with a corrective action plan described in section
685(b)(2)(A).
``(2) Application.--For purposes of paragraph (1), failures
described in paragraph (1)(a)(6) shall be considered to be
serious deficiencies.
``SEC. 687. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
``(a) State Accountability and Reporting Requirements.--
``(1) Performance measurement.--
``(A) In general.--By October 1, 2014, 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 that the Secretary is satisfied
meets the requirements of paragraphs (11) and (12) of
section 680(b).
``(B) Local organizations.--The State may elect to
have local organizations that are subgrantees 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
organizations.
``(C) Eligible entity reports.--Eligible entities
shall provide the results measured by their performance
measurement system, reports on the achievement of their
annual benchmarks and such other reports as the State
may require.
``(2) Annual report.--Each State receiving funds under this
subtitle shall annually prepare, and submit to the Secretary by
March 31 of each year, a report on the performance of the State
and eligible entities in the State, including achievement with
respect to the State lead agency performance benchmarks and the
local performance benchmarks respectively and to other
performance measurements that were used by community service
network organizations in the State for the prior year. Each
State shall also include in the report--
``(A) 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 or indirect costs by the State
and the eligible entities and funds spent by the
eligible entities on local programs, projects, and
services;
``(B) information on the number and characteristics
of clients served under this subtitle in the State,
based on data collected from the eligible entities;
``(C) a summary describing the training and
technical assistance offered by the State under section
680A(b)(1)(B) and 680A(b)(1)(D) during the year covered
by the report and the State's progress toward meeting
its training and technical assistance plan goals;
``(D) the State's management performance benchmark
results;
``(E) information on the total budget and
activities of the eligible entities receiving subgrants
from the State under this subtitle, including local and
private resources available for a purpose described in
section 672;
``(F) a report on the Community Action Innovations
Program in the State; and
``(G) a report on the manner in which the State and
eligible entities and other recipients of funds under
this subtitle have implemented results oriented
management practices based on their performance
measurement systems.
``(b) Reporting Requirements.--
``(1) Contents.--Not later than September 30 of each fiscal
year, the Secretary shall, directly or by grant or contract,
prepare a report containing--
``(A) the information included in the State annual
reports under subsection (a)(2) for the preceding
fiscal year;
``(B) a report on the performance of the Department
in the preceding fiscal year regarding the performance
benchmarks established under section 682(d);
``(C) a description of the training and technical
assistance activities funded by the Secretary under
section 683 and the results of those activities,
including a report on progress toward achieving the
goals of the Secretary's strategic plan for training
and technical assistance described in section
683(d)(2); and
``(D) any additional information that the Secretary
considers to be appropriate to carry out this subtitle.
``(2) Submission.--The Secretary shall submit to the
Committee on Education and the Workforce of the House of
Representatives and to the Committee on Health, Education,
Labor, and Pensions of the Senate the report described in
paragraph (1) and any recommendations the Secretary may have
with respect to such report.
``(3) Electronic data system for reports to states and
eligible entities.--The Secretary shall provide technical
assistance, including support for development and maintenance
of an electronic data system for the reports under this
section, to the States and eligible entities to enhance the
quality and timeliness of reports submitted under this
subtitle. The system shall be coordinated and consistent with
the data systems established for other programs of the
Department that are managed by eligible entities, including all
programs of the Administration for Children and Families or
successor administrative units in which the office is located.
``SEC. 688. LIMITATIONS ON USE OF FUNDS.
``(a) Construction of Facilities.--
``(1) Limitations.--Except as provided in paragraph (2) and
in section 680(b)(1)(C), grants or subgrants made under this
subtitle may not be used by the State, or by any other person
with which the State makes arrangements to carry out a purpose
described in section 672, for the purchase or improvement of
any building or other facility.
``(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for such a
waiver if the Secretary finds that the request describes
extraordinary circumstances to justify the purchase or
improvement of land, or the purchase, construction or permanent
improvement of any building or other facilities, and that
permitting the waiver will contribute to the ability of the
State and eligible entities to carry out a purpose described in
section 672 at substantially reduced costs.
``(b) Political Activities.--
``(1) Treatment as a state or local agency.--For purposes
of chapter 15 of title 5, United States Code, any entity that
assumes responsibility for planning, developing, and
coordinating activities under this subtitle and receives
assistance under this subtitle shall be deemed to be a State or
local agency. For purposes of paragraphs (1) and (2) of section
1502(a) of such title, any entity receiving assistance under
this subtitle shall be deemed to be a State or local agency.
``(2) Prohibitions.--An entity carrying out a program,
project, or service assisted under this subtitle, and any
individual employed by, or assigned to or in, such a program,
project, or service (during the hours in which the individual
is working on behalf of the program, project, or service) shall
not engage in--
``(A) any partisan or nonpartisan political
activity or any political activity associated with a
candidate, or contending faction or group, in an
election for public or party office; or
``(B) any activity to provide voters or prospective
voters with transportation to the polls or similar
assistance in connection with any such election.
``(3) Registration.--None of the funds appropriated to
carry out this subtitle may be used to conduct voter
registration activities.
``(c) Nondiscrimination.--
``(1) In general.--No person shall, on the basis of race,
color, national origin, or sex be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under, any program, project, or service 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 9 (42 U.S.C.
6101 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 12 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, project, or
service.
``(2) Action of secretary.--Whenever the Secretary
determines that a State that has received a payment under this
subtitle has failed to comply with paragraph (1) or an
applicable regulation, the Secretary shall notify the chief
executive officer of the State and shall request that the
officer secure compliance. If within a reasonable period of
time, not to exceed 60 days, the chief executive officer fails
or refuses to secure compliance, the Secretary is authorized
to--
``(A) refer the matter to the Attorney General with
a recommendation that an appropriate civil action be
instituted;
``(B) exercise the powers and functions provided by
title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.), the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.), 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. 11
12131 et seq.), as may be applicable; or
``(C) take such other action as may be provided by
law.
``(3) Action of attorney general.--When a matter is
referred to the Attorney General pursuant to paragraph (2), or
whenever the Attorney General has reason to believe that the
State is engaged in a pattern or practice of discrimination in
violation of the provisions of this subsection, the Attorney
General may bring a civil action in any appropriate United
States district court for such relief as may be appropriate,
including injunctive relief.
``SEC. 689. DRUG AND CHILD SUPPORT SERVICES AND REFERRALS.
``(a) Drug Testing and Rehabilitation.--
``(1) In general.--Nothing in this subtitle shall be
construed to prohibit a State from testing participants in
programs, projects, or services carried out or provided under
this subtitle for controlled substances. A State that conducts
such testing shall inform the participants who test positive
for any of such substances about the availability of treatment
or rehabilitation services and refer such participants for
appropriate treatment or rehabilitation services.
``(2) Non-administrative expenses.--Any funds provided
under this subtitle expended for such testing shall not be
considered to be expended for administrative expenses and shall
not be subject to the limitation specified in section
680A(b)(2).
``(3) Definition.--In this subsection, the term `controlled
substance' has the meaning given the term in section 102 of the
Controlled Substances Act (21 U.S.C. 802).
``(b) Child Support Services and Referrals.--During each fiscal
year for which an eligible entity receives a subgrant under section
680A(a), such entity shall--
``(1) inform custodial parents in single-parent families
that participate in programs, projects, or services carried out
or provided under this subtitle about the availability of child
support services; and
``(2) refer eligible parents to the child support offices
of State and local governments.
``SEC. 690. OPERATIONAL RULES.
``(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. Neither the Federal Government nor a State or local
government receiving funds under this subtitle shall 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.
``(b) Religious Character and Independence.--
``(1) In general.--A religious organization that provides
assistance under a program described in subsection (a) shall
retain its religious character and control over the definition,
development, practice, and expression of its religious beliefs.
``(2) Additional safeguards.--Neither the Federal
Government nor a State or local government shall require a
religious organization--
``(A) to alter its form of internal governance,
except (for purposes of administration of the community
services block grant program) as provided in section
681C; or
``(B) to remove religious art, icons, scripture, or
other symbols; in order to be eligible to provide
assistance under a program described in subsection (a).
``(3) Employment practices.--A religious organization's
exemption provided under section 702 of the Civil Rights Act of
1964 (42 U.S.C. 2000e-1) regarding employment practices shall
not be affected by its participation in, or receipt of funds
from, programs described in subsection (a).
``(c) Nondiscrimination Against Beneficiaries.--A religious
organization providing assistance under any program described in
subsection (a) of this section shall not, in providing such assistance,
discriminate against a program beneficiary or prospective program
beneficiary on the basis of religion or religious belief.
``(d) Limitations on Use of Funds for Certain Purposes.--No funds
provided directly to a religious organization to provide assistance
under any program described in subsection (a) shall be expended for
sectarian worship, instruction, or proselytization.
``(e) Fiscal Accountability.--
``(1) In general.--Except as provided in paragraph (2), any
religious organization providing assistance under any program
described in subsection (a) shall be subject to the same
regulations as other nongovernmental organizations to account
in accord with generally accepted accounting principles for the
use of such funds provided under such program.
``(2) Limited audit.--Such organization shall segregate
government funds provided under such program into a separate
account. Only the government funds shall be subject to audit by
the government.
``(f) Treatment of Eligible Entities and Other Intermediate
Organizations.--If an eligible entity or other organization (referred
to in this subsection as an `intermediate organization'), acting under
a contract, or grant or other agreement, with the Federal Government or
a State or local government, is given the authority under the contract
or agreement to select nongovernmental organizations to provide
assistance under the programs described in subsection (a), the
intermediate organization shall have the same duties under this section
as the government.
``SEC. 691. REGULATIONS AND TRANSITION PERIOD.
``(a) Transition Period.--The Secretary shall expeditiously
announce a schedule for adopting any changes in regulation, procedure
and reporting required by this subtitle and for the availability of
Federal training for States and eligible entities, especially with
respect to adopting Uniform Practices for Administration, which period
may not extend further than 3 months prior to the start of the second
fiscal year after the effective date of this subtitle and may include
final adoption of new requirements prior to the final date of the
period as determined by the Secretary to be appropriate.
``(b) Regulations.--The Secretary shall promulgate regulations
implementing this subtitle, by administrative hearing open to the
public including regulations regarding--
``(1) State and community action programs and plans
including the form and information required for State and
community action programs and plans;
``(2) State monitoring of eligible entities; and
``(3) reports to the Secretary described in section 687.
``(c) Guidance.--The Secretary shall promulgate guidance regarding
State and community performance measurement systems including--
``(1) State management performance benchmarks.--The
Secretary, in consultation with community service network
organizations, shall promulgate common State management
performance indicators which shall include indicators
concerning--
``(A) timely obligation and distribution and
effective oversight of Federal funds;
``(B) compliance with the requirements for minimum
skills of State personnel and compliance with the
uniform administrative requirements described in
section 676(b);
``(C) effective management of the activities funded
under this subtitle; and
``(D) the results of activities funded by the State
under this subsection 680A(b).
``(2) Comprehensive analysis of poverty conditions.--The
Secretary shall provide guidance (including models) for
comprehensive community needs assessments described in
subsection 680(a)(2)(C) that are used in conjunction with
community action strategic plans. The guidance shall include
methods for preparing an analysis of all poverty conditions
affecting the community and of local and regional assets for
alleviating such conditions; and
``(3) Such other guidance as may be required by this
subtitle.
``SEC. 692. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out sections 671 through 691 of this subtitle $850,000,000 for each of
fiscal years 2014 through 2018 and such sums as may be necessary for
fiscal years 2019 through 2023.
``(b) There are authorized to be appropriated such sums as may be
necessary to carry out section 693 for fiscal years 2014 through 2023.
``(c) Reservations by the Secretary.--Of the amounts appropriated
under subsection (a) for each fiscal year, the Secretary shall
reserve--
``(1) \1/2\ of 1 percent for carrying out section 677
(relating to grants to territories); and
``(2) 2 percent for activities authorized in section 683,
of which--
``(A) not less than \1/2\ of the amount reserved by
the Secretary under this paragraph shall be awarded
through grants, contracts, or cooperative agreements
under section 683(c), to eligible entities, community
action agencies, and State and regional community
service network organizations, for the purpose of
carrying out activities described in section
683(a)(1)(A); and
``(B) the remainder of the amount reserved under
this paragraph shall be distributed under section
683(a)(1)(B)(c) to States, eligible entities, other
community services network organizations, or other
entities, for the purpose of carrying out activities
described in section 683(a)(1)(B).
``SEC. 693. DISCRETIONARY COMMUNITY PROGRAMS.
``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
``(1) In general.--The Secretary shall, from funds
appropriated under section 692(b), make grants, loans, or
guarantees to States and public agencies and private, nonprofit
organizations, or enter into contracts or jointly financed
cooperative arrangements with States and public agencies and
private, nonprofit organizations (and for-profit organizations,
to the extent specified in paragraph (2)(E)) for each of the
objectives described in paragraphs (2) through (4).
``(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.
``(B) Consultation.--The Secretary shall exercise
the authority provided under subparagraph (A) after
consultation with other relevant Federal officials.
``(C) Governing boards.--For a community
development corporation to receive funds to carry out
this paragraph, the corporation shall be governed by a
board that shall consist of residents of the community
and business and civic leaders and shall have as a
principal purpose planning, developing, or managing
low-income housing or community development projects.
``(D) 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) Reservation.--Of the amounts made available
to carry out this paragraph, the Secretary may reserve
not more than 1 percent for each fiscal year to make
grants to private, nonprofit organizations or to enter
into contracts with private, nonprofit or for-profit
organizations to provide technical assistance to aid
community development corporations in developing or
implementing activities funded to carry out this
paragraph and to evaluate activities funded to carry
out this paragraph.
``(3) Rural community development activities.--The
Secretary shall provide the assistance described in paragraph
(1) for rural community development activities, which shall
include providing--
``(A) grants to private, nonprofit corporations to
enable the corporations to provide assistance
concerning home repair to rural low-income families and
concerning planning and developing low-income rural
rental housing units; and
``(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
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 who are not being
effectively served by other programs.
``(b) Evaluation.--The Secretary shall require all activities
receiving assistance under this section to be evaluated for their
effectiveness. Funding for such evaluations shall be provided as a
stated percentage of the assistance or through a separate grant awarded
by the Secretary specifically for the purpose of evaluation of a
particular activity or group of activities.
``(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 Health, Education, Labor, and Pensions
of the Senate.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Education and the Workforce.
Referred to the Subcommittee on Higher Education and Workforce Training.
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