,i #aacth ,,congress #b;d ,session ,h4 ,r4 #ched ,,in ,,the ,,house ,,of ,,representatives ,january #ac1 #bjad,mr4 ,fitzpatrick 7for himself1 ,ms4 ,mc,collum1 and ,mr4 ,costa7 introduced the following bill2 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 ,act4 #a4 ,short title ,this ,act may be cited as the ,community ,economic ,opportunity ,act of #bjad4 #b4 ,reauthorization ,the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #h #iija et seq47 is amended to read as follows3 ,b ,community ,services ,block ,grant ,program #fga4 ,short title ,this subtitle may be cited as the ,community ,services ,block ,grant ,act4 #fgb4 ,purposes ,the purposes of this subtitle are-- 7#a7 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-- 7,a7 providing individuals and families with opportunities to become economically secure2 and 7,b7 developing new economic opportunities in the communities in which low- and moderate-income individuals live2 and 7#b7 to accomplish the objectives described in paragraph 7#a7 by-- 7,a7 strengthening community capabilities for identifying poverty conditions and opportunities to alleviate such conditions and planning ,federal1 ,state1 local1 and other assistance1 including private resources1 related to the reduction of poverty so that resources can be used in a manner responsive to local needs and conditions2 7,b7 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 secure2 7,c7 using innovative community-based approaches to attack the causes and effects of poverty and to build community social and economic assets2 7,d7 empowering residents to respond to the unique problems and needs within their communities through civic participation and partnerships2 7,e7 broadening the sources and number of resources directed to the elimination of poverty1 so as to promote statewide1 regional1 and local partnerships that-- 7i7 achieve the purposes of this subtitle2 and 7ii7 include-- 7,i7 private1 religious1 charitable1 and neighborhood-based organizations2 7,,ii7 individuals1 businesses1 labor organizations1 professional organizations1 and other organizations engaged in expanding opportunities for all individuals2 and 7,,iii7 local government leaders2 and 7,f7 by ensuring the maximum feasible participation of residents of low-income communities and of members of the groups served by programs1 projects1 and services under this subtitle1 in advising and assessing the eligible entities and in designing their programs1 projects1 and services funded under this subtitle4 #fgc4 ,definitions ,in this subtitle3 7#a7 ,community action agency2 community services network organization2 eligible entity 7,a7 ,community action agency ,the term community action agency means an eligible entity 7which meets the requirements of paragraph 7#a7 or 7#b71 as appropriate1 of section #fha7;c77 that is a public charity 7other than an organization described in section #eji7;a77#d7 of the ,internal ,revenue ,code of #aihf7 and that delivers multiple programs1 projects1 or services to a variety of low-income groups4 7,b7 ,community services network organization ,the term community services network organization means any of the following organizations funded under this subtitle-- 7i7 a grantee2 7ii7 an eligible entity2 or 7iii7 an organization organized by multiple grantees or eligible entities1 that is governed by a ,board of ,directors of which at least #c_/d of the members-- 7,i7 are employees or other designees of such a grantee or eligible entity2 and 7,,ii7 are selected by an open and democratic process by the members of the organization4 7,c7 ,eligible entity ,the term eligible entity means an entity-- 7i7 that is an eligible entity described in section #fgc7a7 as in effect on ,october #bf1 #aiih1 or has been designated by the process described in section #fha7;a7 7including an organization serving migrant or seasonal farmworkers that is so described or designated72 and 7ii7 that has a tripartite board or other mechanism described in paragraph 7#a7 or 7#b71 as appropriate1 of section #fha7;c74 7#b7 ,community action program plan community action program plan means a detailed plan1 including a budget1 for expenditures of funds appropriated for a fiscal year under this title for the activities supported directly or indirectly by such funds4 7#c7 ,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-- 7,a7 establishes goals for a period of not less than #d 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 assessment2 7,b7 provides detail on how all activities of an eligible entity under this subtitle will contribute to meeting such goals including1 but not limited to1 how such entity will use funding received under this subtitle to reduce the impact of the causes of poverty in the community2 and 7,c7 specifies how such activities will be managed1 funded1 and measured by the performance measurement system of such entity4 7#d7 ,grantee ,the term grantee means a recipient of a grant under section #fgg or #fgh or a corresponding provision of this subtitle 7as in effect on the day before the date of enactment of the ,community ,economic ,opportunity ,act of #bjad74 7#e7 ,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 subtitle4 ,such annual objectives may be part of1 but not the entirety of1 the outcomes identified by the performance measurement system in which a community services network organization participates4 7#f7 ,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 subtitle1 including but not limited to annual performance benchmarks1 compares the actual outcomes with the intended outcomes1 and is used as a basis for management decisions regarding future use of resources provided under this subtitle4 7#g7 ,poverty line 7,a7 ,in general ,the term poverty line means the official poverty line defined by the ,office of ,management and ,budget1 based on the most recent data available from the ,bureau of the ,census1 subject to subparagraphs 7,c7 and 7,d74 ,the ,secretary shall revise the poverty line annually 7or at any shorter interval the ,secretary determines to be feasible and desirable74 ,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 made4 7,b7 ,community services block grant eligibility criterion ,subject to subparagraphs 7,c7 and 7,d71 the poverty line1 as defined in subparagraph 7,a71 shall be used as a criterion of eligibility in the community services block grant program established under this subtitle4 7,c7 ,waivers for state use of higher eligibility level ,whenever a community action plan provides that a program1 project1 or service funded under this subtitle requires use of a higher eligibility standard than the standard otherwise applicable under this paragraph1 for the purpose of ensuring 7for the purposes of this subtitle7 coordination of activities carried out under with other programs or activities of eligible entities that are delivered to low-income individuals1 the ,state shall1 as part of the annual application described in section #fhj1 apply to the ,secretary for a waiver that allows use of that standard with respect to that program1 project1 or service1 and the ,secretary may approve the waiver pursuant to the procedures in section #fhj4 7,d7 ,procedures for continued eligibility ,a ,state may establish procedures to ensure that a participant in a program1 project1 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 program1 project1 or service1 regardless of the participant's continuing eligibility under subparagraphs 7,a7 through 7,c74 7#i7 ,private1 nonprofit organization ,the term private nonprofit organization includes a religious organization to which the provisions of section #fij shall apply4 7#aj7 ,public charity ,the term public charity means a domestic or foreign organization that is-- 7,a7 described in section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf and exempt from taxation under section #eja7;a7 of such ,code2 and 7,b7 described in paragraph 7#a71 7#b71 7#c71 or 7#d7 of section #eji7;a7 of the ,internal ,revenue ,code of #aihf4 7#aa7 ,secretary ,the term ,secretary means the ,secretary of ,health and ,human ,services4 7#ab7 ,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 entity4 7#ac7 ,state ,the term ,state means any of the several ,states1 the ,district of ,columbia1 the ,commonwealth of ,puerto ,rico1 ,guam1 the ,united ,states ,virgin ,islands1 ,american ,samoa1 or the ,commonwealth of the ,northern ,mariana ,islands4 #fgf4 ,establishment of community services block grant program 7a7 ,the ,secretary is authorized to establish a community services block grant program and to make grants through the program1 under sections #fgg and #fgh 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 entities4 7b7 ,the ,secretary is authorized to carry out other community programs described in section #fic of this title4 7c7 ,uniform administrative requirements ,notwithstanding any other provision of the ,omnibus ,budget ,reconciliation ,act of #aiha 7,public ,law #ig-ce71 funds appropriated under this subtitle shall be subject to the ,uniform ,administrative ,requirements for ,grants and ,cooperative ,agreements to ,state1 ,local1 and ,tribal ,governments 7part #ib of title #de1 ,code of ,federal ,regulations or any corresponding similar regulation or ruling7 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 organizations4 #fgg4 ,grants to territories 7a7 ,apportionment ,the ,secretary shall apportion the amount reserved under section #fib7;c77#a7 for each fiscal year on the basis of need to eligible jurisdictions1 among ,guam1 ,american ,samoa1 the ,united ,states ,virgin ,islands1 and the ,commonwealth of the ,northern ,mariana ,islands4 7b7 ,grants ,the ,secretary shall make a grant to each eligible jurisdiction to which subsection 7a7 applies for the amount apportioned under subsection 7a74 #fgh4 ,allotments and grants to ,states 7a7 ,allotments in general ,from the amount appropriated under section #fib7;a7 for each fiscal year and remaining after the ,secretary makes the reservations required by section #fib7;c71 the ,secretary shall allot to each eligible ,state 7subject to section #fgi71 an amount that bears the same ratio to such remaining amount as the amount received by the ,state for fiscal year #aiha under section #bba of the ,economic ,opportunity ,act of #aifd bore to the total amount received by all ,states for fiscal year #aiha under such section1 except as provided in subsection 7b74 7b7 ,minimum allotments 7#a7 ,in general ,the ,secretary shall allot to each ,state not less than #a_/b of #a percent of the amount appropriated under section #fib7;a7 for such fiscal year except as provided in section #fib7;c77#a74 7#b7 ,years with greater available funds ,if the amount appropriated under section #fib7;a7 for a fiscal year and remaining after the ,secretary makes the reservations required by section #fib7;b7 exceeds #hej1jjj1jjj1 no ,state shall receive under this section less than #c_/d of #a percent of the remaining amount4 7c7 ,grants and payments ,subject to section #fgi1 the ,secretary shall make grants to eligible ,states for the allotments described in subsections 7a7 and 7b74 ,the ,secretary shall make payments for the grants in accordance with section #fejc7;a7 of title #ca1 ,united ,states ,code4 7d7 ,definition ,in this section1 the term ,state does not include ,guam1 ,american ,samoa1 the ,united ,states ,virgin ,islands1 and the ,commonwealth of the ,northern ,mariana ,islands4 #fgi4 ,payments to ,indian tribes 7a7 ,definitions ,in this section3 7#a7 ,indian ,the term ,indian means a member of an ,indian tribe or of a tribal organization4 7#b7 ,indian tribe2 tribal organization ,the terms ,indian tribe and tribal organization mean a tribe1 band1 or other organized group recognized in the ,state in which the tribe1 band1 or group resides1 or considered by the ,secretary of the ,interior1 to be an ,indian tribe or an ,indian organization for any purpose4 7b7 ,reservation 7#a7 ,application ,paragraph 7#b7 shall apply only if1 with respect to any ,state1 the ,secretary-- 7,a7 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 organization2 and 7,b7 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 subtitle4 7#b7 ,amount ,the ,secretary shall reserve from amounts allotted to a ,state under section #fgh for a fiscal year1 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 7#a77;,b7 bears to the population of all individuals eligible for assistance through a grant made under section #fgh to such ,state4 7c7 ,awards ,the amount reserved by the ,secretary on the basis of a determination made under subsection 7b77#a77;,b7 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 7b77#a77;,b74 7d7 ,plan ,in order for an ,indian tribe or tribal organization to be eligible for a grant award for a fiscal year under this section1 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 regulation4 7e7 ,alternative performance measurement system ,the ,secretary may promulgate alternative requirements for tribal implementation of the requirements of section #fhj7;c74 #fhj4 ,state plans and applications2 community action program plans and applications 7a7 ,state lead agency 7#a7 ,designation ,the chief executive officer of a ,state desiring to receive a grant under section #fgg or #fgh shall designate1 in an application submitted to the ,secretary under subsection 7b71 an appropriate ,state agency that agrees to comply with the requirements of paragraph 7#b71 to act as a lead agency for purposes of carrying out ,state activities under this subtitle4 7#b7 ,duties of lead state agencies ,the lead agency shall-- 7,a7 be authorized by the chief executive officer to convene ,state agencies and coordinate-- 7i7 information and activities funded under this subtitle2 and 7ii7 information and activities of any ,state agencies whose ,state programs are intended to reduce poverty1 including agencies administering resources that support development of jobs and housing in communities2 7,b7 develop the ,state plan to be submitted to the ,secretary under subsection 7b71 which shall be based primarily on the community action program plans of eligible entities1 submitted to the ,state as a condition of receiving funding under this subtitle for approval by the ,state2 7,c7 assist eligible entities-- 7i7 in conducting periodic comprehensive community needs assessments1 not less often than every #d years2 7ii7 in developing community action program plans2 and 7iii7 in developing community action strategic plans2 7,d7 coordinate plans for the activities of the ,state and other organizations under this subtitle1 and activities of recipients of training or technical assistance with the community action program plans2 7,e7 in conjunction with the development of the ,state plan as required under subsection 7b7-- 7i7 hold at least one hearing in the ,state on the proposed plan1 to provide to the public an opportunity to comment on the public record on the proposed use and distribution of funds under the plan2 and 7ii7 not less than #ae days prior to the hearing1 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 7or designees7 and any subgrantees 7or designees7 and other interested parties2 7,f7 not less often than every #c years1 in conjunction with the development of the ,state plan1 hold at least #a legislative hearing2 7,g7 conduct reviews of eligible entities as required under section #fhd2 7,h7 adopt and report on ,state performance benchmarks1 as described in section #fhj7;c72 and 7,i7 provided further that1 in the event a lead agency chooses to exercise its option to delegate one or more of its duties to another organization by contract1 grant1 or cooperative agreement1 such delegation shall not include its duties under subsection 7,g74 7b7 ,state application for ,state program and ,state plan ,beginning with the first fiscal year following the transition year1 to be eligible to receive a grant under section #fgg or #fgh1 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 years4 ,the application shall be submitted not later than #cj days prior to the beginning of the first fiscal year covered by the plan1 and shall contain such information as the ,secretary shall require1 including-- 7#a7 a description of the manner in which funds made available through the grant under section #fgg or #fgh will be used to carry out the ,state activities described in section #fhj;,a7b7 and the ,state's community action program plans2 7#b7 a summary of the community action program plans of the eligible entities serving the ,state2 7#c7 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 #fgb and that the plan has been adopted by the governing body of each eligible entity2 7#d7 an assurance that the ,state has approved all such community action program plans that are consistent with the purposes and requirements of this subtitle2 7#e7 at the ,state's option1 a statewide strategic plan that-- 7,a7 includes the ,state's strategy for implementing its responsibilities under section #fhj7;a72 and 7,b7 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 plan2 7#f7 a description of the ,state's performance measurement system2 7#g7 a plan for the ,state's oversight of eligible entities1 including1 but not limited to-- 7,a7 the training provided to ,state over-sight personnel regarding ,federal law1 regulations and policy1 and applicable ,state practices2 7,b7 the policies and procedures adopted for the ,state's monitoring3 7,c7 the ,state's system for implementing the training and1 when necessary1 requiring a corrective action plan for eligible entities2 7,d7 the management training and technical assistance made available to eligible entities2 and 7,e7 the method used for assessing the quality of such training2 7#h7 an assurance that any eligible entity in the ,state that received1 in the previous fiscal year1 funding through a grant made under section #fgg or #fgh will not have such funding withheld1 nor reduced below the proportional share of funding the entity received from the ,state in the previous fiscal year1 nor eliminated-- 7,a7 except according to the procedures set forth in subsection 7b71 7c71 7d71 or 7e7 of section #fhe2 or 7,b7 unless the ,secretary1 in approving an application under this section1 approves a change in the proportional distribution of funds under section #fhj7;,a77a77#a7 when included as part of a ,state's application submitted under section #fhj7;b72 7#i7 a description of the ,state's requirements that ensure that each eligible entity serving the ,state establishes procedures that permit low-income individuals1 or a community organization or religious organization1 that considers low-income individuals or the organization1 respectively1 to be inadequately represented on the ,board of ,directors of the eligible entity1 to petition for adequate representation of such individuals or organization1 respectively1 on the ,board2 7#aj7 a description of the ,state's requirements1 and financial or other support1 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 7a77#b77;,c7 on which the community action program plans are based1 which assessment may be coordinated with community needs assessments conducted for programs other than the program carried out under this subtitle2 7#aa7 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 subtitle1 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 plans1 respectively2 and 7#ab7 an assurance that the ,state's performance measurement system for eligible entities is based1 for each eligible entity1 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 7c7 as adjusted1 if necessary1 for changes in available funding4 7c7 ,state performance requirements and benchmarks 7#a7 ,performance requirements ,consistent with the requirements of section #fhg1 following the transition period described in subsection #fia7;a71 in order to be eligible for a grant under section #fgg or #fgh1 each ,state shall adopt performance requirements and the performance benchmarks described in paragraph 7#b71 to be included as part of the performance measurement system described in section #fhg and shall provide related training for ,state personnel carrying out a ,state program under this subtitle4 7#b7 ,annual state performance benchmarks ,each ,state shall include in the ,state plan submitted under subsection 7b71 for each fiscal year after the transition period1 performance measurements for lead agency management quality including those promulgated by the ,secretary1 and the ,state annual performance benchmarks regarding programmatic activities described in section #fhj;,a7b7 and other performance measures which shall include-- 7,a7 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 7other than this subsection72 and 7,b7 indicators concerning the results of activities funded by the ,state under this subsection4 7d7 ,approval ,the ,secretary shall notify the chief executive officer of each ,state submitting an application containing a ,state plan under this section1 of the approval1 disapproval1 or approval in part1 of the application1 within #cj days after receiving the application4 7#a7 ,in the event of a partial approval1 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 7b77#d74 ,in the event of such partial approval1 the ,secretary may allow grantee use of funds for activities included in the portions of the plan which the ,secretary has approved4 7#b7 ,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 #fhe7;b77#c77;,c74 7e7 ,revision and inspection 7#a7 ,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 7b7 and 7c74 7#b7 ,public inspection ,each plan and revision to a ,state plan prepared under this section shall be distributed for public inspection as required under subsection 7a77#b77;,e71 but a ,state application for merger incentive funds shall not be considered a revision4 7f7 ,application for community action program and community action program plan ,beginning with the first fiscal year following the transition year1 to be eligible to receive a subgrant under section #fhj;,a7a71 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 years4 ,such application shall be submitted no later than #ij days before the date for submission of the ,state application to the ,secretary4 ,the application shall contain information on the intended implementation of the eligible entity's activities1 including demonstrating-- 7#a7 how the program-- 7,a7 meets needs identified in the most recent comprehensive community needs assessment1 and is consistent with the entity's community action strategic plan for that period2 and 7,b7 achieves the purposes of this subtitle through programs1 projects1 and services1 which may include the activities described in section #fhc4 7#b7 ,eligible entity performance requirements and benchmarks ,not later than the end of the period described in section #fia7;a71 each eligible entity participating in a program funded under this subtitle shall-- 7,a7 adopt performance benchmarks that include indicators concerning attainment of the goals of the entity's annual community action program plans described in section #fgc7b71 indicators of timely and effective management of ,federal and other funds1 and indicators of compliance with the requirements of this subtitle2 7,b7 participate in a statewide performance measurement system under section #fhg1 including-- 7i7 contributing to reports on indicators of results as measured by the statewide system2 7ii7 establishing and tracking performance on indicators concerning attainment of the goals of the entity's community action strategic plan and community action program plan2 7ii7 measuring the entity's performance regarding governance1 organizational development1 and professional development of agency personnel2 and 7iv7 establishing an internal management system that incorporates information regarding results into subsequent plans1 procedures1 and budgets2 and 7,c7 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 plans1 for programs1 projects1 and services provided by the entity1 for public engagement in addressing the causes of poverty and the expansion of local economic opportunities1 and for the development of linkages among partners that will reinforce initiatives funded under this subtitle4 #fhj;,a4 ,state and local uses of funds 7a7 ,state subgrants to eligible entities and other organizations 7#a7 ,in general ,a ,state that receives a grant under section #fgg or #fgh shall reserve #b percent of the funds made available through the grant for the ,community ,action ,innovations ,program described in subsection 7c7 and1 of the remainder1 use not less than #ij percent to make subgrants to eligible entities to enable the entities to implement programs1 projects1 or services for a purpose described in section #fgb4 7#b7 ,obligational requirements 7,a7 ,date of obligation ,the ,state shall obligate the funds from the portion described in paragraph 7#a7 to make subgrants under paragraph 7#a7 not later than the later of-- 7i7 the #cjth 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 #fhj2 or 7ii7 the first day of the ,state program year for which such funds are approved to be expended under the ,state application4 7,b7 ,availability ,funds allocated to eligible entities through subgrants made in accordance with paragraph 7#a7 for a fiscal year shall be available for obligation by the eligible entity during that fiscal year and the succeeding fiscal year1 subject to paragraph 7#c74 7#c7 ,recapture and redistribution of unobligated funds 7,a7 ,recapturing funds ,a ,state may recapture and redistribute funds distributed to an eligible entity for a fiscal year through a subgrant made under paragraph 7#a7 that are unobligated at the end of the fiscal year if such unobligated funds exceed #bj 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 funds4 7,b7 ,redistributing funds ,in redistributing funds recaptured in accordance with this paragraph1 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 served4 ,if no such community action agency is available1 the ,state may redistribute the funds to a private1 nonprofit organization that has demonstrated capacity to deliver similar services to residents of the community and that is located in that service area1 for activities consistent with the objectives of this subtitle4 7b7 ,statewide activities 7#a7 ,use of remainder 7,a7 ,in general ,a ,state that receives a grant under section #fgg or #fgh shall1 after carrying out subsection 7a71 use the remainder of the grant funds for activities described in the ,state's application approved by the ,secretary under section #fhj7;b7 as described in subparagraphs 7,b7 and 7,c7 and for administrative expenses subject to the limitations in paragraph 7#b74 7,b7 ,training and technical assistance ,after applying subsection 7a7 and subparagraph 7,c71 the ,state may use the remaining grant funds for the purposes of-- 7i7 providing to eligible entities training and technical assistance and resources to respond to specific statewide or regional conditions that create economic insecurity1 including1 but not limited to1 emergency conditions2 7ii7 supporting professional development activities for eligible entities that enhance the skills of their local personnel 7including skills of members of the board of directors of such entities7 that such personnel need to manage private1 nonprofit organizations1 including skills for designing and delivering effective support to individuals seeking opportunities for economic security1 and skills for designing and managing programs1 projects1 or services that lead to change in the economic and social assets and opportunities of the community1 giving priority to activities carried out through partnerships of the organizations with institutions of higher education2 7iii7 supporting information and communication resources for the comprehensive community needs assessments described in section #fhj7;a77#b77;,c72 7iv7 supporting performance measurement systems consistent with the requirements of sections #fhj7;c7 and #fhb7;b71 including establishing systems to measure the effectiveness of training delivered under clause 7i71 and publishing the results of measurements taken under the systems2 7v7 promoting coordination and cooperation among eligible entities in the ,state including supporting activities of a statewide association of community services network organizations2 and 7vi7 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 ,state4 7,c7 ,innovative projects to reduce poverty 7i7 ,in general ,the ,state shall use amounts reserved under section #fhj;,a7a77#a7 for a ,community ,action ,innovations ,program to award subgrants1 contracts1 or cooperative agreements to eligible entities1 or their associations1 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 use4 7ii7 ,expenses ,the funds reserved for projects under this subparagraph may be used for reasonable expenses1 of ,states and subgrantees1 associated with administration of such projects and dissemination of their results4 7iii7 ,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 appropriated4 ,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 7,d7 for that innovative project4 7iv7 ,matching requirements ,in the case of innovative projects that are funded in part by funds authorized under a ,federal law other than this subtitle1 that includes requirements for matching the ,federal funds with non-,federal funds1 funds made available under this subsection may be deemed to be local funding for purposes of requirements of such law4 7v7 ,real property ,land or facilities improved through a project receiving an award under this subparagraph1 for which the amount of the award is less than #ej percent of the total project cost1 shall not be subject to the provisions of section #fhh7;a74 7vi7 ,eligibility ,activities funded under this section may include participants with incomes not exceeding #hj percent of the area median income4 7,d7 ,plan for state use of training1 technical assistance1 and innovation funds ,to be eligible to use grant funds as described in subparagraph 7,b7 or 7,c71 each ,state shall submit1 not later than the end of the transition period described in section #fia7;a71 as part of the annual ,state plan submitted under section #fhj7;b71 a training1 technical assistance1 and innovation plan1 developed in consultation with the community service network organizations in the ,state1 that-- 7i7 shall cover up to #b years2 and 7ii7 shall set forth information describing the way the requirements of that subparagraph will be implemented and a quality assurance system for providers of the training1 technical assistance1 or innovation project involved4 7#b7 ,administrative cap 7,a7 ,limitation ,no ,state may spend more than #e percent of the remainder of the funds after the reservation for the ,state community action innovations fund as described in section #fhj;,a7a77#a7 for administrative expenses4 7,b7 ,definition ,in this paragraph1 the term administrative expenses-- 7i7 means the costs incurred by the ,state's lead agency for carrying out planning and management activities1 including monitoring1 oversight1 and reporting as required by this ,act2 and 7ii7 does not include the cost of activities conducted under paragraph 7#a77;,b7 other than monitoring4 7c7 ,eligible entity use of funds ,an eligible entity that receives a subgrant under section #fhj;,a7a7 shall use the subgrant funds to carry out a community action program plan with programs1 projects1 and services that shall include-- 7#a7 the activities described in section #fhj7;a77#b77;,c7 regarding periodic assessment of poverty conditions and opportunities to alleviate such conditions in connection with convening community-wide planning activities2 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 7#b7 or 7#c72 7#b7 programs1 projects1 or services that are designed to assist low-income individuals and families by providing access to local opportunities for achieving and maintaining economic security1 which may include opportunities for the individuals and families-- 7,a7 to secure and retain meaningful employment at a family-supporting wage2 7,b7 to secure an adequate education1 improve literacy and language ability1 and obtain job-related skills2 7,c7 to make better use of available income and build assets2 7,d7 to obtain and maintain adequate housing and a healthy living environment1 including addressing the heath care needs of individuals and families with services and through changes in local institutions and workplaces 7including institutions and workplaces managed by the eligible entity72 and 7,e7 to obtain emergency materials or other assistance to meet immediate individual or community urgent needs and prevent greater or more prolonged economic instability2 and 7#c7 programs1 projects1 or services that improve living conditions1 increase employment1 and expand other economic opportunities in the community served1 which may include-- 7,a7 activities that develop and maintain partnerships for the purpose of changing community1 economic1 and social conditions of poverty1 between the eligible entity and-- 7i7 ,state and local public entities 7such as schools1 institutions of higher education1 housing authorities1 and law enforcement agencies72 and 7ii7 private partners1 including statewide and local businesses1 associations of private employers1 and private charitable and civic organizations2 7,b7 activities that establish linkages among organizations for coordinating initiatives1 services1 and investments so as to avoid duplication1 and maximize the effective use of community resources for creating economic opportunity1 including developing lasting social and economic assets2 and 7,c7 activities that mobilize new investments in the community to reduce the incidence of poverty1 including developing lasting social and economic assets4 #fha4 ,eligible entities and tripartite boards 7a7 ,designation and redesignation of eligible entities in unserved areas 7#a7 ,in general ,if any geographic area of a ,state is not1 or ceases to be1 served by an eligible entity the lead agency shall1 in consultation with local officials and organizations representing the area1 solicit one or more applications and designate a new community action agency to provide programs1 projects1 or services to the area that is-- 7,a7 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 programs1 projects1 or services1 and that has demonstrated financial capacity to manage and account for ,federal funds2 or 7,b7 if no community action agency described in subparagraph 7,a7 is available1 a private1 nonprofit organization 7which may include an eligible entity7 that is geographically located in1 or in reasonable proximity to1 the unserved area and that is capable of providing a broad range of programs1 projects1 or services designed to achieve the purposes of this subtitle as stated in section #fgb4 7#b7 ,requirement ,in order to serve as the eligible entity for the service area1 an entity described in paragraph 7#a7 shall agree to ensure that the governing board of directors of the entity will meet the requirements of subsection 7b77#a77;,c74 7#c7 ,community ,a service area referred to in this subsection or a portion thereof shall be treated as a community for purposes of this subtitle4 7b7 ,mergers of eligible entities 7#a7 ,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 structure1 a ,state shall assist in developing a plan for implementing such merger1 including a budget for transitional costs not to exceed two years duration1 and1 upon approving such plans1 may notify the ,secretary that the entities are in need of and eligible for funds from the merger incentive fund established in section #fhc7;a77#a77;,b77iv74 7#b7 ,plans ,states may establish requirements for merger plans and for a determination that the merged entity1 or entities1 will be capable of conducting a program consistent with the comprehensive needs assessments for the areas served4 7c7 ,tripartite boards 7#a7 ,private1 nonprofit organizations 7,a7 ,board ,in order for a private1 nonprofit organization to be considered to be an eligible entity for purposes of section #fgc7a71 the entity shall be governed by a tripartite board of directors described in subparagraph 7,c7 that fully participates in the development1 planning1 implementation1 oversight1 and evaluation of the program1 project1 or service carried out or provided through the subgrant made under section #fhj;,a7a7 and all activities of the entity4 7,b7 ,selection ,the members of the board referred to in subparagraph 7,a7 shall be selected by the entity4 7,c7 ,composition of board ,the board shall be composed so as to assure that-- 7i7 #a_/c of the members of the board are elected public officials holding office on the date of selection1 or their representatives2 7ii7 7,i7 not fewer than #a_/c 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 area2 and 7,,ii7 each member who is a representative of low-income individuals and families and is also selected to represent a specific subarea under subclause 7,i7 resides in such area2 and 7iii7 the remainder of the members are representatives of business1 industry1 labor1 religious1 educational1 charitable1 or other significant private groups in the community4 7,d7 ,expertise ,the eligible entity shall ensure that the members of the board include or have direct access to individuals with expertise in financial management1 accounting1 and law4 7,e7 ,compliance with tax-exempt and other requirements ,the board of a private1 nonprofit organization shall ensure that the board operates and conducts activities under the subgrant made under section #fhj;,a7a7 in a manner that complies with-- 7i7 the requirements for maintaining tax-exempt status under section #eja7;a7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #eja7;a77 regarding the governance of charities under section #eja7;c77#c7 of the ,internal ,revenue ,code of #aihf 7#bf ,u4,s4,c4 #eja7;c77#c772 and 7ii7 applicable requirements of ,state law4 7#b7 ,public organizations 7,a7 ,board ,in order for a public organization to be considered to be an eligible entity for purposes of section #fgc7a71 the organization shall administer a program1 project1 or service under the supervision of a tripartite board of directors described in subparagraph 7,c74 7,b7 ,selection ,the members of the board referred to in subparagraph 7,a7 shall be selected by the organization4 7,c7 ,composition of board ,the board shall be composed so as to assure that-- 7i7 not more than #a_/c of the members of the board are employees of the unit of government in which the organization is located1 including elected officials2 7ii7 7,i7 not fewer than #a_/c 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 area2 and 7,,ii7 each member who is a representative of low-income individuals and families and is also selected to represent a specific subarea under subclause 7,i7 resides in such area2 and 7iii7 the remainder of the members are representatives of business1 industry1 labor1 religious1 educational1 charitable1 or other significant private groups in the community4 7,d7 ,expertise ,the organization shall ensure that the members of the board include individuals with expertise in financial management1 accounting1 and law4 7,e7 ,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 meetings1 financial transparency1 and ,state open records policy4 7c7 ,operations and duties of the board ,the duties of a board described in paragraph 7#a7 or 7#b7 of subsection 7b7 shall include-- 7#a7 in the case of a board for a private1 nonprofit organization that is an eligible entity1 having and legal and financial responsibility for administering overseeing the eligible entity1 including making proper use of ,federal funds2 7#b7 ensuring that the guidance regarding organizational performance disseminated by the ,secretary under section #fhb7;c77#h7 is implemented2 7#c7 adopting practices that assure active1 independent1 and informed governance of the eligible entity1 including establishing a limited number of terms for officers and adopting a code of ethical conduct for members2 7#d7 participating in each comprehensive community needs assessment1 developing and adopting as a policy for the corresponding eligible entity a community action strategic plan1 including provisions for the use of funds under this subtitle1 and preparing the community action program plan for the use of funds under this subtitle2 7#e7 ensuring that the eligible entity manages its activities based on a system of performance management2 7#f7 ensuring compliance by the eligible entity with ,federal1 and applicable ,state and local1 laws1 including regulations2 7#g7 overseeing financial management1 accounting1 and reporting policies1 and complying with laws regarding financial statements1 including-- 7,a7 selecting an auditor2 and 7,b7 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 statements2 7#h7 reviewing all major financial expenditures of the eligible entity1 including annually approving the eligible entity's operating budget2 7#i7 reviewing all major policies of the eligible entity1 including-- 7,a7 conducting annual performance reviews2 and 7,b7 conducting assessments of the eligible entity's progress in carrying out programmatic and fiscal provisions in the community action program plan1 and in taking any corrective action2 7#aj7 adopting personnel policies and procedures1 including policies and procedures for hiring1 annual evaluation1 compensation1 and termination1 of the ,executive ,director of the eligible entity2 and 7#aa7 adopting and periodically updating written conflict of interest policies for members of the board4 #fhb4 ,office of community services 7a7 ,office 7#a7 ,the ,secretary shall establish an ,office of ,community ,services in the ,department of ,health and ,human ,services 7referred to in this subtitle as the ,department7 to carry out the functions of this subtitle4 7#b7 ,the ,office shall be headed by a ,director 7referred to in this subtitle as the ,director74 7b7 ,grants1 contracts1 and cooperative agreements ,the ,secretary1 acting through the ,director1 shall carry out the functions of this subtitle through grants1 contracts1 or cooperative agreements4 7c7 ,duties1 management1 and integration ,the ,secretary shall-- 7#a7 coordinate the activities of all personnel and contractors of the ,department1 concerning monitoring 7including inspecting7 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 ,services1 in order to efficiently organize oversight visits1 inspections1 and audits of such entities by conducting joint oversight operations1 as practicable2 7#b7 promulgate skill requirements1 for ,department officials with responsibility for monitoring and approving ,state programs under this subtitle1 regarding the knowledge1 skills1 and abilities required to assess and provide technical assistance regarding the operations of private1 nonprofit organizations responsible for implementing multiple ,federal and other community-based initiatives2 7#c7 ensure that personnel and contractors of the ,department with responsibility for ,state programs under this subtitle acquire the knowledge1 skills1 and abilities described in paragraph 7#b72 7#d7 establish minimum requirements for the knowledge and skills of ,state personnel responsible for overseeing the activities authorized by this subtitle2 7#e7 promulgate performance indicators for ,state management of the funds1 operations and programmatic requirements of this subtitle2 7#f7 establish and publish uniform procedures for use by ,federal and ,state monitors of the activities authorized by this subtitle2 7#g7 promulgate regulations with respect to the procedures for ,state and local corrective action plans described in section #fhg 7including promulgating a definition of a serious deficiency for purposes of that section7 to ensure prompt resolution of deficiencies and adherence to the uniform administrative requirements described in section #fgf7;b72 and 7#h7 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 organizations4 7d7 ,federal performance benchmarks ,the ,secretary shall1 prior to the beginning of each fiscal year1 publish ,federal performance benchmarks for the ,office of ,community ,services for such year1 which shall include targets for-- 7#a7 the timeliness of-- 7,a7 apportionments and allotments of appropriated funds to ,states2 and 7,b7 the use of funds reserved pursuant to section #fib7;b72 7#b7 the timeliness of approvals or notifications concerning ,state plans and plan revisions described in section #fhj2 7#c7 the timeliness of scheduled monitoring of ,states and implementation of ,state corrective action plans described in section #fhg2 7#d7 the implementation of the requirements of the uniform administrative requirements described in section #fgf7;b7 by the ,department1 the ,states1 and other grantees2 7#e7 the implementation of the requirements for coordinated audits and monitoring by multiple offices of the ,department2 7#f7 the improvement achieved by ,federal personnel in acquiring the knowledge1 skills1 and abilities described in subsection 7c77#b7 and needed to effectively carry out subsection 7c77#a72 7#g7 the progress made by the ,office of ,community ,services in achieving each of the requirements of this subtitle2 and 7#h7 the timeliness of reports required by this subtitle4 #fhc4 ,training1 technical assistance1 and related activities 7a7 ,activities 7#a7 ,the ,secretary shall1 in accordance with the plan described in subsection 7d77#b7-- 7,a7 use amounts reserved under section #fib7;c77#b77;,a7 for training1 technical assistance1 planning1 evaluation1 and performance measurement1 through ,states and other community services network organizations to assist in-- 7i7 development or replication of innovative initiatives2 7ii7 carrying out professional development activities that expand the capacity of eligible entities2 7iii7 carrying out performance measurement1 reporting1 and data collection activities related to programs carried out under this subtitle2 and 7iv7 correcting programmatic deficiencies1 including such deficiencies of eligible entities2 and 7,b7 the ,secretary shall distribute the amounts reserved under section #fib7;c77#b77;,b7 directly to ,states1 eligible entities1 or other community services network organizations and their partners1 including institutions of higher education1 that carry out activities to achieve the goals of the plan described in subsection 7b77#b7 for-- 7i7 professional development for key personnel2 7ii7 activities to improve program and financial management practices 7including practices related to performance management information systems72 7iii7 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 delivery2 and 7iv7 provided that #g4e 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 #fhj7;b7 for funds to support the one-time costs incurred by two or more eligible entities for legal1 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 subtitle4 ,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 subsection4 7b7 ,limitation ,none of the funds allocated under subsection 7a7 may be used for expenses or salaries of ,federal employees4 7c7 ,grants1 contracts1 and cooperative agreements ,the activities described in paragraph 7#a77;,a7 shall be carried out by the ,secretary through grants1 contracts1 or cooperative agreements with appropriate entities1 which shall include all statewide associations of eligible entities that meet the requirements for receipt of ,federal funds4 7d7 ,training and technical assistance process 7#a7 ,in general ,in order to determine the training1 technical assistance1 and other activities to be provided or supported under subsection 7a71 the ,secretary1 acting through the ,director1 shall develop and carry out the strategic plan described in paragraph 7#b71 and the activities described in paragraph 7#c74 7#b7 ,office of community services strategic training plan 7,a7 ,in general ,not less often than every fourth year the ,secretary1 acting through the ,director and in consultation with community service network organizations1 shall develop1 publish1 and carry out a strategic plan for the use of funds reserved for use under section #fib7;c77#b74 7,b7 ,contents ,such a plan shall describe-- 7i7 the activities that will be supported 7including their goals71 the partnerships1 if any1 required to conduct such activities1 the role of each partner participating1 the system for delivering the intended results1 and the timing of such activities2 7ii7 the manner in which the plan ensures that the ,secretary complies with each requirement of this subtitle related to training and technical assistance2 7iii7 the manner in which the plan reflects coordination of activities funded under this section with related training and technical assistance provided by the ,department1 especially for programs1 projects1 and services other than those funded under this subtitle operated by eligible entities2 7iv7 the manner in which the results of such activities will be measured2 7v7 quality standards for training and trainers to ensure that only effective training is funded under this section2 and 7vi7 to the maximum extent feasible1 how the activities funded under this section address-- 7,i7 the needs of eligible entities and ,state lead agencies relating to skills and techniques to ensure the quality 7including quality of financial management practices7 of programs1 projects1 and services supported under this subtitle2 and 7,,ii7 other professional development needs of the eligible entities related to carrying out this subtitle4 7#c7 ,evaluation of training and technical assistance ,the ,secretary1 acting through the ,director-- 7,a7 shall establish a procedure for evaluating the quality and effectiveness of training and technical assistance provided under this section related to professional development1 local organizational development and management including1 but not limited to financial management1 and ,state government management2 and 7,b7 shall use the results of the evaluations as significant criteria for selecting recipients of funds under this section4 #fhd4 ,state monitoring of eligible entities 7a7 ,monitoring by ,states ,in order to determine whether eligible entities receiving subgrants under this subtitle meet performance benchmarks described in section #fhj7;f77#b71 administrative standards1 financial management requirements1 and other requirements under this subtitle1 the ,state shall conduct the following reviews of eligible entities3 7#a7 ,a full onsite review of each eligible entity at least once during each #c-year period4 7#b7 ,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 subtitle4 7#c7 ,follow-up reviews1 including onsite reviews scheduled in a corrective action plan 7including return visits71 within a calendar quarter for eligible entities with programs1 projects1 or services that fail to meet the ,state's performance criteria1 standards1 financial management requirements1 and other significant requirements established under this subtitle4 7#d7 ,other reviews as appropriate1 including reviews of eligible entities with programs1 projects1 and services that have had other ,federal1 ,state1 or local grants 7other than assistance provided under this subtitle7 terminated for cause4 7b7 ,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 section4 #fhe4 ,evaluations2 corrective action2 withholding1 reduction1 or elimination of funding 7a7 ,evaluations of ,states by the secretary 7#a7 ,in general ,the ,secretary shall conduct1 in not fewer than #a_/c of the ,states in each fiscal year1 evaluations 7including investigations7 of ,state compliance with this subtitle1 including requirements relating to the use of funds received under this subtitle1 and especially with respect to compliance with the requirements of ,state plans submitted under section #fhj7;b7 and the uniform administrative requirements described in section #fgf7;b7 as applied to funds received under this subtitle4 7#b7 ,report to states ,the ,secretary shall submit1 to each ,state evaluated1 a report containing-- 7,a7 the results of such evaluation2 and 7,b7 7i7 recommendations for improvements designed to enhance the benefit and impact of the activities carried out with such funds2 and 7ii7 in the event a serious deficiency is found regarding a ,state's compliance with this subtitle1 including requirements relating to the use of funds received under this subtitle1 a proposed corrective action plan that meets the requirements of subsection 7b77#b77;,b74 7#c7 ,state response ,not later than #de days after receiving a report under paragraph 7#b7-- 7,a7 a ,state that received recommendations under paragraph 7#b77;,b77i7 shall submit to the ,secretary a plan of action in response to the recommendations2 and 7,b7 a ,state that received a proposed corrective action plan under paragraph 7#b77;,b77ii7 shall carry out the ,state's responsibilities under subsection 7b77#b74 7#d7 ,report to congress ,the ,secretary shall submit the results of the evaluations annually1 as part of the report submitted by the ,secretary in #f accordance with section #fhi7;b77#b74 7b7 ,determination of ,state failure ,to comply 7#a7 ,duties of the secretary ,if the ,secretary finds1 on the basis of an evaluation pursuant to subsection 7a71 that there is a serious deficiency regarding a ,state's compliance with this subtitle1 the ,secretary shall-- 7,a7 inform the ,state1 through the report described in subsection 7a77#b7 and any proposed corrective action plan submitted under subsection 7a77#b77;,b71 of the deficiency2 7,b7 provide assistance consistent with section #fhe and subsection 7c72 7,c7 with respect to each identified serious deficiency1 require that the ,state-- 7i7 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 funds2 or 7ii7 correct the deficiency not later than #ij days after the identification of the deficiency if the ,secretary finds1 in the discretion of the ,secretary1 that such a #ij-;day period is reasonable1 in light of the nature and magnitude of the deficiency2 and 7,d7 require that the ,state carry out-- 7i7 the corrective action plan prepared by the ,secretary under subsection 7a77#b77;,b77ii72 or 7ii7 a ,state-proposed corrective action plan that is approved under paragraph 7#b77;,c74 7#b7 ,corrective action plans 7,a7 ,in general ,a ,state that is found under paragraph 7#a7 to have a serious deficiency shall-- 7i7 agree to implement the corrective action plan proposed by the ,secretary under subsection 7a77#b77;,b77ii72 or 7ii7 propose to the ,secretary a different corrective action plan1 developed by the ,state in a timely manner that the ,state will implement upon approval by the ,secretary under subparagraph 7,c74 7,b7 ,contents ,any corrective action plan proposed under this paragraph shall specify-- 7i7 the serious and other deficiencies to be corrected2 7ii7 the actions to be taken to correct such deficiencies2 and 7iii7 the timetable for accomplishment of the corrective actions specified1 which shall provide that each serious deficiency is corrected by not later than #ij days after the date the ,state received notice of the finding under subsection 7a7 and of the specific deficiency to be corrected4 7,c7 ,approval processes 7i7 ,in general ,not later than #ae days after the ,secretary receives a ,state proposed corrective action plan in accordance with subparagraph 7,a71 the ,secretary shall act-- 7,i7 by approving the proposed plan2 or 7,,ii7 by notifying the ,state that the proposed plan cannot be approved1 providing the reasons for the disapproval1 and proposing an alternative corrective action plan4 7ii7 ,state response 7,i7 ,in general ,a ,state whose corrective action plan has not been approved under clause 7i7 shall respond by agreeing to implement the alternative corrective action plan1 or by submitting a different proposed corrective action plan not later than #ae days after receiving notification from the ,secretary under clause 7i74 7,,ii7 ,inadequate different proposed plan ,if the ,secretary determines the different proposed plan to be inadequate1 the ,secretary shall use the procedures to withhold funding described in paragraph 7#c77;,a7 until the ,state and the ,secretary agree on1 and the ,state implements a satisfactory corrective action plan4 ,if the ,secretary makes that determination1 the ,director1 pursuant to paragraph 7#c77;,c71 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 determination4 7#c7 ,enforcement 7,a7 ,withholding of funding ,if the ,secretary determines that a ,state fails to meet the requirements of this subsection1 including a failure to comply with the terms of a corrective action plan described in subsection 7a77#b77;,b7 or approved under paragraph 7#b7 or a failure to correct a serious deficiency in accordance with the timing requirements of paragraph 7#a77;,c71 the ,secretary may initiate proceedings to withhold all or a portion of the amount of the funding described in section #fhj;,a7b77#b77;,a71 including prohibiting the ,state from using other funds awarded under this subtitle to carry out the activities described in such section1 until the ,state complies with all requirements of this subsection4 7,b7 ,reduction or elimination of funding ,if the ,secretary determines1 on the basis of a final decision in a review conducted under this section that a ,state fails to meet the requirements of this subsection1 the ,secretary may1 after providing adequate notice and an opportunity for a hearing1 initiate proceedings to reduce or eliminate the amount of funding described in section #fhj;,a7b77#b77;,a71 including prohibiting the ,state from using other funds awarded under this subtitle to carry out the activities described in such section1 unless the ,state corrects the failure to meet the requirements4 7,c7 ,use of funds 7i7 ,if the ,secretary delays1 reduces1 or eliminates funding to a ,state under subparagraph 7,b71 the ,secretary shall award the amount of the funding to eligible entities and_/or community services network organizations in the ,state1 to carry out the activities described in section #fhj;,a7b74 7ii7 ,in the event a ,state elects not to receive funding under this subtitle1 including a refusal to submit a plan meeting the ,secretary's requirements1 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 subtitle4 7#d7 ,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 plans4 7c7 ,determination of local agency failure ,to comply 7#a7 ,corrective action by local agencies ,if the ,state determines1 on the basis of a review pursuant to section #fhd or section #fhf1 that there is a serious deficiency regarding an eligible entity's compliance with this subtitle1 the ,state shall-- 7,a7 inform the entity of the serious deficiencies that shall be corrected and provide technical assistance for the corrective action2 7,b7 with respect to each identified serious deficiency1 require that the eligible entity-- 7i7 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 funds2 7ii7 correct the deficiency not later than #ij days after the identification of the deficiency if the ,state finds that such a #ij-;day period is reasonable1 in light of the nature and magnitude of the deficiency2 or 7iii7 in the discretion of the ,state 7taking into consideration the seriousness of the deficiency and the time reasonably required to correct the deficiency71 comply with the requirements of paragraph 7#b7 concerning a corrective action plan2 7,c7 initiate proceedings to withhold1 reduce1 or eliminate the funding described in section #fhj;,a7a7 including1 in the case of elimination of funding1 terminating the designation under this subtitle of the eligible entity unless the entity corrects the deficiency as required2 and 7,d7 ensure that the ,state's definitions1 procedures1 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 #fgf7;b7 with respect to this subtitle4 7#b7 ,local corrective action plans 7,a7 ,in general ,an eligible entity that is found to have a serious deficiency under paragraph 7#a7 shall develop1 in a timely manner1 a corrective action plan that shall be subject to the approval of the ,state1 and that shall specify-- 7i7 the deficiencies to be corrected2 7ii7 the actions to be taken to correct such deficiencies2 and 7iii7 the timetable for accomplishment of the corrective actions specified4 7,b7 ,approval process 7i7 ,in general ,not later than #ae days after the ,state receives an entity's proposed corrective action plan in accordance with subparagraph 7,a71 the ,state shall review the proposed plan and act-- 7,i7 by approving the proposed plan2 or 7,,ii7 by notifying the entity that the proposed plan cannot be approved1 providing the reasons for the disapproval1 and proposing an alternative corrective action plan4 7ii7 ,entity's response ,an entity whose corrective action plan has not been approved under clause 7i7 shall respond by agreeing to implement the alternative corrective action plan1 or by submitting a different proposed corrective action plan1 not later than #aj working days after receiving notification from the ,state under clause 7i74 7iii7 ,inadequate different proposed plan ,if the ,state determines the different proposed plan to be inadequate1 the ,state may withhold funding as described in paragraph 7#c7 until the entity implements a satisfactory corrective action plan4 7#c7 ,final decision ,if the ,state determines1 on the basis of a final decision in a review conducted under section #fhd7;a77#c71 that an eligible entity fails to comply with the terms of a corrective action plan under paragraph 7#b7 relating to correction of a serious deficiency for the eligible entity1 the ,state may1 after providing adequate notice and an opportunity for a hearing1 initiate proceedings to withhold1 reduce1 or eliminate the funding provided under section #fhj;,a7a7 to the eligible entity 7including1 in the case of elimination of funding1 terminating the designation under this subtitle of the eligible entity7 unless the entity corrects the serious deficiency4 7#d7 ,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 plans4 7#e7 ,special circumstance ,in the event the ,state has credible evidence that funds have been expended with fraudulent or other criminal intent1 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 risk1 whichever is earlier4 7d7 ,review 7#a7 ,in general ,a ,state's determination under subsection 7c7 to terminate such designation or reduce such funding of an eligible entity may be reviewed by the ,secretary4 ,the ,secretary shall1 upon request1 by a community services network organization1 review such a determination4 ,the review shall be completed not later than #fj days after the ,secretary receives from the ,state all necessary documentation relating to the determination except as provided in paragraph 7#b74 7#b7 ,failure to provide documentation ,if the ,state fails to provide such documentation within #cj days after the ,secretary's request1 the ,state may not expend funds for the purposes described in section #fhj;,a7b77#b7 until the ,state provides such documentation4 ,the ,secretary shall respond to the ,state with a decision not later than #cj days after receiving the documentation4 7e7 ,direct assistance ,whenever the ,secretary determines that a ,state has violated the assurances described in paragraphs 7#h71 7#aa71 or 7#ab7 of section #fhj7;b7 and has withheld1 reduced1 or eliminated the funding provided under section #fhj;,a7a7 to an eligible entity prior to the completion of the ,state proceedings described in subsection 7c77#c7 and the ,secretary's review as required in subsection 7d71 the ,secretary shall provide financial assistance under this subtitle to the eligible entity until the violation is corrected by the ,state4 ,in such a case1 the grant for the ,state under section #fgg or #fgh for the earliest appropriate fiscal year shall be reduced by an amount equal to the financial assistance provided under this subsection to such eligible entity4 #fhf4 ,state and local fiscal controls1 audits1 and withholding 7a7 ,fiscal controls1 procedures1 audits1 and inspections 7#a7 ,in general ,a ,state that receives funds under this subtitle shall-- 7,a7 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 subtitle1 including procedures for monitoring the funds provided under this subtitle2 7,b7 subject to paragraphs 7#b7 and 7#c71 prepare1 not less than once each year1 an audit of the expenditures of the ,state of amounts received under this subtitle2 and 7,c7 make appropriate books1 documents1 papers1 and records available to the ,secretary and the ,comptroller ,general of the ,united ,states1 or any of their duly authorized representatives1 for examination1 copying1 or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request for the items4 7#b7 ,independent entity ,subject to paragraph 7#c71 each audit required by paragraph 7#a77;,b7 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 principles4 7#c7 ,single audit requirements 7,a7 ,in general ,any audit under this subsection shall be conducted in the manner and to the extent provided in chapter #ge of title #ca1 ,united ,states ,code 7commonly known as the ,single ,audit ,act ,amendments of #aihf7 except in the event a serious financial deficiency is identified4 7,b7 ,serious financial deficiency ,in the event that such a deficiency is identified1 the ,secretary shall order-- 7i7 an audit conducted as described in subparagraph 7,a72 or 7ii7 an audit of each of the accounts involved1 in accordance with paragraphs 7#b7 and 7#d74 7#d7 ,submission of copies ,not later than #cj days after the completion of each such audit in a ,state1 the chief executive officer of the ,state shall submit copies of such audit1 at no charge1 to any eligible entity that was the subject of the audit1 to the legislature of the ,state1 and to the ,secretary4 7#e7 ,repayments ,if the ,secretary1 after review of the audit1 finds that a ,state has not expended an amount of funds in accordance with this subtitle1 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 intended4 7#f7 ,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 #fgg or #fgh in accordance with the provisions of this subtitle4 7#g7 ,investigations ,whenever the ,secretary determines that there is a pattern of complaints regarding failures described in paragraph 7#f7 or a complaint of a serious deficiency concerning any ,state1 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 subtitle4 7b7 ,state funds 7#a7 ,corrective action plan ,in the event the ,secretary withholds1 reduces1 or eliminates funding pursuant to section #fhe7;b77#c77;,a71 the ,secretary shall subsequently make the withheld1 reduced1 or eliminated funding available to the ,state not later than #ij 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 #fhe7;b77#b77;,a74 7#b7 ,application ,for purposes of paragraph 7#a71 failures described in paragraph 7#a77;a77#f7 shall be considered to be serious deficiencies4 #fhg4 ,accountability and reporting requirements 7a7 ,state accountability and reporting requirements 7#a7 ,performance measurement 7,a7 ,in general ,by ,october #a1 #bjad1 each ,state that receives funds under this subtitle shall participate1 and shall ensure that all eligible entities in the ,state participate1 in a performance measurement system that the ,secretary is satisfied meets the requirements of paragraphs 7#aa7 and 7#ab7 of section #fhj7;b74 7,b7 ,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 system4 ,if the ,state makes that election1 references in this section to eligible entities shall be considered to include the local organizations4 7,c7 ,eligible entity reports ,eligible entities shall provide the results measured by their performance measurement system1 reports on the achievement of their annual benchmarks and such other reports as the ,state may require4 7#b7 ,annual report ,each ,state receiving funds under this subtitle shall annually prepare1 and submit to the ,secretary by ,march #ca of each year1 a report on the performance of the ,state and eligible entities in the ,state1 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 year4 ,each ,state shall also include in the report-- 7,a7 an accounting of the expenditure of funds received by the ,state through the community services block grant program1 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 programs1 projects1 and services2 7,b7 information on the number and characteristics of clients served under this subtitle in the ,state1 based on data collected from the eligible entities2 7,c7 a summary describing the training and technical assistance offered by the ,state under section #fhj;,a7b77#a77;,b7 and #fhj;,a7b77#a77;,d7 during the year covered by the report and the ,state's progress toward meeting its training and technical assistance plan goals2 7,d7 the ,state's management performance benchmark results2 7,e7 information on the total budget and activities of the eligible entities receiving subgrants from the ,state under this subtitle1 including local and private resources available for a purpose described in section #fgb2 7,f7 a report on the ,community ,action ,innovations ,program in the ,state2 and 7,g7 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 systems4 7b7 ,reporting requirements 7#a7 ,contents ,not later than ,september #cj of each fiscal year1 the ,secretary shall1 directly or by grant or contract1 prepare a report containing-- 7,a7 the information included in the ,state annual reports under subsection 7a77#b7 for the preceding fiscal year2 7,b7 a report on the performance of the ,department in the preceding fiscal year regarding the performance benchmarks established under section #fhb7;d72 7,c7 a description of the training and technical assistance activities funded by the ,secretary under section #fhc and the results of those activities1 including a report on progress toward achieving the goals of the ,secretary's strategic plan for training and technical assistance described in section #fhc7;d77#b72 and 7,d7 any additional information that the ,secretary considers to be appropriate to carry out this subtitle4 7#b7 ,submission ,the ,secretary shall submit to the ,committee on ,education and the ,workforce of the ,house of ,representatives and to the ,committee on ,health1 ,education1 ,labor1 and ,pensions of the ,senate the report described in paragraph 7#a7 and any recommendations the ,secretary may have with respect to such report4 7#c7 ,electronic data system for reports to states and eligible entities ,the ,secretary shall provide technical assistance1 including support for development and maintenance of an electronic data system for the reports under this section1 to the ,states and eligible entities to enhance the quality and timeliness of reports submitted under this subtitle4 ,the system shall be coordinated and consistent with the data systems established for other programs of the ,department that are managed by eligible entities1 including all programs of the ,administration for ,children and ,families or successor administrative units in which the office is located4 #fhh4 ,limitations on use of funds 7a7 ,construction of facilities 7#a7 ,limitations ,except as provided in paragraph 7#b7 and in section #fhj7;b77#a77;,c71 grants or subgrants made under this subtitle may not be used by the ,state1 or by any other person with which the ,state makes arrangements to carry out a purpose described in section #fgb1 for the purchase or improvement of any building or other facility4 7#b7 ,waiver ,the ,secretary may waive the limitation contained in paragraph 7#a7 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 land1 or the purchase1 construction or permanent improvement of any building or other facilities1 and that permitting the waiver will contribute to the ability of the ,state and eligible entities to carry out a purpose described in section #fgb at substantially reduced costs4 7b7 ,political activities 7#a7 ,treatment as a state or local agency ,for purposes of chapter #ae of title #e1 ,united ,states ,code1 any entity that assumes responsibility for planning1 developing1 and coordinating activities under this subtitle and receives assistance under this subtitle shall be deemed to be a ,state or local agency4 ,for purposes of paragraphs 7#a7 and 7#b7 of section #aejb7;a7 of such title1 any entity receiving assistance under this subtitle shall be deemed to be a ,state or local agency4 7#b7 ,prohibitions ,an entity carrying out a program1 project1 or service assisted under this subtitle1 and any individual employed by1 or assigned to or in1 such a program1 project1 or service 7during the hours in which the individual is working on behalf of the program1 project1 or service7 shall not engage in-- 7,a7 any partisan or nonpartisan political activity or any political activity associated with a candidate1 or contending faction or group1 in an election for public or party office2 or 7,b7 any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election4 7#c7 ,registration ,none of the funds appropriated to carry out this subtitle may be used to conduct voter registration activities4 7c7 ,nondiscrimination 7#a7 ,in general ,no person shall1 on the basis of race1 color1 national origin1 or sex be excluded from participation in1 be denied the benefits of1 or be subjected to discrimination under1 any program1 project1 or service funded in whole or in part with funds made available under this subtitle4 ,any prohibition against discrimination on the basis of age under the ,age ,discrimination ,act of #aige #i 7#db ,u4,s4,c4 #faja et seq47 or with respect to an otherwise qualified individual with a disability as provided in section #ejd of the ,rehabilitation ,act of #aigc 7#bi #ab ,u4,s4,c4 #gid71 or title ,,ii of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaca et seq47 shall also apply to any such program1 project1 or service4 7#b7 ,action of secretary ,whenever the ,secretary determines that a ,state that has received a payment under this subtitle has failed to comply with paragraph 7#a7 or an applicable regulation1 the ,secretary shall notify the chief executive officer of the ,state and shall request that the officer secure compliance4 ,if within a reasonable period of time1 not to exceed #fj days1 the chief executive officer fails or refuses to secure compliance1 the ,secretary is authorized to-- 7,a7 refer the matter to the ,attorney ,general with a recommendation that an appropriate civil action be instituted2 7,b7 exercise the powers and functions provided by title ,,vi of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;d et seq471 the ,age ,discrimination ,act of #aige 7#db ,u4,s4,c4 #faja et seq471 section #ejd of the ,rehabilitation ,act of #aigc 7#bi ,u4,s4,c4 #gid71 or title ,,ii of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #aa #abaca et seq471 as may be applicable2 or 7,c7 take such other action as may be provided by law4 7#c7 ,action of attorney general ,when a matter is referred to the ,attorney ,general pursuant to paragraph 7#b71 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 subsection1 the ,attorney ,general may bring a civil action in any appropriate ,united ,states district court for such relief as may be appropriate1 including injunctive relief4 #fhi4 ,drug and child support services and referrals 7a7 ,drug testing and rehabilitation 7#a7 ,in general ,nothing in this subtitle shall be construed to prohibit a ,state from testing participants in programs1 projects1 or services carried out or provided under this subtitle for controlled substances4 ,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 services4 7#b7 ,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 #fhj;,a7b77#b74 7#c7 ,definition ,in this subsection1 the term controlled substance has the meaning given the term in section #ajb of the ,controlled ,substances ,act 7#ba ,u4,s4,c4 #hjb74 7b7 ,child support services and referrals ,during each fiscal year for which an eligible entity receives a subgrant under section #fhj;,a7a71 such entity shall-- 7#a7 inform custodial parents in single-parent families that participate in programs1 projects1 or services carried out or provided under this subtitle about the availability of child support services2 and 7#b7 refer eligible parents to the child support offices of ,state and local governments4 #fij4 ,operational rules 7a7 ,religious organizations included as nongovernmental providers ,for any program carried out by the ,federal ,government1 or by a ,state or local government under this subtitle1 the government shall consider1 on the same basis as other nongovernmental organizations1 religious organizations to provide the assistance under the program1 so long as the program is implemented in a manner consistent with the ,establishment ,clause of the first amendment to the ,constitution4 ,neither the ,federal ,government nor a ,state or local government receiving funds under this subtitle shall discriminate against an organization that provides assistance under1 or applies to provide assistance under1 this subtitle1 on the basis that the organization has a religious character4 7b7 ,religious character and independence 7#a7 ,in general ,a religious organization that provides assistance under a program described in subsection 7a7 shall retain its religious character and control over the definition1 development1 practice1 and expression of its religious beliefs4 7#b7 ,additional safeguards ,neither the ,federal ,government nor a ,state or local government shall require a religious organization-- 7,a7 to alter its form of internal governance1 except 7for purposes of administration of the community services block grant program7 as provided in section #fha;,c2 or 7,b7 to remove religious art1 icons1 scripture1 or other symbols2 in order to be eligible to provide assistance under a program described in subsection 7a74 7#c7 ,employment practices ,a religious organization's exemption provided under section #gjb of the ,civil ,rights ,act of #aifd 7#db ,u4,s4,c4 #bjjj;e-#a7 regarding employment practices shall not be affected by its participation in1 or receipt of funds from1 programs described in subsection 7a74 7c7 ,nondiscrimination against beneficiaries ,a religious organization providing assistance under any program described in subsection 7a7 of this section shall not1 in providing such assistance1 discriminate against a program beneficiary or prospective program beneficiary on the basis of religion or religious belief4 7d7 ,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 7a7 shall be expended for sectarian worship1 instruction1 or proselytization4 7e7 ,fiscal accountability 7#a7 ,in general ,except as provided in paragraph 7#b71 any religious organization providing assistance under any program described in subsection 7a7 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 program4 7#b7 ,limited audit ,such organization shall segregate government funds provided under such program into a separate account4 ,only the government funds shall be subject to audit by the government4 7f7 ,treatment of eligible entities and other intermediate organizations ,if an eligible entity or other organization 7referred to in this subsection as an intermediate organization71 acting under a contract1 or grant or other agreement1 with the ,federal ,government or a ,state or local government1 is given the authority under the contract or agreement to select nongovernmental organizations to provide assistance under the programs described in subsection 7a71 the intermediate organization shall have the same duties under this section as the government4 #fia4 ,regulations and transition period 7a7 ,transition period ,the ,secretary shall expeditiously announce a schedule for adopting any changes in regulation1 procedure and reporting required by this subtitle and for the availability of ,federal training for ,states and eligible entities1 especially with respect to adopting ,uniform ,practices for ,administration1 which period may not extend further than #c 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 appropriate4 7b7 ,regulations ,the ,secretary shall promulgate regulations implementing this subtitle1 by administrative hearing open to the public including regulations regarding-- 7#a7 ,state and community action programs and plans including the form and information required for ,state and community action programs and plans2 7#b7 ,state monitoring of eligible entities2 and 7#c7 reports to the ,secretary described in section #fhg4 7c7 ,guidance ,the ,secretary shall promulgate guidance regarding ,state and community performance measurement systems including-- 7#a7 ,state management performance benchmarks ,the ,secretary1 in consultation with community service network organizations1 shall promulgate common ,state management performance indicators which shall include indicators concerning-- 7,a7 timely obligation and distribution and effective oversight of ,federal funds2 7,b7 compliance with the requirements for minimum skills of ,state personnel and compliance with the uniform administrative requirements described in section #fgf7;b72 7,c7 effective management of the activities funded under this subtitle2 and 7,d7 the results of activities funded by the ,state under this subsection #fhj;,a7b74 7#b7 ,comprehensive analysis of poverty conditions ,the ,secretary shall provide guidance 7including models7 for comprehensive community needs assessments described in subsection #fhj7;a77#b77;,c7 that are used in conjunction with community action strategic plans4 ,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 conditions2 and 7#c7 ,such other guidance as may be required by this subtitle4 #fib4 ,authorization of appropriations 7a7 ,in general ,there are authorized to be appropriated to carry out sections #fga through #fia of this subtitle #hej1jjj1jjj for each of fiscal years #bjad through #bjah and such sums as may be necessary for fiscal years #bjai through #bjbc4 7b7 ,there are authorized to be appropriated such sums as may be necessary to carry out section #fic for fiscal years #bjad through #bjbc4 7c7 ,reservations by the secretary ,of the amounts appropriated under subsection 7a7 for each fiscal year1 the ,secretary shall reserve-- 7#a7 #a_/b of #a percent for carrying out section #fgg 7relating to grants to territories72 and 7#b7 #b percent for activities authorized in section #fhc1 of which-- 7,a7 not less than #a_/b of the amount reserved by the ,secretary under this paragraph shall be awarded through grants1 contracts1 or cooperative agreements under section #fhc7;c71 to eligible entities1 community action agencies1 and ,state and regional community service network organizations1 for the purpose of carrying out activities described in section #fhc7;a77#a77;,a72 and 7,b7 the remainder of the amount reserved under this paragraph shall be distributed under section #fhc7;a77#a77;,b77c7 to ,states1 eligible entities1 other community services network organizations1 or other entities1 for the purpose of carrying out activities described in section #fhc7;a77#a77;,b74 #fic4 ,discretionary community programs 7a7 ,grants1 contracts1 arrangements1 loans1 and guarantees 7#a7 ,in general ,the ,secretary shall1 from funds appropriated under section #fib7;b71 make grants1 loans1 or guarantees to ,states and public agencies and private1 nonprofit organizations1 or enter into contracts or jointly financed cooperative arrangements with ,states and public agencies and private1 nonprofit organizations 7and for-profit organizations1 to the extent specified in paragraph 7#b77;,e77 for each of the objectives described in paragraphs 7#b7 through 7#d74 7#b7 ,community economic development 7,a7 ,economic development activities ,the ,secretary shall make grants described in paragraph 7#a7 on a competitive basis to private1 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 opportunities4 7,b7 ,consultation ,the ,secretary shall exercise the authority provided under subparagraph 7,a7 after consultation with other relevant ,federal officials4 7,c7 ,governing boards ,for a community development corporation to receive funds to carry out this paragraph1 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 planning1 developing1 or managing low-income housing or community development projects4 7,d7 ,geographic distribution ,in making grants to carry out this paragraph1 the ,secretary shall take into consideration the geographic distribution of funding among ,states and the relative proportion of funding among rural and urban areas4 7,e7 ,reservation ,of the amounts made available to carry out this paragraph1 the ,secretary may reserve not more than #a percent for each fiscal year to make grants to private1 nonprofit organizations or to enter into contracts with private1 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 paragraph4 7#c7 ,rural community development activities ,the ,secretary shall provide the assistance described in paragraph 7#a7 for rural community development activities1 which shall include providing-- 7,a7 grants to private1 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 units2 and 7,b7 grants to multistate1 regional1 private1 nonprofit organizations to enable the organizations to provide training and technical assistance to small1 rural communities concerning meeting their community facility needs4 7#d7 ,neighborhood innovation projects ,the ,secretary shall provide the assistance described in paragraph 7#a7 for neighborhood innovation projects1 which shall include providing grants to neighborhood-based private1 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 subtitle1 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 programs4 7b7 ,evaluation ,the ,secretary shall require all activities receiving assistance under this section to be evaluated for their effectiveness4 ,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 activities4 7c7 ,annual report ,the ,secretary shall compile an annual report containing a summary of the evaluations required in subsection 7b7 and a listing of all activities assisted under this section4 ,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 ,health1 ,education1 ,labor1 and ,pensions of the ,senate4 4