,i #aaeth ,,congress #b;d ,session ,h4 ,r4 #ecfe ,,in ,,the ,,house ,,of ,,representatives ,march #ba1 #bjah ,mr4 ,thompson of ,pennsylvania 7for himself1 ,ms4 ,mc,collum1 and ,mr4 ,stivers7 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 ,services ,block ,grant ,reauthorization ,act of #bjah4 #b4 ,reauthorization ,the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #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 the ,united ,states by supporting the activities of community action agencies that improve the economic security of low-income individuals and families and create new economic opportunities in the communities where they 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 conditions2 7,b7 empowering low-income individuals and families to respond to the unique problems and needs within their communities through their maximum feasible participation in advising and assessing eligible entities and in designing the programs1 projects1 and services funded under this subtitle2 7,c7 using innovative community-based approaches that produce a measurable impact on the causes and effects of poverty1 including two-generation approaches that create opportunities for1 and address the needs of1 parents and children together2 7,d7 coordinating ,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 and 7,e7 broadening the resources directed to the elimination of poverty1 so as to promote partnerships that include-- 7i7 private1 religious1 charitable1 and neighborhood-based organizations2 7ii7 individuals1 businesses1 labor organizations1 professional organizations1 and other organizations engaged in expanding opportunities for all individuals2 and 7iii7 local government leaders4 #fgc4 ,definitions ,in this subtitle3 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 #fhj7;c77 that is a public charity and that delivers multiple programs1 projects1 or services to a variety of low-income individuals and families4 7#b7 ,community action program plan ,the term community action program plan means a detailed plan1 including a budget1 that is adopted by an eligible entity1 for expenditures of funds appropriated for a fiscal year under this subtitle 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 more than #e 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 goals2 and 7,c7 specifies how such activities will be managed1 funded1 and measured by the performance measurement system of such entity4 7#d7 ,community services network organization ,the term community services network organization means any of the following organizations funded under this subtitle3 7,a7 ,a grantee4 7,b7 ,an eligible entity4 7,c7 ,an association of grantees or eligible entities4 7,d7 ,an association-- 7i7 with a membership composed of grantees1 eligible entities1 or associations of grantees or eligible entities2 and 7ii7 that is governed by a board of directors composed so that #c_/d of the directors are employees or designees of such grantees1 such eligible entities1 or such associations4 7#e7 ,department ,the term ,department means the ,department of ,health and ,human ,services4 7#f7 ,eligible entity ,the term eligible entity means an entity-- 7,a7 that is an eligible entity described in section #fgc7a7 7as in effect on the day before the date of enactment of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah7 as of the day before such date of enactment1 or has been designated by the process described in section #fhj7;a7 7including an organization serving migrant or seasonal farmworkers that is so described or designated72 and 7,b7 that has a tripartite board or other mechanism described in paragraph 7#a7 or 7#b71 as appropriate1 of section #fhj7;c74 7#g7 ,grantee ,the term grantee means a recipient of a grant under section #fge or #fgf of this subtitle or the recipient of a grant under section #fge;,a or #fge;,b of this subtitle 7as in effect on the day before the date of enactment of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah74 7#h7 ,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 7#i7 ,performance measurement system ,the term performance measurement system means a management information system that-- 7,a7 collects and reports information about the outcomes of activities and investments funded in whole or in part with funds appropriated under this subtitle1 including annual performance benchmarks2 7,b7 compares the actual outcomes with the intended outcomes2 and 7,c7 is used as a basis for management decisions regarding future use of resources provided under this subtitle4 7#aj7 ,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,c71 7,d71 and 7,e71 the poverty line1 as defined in subparagraph 7,a71 shall be used as a criterion of eligibility for services or assistance provided to individuals or families through the community services block grant program established under this subtitle4 7,c7 ,state revision of poverty line ,whenever a ,state determines that it serves the objectives of the block grant program established under this subtitle1 the ,state may revise the poverty line not to exceed #abe percent of the official poverty line otherwise applicable under subparagraph 7,a74 7,d7 ,waivers for ,state use of higher eligibility level ,whenever a community action program 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 paragraph for the purpose of ensuring coordination of activities carried out under this subtitle with other programs or activities of eligible entities1 the ,state shall1 as part of the application described in section #fgh1 apply such standard with respect to that program1 project1 or service and provide documentation regarding the benefit of and need for such adjustment4 7,e7 ,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 any income eligibility criteria used to determine the participant's initial eligibility4 7#aa7 ,private1 nonprofit organization ,the term private1 nonprofit organization includes a religious organization4 7#ab7 ,public charity ,the term public charity means a domestic 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#a7 or 7#b7 of section #eji7;a7 of the ,internal ,revenue ,code of #aihf4 7#ac7 ,secretary ,the term ,secretary means the ,secretary of ,health and ,human ,services4 7#ad7 ,service area ,the term service area means the unique geographic area which the ,state has designated as the area to be served by an eligible entity with funding under section #fgi7;a77#a77;,b74 7#ae7 ,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 #fgd4 ,establishment of community services block grant program 7a7 ,establishment of program ,the ,secretary is authorized to establish a community services block grant program and to make grants through the program1 under sections #fge and #fgf1 to ,states to support local community action program plans carried out by eligible entities to reduce poverty in the communities served by such entities4 7b7 ,authority of ,secretary ,the ,secretary is authorized to carry out other community programs described in section #fia4 7c7 ,uniform administrative requirements1 cost principles1 and audit requirements ,notwithstanding any other provision of the ,omnibus ,budget ,reconciliation ,act of #aiha 7,public ,law #ig-ce7 or of section #ge4aja7;d77#a71 part #ge of title #de1 ,code of ,federal ,regulations1 funds authorized to be appropriated under this subtitle shall be subject to all subparts of the uniform administrative requirements1 cost principles1 and audit requirements for ,federal awards as adopted in regulations promulgated by the ,secretary to implement the ,uniform ,administrative ,requirements1 ,cost ,principles1 and ,audit ,requirements under part #bjj of title #b1 ,code of ,federal ,regulations1 or any corresponding similar regulation 7including part #ge of title #de1 ,code of ,federal ,regulations1 or any corresponding similar regulation71 as well as all other ,federal laws and regulations related to intergovernmental financial transactions and to administration of federally funded grants and cooperative agreements between ,states and nonprofit organizations1 or local governments1 as applicable4 #fge4 ,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 #fgf4 ,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 ,state1 subject to section #fgg1 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 and remaining after the ,secretary makes the reservations required by section #fib7;c74 7#b7 ,years with greater available funds ,notwithstanding paragraph 7#a71 if the amount appropriated under section #fib7;a7 for a fiscal year and remaining after the ,secretary makes the reservations required by section #fib7;c7 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 #fgg1 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 ,the ,secretary shall allocate the amounts allotted under subsections 7a7 and 7b7 quarterly1 notify the ,states of their respective allocations and make each ,state's quarterly allocation amount available for expenditure by the ,state no later than #cj days after the start of the fiscal quarter for which the ,secretary is allocating the funds4 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 #fgg4 ,payments to ,indian tribes 7a7 ,definitions ,in this section3 7#a7 ,indian ,the term ,indian means a member of an ,indian tribe or tribal organization4 7#b7 ,indian tribe or tribal organization ,the term ,indian tribe or tribal organization means 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 #fgf 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 #fgf 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 implement alternative requirements for tribal implementation of the requirements of section #fgh7;c74 #fgh4 ,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 #fge or #fgf 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 ,state lead agencies ,the ,state lead agency-- 7,a7 shall be authorized by the chief executive officer to convene ,state agencies and coordinate information and activities funded under this subtitle2 7,b7 shall 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 shall assist eligible entities-- 7i7 in conducting periodic comprehensive community needs assessments1 not less often than every #c years2 7ii7 in developing community action program plans2 and 7iii7 in developing community action strategic plans2 7,d7 in conjunction with the development or revision of the ,state plan as required under subsection 7b7-- 7i7 shall hold at least one hearing in the ,state on the proposed plan or proposed revised 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 shall distribute notice of the hearing and a copy of the proposed plan or plan revision statewide to the public and directly to the chief executive officer and the chairperson of the board of each of the eligible entities 7or designees7 and other community services network organizations2 and 7,e7 not less often than every #c years1 in conjunction with the development of the ,state plan1 shall hold at least #a legislative hearing4 7b7 ,state application for ,state program and ,state plan ,beginning with the first fiscal year following the transition period described in section #c of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah1 to be eligible to receive a grant under section #fge or #fgf1 a ,state shall prepare and submit to the ,secretary an application containing a ,state plan covering a period of not more than #b 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 #fge or #fgf will be used to carry out the ,state activities described in section #fgi7;b7 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 a description of the performance measurement system in which the ,state and eligible entities participate under section #fhf7;a77#a77;,a72 7#d7 a plan for the ,state's oversight of eligible entities2 7#e7 an assurance that no eligible entity in the ,state that received1 in the previous fiscal year1 funding through a grant made under section #fge or #fgf will have such funding withheld1 nor reduced below the proportional share of funding the entity received from the ,state in the previous fiscal year1 nor eliminated1 nor its designation as an eligible entity terminated1 unless1 after providing the affected entity 7or entities1 as applicable7 with notice and an opportunity for a hearing on the record1 the ,state determines that cause exists for such withholding1 reduction or elimination of funding or for termination of designation1 subject to review by the ,secretary as provided in subsection 7c7 of section #fhd-- 7,a7 for purposes of this subsection1 the term 8cause0 means3 7i7 the failure of an eligible entity to comply with the terms of a corrective action plan relating to correction of a serious deficiency as described in subsection #fhd7;b72 or 7ii7 a statewide proportional distribution of funds provided through a community services block grant under this subtitle to respond to-- 7,i7 the results of the most recently available census or other appropriate demographic data2 7,,ii7 severe economic dislocation2 or 7,,iii7 the designation of an eligible entity to serve a geographic area that has been unserved for at least the previous #e years2 and 7,b7 in the case of failure of an eligible entity to comply with the terms of a corrective action plan relating to correction of a serious deficiency1 a ,state shall not withhold1 reduce1 or eliminate funding or terminate the eligible entity's designation1 except according to the procedures set forth in subsections 7b7 and 7c7 of section #fhd4 7#f7 an assurance that each eligible entity serving the ,state has established procedures that permit a low-income individual1 or a community organization or religious organization1 that considers low-income individuals or the organization1 respectively1 to be inadequately represented on the board of the eligible entity1 to petition for adequate representation of such individuals or organization1 respectively1 on the board2 7#g7 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;,c77i7 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 and 7#h7 a description of how the ,state will measure ,state and eligible entity performance in achieving the goals of the ,state plan and the community action program plans1 respectively4 7c7 ,state performance requirements and benchmarks 7#a7 ,performance requirements ,consistent with the requirements of section #fhf1 following the transition period described in section #c of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah1 in order to be eligible for a grant under section #fge or #fgf1 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 #fhf4 7#b7 ,annual ,state performance benchmarks ,each ,state shall include in the ,state plan submitted under subsection 7b71 for each fiscal year after that transition period-- 7,a7 performance measurements for lead agency management quality2 7,b7 the ,state annual performance benchmarks regarding programmatic activities described in section #fgi7;b72 and 7,c7 other performance measures1 which shall include-- 7i7 indicators of timely distribution and effective management of ,federal funds by the ,state 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 7ii7 indicators concerning the results of activities carried out by the ,state under this subtitle4 7d7 ,public inspection ,each plan and revision to a ,state plan prepared under this section shall be distributed for public inspection and comment4 ,a hearing on such plan or revision shall be held as required under subparagraphs 7,d7 and 7,e7 of subsection 7a77#b71 but a ,state application for merger1 combination1 or privatization of funds under section #fhj7;b7 shall not be considered a revision4 7e7 ,application for community action program and community action program plan ,beginning with the first fiscal year following the transition period described in section #c of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah1 to be eligible to receive a subgrant under section #fgi7;a71 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 #b 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 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 #fhb4 7f7 ,eligible entity performance requirements and benchmarks ,not later than the end of the transition period described in section #c of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah1 each eligible entity participating in a program funded under this subtitle shall-- 7#a7 adopt performance benchmarks that include-- 7,a7 indicators concerning attainment of the goals of the entity's annual community action program plans2 and 7,b7 indicators of timely and effective management of ,federal and other funds2 and 7#b7 participate in a statewide performance measurement system under section #fhf4 #fgi4 ,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 #fge or #fgf shall-- 7,a7 reserve #b percent of the funds made available through the grant for the ,community ,action ,innovations ,program described in subsection 7b77#a77;,c77i72 and 7,b7 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 for subgrants described in paragraph 7#a77;,b7 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 application under section #fgh2 or 7ii7 the first day of the ,state program year for which such funds are to be expended under the ,state application4 7,b7 ,availability ,the ,state shall make available to eligible entities for expenditure the funds for subgrants described in paragraph 7#a77;,b7 not later than #aj days after receiving notice from the ,secretary of the ,state's quarterly allocation under section #fgf7;c74 ,funds allocated to eligible entities through subgrants made under paragraph 7#a77;,b7 for a fiscal year shall be available for obligation by the eligible entity during that fiscal year and the succeeding fiscal year4 7b7 ,statewide activities 7#a7 ,use of remainder 7,a7 ,in general ,a ,state that receives a grant under section #fge or #fgf shall1 after carrying out subsection 7a71 use the remainder of the grant funds for activities described in the ,state's application under section #fgh7;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 providing to eligible entities training and technical assistance and resources4 7,c7 ,innovative projects to reduce poverty 7i7 ,in general ,the ,state shall use amounts reserved under section #fgi7;a77#a77;,a7 for a ,community ,action ,innovations ,program to award subgrants1 contracts1 or cooperative agreements to eligible entities1 or their associations1 to-- 7,i7 carry out innovative projects to test or replicate promising new practices designed to reduce poverty conditions1 including two-generation approaches that create opportunities for1 and address the needs of1 parents and children together2 and 7,,ii7 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 expended4 7iv7 ,matching requirements ,in the case of innovative projects that are funded in part by funds authorized under a ,federal law 7other than this subtitle71 that includes requirements for matching the ,federal funds with non-,federal funds1 funds made available under this subparagraph may be deemed to be non-,federal funds for purposes of the 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 #fhg7;a74 7vi7 ,eligibility ,activities funded under this subparagraph may include participants with incomes not exceeding #hj percent of the area median income4 7#b7 ,administrative cap 7,a7 ,limitation ,of the amounts remaining after the reservation for the ,state ,community ,action ,innovation ,program under subsection 7a77#a77;,a7 and the required funding for subgrants described under subsection 7a77#a77;,b71 a ,state shall not spend more than #e percent of such remainder 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 subsection 7a77#a77;,b7 shall use the subgrant funds to carry out a community action program plan that shall include-- 7#a7 programs1 projects1 and services that provide low-income individuals and families with opportunities-- 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 or 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#b7 activities that develop and maintain-- 7,a7 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 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 or 7,c7 new investments in the community to reduce the incidence of poverty1 including developing lasting social and economic assets4 #fhj4 ,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 entity1 the lead agency may1 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 area1 that is-- 7,a7 a community action agency that is a private1 nonprofit organization and that is geographically located in an area within reasonable proximity of1 or contiguous to1 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 is 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 7c74 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 ,merger1 combination1 or privatization of eligible entities 7#a7 ,in general ,if an eligible entity receiving subgrant funds makes a determination described in paragraph 7#b7 and notifies the ,state1 the ,state-- 7,a7 shall assist in developing a plan for implementing such merger1 combination1 or privatization1 including a budget for transitional costs not to exceed #b years in duration2 and 7,b7 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 under section #fhb7;a77#b74 7#b7 ,covered merger1 combination1 or privatization ,this subsection applies when-- 7,a7 #b or more eligible entities determine that the geographic areas of a ,state that they serve can be more effectively served under common control or shared management2 or 7,b7 a public organization that is an eligible entity determines that the area it serves can be more effectively served if it becomes a private1 nonprofit organization that is a public charity4 7#c7 ,plans ,a ,state may establish requirements for merger1 combination1 or privatization plans and for a determination that the merged1 combined1 or privatized 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 #fgc7f71 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 #fgi7;a77#a77;,b7 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 private1 nonprofit organization4 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 representatives 7but if an elected public official chooses not to serve1 such official may designate a representative to serve as the voting board member72 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 geographic area 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 include1 or have direct access to1 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 #fgi7;a77#a77;,b7 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 nonprofit corporation and public charities law4 7#b7 ,public organizations 7,a7 ,board ,in order for a local public 7governmental7 entity to be considered to be an eligible entity for purposes of section #fgc7f71 the entity shall administer a program1 project1 or service under the supervision of a tripartite board described in subparagraph 7,c74 7,b7 ,selection ,the members of the board referred to in subparagraph 7,a7 shall be selected by the local public entity4 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 or officials1 including elected officials1 of the unit of government in which the organization is located2 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 geographic area 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 or have direct access to 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 7d7 ,operations and duties of the board ,the duties of a board described in paragraph 7#a7 or 7#b7 of subsection 7c7 shall include-- 7#a7 in the case of a board for a private1 nonprofit organization that is an eligible entity1 having legal and financial responsibility for administering and overseeing the eligible entity1 including making proper use of ,federal funds2 7#b7 establishing terms for officers and adopting a code of ethical conduct1 including a conflict of interest policy for board members2 7#c7 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#d7 approving the eligible entity's operating budget2 7#e7 reviewing all major policies of the eligible entity1 including conducting 7for private1 nonprofit organizations that are eligible entities7 and participating in 7for local public entities that are eligible entities7 annual performance reviews of the eligible entity's chief executive officer 7or individual holding an equivalent position72 7#f7 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 and 7#g7 adopting 7for private1 nonprofit organizations that are eligible entities7 and reviewing 7for local public entities that are eligible entities7 personnel policies and procedures1 including policies and procedures for hiring1 annual evaluation1 compensation1 and termination1 of the eligible entity's chief executive officer 7or individual holding a similar position74 #fha4 ,office of ,community ,services 7a7 ,office 7#a7 ,establishment ,the ,secretary shall establish an ,office of ,community ,services in the ,department to carry out the functions of this subtitle4 7#b7 ,director ,the ,office shall be headed by a ,director 7referred to in this section 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 ,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 appropriated under section #fia7;b72 and 7#b7 the implementation of the requirements of the uniform administrative requirements1 cost principles1 and audit requirements described in section #fgd7;c7 with respect to funds appropriated and activities conducted under this subtitle by the ,department1 the ,states1 and other grantees4 #fhb4 ,training1 technical assistance1 and related activities 7a7 ,activities 7#a7 ,in general ,the ,secretary shall-- 7,a7 use amounts reserved under section #fib7;c77#b77;,a7 for training1 technical assistance1 planning1 evaluation1 and performance measurement1 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 programs1 projects1 and services carried out under this subtitle2 and 7iv7 correcting programmatic deficiencies1 including such deficiencies of eligible entities2 and 7,b7 subject to paragraph 7#b71 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 for-- 7i7 professional development for key community services network organization personnel2 7ii7 activities to improve community services network organization program1 financial management1 compliance and governance practices 7including practices related to performance management information systems72 and 7iii7 activities that train community services network organizations and their staff and board members to effectively address the needs of low-income families and communities through place-based strategies for coordinated investment and integrated service delivery4 7#b7 ,special rule 7,a7 ,in general ,in distributing the reserved amounts under paragraph 7#a77;,b71 the ,secretary shall ensure that #g4e percent of such reserved amounts remain available until the end of the second quarter of the year for which funds are appropriated to be used by the ,secretary to award grants to ,states for funds-- 7i7 to support the one-time costs incurred by #b or more eligible entities for legal1 financial1 and other activities required to effect a merger or other combination of operations and_/or programs that achieves greater efficiency and impact for the use of funds appropriated under this subtitle2 or 7ii7 for a public organization that is an eligible entity to become a private1 nonprofit organization that is a public charity4 7,b7 ,availability after second quarter ,any funds not obligated for merger1 combination1 or privatization incentives described in subparagraph 7,a7 by the end of the second quarter of the fiscal year shall be available for other authorized purposes described in this subsection4 7b7 ,limitation ,none of the funds allocated under subsection 7a7 may be used for expenses or salaries of ,federal employees or of ,federal contractors performing services that would otherwise be performed by ,federal employees4 7c7 ,grants1 contracts1 and cooperative agreements ,the activities described in subsection 7a77#a77;,a7 shall be carried out annually 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 #fhc4 ,state monitoring of eligible entities ,in order to determine whether eligible entities receiving subgrants under this subtitle meet performance benchmarks described in section #fgh7;f77#a71 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 ,followup 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 #fhd4 ,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 #fgh7;b7 and the uniform administrative requirements1 cost principles1 and audit requirements described in section #fgd7;c7 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 plan4 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 agree to implement the corrective action plan proposed by the ,secretary or 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 ,secretary4 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 accordance with section #fhf7;b77#b74 7#e7 ,enforcement 7,a7 ,withholding of funding ,if the ,secretary determines under the procedures set forth in this subsection that a ,state fails to meet the requirements of this subtitle1 the ,secretary may withhold all or a portion of the amount of funding that may be used for administrative expenses1 as described in section #fgi7;b77#b77;,a71 and prohibit the ,state from using other funds awarded under this subtitle to carry out the activities described in section #fgi7;b77#b77;,b71 until the ,secretary determines that the ,state has complied with the requirements of paragraph 7#c7 and section #fhe7;b74 7,b7 ,reduction or elimination of funding ,if the ,secretary determines1 on the basis of a final decision in an evaluation conducted under this section1 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 apportioned and allocated to the ,state as described in section #fge or #fgf1 as applicable4 ,to the extent that all or a portion of the amount of funding that may be used for administrative expenses1 as described in section #fgi7;b77#b77;,a71 is reduced or eliminated under this paragraph1 the ,secretary is authorized to prohibit the ,state from using other funds awarded under this subtitle to carry out the activities described in section #fgi7;b77#b77;,b71 unless the ,state corrects the failure to meet the requirements4 7,c7 ,direct awards to other entities 7i7 ,reduction or elimination of ,state funding ,if the ,secretary reduces or eliminates funding to a ,state under subparagraph 7,b71 the ,secretary shall award funding1 in the amount by which funding to the ,state was reduced or eliminated1 directly to eligible entities or community services network organizations in the ,state1 as applicable4 7ii7 ,direct funding to eligible entities ,eligible entities that are grantees receiving funds directly from the ,secretary1 as described in clause 7i71 shall carry out the activities described in section #fgi7;c7 in the same manner as those eligible entities would be required to carry out such activities as subgrantees under that section4 7iii7 ,statewide funds ,if funds described in section #fgi7;b7 are reduced or eliminated1 amounts equal to the amounts of such reduced or eliminated funds shall be awarded to an association of eligible entities in the ,state 7or if there is no such association1 to one or more eligible entities7 for the purposes specified in section #fgi7;b77#a77;,b74 7iv7 ,state decision to not participate ,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#f7 ,training and technical assistance ,the ,secretary1 through the ,department's own employees or contractors 7rather than under grants1 contracts or cooperative agreements issued under section #fhb71 shall provide training and technical assistance to ,states with respect to the development or implementation of the ,states' corrective action plans4 7#g7 ,prohibitions ,nothing in this ,act shall be construed to permit the ,secretary 7through regulation1 guidance1 grant criteria1 or otherwise7 to expand the authority of the ,secretary beyond that expressly provided to the ,secretary in this ,act4 7b7 ,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 #fhc or section #fhe1 that there is a serious deficiency regarding an eligible entity's compliance with this subtitle1 the ,state shall inform the entity of the serious deficiencies that shall be corrected and provide technical assistance for the corrective action4 7#b7 ,local corrective action plans ,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-- 7,a7 the deficiencies to be corrected2 7,b7 the actions to be taken to correct such deficiencies2 and 7,c7 the timetable for accomplishment of the corrective actions specified4 7#c7 ,final decision ,if the ,state determines1 on the basis of a final decision in a review conducted under section #fhc1 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 #fgi7;a77#a77;,b7 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 7c7 ,review 7#a7 ,in general ,a ,state's determination under subsection 7b7 to withhold1 reduce1 or eliminate funding1 or to terminate the designation of an eligible entity 7eligible entities1 as applicable7 may be reviewed by the ,secretary4 ,upon request by a community services network organization1 the ,secretary shall 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 #fgi7;b77#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 7d7 ,direct assistance ,whenever the ,secretary determines that a ,state has violated the ,state plan described in section #fgh7;b7 7including1 but not limited to1 the assurance described in section #fgh7;b77#e77 and the ,state has withheld1 reduced1 or eliminated the funding provided under section #fgi7;a7 to any eligible entity or entities or terminated the eligible entity designation of any eligible entity or entities prior to the completion of the ,state proceedings described in section #fgh7;b77#e7 7including1 where applicable1 the proceedings required by subsection 7b7 of this section #fhd7 and the ,secretary's review as required by subsection 7c7 of this section #fhd1 the ,secretary shall provide financial assistance under this subtitle to the affected eligible entity or entities directly until the violation is corrected by the ,state4 ,in such a case1 the grant for the ,state under section #fge or #fgf for the earliest appropriate fiscal year shall be reduced by an amount equal to the financial assistance provided under this subsection to such eligible entity or entities4 #fhe4 ,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 of1 and accounting for1 ,federal funds paid to the ,state under this subtitle1 including procedures for monitoring the funds provided under this subtitle2 7,b7 in accordance with 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 #aihd7 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 #fge or #fgf or to carry out ,state activities under this subtitle 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 withholds funding pursuant to section #fhd7;a77#e77;,a71 the ,secretary shall subsequently make the withheld funding available to the ,state not later than #ij days after the date of correction of the serious deficiency specified in the corrective action plan described in section #fhd7;a77#b77;,b77ii71 provided that the ,state complies with the corrective action plan approved by the ,secretary and corrects the serious deficiency by the date specified in such corrective action plan4 7#b7 ,application ,for purposes of paragraph 7#a71 failures described in subsection 7a77#f7 shall be considered to be serious deficiencies4 #fhf4 ,accountability and reporting requirements 7a7 ,state accountability and reporting requirements 7#a7 ,performance measurement 7,a7 ,in general ,by ,october #a1 #bjah1 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 paragraph 7#h7 of section #fgh7;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 performance benchmarks1 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 participants 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 subparagraph 7,b7 of section #fgi7;b77#a7 during the year covered by the report2 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 including-- 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 #fha7;c72 and 7,c7 a description of the training and technical assistance activities funded by the ,secretary under section #fhb and the results of those activities4 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 ,secretary1 through the ,department's own employees or contractors 7rather than under grants1 contracts1 or cooperative agreements issued under section #fhb71 shall provide technical assistance1 including support for the 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 #fhg4 ,limitations on use of funds 7a7 ,construction of facilities 7#a7 ,limitations ,except as provided in paragraph 7#b7 and in section #fgi7;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 land1 or the purchase1 construction or permanent 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-- 7,a7 the request describes extraordinary circumstances to justify the purchase or improvement of land1 or the purchase1 construction1 or permanent improvement of any building or other facilities2 and 7,b7 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 sex1 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 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 ,u4,s4,c4 #gid71 or title ,,ii of the ,americans with ,disabilities ,act of #aiij 7#db ,u4,s4,c4 #abaca et seq471 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 #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 #fhh4 ,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 ,administrative expenses ,any funds provided under this subtitle expended for such testing shall be considered to be expended for administrative expenses and shall be subject to the limitation specified in section #fgi7;b77#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 #fgi7;a71 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 #fhi4 ,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 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 #fha7;c72 or 7,b7 to remove religious art1 icons1 scripture1 or other symbols1 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 ,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 7d7 ,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 7e7 ,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 #fij4 ,regulations 7a7 ,regulations ,the ,secretary shall promulgate regulations implementing this subtitle1 by administrative hearing open to the public1 including regulations regarding-- 7#a7 ,state plans and community action program plans1 including the form and information required for ,state plans submitted to the ,secretary and community action program plans submitted to ,states2 7#b7 ,state monitoring of eligible entities2 and 7#c7 reports to the ,secretary described in section #fhf4 7b7 ,guidance 7#a7 ,in ,general ,the ,secretary shall issue guidance regarding ,state and local performance measurement systems1 including ,state management performance benchmarks and comprehensive community needs assessments4 7#b7 ,state management performance benchmarks ,the ,secretary1 in consultation with community services network organizations1 shall develop ,state management performance benchmarks1 which shall include indicators about-- 7,a7 a ,state's timely obligation and distribution of ,federal funds1 and effective ,state oversight of ,federal funds2 7,b7 a ,state's compliance with the uniform administrative requirements1 cost principles1 and audit requirements described in section #fgd7;c72 7,c7 a ,state's effective management of the activities funded under this subtitle2 and 7,d7 the results of activities funded by the ,state under section #fgi7;b74 7#c7 ,comprehensive analysis of poverty conditions ,the ,secretary shall provide guidance 7including models7 for comprehensive community needs assessments described in section #fgh7;a77#b77;,c77i74 ,the guidance shall include methods for preparing an analysis of all poverty conditions affecting a community and of local and regional assets for alleviating such conditions4 #fia4 ,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-- 7i7 consist of residents of the community and business and civic leaders2 and 7ii7 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 nonprofit1 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-- 7,a7 shall include providing grants to neighborhood-based1 private1 nonprofit organizations to test or assist in the development of new approaches or methods that will assist in the furthering the purposes of this subtitle1 including two-generation approaches that create opportunities for1 and address the needs of1 parents and children together2 and 7,b7 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 under 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 #fib4 ,authorization of appropriations 7a7 ,in general ,there are authorized to be appropriated to carry out this subtitle 7not including section #fia7-- 7#a7 #hej1jjj1jjj for each of fiscal years #bjah through #bjbb2 and 7#b7 such sums as may be necessary for fiscal years #bjbc through #bjbg4 7b7 ,discretionary programs ,there are authorized to be appropriated to carry out section #fia such sums as may be necessary for fiscal years #bjah through #bjbg4 7c7 ,reservations by the secretary ,of the amounts appropriated under subsection 7a7 for each fiscal year1 the ,secretary shall reserve-- 7#a7 of #a percent for carrying out section #fge 7relating to grants to territories72 and 7#b7 #b percent for activities authorized in section #fhb1 of which-- 7,a7 not less than #ej percent of the amount reserved by the ,secretary under this paragraph shall be awarded through grants1 contracts1 or cooperative agreements under section #fhb7;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 #fhb7;a77#a77;,a72 and 7,b7 the remainder of the amount reserved under this paragraph shall be distributed under section #fhb7;a77#a77;,b7 to ,states1 eligible entities1 other community services network organizations1 or other entities1 for the purpose of carrying out activities described in section #fhb7;a77#a77;,b74 4 #c4 ,transition period 7a7 ,transition period ,the ,secretary of ,health and ,human ,services shall expeditiously announce a transition period for the implementation of any changes in regulations1 procedures1 and reporting requirements of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iija et seq471 as amended by this ,act1 from the regulations1 procedures1 and reporting requirements of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iija et seq471 as in effect on the day before the date of enactment of this ,act4 7b7 ,uniform administrative requirements1 cost principles1 and audit requirements2 ,federal training ,the transition period shall include-- 7#a7 a schedule for implementation of requirements relating to adoption of the uniform administrative requirements1 cost principles1 and audit requirements described in section #fgd7;c7 of the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iija71 as amended by this ,act2 and 7#b7 the availability of ,federal training for ,states and eligible entities regarding compliance with new requirements under the ,community ,services ,block ,grant ,act 7#db ,u4,s4,c4 #iija et seq471 as amended by this ,act4 7c7 ,timing ,the transition period described in this section-- 7#a7 may not extend later than the date that is #c months prior to the start of the second fiscal year after the date of enactment of the ,community ,services ,block ,grant ,reauthorization ,act of #bjah2 and 7#b7 may require that certain regulations1 procedures1 and reporting requirements be adopted before other regulations1 procedures1 or reporting requirements4