[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 818 Introduced in House (IH)]

103d CONGRESS
  1st Session
                                H. R. 818

 To amend title VI of the Omnibus Budget Reconciliation Act of 1981 to 
          establish a community services empowerment program.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 4, 1993

 Mr. Martinez introduced the following bill; which was referred to the 
                    Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
 To amend title VI of the Omnibus Budget Reconciliation Act of 1981 to 
          establish a community services empowerment program.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Services Empowerment 
Amendments of 1993''.

SEC. 2. FINDINGS AND PURPOSE.

    (a) Findings.--Congress finds the following:
            (1) Low-income communities in urban and rural areas 
        throughout the United States depend on community service 
        programs to fight poverty and ameliorate the effects of poverty 
        on people who live in these communities.
            (2) Present antipoverty programs funded by community 
        service programs date back to 1964, when President Lyndon 
        Johnson ``declared war on poverty,'' and Congress passed the 
        Economic Opportunity Act of 1964.
            (3) Community service programs have helped millions of 
        people from low-income communities acquire meaningful 
        employment, adequate education, necessary emergency assistance, 
        economic self-sufficiency, child care, weatherization, 
        transportation, consumer counseling, and numerous other 
        opportunities for self-advancement.
            (4) Community service programs provide special services for 
        older individuals, migrant workers, and Native Americans.
            (5) Community service programs have strengthened the 
        capability of low-income communities to plan and coordinate 
        Federal, State, and other programs related to the elimination 
        of poverty, so that these other programs respond to the local 
        needs and conditions through the efforts of local officials, 
        organizations, and interested and affected citizens.
            (6) Community service programs have stimulated a more 
        concentrated utilization of all available local, State, 
        private, and Federal resources to enable low-income families, 
        and low income individuals of all ages in rural and urban areas 
        to attain the skills, knowledge, motivation, and opportunities 
        needed for them to become fully self-sufficient.
            (7) Development and implementation of community service 
        programs serve the poor or low-income areas with the maximum 
        feasible participation of residents of the areas and members of 
        the groups served, so as to best stimulate and take full 
        advantage of capabilities for self-advancement and ensure that 
        such programs and projects are otherwise meaningful to and 
        widely utilized by their intended beneficiaries.
            (8) Community service programs have broadened the resource 
        base of programs directed at the elimination of poverty, to 
        secure (in addition to the services and assistance of pubic 
        officials, private religious, charitable, and neighborhood 
        organizations, and individual citizens) a more active role of 
        business, labor, and professional groups able to provide 
        employment opportunities or otherwise influence the quality and 
        quantity of services of concern to the poor.
            (9) Community service program funds provided under the 
        Community Services Block Grant Act (42 U.S.C. 9901 et seq.) are 
        used to leverage a significant amount of private funding which, 
        when combined and coordinated with Federal and State program 
        funds, results in effective, cost-efficient, and comprehensive 
        local strategies to alleviate poverty.
            (10) Ninety-five percent of the funds provided under such 
        Act are directly spent on antipoverty programs.
            (11) Local antipoverty programs funded under the Community 
        Services Block Grant Act do not duplicate local social service 
        programs, according to a 1986 study by the General Accounting 
        Office.
    (b) Purpose.--It is the purpose of this Act to establish a national 
corporation on community service empowerment to administer the 
community services empowerment partnership program established by this 
Act and to serve as a focal point for Federal efforts to promote 
community services empowerment.

SEC. 3. AMENDMENT TO TITLE VI OF THE OMNIBUS BUDGET RECONCILIATION ACT 
              OF 1981.

    Title VI of the Omnibus Budget Reconciliation Act of 1981 is 
amended by inserting after subtitle B (relating to the community 
services block grant program) the following:

              ``Subtitle C--Community Services Empowerment

   ``CHAPTER 1--NATIONAL COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP 
                              CORPORATION

``SEC. 685. NATIONAL COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP 
              CORPORATION.

    ``(a) Establishment.--There is established in the executive branch 
of the Federal Government the National Community Services Empowerment 
Partnership Corporation.
    ``(b) Board of Directors.--
            ``(1) Appointment.--The Corporation shall be headed by a 
        board of directors appointed by the President, by and with the 
        advice and consent of the Senate. Members of the board shall be 
        appointed from among individuals who have experience in 
        community services empowerment policies and programs and shall 
        be appointed as follows:
                    ``(A) One individual shall be appointed from among 
                individuals who represent organizations that--
                            ``(i) were officially designated as 
                        community action agencies or community action 
                        programs under section 210 of the Economic 
                        Opportunity Act of 1964 (42 U.S.C. 2790) for 
                        fiscal year 1981, and did not lose the 
                        designation as a result of failure to comply 
                        with such Act, or
                            ``(ii) came into existence during fiscal 
                        year 1982 as direct successors in interest to 
                        such community action agencies or community 
                        action programs,
                and meet the requirements under section 675(c)(3) of 
                the Community Services Block Grant Act (42 U.S.C. 
                9904(c)(3)),
                    ``(B) One individual shall be appointed from among 
                individuals who represent local governments.
                    ``(C) One individual shall be appointed from among 
                individuals who represent State governments.
                    ``(D) Two individuals shall be appointed from among 
                individuals who represent private philanthropic 
                organizations.
                    ``(E) Two individuals from communities with a 
                concentration or substantial number of low-income 
                individuals.
                    ``(F) One individual shall be appointed from among 
                individuals who have experience in finance and 
                community development lending.
                    ``(G) Two individuals shall be appointed from among 
                individuals who have experience in the operation of 
                private business enterprises.
                    ``(H) Two individuals shall be appointed from among 
                individuals who represent community development 
                corporations.
                    ``(I) Two Federal officers who have responsibility 
                for developing community services empowerment policy, 
                ex officio.
            ``(2) Chairperson.--The board shall elect, for a 2-year 
        term, a chairperson from among the members of the board.
            ``(3) Compensation.--The members of the board shall serve 
        without compensation but shall receive travel expenses, 
        including a per diem allowance in lieu of subsistence, in 
        accordance with sections 5702 and 5703 of title 5, United 
        States Code.
            ``(4) Authority to issue rules.--The board may issue rules 
        to carry out this subtitle. The board shall issue rules--
                    ``(A) establishing criteria that shall be applied 
                by community services empowerment corporations and 
                emerging community services empowerment corporations 
                for the purpose of selecting recipients of financial 
                assistance provided under this subtitle by such 
                corporations,
                    ``(B) specifying the terms and conditions that 
                shall apply to loans and loan guarantees made under 
                this subtitle by such corporations, and
                    ``(C) prohibiting conflicts of interest applicable 
                to such corporations, and to all officers and employees 
                of such corporations.
            ``(5) Quorum.--A majority of the members of the board shall 
        constitute a quorum.
            ``(6) Officers and employees.--(A) The board shall appoint 
        a chief executive officer.
            ``(B) The board may employ such other officers and 
        employees as the board considers necessary to carry out the 
        functions of the Corporation.
            ``(C) With the approval of the board, the chief executive 
        officer may appoint and remove such employees of the 
        Corporation and such officer considers necessary to carry out 
        the functions of the Corporation.
    ``(c) Authority To Receive Gifts.--The Corporation may receive 
gifts of cash. Such gifts shall be available to the Corporation only to 
carry out this subtitle and shall be in addition to funds appropriated 
to carry out this subtitle.
    ``(d) Authority To Appoint a Community Services Empowerment 
Advisory Committee.--The Corporation may appoint a Community Services 
Empowerment Advisory Committee to advise the Corporation with respect 
to carrying out this subtitle. Such committee shall be composed of--
            ``(1) representatives of community services empowerment 
        corporations, and
            ``(2) individuals who have expertise in community services 
        empowerment.

``SEC. 685A. INSPECTOR GENERAL OF THE CORPORATION.

    ``(a) Establishment and Duties.--There is established in the 
Corporation an Office of the Inspector General. The Office shall be 
headed by the Inspector General of the Corporation who shall have the 
duties, responsibilities, and authorities specified in the Inspector 
General Act of 1978 (5 U.S.C. App.).
    ``(b) References.--For purposes of subsection (a), references in 
the Inspector General Act of 1978 (5 U.S.C. App.) to the establishment 
involved, to the head of the establishment, and to an Inspector General 
shall be deemed to be references to the Corporation, the Board of 
Directors of the Corporation, and the Inspector General of the 
Corporation, respectively.

  ``CHAPTER 2--COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP INVESTMENT 
                                 FUNDS

``SEC. 686. GRANTS.

    ``(a) General Authority.--The Corporation may make grants on a 
competitive basis to eligible community services empowerment 
corporations and to emerging community services empowerment 
corporations, to establish, to maintain, or to expand revolving funds 
that are used to make or guarantee loans to, to make capital 
investments in, or to provide technical assistance and training to new 
or expanding locally-owned private business enterprises intended to 
provide business and employment opportunities for low-income 
individuals in urban neighborhoods and rural areas.
    ``(b) Authority To Make Special Emphasis Grants.--Not less than 10 
percent of the funds appropriated under section 689D(a) for any fiscal 
year shall be reserved by the Corporation to make grants to eligible 
community services empowerment corporations that agree to make loans 
and loan guarantees to, and capital investments in, locally-owned 
private business enterprises with fewer than 15 full-time employees (or 
the equivalent thereof) in communities with a persistently high rate of 
unemployment. Loans and capital investments made under this subsection 
to a particular locally-owned private business enterprise may not 
exceed $35,000 in the aggregate.

``SEC. 686A. ELIGIBILITY FOR GRANTS.

    ``(a) Eligibility of Community Services Empowerment Corporations.--
To be eligible to receive a grant under section 686, a community 
services empowerment corporation shall submit to the Corporation an 
application in such form, and containing such information, as the board 
of the Corporation may require by rule, including--
            ``(1) a community services investment plan that identifies 
        and describes the economic characteristics of the communities 
        to be served through financial assistance provided under this 
        chapter by the applicant, the types of locally-owned private 
        business enterprises to be assisted, and the impact of such 
        assistance on low-income individuals,
            ``(2) in the case of a grant requested under section 
        686(a), an assurance that the applicant will obtain an amount 
        of non-Federal funds that is not less than the amount of the 
        grant requested and will expend such amount to carry out such 
        plan,
            ``(3) an assurance that the applicant will administer under 
        this subtitle a revolving fund into which are deposited the 
        requested grant, the funds required by paragraph (2), donated 
        funds (if any), and amounts required by section 686D(c) to be 
        paid into such fund,
            ``(4) evidence of good working relationships with the 
        organizations referred to in section 685(b)(1)(A),
            ``(5) evidence of good working relationships with local and 
        regional job training programs,
            ``(6) evidence of good working relationships with local 
        business and financial interests, as well as leaders in the 
        community the applicant proposes to serve, and
            ``(7) an assurance that the applicant will target job 
        creation and job-preservation opportunities by providing 
        financial assistance so that 75 percent of such opportunities 
        are for the benefit of--
                    ``(A) low-income individuals,
                    ``(B) individuals who are unemployed or 
                underemployed,
                    ``(C) individuals who are participating or have 
                participated in job training programs authorized by the 
                Job Training Partnership Act or the Family Support Act 
                of 1988, or
                    ``(D) individuals whose jobs are terminated, to 
                enable such individuals to find subsequent employment 
                without experiencing a period of unemployment.
    ``(b) Eligibility of Emerging Community Services Empowerment 
Corporations.--To be eligible to receive a grant under section 686(a), 
an emerging community services empowerment corporation shall submit to 
the Corporation an application in such form, and containing such 
information, as the board of the Corporation may require by rule, 
including--
            ``(1) a community services investment plan that identifies 
        and describes the economic characteristics of the communities 
        to be served through financial assistance provided under this 
        chapter, the types of locally owned private business 
        enterprises to be assisted, and the impact of such assistance 
        on low-income individuals, and
            ``(2) an assurance that the applicant will administer under 
        this subtitle a revolving fund into which are deposited the 
        requested grant, donated funds (if any), and amounts required 
        by section 686D(c) to be paid into such fund.

``SEC. 686B. SELECTION OF APPLICANTS TO RECEIVE GRANTS.

    ``In selecting applicants to receive grants under this chapter, the 
Corporation shall ensure that--
            ``(1) financial assistance provided under this chapter by 
        such applicants is provided to locally owned private business 
        enterprises located in communities in which there is a 
        concentration or substantial number of low-income individuals,
            ``(2) the applicant possesses the technical and management 
        capability to administer a revolving fund under this chapter, 
        and
            ``(3) a representative cross section of applicants are 
        approved, including community services empowerment corporations 
        in large, small, urban, and rural communities and community 
        services empowerment corporations that represent diverse 
        populations.

``SEC. 686C. LIMITATIONS ON AMOUNT OF GRANTS MADE BY THE CORPORATION.

    ``The aggregate amount of grants made under this chapter by the 
Corporation--
            ``(1) to a particular community services empowerment 
        corporation may not exceed $2,000,000, and
            ``(2) to a particular emerging community services 
        empowerment corporation may not exceed $500,000.

``SEC. 686D. LIMITATIONS ON USE OF REVOLVING FUNDS.

    ``(a) Limitation on Capital Investments.--The amount of a capital 
investment made from a revolving fund administered under this chapter 
may not exceed 50 percent of the ownership of the locally owned private 
business enterprise in which such investment is made.
    ``(b) Limitation on Administrative Costs, and Technical Assistance 
and Training.--Not more than 10 percent of the aggregate amount 
withdrawn from a revolving fund administered under this chapter may be 
expended by a community services empowerment corporation collectively 
for administrative costs incurred by such corporation, technical 
assistance, and training.
    ``(c) Limitation on Loan Repayments and Proceeds From Capital 
Investments.--Funds received by a community services empowerment 
corporation as--
            ``(1) a repayment of a loan, or
            ``(2) proceeds from a capital investment,
made by such corporation from a revolving fund administered under this 
chapter shall be deposited in such revolving fund.

                ``CHAPTER 3--CAPACITY ENHANCEMENT GRANTS

``SEC. 687. GRANTS.

    ``The Corporation may make grants to emerging community services 
empowerment corporations to increase the capacity of such corporations 
to carry out community services empowerment projects.

``SEC. 687A. EXPENDITURE OF GRANTS.

    ``Grants made under section 687 shall be expended--
            ``(1) to evaluate the need for, and feasibility of 
        operating, particular locally owned private business 
        enterprises to provide business and employment opportunities 
        for low-income individuals,
            ``(2) to develop the capacity of emerging community 
        services empowerment corporations to assist such enterprises to 
        prepare business plans, and
            ``(3) to develop the skills necessary for such corporations 
        to raise funds to assist such enterprises.

``SEC. 687B. LIMITATION ON AMOUNT OF GRANTS.

    ``The aggregate amount of grants made in a fiscal year under this 
chapter by the Corporation to a particular emerging community services 
empowerment corporation may not exceed $75,000.

     ``CHAPTER 4--TECHNICAL ASSISTANCE AND TRAINING; RESEARCH AND 
                             DEMONSTRATION

``SEC. 688. TECHNICAL ASSISTANCE AND TRAINING.

    ``The Corporation may make grants to community services empowerment 
corporations (other than emerging community services empowerment 
corporations), and to nonprofit private organizations the Corporation 
determines to be qualified, to provide to emerging community services 
empowerment corporations technical assistance and training relating to 
the operation of locally owned private business enterprises.

``SEC. 688A. RESEARCH AND DEMONSTRATION.

    ``The Corporation may make grants to community services empowerment 
corporations and to institutions of higher education to carry out 
research and demonstration projects that--
            ``(1) identify current problems relating to the need for 
        community services empowerment in urban neighborhoods, and in 
        rural areas, that have a concentration or substantial number of 
        low-income individuals, including particular populations of 
        such individuals; and
            ``(2) identify methods to reduce such need.

                    ``CHAPTER 5--GENERAL PROVISIONS

``SEC. 689. AUDITS.

    ``(a) Annual Audit.--The Corporation shall either audit community 
services empowerment corporations and recipients of financial 
assistance from such corporations, or require such corporations and 
such recipients to submit an audit to the Corporation, in each year in 
which such corporations administer and such recipients use such 
assistance received under this subtitle.
    ``(b) Requirement Applicable to Submitted Audits.--Any audit 
submitted under subsection (a) to the Corporation shall be conducted by 
a certified public accountant in accordance with generally accepted 
auditing standards.
    ``(c) Retention of Audits.--Each audit prepared to comply with this 
section shall be retained by the Corporation for a period of not less 
than 5 years.

``SEC. 689A. REPORTS.

    ``The Corporation shall submit annually to the President, the 
Committee on Education and Labor of the House of Representatives, and 
the Committee on Labor and Human Resources of the Senate a report 
containing--
            ``(1) a description of the extent to which such assistance 
        contributed to the self-sufficiency and community services 
        empowerment of communities, and of the amount of non-Federal 
        cash contributed in connection with providing such assistance,
            ``(2) an assessment of the business and employment 
        opportunities that resulted from providing financial and other 
        assistance under this subtitle,
            ``(3) a description of the locally owned private business 
        enterprises, the technical assistance and training, and the 
        research and demonstration projects assisted under this 
        subtitle, including a description of the persons and 
        communities that participated and the types of such enterprises 
        so assisted,
            ``(4) an itemized statement of the costs incurred by 
        community services empowerment corporations in connection with 
        carrying out this subtitle,
            ``(5) an itemized statement identifying profits received by 
        such corporations in connection with carrying out this 
        subtitle,
            ``(6) a description of the extent to which organizations 
        that contributed cash under this subtitle to such corporations 
        participated in the business enterprises, technical assistance 
        and training, and research and demonstration projects assisted 
        under this subtitle,
            ``(7) a description of the efforts of the Corporation to 
        provide technical assistance and training under this subtitle,
            ``(8) a statement specifying the number of emerging 
        community services empowerment corporations that received 
        grants under section 686(b), and
            ``(9) a summary of the results of the research and 
        demonstration projects carried out under chapter 4.

``SEC. 689B. REPAYMENT OF FUNDS.

    ``If the Corporation determines on the record, after an opportunity 
for a hearing, that a private corporation that administers a revolving 
fund under this subtitle--
            ``(1) is not in substantial compliance with this subtitle 
        and the rules issued by the board of the Corporation to carry 
        out this subtitle, or
            ``(2) ceases to be a services empowerment corporation,
then such private corporation shall terminate such fund, shall pay the 
balance of such fund to the Corporation, and assign to the Corporation 
the rights of such corporation to receive amounts payable to such fund.

``SEC. 689C. DEFINITIONS.

    ``For purposes of this subtitle--
            ``(1) the term `Corporation' means the Community Services 
        Empowerment Partnership Corporation established by section 
        685(a),
            ``(2) the term `community services empowerment' means 
        community economic development that provides business and 
        employment opportunities in communities with a concentration or 
        substantial number of low-income individuals,
            ``(3) the term `community services empowerment corporation' 
        means a nonprofit private corporation--
                    ``(A) the board of which is composed of business, 
                civic, and community leaders,
                    ``(B) the principal purposes of which include 
                providing low-income housing and community services 
                empowerment, and
                    ``(C) that has experience, and a record of 
                achievement, in developing housing for low-income 
                individuals or in carrying out community services 
                empowerment projects, in communities with a 
                concentration or substantial number of low-income 
                individuals,
            ``(4) the term `emerging community services empowerment 
        corporation' means a community services empowerment corporation 
        that has completed at least 1, but not more than 2, community 
        services empowerment projects,
            ``(5) the term `institution of higher education' has the 
        meaning given it in section 1201(a) of the Higher Education Act 
        of 1965 (20 U.S.C. 1141(a)),
            ``(6) the term `low-income individual' means an individual 
        whose family income does not exceed the poverty line,
            ``(7) the term `nonprofit private corporation' means a 
        private corporation no part of the earnings of which inures to 
        the benefit of any member, founder, contributor, or individual, 
        and
            ``(8) the term `poverty line' has the meaning given such 
        term in section 673(2) of the Community Services Block Grant 
        Act and includes any adjustment required by such section.

``SEC. 689D. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Grants to Community Services Empowerment Corporations.--There 
is authorized to be appropriated $150,000,000 in the aggregate for 
fiscal years 1994, 1995, and 1996 to make grants under section 686 to 
community services empowerment corporations.
    ``(b) Grants to Emerging Community Services Empowerment 
Corporations.--There is authorized to be appropriated $90,000,000 in 
the aggregate for fiscal years 1994, 1995, and 1996 to make grants 
under sections 686(a) and 687 to emerging community services 
empowerment corporations. Of the amount appropriated under this 
subsection--
            ``(1) 80 percent shall be available to make grants under 
        section 686(a), and
            ``(2) 20 percent shall be available to make grants under 
        section 687.
    ``(c) Grants for Technical Assistance and Training, and for 
Research and Demonstration.--There is authorized to be appropriated 
$10,000,000 in the aggregate for fiscal years 1994, 1995, and 1996 to 
carry out chapter 4.''.

SEC. 4. CONFORMING AMENDMENT.

    Section 5315 of title 5, United States Code, is amended by adding 
at the end the following:
            ``Inspector General, National Services Empowerment 
        Partnership Corporation.''.

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HR 818 IH----2