[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2086 Introduced in House (IH)]







104th CONGRESS
  1st Session
                                H. R. 2086

To increase the overall economy and efficiency of Government operations 
  and enable more efficient use of Federal funding, by enabling local 
    governments and private, nonprofit organizations to use amounts 
available under certain Federal assistance programs in accordance with 
                   approved local flexibility plans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 20, 1995

Mr. Shays (for himself and Mr. Clinger) introduced the following bill; 
 which was referred to the Committee on Government Reform and Oversight

_______________________________________________________________________

                                 A BILL


 
To increase the overall economy and efficiency of Government operations 
  and enable more efficient use of Federal funding, by enabling local 
    governments and private, nonprofit organizations to use amounts 
available under certain Federal assistance programs in accordance with 
                   approved local flexibility plans.
    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 ``Local Empowerment and Flexibility 
Act of 1995''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) historically, Federal programs have addressed the 
        Nation's problems by providing categorical financial assistance 
        with detailed requirements relating to the use of funds;
            (2) while the assistance described in paragraph (1) has 
        been directed at critical problems, some program requirements 
        may inadvertently impede the effective delivery of services;
            (3) the Nation's local governments and private, nonprofit 
        organizations are dealing with increasingly complex problems 
        which require the delivery of many kinds of services;
            (4) the Nation's communities are diverse, and different 
        needs are present in different communities;
            (5) it is more important than ever to provide programs 
        that--
                    (A) promote more effective and efficient local 
                delivery of services to meet the full range of needs of 
                individuals, families, and society;
                    (B) respond flexibly to the diverse needs of the 
                Nation's communities;
                    (C) reduce the barriers between programs that 
                impede local governments' ability to effectively 
                deliver services; and
                    (D) empower local governments and private, 
                nonprofit organizations to be innovative in creating 
                programs that meet the unique needs of their 
                communities while continuing to address national policy 
                goals; and
            (6) many communities have innovative planning and community 
        involvement strategies for providing services, but Federal, 
        State, and local regulations often hamper full implementation 
        of local plans.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) enable more efficient use of Federal, State, and local 
        resources;
            (2) place less emphasis in Federal service programs on 
        measuring resources and procedures and more emphasis on 
        achieving Federal, State, and local policy goals;
            (3) enable local governments and private, nonprofit 
        organizations to adapt programs of Federal financial assistance 
        to the particular needs of their communities, by--
                    (A) drawing upon appropriations available from more 
                than one Federal program; and
                    (B) integrating programs and program funds across 
                existing Federal financial assistance categories; and
            (4) enable local governments and private, nonprofit 
        organizations to work together and build stronger cooperative 
        partnerships to address critical service problems.

SEC. 4. DEFINITIONS.

    For purposes of this Act--
            (1) the term ``approved local flexibility plan'' means a 
        local flexibility plan that combines funds from Federal, State, 
        local government or private sources to address the service 
        needs of a community (or any part of such a plan) that is 
        approved by the Flexibility Council under section 5;
            (2) the term ``community advisory committee'' means such a 
        committee established by a local government under section 9;
            (3) the term ``Flexibility Council'' means the council 
        composed of the--
                    (A) Assistant to the President for Domestic Policy;
                    (B) Assistant to the President for Economic Policy;
                    (C) Secretary of the Treasury;
                    (D) Attorney General;
                    (E) Secretary of the Interior;
                    (F) Secretary of Agriculture;
                    (G) Secretary of Commerce;
                    (H) Secretary of Labor;
                    (I) Secretary of Health and Human Services;
                    (J) Secretary of Housing and Urban Development;
                    (K) Secretary of Transportation;
                    (L) Secretary of Education;
                    (M) Secretary of Energy;
                    (N) Secretary of Veterans Affairs;
                    (O) Secretary of Defense;
                    (P) Director of Federal Emergency Management 
                Agency;
                    (Q) Administrator of the Environmental Protection 
                Agency;
                    (R) Director of National Drug Control Policy;
                    (S) Administrator of the Small Business 
                Administration;
                    (T) Director of the Office of Management and 
                Budget; and
                    (U) Chair of the Council of Economic Advisers.
            (4) the term ``covered Federal financial assistance 
        program'' means an eligible Federal financial assistance 
        program that is included in a local flexibility plan of a local 
        government;
            (5) the term ``eligible Federal financial assistance 
        program''--
                    (A) means a Federal program under which financial 
                assistance is available, directly or indirectly, to a 
                local government or a qualified organization to carry 
                out the specified program; and
                    (B) does not include a Federal program under which 
                financial assistance is provided by the Federal 
                Government directly to a beneficiary of that financial 
                assistance or to a State as a direct payment to an 
                individual;
            (6) the term ``eligible local government'' means a local 
        government that is eligible to receive financial assistance 
        under 1 or more covered Federal programs;
            (7) the term ``local flexibility plan'' means a 
        comprehensive plan for the integration and administration by a 
        local government of financial assistance provided by the 
        Federal Government under 2 or more eligible Federal financial 
        assistance programs;
            (8) the term ``local government'' means a subdivision of a 
        State that is a unit of general local government (as defined 
        under section 6501 of title 31, United States Code);
            (9) the term ``priority funding'' means giving higher 
        priority (including by the assignment of extra points, if 
        applicable) to applications for Federal financial assistance 
        submitted by a local government having an approved local 
        flexibility program, by--
                    (A) a person located in the jurisdiction of such a 
                government; or
                    (B) a qualified organization eligible for 
                assistance under a covered Federal financial assistance 
                program included in such a plan;
            (10) the term ``qualified organization'' means a private, 
        nonprofit organization described in section 501(c)(3) of the 
        Internal Revenue Code of 1986 that is exempt from taxation 
        under section 501(a) of the Internal Revenue Code of 1986; and
            (11) the term ``State'' means the 50 States, the District 
        of Columbia, Puerto Rico, American Samoa, Guam, and the Virgin 
        Islands.

SEC. 5. PROVISION OF FEDERAL FINANCIAL ASSISTANCE IN ACCORDANCE WITH 
              APPROVED LOCAL FLEXIBILITY PLAN.

    (a) Payments to Local Governments.--Notwithstanding any other 
provision of law, amounts available to a local government or a 
qualified organization under a covered Federal financial assistance 
program included in an approved local flexibility plan shall be 
provided to and used by the local government or organization in 
accordance with the approved local flexibility plan.
    (b) Eligibility for Benefits.--An individual or family that is 
eligible for benefits or services under a covered Federal financial 
assistance program included in an approved local flexibility plan may 
receive those benefits only in accordance with the approved local 
flexibility plan.

SEC. 6. APPLICATION FOR APPROVAL OF LOCAL FLEXIBILITY PLAN.

    (a) In General.--A local government may submit to the Flexibility 
Council in accordance with this section an application for approval of 
a local flexibility plan.
    (b) Contents of Application.--An application submitted under this 
section shall include--
            (1)(A) a proposed local flexibility plan that complies with 
        subsection (c); or
            (B) a strategic plan submitted in application for 
        designation as an enterprise community or an empowerment zone 
        under section 1391 of the Internal Revenue Code of 1986;
            (2) certification by the chief executive of the local 
        government, and such additional assurances as may be required 
        by the Flexibility Council, that--
                    (A) the local government has the ability and 
                authority to implement the proposed plan, directly or 
                through contractual or other arrangements, throughout 
                the geographic area in which the proposed plan is 
                intended to apply; and
                    (B) amounts are available from non-Federal sources 
                to pay the non-Federal share of all covered Federal 
                financial assistance programs included in the proposed 
                plan; and
            (3) any comments on the proposed plan submitted under 
        subsection (d) by the Governor of the State in which the local 
        government is located;
            (4) public comments on the plan including the transcript of 
        at least 1 public hearing and comments of the appropriate 
        community advisory committee established under section 9; and
            (5) other relevant information the Flexibility Council may 
        require to approve the proposed plan.
    (c) Contents of Plan.--A local flexibility plan submitted by a 
local government under this section shall include--
            (1) the geographic area to which the plan applies and the 
        rationale for defining the area;
            (2) the particular groups of individuals, by service needs, 
        economic circumstances, or other defining factors, who shall 
        receive services and benefits under the plan;
            (3)(A) specific goals and measurable performance criteria, 
        a description of how the plan is expected to attain those goals 
        and criteria;
            (B) a description of how performance shall be measured; and
            (C) a system for the comprehensive evaluation of the impact 
        of the plan on participants, the community, and program costs;
            (4) the eligible Federal financial assistance programs to 
        be included in the plan as covered Federal financial assistance 
        programs and the specific benefits that shall be provided under 
        the plan under such programs, including--
                    (A) criteria for determining eligibility for 
                benefits under the plan;
                    (B) the services available;
                    (C) the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of nonservice 
                benefits; and
                    (D) any other descriptive information the 
                Flexibility Council considers necessary to approve the 
                plan;
            (5) except for the requirements under section 8(b)(3), any 
        Federal statutory or regulatory requirement applicable under a 
        covered Federal financial assistance program included in the 
        plan, the waiver of which is necessary to implement the plan;
            (6) fiscal control and related accountability procedures 
        applicable under the plan;
            (7) a description of the sources of all non-Federal funds 
        that are required to carry out covered Federal financial 
        assistance programs included in the plan;
            (8) written consent from each qualified organization for 
        which consent is required under section 6(b)(2); and
            (9) other relevant information the Flexibility Council may 
        require to approve the plan.
    (d) Procedure for Applying.--(1) To apply for approval of a local 
flexibility plan, a local government shall submit an application in 
accordance with this section to the Governor of the State in which the 
local government is located.
    (2) A Governor who receives an application from a local government 
under paragraph (1) may, by no later than 30 days after the date of 
that receipt--
            (A) prepare comments on the proposed local flexibility plan 
        included in the application;
            (B) describe any State laws which are necessary to waive 
        for successful implementation of a local plan; and
            (C) submit the application and comments to the Flexibility 
        Council.
    (3) If a Governor fails to act within 30 days after receiving an 
application under paragraph (2), the applicable local government may 
submit the application to the Flexibility Council.

SEC. 7. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY PLANS.

    (a) Review of Applications.--Upon receipt of an application for 
approval of a local flexibility plan under this Act, the Flexibility 
Council shall--
            (1) approve or disapprove all or part of the plan within 45 
        days after receipt of the application;
            (2) notify the applicant in writing of that approval or 
        disapproval by not later than 15 days after the date of that 
        approval or disapproval; and
            (3) in the case of any disapproval of a plan, include a 
        written justification of the reasons for disapproval in the 
        notice of disapproval sent to the applicant.
    (b) Approval.--(1) The Flexibility Council may approve a local 
flexibility plan for which an application is submitted under this Act, 
or any part of such a plan, if a majority of members of the Council 
determines that--
            (A) the plan or part shall improve the effectiveness and 
        efficiency of providing benefits under covered Federal programs 
        included in the plan by reducing administrative inflexibility, 
        duplication, and unnecessary expenditures;
            (B) the applicant local government has adequately 
        considered, and the plan or part of the plan appropriately 
        addresses, any effect that administration of each covered 
        Federal program under the plan or part of the plan shall have 
        on administration of the other covered Federal programs under 
        that plan or part of the plan;
            (C) the applicant local government has or is developing 
        data bases, planning, and evaluation processes that are 
        adequate for implementing the plan or part of the plan;
            (D) the plan shall more effectively achieve Federal 
        financial assistance goals at the local level and shall better 
        meet the needs of local citizens;
            (E) implementation of the plan or part of the plan shall 
        adequately achieve the purposes of this Act and of each covered 
        Federal financial assistance program under the plan or part of 
        the plan;
            (F) the plan and the application for approval of the plan 
        comply with the requirements of this Act;
            (G) the plan or part of the plan is adequate to ensure that 
        individuals and families that receive benefits under covered 
        Federal financial assistance programs included in the plan or 
        part shall continue to receive benefits that meet the needs 
        intended to be met under the program; and
            (H) the local government has--
                    (i) waived the corresponding local laws necessary 
                for implementation of the plan; and
                    (ii) sought any necessary waivers from the State.
    (2) The Flexibility Council may not approve any part of a local 
flexibility plan if--
            (A) implementation of that part would result in any 
        increase in the total amount of obligations or outlays of 
        discretionary appropriations or direct spending under covered 
        Federal financial assistance programs included in that part, 
        over the amounts of such obligations and outlays that would 
        occur under those programs without implementation of the part; 
        or
            (B) in the case of a plan or part that applies to 
        assistance to a qualified organization under an eligible 
        Federal financial assistance program, the qualified 
        organization does not consent in writing to the receipt of that 
        assistance in accordance with the plan.
    (3) The Flexibility Council shall disapprove a part of a local 
flexibility plan if a majority of the Council disapproves that part of 
the plan based on a failure of the part to comply with paragraph (1).
    (4) In approving any part of a local flexibility plan, the 
Flexibility Council shall specify the period during which the part is 
effective. An approved local flexibility plan shall not be effective 
after the date of the termination of effectiveness of this Act under 
section 13.
    (5) Disapproval by the Flexibility Council of any part of a local 
flexibility plan submitted by a local government under this Act shall 
not affect the eligibility of a local government, a qualified 
organization, or any individual for benefits under any Federal program.
    (c) Memoranda of Understanding.--(1) The Flexibility Council may 
not approve a part of a local flexibility plan unless each local 
government and each qualified organization that would receive financial 
assistance under the plan enters into a memorandum of understanding 
under this subsection with the Flexibility Council.
    (2) A memorandum of understanding under this subsection shall 
specify all understandings that have been reached by the Flexibility 
Council, the local government, and each qualified organization that is 
subject to a local flexibility plan, regarding the approval and 
implementation of all parts of a local flexibility plan that are the 
subject of the memorandum, including understandings with respect to--
            (A) all requirements under covered Federal financial 
        assistance programs that are to be waived by the Flexibility 
        Council under section 8(b);
            (B)(i) the total amount of Federal funds that shall be 
        provided as benefits under or used to administer covered 
        Federal financial assistance programs included in those parts; 
        or
            (ii) a mechanism for determining that amount, including 
        specification of the total amount of Federal funds that shall 
        be provided or used under each covered Federal financial 
        assistance program included in those parts;
            (C) the sources of all non-Federal funds that shall be 
        provided as benefits under or used to administer those parts;
            (D) measurable performance criteria that shall be used 
        during the term of those parts to determine the extent to which 
        the goals and performance levels of the parts are achieved; and
            (E) the data to be collected to make that determination.
    (d) Limitation on Confidentiality Requirements.--The Flexibility 
Council may not, as a condition of approval of any part of a local 
flexibility plan or with respect to the implementation of any part of 
an approved local flexibility plan, establish any confidentiality 
requirement that would--
            (1) impede the exchange of information needed for the 
        design or provision of benefits under the parts; or
            (2) conflict with law.

SEC. 8. IMPLEMENTATION OF APPROVED LOCAL FLEXIBILITY PLANS; WAIVER OF 
              REQUIREMENTS.

    (a) Payments and Administration in Accordance With Plan.--
Notwithstanding any other law, any benefit that is provided under a 
covered Federal financial assistance program included in an approved 
local flexibility plan shall be paid and administered in the manner 
specified in the approved local flexibility plan.
    (b) Waiver of Requirements.--(1) Notwithstanding any other law and 
subject to paragraphs (2) and (3), the Flexibility Council may waive 
any requirement applicable under Federal law to the administration of, 
or provision of benefits under, any covered Federal assistance program 
included in an approved local flexibility plan, if that waiver is--
            (A) reasonably necessary for the implementation of the 
        plan; and
            (B) approved by a majority of members of the Flexibility 
        Council.
    (2) The Flexibility Council may not waive a requirement under this 
subsection unless the Council finds that waiver of the requirement 
shall not result in a qualitative reduction in services or benefits for 
any individual or family that is eligible for benefits under a covered 
Federal financial assistance program.
    (3) The Flexibility Council may not waive any requirement under 
this subsection--
            (A) that enforces any constitutional or statutory right of 
        an individual, including any right under--
                    (i) title VI of the Civil Rights Act of 1964 (42 
                U.S.C. 2000d et seq.);
                    (ii) section 504 of the Rehabilitation Act of 1973 
                (29 U.S.C. 701 et seq.);
                    (iii) title IX of the Education Amendments of 1972 
                (86 Stat. 373 et seq.);
                    (iv) the Age Discrimination Act of 1975 (42 U.S.C. 
                6101 et seq.); or
                    (v) the Americans with Disabilities Act of 1990;
            (B) for payment of a non-Federal share of funding of an 
        activity under a covered Federal financial assistance program; 
        or
            (C) for grants received on a maintenance of effort basis.
    (c) Special Assistance.--To the extent permitted by law, the head 
of each Federal agency shall seek to provide special assistance to a 
local government or qualified organization to support implementation of 
an approved local flexibility plan, including expedited processing, 
priority funding, and technical assistance.
    (d) Evaluation and Termination.--(1) A local government, in 
accordance with regulations issued by the Flexibility Council, shall--
            (A) submit such reports on and cooperate in such audits of 
        the implementation of its approved local flexibility plan; and
            (B) periodically evaluate the effect implementation of the 
        plan has had on--
                    (i) individuals who receive benefits under the 
                plan;
                    (ii) communities in which those individuals live; 
                and
                    (iii) costs of administering covered Federal 
                financial assistance programs included in the plan.
    (2) No later than 90 days after the end of the 1-year period 
beginning on the date of the approval by the Flexibility Council of an 
approved local flexibility plan of a local government, and annually 
thereafter, the local government shall submit to the Flexibility 
Council a report on the principal activities and achievements under the 
plan during the period covered by the report, comparing those 
achievements to the goals and performance criteria included in the plan 
under section 6(c)(3).
    (3)(A) The Flexibility Council may terminate the effectiveness of 
an approved local flexibility plan, if the Flexibility Council, after 
consultation with the head of each Federal agency responsible for 
administering a covered Federal financial assistance program included 
in such, determines--
            (i) that the goals and performance criteria included in the 
        plan under section 6(c)(3) have not been met; and
            (ii) after considering any experiences gained in 
        implementation of the plan, that those goals and criteria are 
        sound.
    (B) In terminating the effectiveness of an approved local 
flexibility plan under this paragraph, the Flexibility Council shall 
allow a reasonable period of time for appropriate Federal, State, and 
local agencies and qualified organizations to resume administration of 
Federal programs that are covered Federal financial assistance programs 
included in the plan.
    (e) Final Report; Extension of Plans.--(1) No later than 45 days 
after the end of the effective period of an approved local flexibility 
plan of a local government, or at any time that the local government 
determines that the plan has demonstrated its worth, the local 
government shall submit to the Flexibility Council a final report on 
its implementation of the plan, including a full evaluation of the 
successes and shortcomings of the plan and the effects of that 
implementation on individuals who receive benefits under those 
programs.
    (2) The Flexibility Council may extend the effective period of an 
approved local flexibility plan for such period as may be appropriate, 
based on the report of a local government under paragraph (1).

SEC. 9. COMMUNITY ADVISORY COMMITTEES.

    (a) Establishment.--A local government that applies for approval of 
a local flexibility plan under this Act shall establish a community 
advisory committee in accordance with this section.
    (b) Functions.--A community advisory committee shall advise a local 
government in the development and implementation of its local 
flexibility plan, including advice with respect to--
            (1) conducting public hearings; and
            (2) reviewing and commenting on all community policies, 
        programs, and actions under the plan which affect low income 
        individuals and families, with the purpose of ensuring maximum 
        coordination
         and responsiveness of the plan in providing benefits under the 
plan to those individuals and families.
    (c) Membership.--The membership of a community advisory committee 
shall--
            (1) consist of--
                    (A) persons with leadership experience in the 
                private and voluntary sectors;
                    (B) local elected officials;
                    (C) representatives of participating qualified 
                organizations; and
                    (D) the general public; and
            (2) include individuals and representatives of community 
        organizations who shall help to enhance the leadership role of 
        the local government in developing a local flexibility plan.
    (d) Opportunity for Review and Comment by Committee.--Before 
submitting an application for approval of a final proposed local 
flexibility plan, a local government shall submit the final proposed 
plan for review and comment by a community advisory committee 
established by the local government.
    (e) Committee Review of Reports.--Before submitting annual or final 
reports on an approved Federal assistance plan, a local government or 
private nonprofit
 organization shall submit the report for review and comment to the 
community advisory committee.

SEC. 10. TECHNICAL AND OTHER ASSISTANCE.

    (a) Technical Assistance.--(1) The Flexibility Council may provide, 
or direct that the head of a Federal agency provide, technical 
assistance to a local government or qualified organization in 
developing information necessary for the design or implementation of a 
local flexibility plan.
    (2) Assistance may be provided under this subsection if a local 
government makes a request that includes, in accordance with 
requirements established by the Flexibility Council--
            (A) a description of the local flexibility plan the local 
        government proposes to develop;
            (B) a description of the groups of individuals to whom 
        benefits shall be provided under covered Federal assistance 
        programs included in the plan; and
            (C) such assurances as the Flexibility Council may require 
        that--
                    (i) in the development of the application to be 
                submitted under this title for approval of the plan, 
                the local government shall provide adequate 
                opportunities to participate to--
                            (I) individuals and families that shall 
                        receive benefits under covered Federal 
                        financial assistance programs included in the 
                        plan; and
                            (II) governmental agencies that administer 
                        those programs; and
                    (ii) the plan shall be developed after considering 
                fully--
                            (I) needs expressed by those individuals 
                        and families;
                            (II) community priorities; and
                            (III) available governmental resources in 
                        the geographic area to which the plan shall 
                        apply.
    (b) Details to Council.--At the request of the Flexibility Council 
and with the approval of an agency head who is a member of the Council, 
agency staff may be detailed to the Flexibility Council on a 
nonreimbursable basis.

SEC. 11. FLEXIBILITY COUNCIL.

    (a) Functions.--The Flexibility Council shall--
            (1) receive, review, and approve or disapprove local 
        flexibility plans for which approval is sought under this Act;
            (2) upon request from an applicant for such approval, 
        direct the head of an agency that administers a covered Federal 
        financial assistance program under which substantial Federal 
        financial assistance would be provided under the plan to 
        provide technical assistance to the applicant;
            (3) monitor the progress of development and implementation 
        of local flexibility plans;
            (4) perform such other functions as are assigned to the 
        Flexibility Council by this Act; and
            (5) issue regulations to implement this Act within 180 days 
        after the date of its enactment.
    (b) Reports.--No less than 18 months after the date of the 
enactment of this Act, and annually thereafter, the Flexibility Council 
shall submit a report on the 5 Federal regulations that are most 
frequently waived by the Flexibility Council for local governments with 
approved local flexibility plans to the President and the Congress. The 
President shall review the report and determine whether to amend or 
terminate such Federal regulations.

SEC. 12. REPORT.

    No later than 54 months after the date of the enactment of this 
Act, the Comptroller General of the United States shall submit to the 
Congress, a report that--
            (1) describes the extent to which local governments have 
        established and implemented approved local flexibility plans;
            (2) evaluates the effectiveness of covered Federal 
        assistance programs included in approved local flexibility 
        plans; and
            (3) includes recommendations with respect to local 
        flexibility.

SEC. 13. REPEAL.

    This Act is repealed on the date that is 5 years after the date of 
the enactment of this Act.
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