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





                                                 Union Calendar No. 460

104th CONGRESS

  2d Session

                               H. R. 2086

                          [Report No. 104-847]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           September 26, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 460
104th CONGRESS
  2d Session
                                H. R. 2086

                          [Report No. 104-847]

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

                           September 26, 1996

Additional sponsors: Mr. Davis, Mr. Calvert, Mr. Cunningham, Mr. Blute, 
                            and Mr. Bereuter
  Deleted sponsor: Mr. Gene Green of Texas (added September 29, 1995; 
                          deleted May 9, 1996)

                           September 26, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
 [For text of introduced bill, see copy of bill as introduced on July 
                               20, 1995]

_______________________________________________________________________

                                 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 1996''.

SEC. 2. FINDINGS.

    The Congress finds that--
            (1) many Federal programs have addressed the Nation's 
        problems by providing categorical financial assistance with 
        detailed requirements relating to the use of funds;
            (2) although Federal financial assistance has been directed 
        at critical national needs, some inflexible program 
        requirements impede the effective delivery of services;
            (3) State, local, and tribal governments and private, 
        nonprofit organizations are dealing with increasingly complex 
        problems that require the delivery of services in many 
        different ways;
            (4) the Nation's communities are diverse, and national 
        needs often require different solutions in different 
        communities;
            (5) many recipients of Federal financial assistance have 
        innovative planning and public involvement strategies for 
        providing services which, if given sufficient flexibility to 
        integrate Federal financial assistance from multiple programs 
        or with State, local, tribal, or private, nonprofit programs, 
        could be used to maximize the effectiveness and efficiency of 
        Federal financial assistance; and
            (6) it is more important than ever to--
                    (A) promote more effective and efficient delivery 
                of government services to meet the needs of 
                individuals, families, and communities;
                    (B) respond flexibly to national needs in the 
                Nation's diverse communities;
                    (C) reduce the barriers between programs that 
                impede the ability of State, local, and tribal 
                governments and private, nonprofit organizations to 
                effectively deliver services, and meet national as well 
                as community objectives;
                    (D) coordinate the delivery of programs and 
                services by administering agencies; and
                    (E) allow State, local, and tribal governments and 
                private, nonprofit organizations to be innovative in 
                creating solutions to address national policy goals in 
                ways that recognize the diversity of our Nation's 
                communities.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) ensure the more efficient use of Federal, State, local, 
        and tribal resources through program flexibility and 
        coordination;
            (2) place emphasis in Federal programs on achieving Federal 
        policy goals;
            (3) remove Federal impediments to local service delivery;
            (4) enable State, local, and tribal governments and 
        private, nonprofit organizations to adapt programs of Federal 
        financial assistance to the particular circumstances of their 
        communities, by--
                    (A) integrating appropriate Federal financial 
                assistance programs into flexibility or coordination 
                plans that increase the effectiveness and efficiency of 
                those programs in their communities;
                    (B) simplifying procedures across Federal programs 
                to avoid needless duplication, overlap, and cost; and
                    (C) authorizing Federal officials to waive some 
                program requirements when necessary to enhance the 
                delivery of services; and
            (5) encourage State, local, and tribal governments and 
        private, nonprofit organizations to work together to build 
        stronger cooperative partnerships to address critical needs and 
        problems.

SEC. 4. DEFINITIONS.

    For purposes of this Act:
            (1) Approved flexibility or coordination plan.--The term 
        ``approved flexibility or coordination plan'' means a 
        flexibility or coordination plan (or part of such a plan) that 
        is approved by the Community Empowerment Board under section 8, 
        and for which the President certifies that approval under 
        section 8(g).
            (2) Board.--The term ``Board'' means the Community 
        Empowerment Board established under section 6.
            (3) Community advisory committee.--The term ``community 
        advisory committee'' means such a committee established or 
        designated by an eligible applicant in accordance with section 
        10.
            (4) Covered federal financial assistance program.--The term 
        ``covered Federal financial assistance program'' means an 
        eligible Federal financial assistance program that is included 
        in a flexibility or coordination plan of an eligible applicant.
            (5) Eligible applicant.--The term ``eligible applicant'' 
        means--
                    (A) a State, local, or tribal government, or 
                qualified organization that is eligible to receive 
                financial assistance under 1 or more eligible Federal 
                financial assistance programs; or
                    (B) a qualified consortium.
            (6) Eligible federal financial assistance program.--The 
        term ``eligible Federal financial assistance program''--
                    (A) except as provided in subparagraph (C), means a 
                domestic assistance program (as defined under section 
                6101(4) of title 31, United States Code) under which 
                financial assistance is available, directly or 
                indirectly, to eligible applicants;
                    (B) includes any component of a program described 
                in subparagraph (C), under which financial assistance 
                is provided to pay administrative costs if the level of 
                Federal funding for those costs is, by statute or 
                regulation, established separately from the level of 
                Federal funding for benefits provided under the 
                program; and
                    (C) except as provided in subparagraph (B), does 
                not include a program carried out with direct spending 
                (as defined in section 250(c)(8) of the Balanced Budget 
                and Emergency Deficit Control Act of 1985 (2 U.S.C. 
                900(c)(8)).
            (7) Flexibility or coordination plan.--The term 
        ``flexibility or coordination plan'' means a comprehensive plan 
        for the integration and administration by an eligible applicant 
        of financial assistance provided by the Federal Government 
        under 2 or more eligible Federal financial assistance programs, 
        that--
                    (A) combines funds from Federal, State, local, or 
                tribal government or private sources to address the 
                service needs of a community; or
                    (B) is a strategic plan submitted in an application 
                for designation as an enterprise community or an 
                empowerment zone under section 1391 of the Internal 
                Revenue Code of 1986 (26 U.S.C. 1391).
            (8) Local government.--The term ``local government'' 
        means--
                    (A) a political subdivision of a State that is a 
                unit of general local government (as defined under 
                section 6501 of title 31, United States Code);
                    (B) any combination of political subdivisions 
                described in subparagraph (A) that submits an 
                application to the Board; or
                    (C) a local education agency (as defined under 
                section 14101(18) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 8801(18)).
            (9) Priority funding.--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 an eligible applicant pursuant to this 
        Act.
            (10) Qualified consortium.--The term ``qualified 
        consortium'' means a group that--
                            (A) is composed of any combination of 
                        eligible applicants described in paragraph 
                        (5)(A); and
                            (B) includes not less than 3 eligible 
                        applicants described in paragraph (5)(A) that 
                        provide services under eligible Federal 
                        financial assistance programs in not less than 
                        3 of the following areas:
                                    (i) Education.
                                    (ii) Head Start.
                                    (iii) Child care.
                                    (iv) Family support and 
                                preservation.
                                    (v) Maternal and child health.
                                    (vi) Job training.
                                    (vii) Housing.
                                    (viii) Nutrition.
                                    (ix) Juvenile justice.
                                    (x) Drug abuse prevention and 
                                treatment.
                                    (xi) Community and economic 
                                development.
            (11) Qualified organization.--The term ``qualified 
        organization'' means a private, nonprofit organization 
        described in section 501(c)(3) of the Internal Revenue Code of 
        1986 (26 U.S.C. 501(c)(3)) that is exempt from taxation under 
        section 501(a) of the Internal Revenue Code of 1986 (26 U.S.C. 
        501(a)).
            (12) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, Puerto Rico, American Samoa, 
        Guam, the Northern Mariana Islands, and the Virgin Islands.
            (13) State legislative official.--The term ``State 
        legislative official'' means--
                    (A) the majority leader of a chamber of a State 
                legislature; and
                    (B) the minority leader of a chamber of a State 
                legislature.
            (14) Tribal government.--The term ``tribal government'' 
        means the governing entity of an Indian tribe, as that term is 
        defined in the Federally Recognized Tribe List Act of 1994 (25 
        U.S.C. 479a).

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

    Notwithstanding any other law, amounts available to an eligible 
applicant under a covered Federal financial assistance program included 
in an approved flexibility or coordination plan shall be paid and 
administered in the manner specified in the approved flexibility or 
coordination plan.

SEC. 6. ESTABLISHMENT OF COMMUNITY EMPOWERMENT BOARD.

    (a) In General.--There is established a Community Empowerment 
Board, which shall consist of--
            (1) the Secretary of Housing and Urban Development,
            (2) the Secretary of Health and Human Services,
            (3) the Secretary of Agriculture,
            (4) the Secretary of Transportation,
            (5) the Secretary of Education,
            (6) the Secretary of Commerce,
            (7) the Secretary of Labor,
            (8) the Secretary of the Treasury,
            (9) the Attorney General,
            (10) the Secretary of the Interior,
            (11) the Secretary of Energy,
            (12) the Secretary of Veterans Affairs,
            (13) the Secretary of Defense,
            (14) the Director of the Federal Emergency Management 
        Agency,
            (15) the Administrator of the Environmental Protection 
        Agency,
            (16) the Director of National Drug Control Policy,
            (17) the Administrator of the Small Business 
        Administration,
            (18) the Director of the Office of Management and Budget, 
        and
            (19) the Administrator of General Services.
    (b) Chair.--The President shall designate the Chair of the Board 
from among its members.
    (c) Functions.--The Board shall--
            (1) receive, review, and approve or disapprove flexibility 
        or coordination plans in accordance with section 8;
            (2) establish interagency teams to provide training and 
        technical assistance to eligible applicants, comprised of 
        representatives of the agencies that administer eligible 
        Federal financial assistance programs;
            (3) monitor the progress of development and implementation 
        of flexibility or coordination plans;
            (4) review regulations governing, and identify more 
        efficient operation and coordination of, eligible Federal 
        financial assistance programs in the areas of--
                    (A) education;
                    (B) Head Start;
                    (C) child care;
                    (D) family support and preservation;
                    (E) maternal and child health;
                    (F) job training;
                    (G) housing;
                    (H) nutrition;
                    (I) juvenile justice;
                    (J) drug abuse prevention and treatment; and
                    (K) community and economic development;
            (5) coordinate and assist Federal agencies in eliminating, 
        revising, and coordinating regulations under eligible Federal 
        financial assistance programs;
            (6) coordinate and assist Federal agencies in creating a 
        uniform application to be used to apply for assistance under 
        eligible Federal financial assistance programs in the areas 
        listed in paragraph (4);
            (7) coordinate and assist Federal agencies in creating a 
        release form to be used to obtain consent from beneficiaries 
        under eligible Federal financial assistance programs to 
        facilitate, where appropriate and otherwise lawful, the sharing 
        of information across such programs;
            (8) coordinate and assist agencies in creating a system 
        under which an eligible applicant may use one proposal to apply 
        for funding under multiple eligible Federal financial 
        assistance programs; and
            (9) evaluate current performance standards and evaluation 
        criteria for eligible Federal financial assistance programs, 
        and make specific recommendations to agencies regarding how to 
        revise such standards and criteria in order to establish 
        specific and measurable performance and outcome measures upon 
        which program success and success of approved flexibility or 
        coordination plans may be judged and future funding decisions 
        may be made.
    (d) Flexibility Councils.--
            (1) In general.--The Chair of the Board may appoint a 
        Flexibility Council to review any application for approval of a 
        flexibility or coordination plan. The Flexibility Council shall 
        consist of 5, 7, or 9 members of the Board, and shall include 
        the Board members representing the departments most affected by 
        the flexibility or coordination plan for which the council is 
        appointed. The Flexibility Council shall review the plan under 
        section 8 and make recommendations to the Board regarding 
        approval or disapproval of all or part of the plan.
            (2) Authority to approve plans.--The Board may delegate to 
        a Flexibility Council the authority of the Board under section 
        8 to approve or disapprove the flexibility or coordination plan 
        for which it is appointed, if the application for approval of 
        the plan--
                    (A) does not contain a request for a waiver under 
                section 8; or
                    (B) only contains requests for waivers under 
                section 8 for which alternative measures are not 
                required under section 8(d)(5).
    (e) Guidance and Other Materials.--The Board shall--
            (1) issue guidance to implement this Act within 180 days 
        after the date of enactment of this Act; and
            (2) issue other subsequent materials that may assist 
        eligible applicants in the development and implementation of 
        flexibility or coordination plans.

SEC. 7. APPLICATION FOR APPROVAL OF FLEXIBILITY OR COORDINATION PLAN.

    (a) In General.--An eligible applicant may submit to the Board in 
accordance with this section an application for approval of a 
flexibility or coordination plan.
    (b) Contents of Application.--An application submitted under this 
section shall include--
            (1) a proposed flexibility or coordination plan that 
        complies with subsection (c);
            (2) written certification by the chief executive of the 
        applicant, or in the case of a qualified consortium by the 
        chief executive officer of each eligible applicant that is a 
        member of the consortium, and such additional assurances as may 
        be required by the Board, that--
                    (A) the applicant has the ability, authority, and 
                resources to implement the proposed plan, 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;
            (3) all comments on the proposed plan submitted under 
        subsection (d) by a Governor or State legislative official of a 
        State or a chief executive of a local or tribal government that 
        would be directly affected by implementation of the proposed 
        plan, and the applicant's responses to those comments;
            (4) public comments on the proposed plan, including the 
        transcript of at least 1 public hearing and comments of the 
        appropriate community advisory committee designated or 
        established under section 10 for the plan; and
            (5) other relevant information the Board determines, after 
        consultation with the applicant, to be necessary to approve the 
        proposed plan.
    (c) Contents of Plan.--A flexibility or coordination plan submitted 
under this section shall include--
            (1) a brief description of the plan;
            (2) the geographic area to which the plan would apply and 
        the rationale for selecting the area;
            (3) the agencies and organizations that will collaborate to 
        provide services and benefits under the plan;
            (4) the particular groups of individuals, by service needs, 
        economic circumstances, or other defining factors, who would 
        receive services and benefits under the plan;
            (5)(A) general goals and measurable performance criteria, 
        and 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 the community in the geographic area covered by 
        the plan, and of program costs, that shall include--
                    (i) a list of goals to improve the community and 
                the lives of its citizens;
                    (ii) a list of goals identified by the State in 
                which the plan is to be implemented, except that if no 
                such goals have been established by the State the plan 
                may propose the goals; and
                    (iii) a description of how the plan will--
                            (I) attain the goals listed under clause 
                        (ii);
                            (II) measure performance;
                            (III) collect and maintain data;
                            (IV) identify specific subgroups of 
                        individuals within the geographic area covered 
                        by the plan; and
                            (V) measure the impact of the plan on those 
                        subgroups;
            (6) the eligible Federal financial assistance programs 
        included in the plan as covered Federal financial assistance 
        programs and the specific benefits to be provided under the 
        plan under such programs, including--
                    (A) criteria for determining eligibility for 
                benefits under the plan;
                    (B) the services to be made available or activities 
                to be undertaken;
                    (C) the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of nonservice 
                benefits; and
                    (D) any other descriptive information the Board 
                considers necessary to approve the plan;
            (7) 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, and justification for the waiver, except 
        that if the applicant is uncertain whether a waiver or waivers 
        are required the applicant may request that the Board make such 
        a determination after the application is accepted for 
        consideration;
            (8) any State, local, or tribal statutory, regulatory, or 
        other requirement, the waiver of which is necessary to 
        implement the plan, and indicia of commitments by the relevant 
        State, local, or tribal governments to grant such waivers;
            (9) fiscal control and related accountability procedures 
        applicable under the plan;
            (10) 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, and indicia of 
        commitments to provide those funds;
            (11) written certification from each State, local, or 
        tribal government for which certification is required under 
        subsection (b)(2);
            (12) the estimated duration of any additional planning, 
        training, or system development period that is required between 
        approval of the plan and implementation of any waivers approved 
        by the Board; and
            (13) other relevant information the Board may require to 
        approve the plan.
    (d) Procedure for Applying.--
            (1) Submission to affected state and local governments.--An 
        eligible applicant that is not a State shall, at least 60 days 
        before submitting an application for approval of a proposed 
        flexibility or coordination plan to the Board, submit the plan 
        to--
                    (A) the Governor and each State legislative 
                official of each State that the applicant considers to 
                be directly affected by the plan;
                    (B) the chief State school officer of each State 
                that the applicant considers to be directly affected by 
                the plan, if the constitution of the State--
                            (i) provides for the election of such an 
                        official by the voters in the State; and
                            (ii) vests primary authority over education 
                        programs of the State in such an officer; and
                    (C) each tribal government that the applicant 
                considers to be directly affected by the plan.
            (2) Action by affected government.--Each person that 
        receives an application submitted under paragraph (1) may, by 
        no later than 60 days after the date of that receipt--
                    (A) prepare comments on the proposed flexibility or 
                coordination plan included in the application, 
                including a statement of approval or disapproval of all 
                or any part of the plan;
                    (B) describe and make commitments to waive any 
                State or local laws or other requirements that are 
                necessary for successful implementation of the proposed 
                plan;
                    (C) describe and make commitments to provide any 
                financial and technical support that is necessary for 
                successful implementation of the proposed plan; and
                    (D) submit the comments and commitments to the 
                eligible applicant.
            (3) Submittal to board.--If the Governor or a State 
        legislative official of a State or the chief executive officer 
        of a local government--
                    (A) fails to act within 60 days after receiving an 
                application under paragraph (1);
                    (B) does not make and submit to the eligible 
                applicant the commitments referred to in paragraph 
                (2)(A) and (B); or
                    (C) disagrees with all or part of the proposed 
                flexibility or coordination plan;
        the eligible applicant may submit the application to the Board 
        if the application is amended as necessary for the successful 
        implementation of the proposed plan without cooperation of the 
        State or local government, including by adding a discussion 
        regarding the ability of the proposed flexibility or 
        coordination plan to meet plan goals and satisfy performance 
        criteria in the absence of statutory and regulatory waivers and 
        financial and technical support from the State or local 
        government.
    (e) Treatment as Application for Covered Federal Financial 
Assistance Program.--Notwithstanding any other provision of law, an 
application for approval under this Act of a flexibility or 
coordination plan--
            (1) shall be considered by each affected agency as an 
        application for assistance under each covered Federal financial 
        assistance program included in the plan; and
            (2) shall be given priority consideration for funding under 
        that program.

SEC. 8. REVIEW AND APPROVAL OF FLEXIBILITY OR COORDINATION PLANS AND 
              WAIVER REQUESTS.

    (a) Flexibility or Coordination Plans Accepted for Review.--The 
Board shall review at least the first 50 applications submitted under 
section 7(a) each year. The Board--
            (1) shall give priority consideration to applications 
        that--
                    (A) are submitted from communities that applied for 
                designation as an enterprise community or an 
                empowerment zone under section 1391 of the Internal 
                Revenue Code of 1986;
                    (B) coordinate covered Federal financial assistance 
                programs in at least 3 of the areas of--
                            (i) education;
                            (ii) Head Start;
                            (iii) child care;
                            (iv) family support and preservation;
                            (v) maternal and child health;
                            (vi) job training;
                            (vii) housing;
                            (viii) nutrition;
                            (ix) juvenile justice;
                            (x) drug abuse prevention and treatment; 
                        and
                            (xi) community and economic development; or
                    (C) are reviewable by a Flexibility Council under 
                section 6(d); and
            (2) may develop criteria to govern the factors to be 
        applied in determining which additional applications it reviews 
        after the first 50 each year.
    (b) Review of Applications.--Upon acceptance of an application for 
review under this section, the Board shall--
            (1) notify the applicant of the Board's acceptance of the 
        application for review and the procedures for consultation with 
        the applicant during the review process;
            (2) by a majority vote, approve or disapprove all or part 
        of the plan within 120 days after accepting the plan for 
        review, except that the Board may extend this period by another 
        60 days if--
                    (A) the Board determines through consultation with 
                affected Federal agencies that a waiver of 1 or more 
                Federal statutory or regulatory requirements is 
                necessary to implement the plan;
                    (B) the Board determines that additional 
                information or clarification is needed from the 
                applicant to make a decision regarding the application; 
                or
                    (C) the applicant requests additional time to 
                strengthen its application because of information that 
                it has obtained from the Board;
            (3) notify the applicant in writing of that approval or 
        disapproval by not later than 15 days after the date of that 
        approval or disapproval of certification by the President under 
        subsection (g); and
            (4) 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.
    (c) Approval of Plans.--
            (1) In general.--The Board may approve a flexibility or 
        coordination plan for which an application is submitted by an 
        eligible applicant under this Act, or any part of such a plan, 
        if the Board determines that--
                    (A) the plan or part will improve the effectiveness 
                and efficiency of providing benefits under covered 
                Federal financial assistance programs included in the 
                plan or part by reducing administrative inflexibility, 
                duplication, and unnecessary expenditures;
                    (B) the plan or part does not result in a 
                qualitative reduction in services or benefits provided 
                to individuals and families that receive benefits under 
                covered Federal financial assistance programs under the 
                plan or part;
                    (C) the eligible applicant has adequately 
                considered, and the plan or part appropriately 
                addresses, any effect that administration of each 
                covered Federal financial assistance program under the 
                plan or part will have on administration of the other 
                covered Federal financial assistance programs under the 
                plan or part;
                    (D) the eligible applicant has or is developing 
                data bases, planning, and evaluation processes for 
                determining whether implementing the plan or part 
                includes the specific goals, measurable performance 
                criteria, comprehensive evaluation system, and other 
                matters required under section 7(c)(5);
                    (E) the plan or part will more effectively achieve 
                the general goals of each covered Federal financial 
                assistance program under the plan or part at the State, 
                local, and tribal level and will better meet the needs 
                of State, local, and tribal citizens;
                    (F) implementation of the plan or part will achieve 
                the purposes of this Act and of each covered Federal 
                financial assistance program under the plan or part;
                    (G) the plan or part and the application for 
                approval of the plan comply with the requirements of 
                this Act;
                    (H) the eligible applicant has--
                            (i) waived the requirements of its own laws 
                        and regulations the waiver of which is 
                        necessary for implementation of the plan or 
                        part; and
                            (ii) obtained commitments for any 
                        additional necessary waivers from other State, 
                        local, or tribal governments;
                    (I) Federal funds made available under the plan or 
                part will not supplant non-Federal funds for existing 
                services and activities that promote the goals of the 
                plan or part; and
                    (J) none of the Federal or non-Federal funds used 
                under the plan or part will be used--
                            (i) to pay the non-Federal share of 
                        activities under programs that are not covered 
                        Federal financial assistance programs under the 
                        plan or part; or
                            (ii) to meet maintenance of effort 
                        requirements of such an activity.
            (2) Limitation on authority to approve certain parts of 
        plans.--The Board may not approve a part of a flexibility or 
        coordination plan--
                    (A) if 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 that part; or
                    (B) in the case of a part that applies to 
                assistance to a qualified organization under an 
                eligible Federal financial assistance program, if the 
                qualified organization does not consent in writing to 
                the receipt of that assistance in accordance with the 
                part.
            (3) Requirement to disapprove part.--The Board shall 
        disapprove a part of a flexibility or coordination plan if the 
        Board determines that the part fails to comply with paragraph 
        (1).
            (4) Specification of period of effectiveness.--
                    (A) In general.--In approving any part of a 
                flexibility or coordination plan, the Board shall 
                specify the period during which the part is effective, 
                which--
                            (i) may not begin before the date the 
                        President certifies approval of the plan under 
                        subsection (g); and
                            (ii) in no case shall be greater than the 
                        5-year period beginning on the date of that 
                        certification.
                    (B) Effectiveness after termination of this act.--
                An approved flexibility or coordination plan (or part 
                of a plan) shall be effective for the period of time 
                specified by the Board, regardless of whether that time 
                extends beyond the date of the termination of the 
                effectiveness of this Act under section 14.
                    (C) Effective period shorter than proposed.--The 
                Board may specify an effective period for an approved 
                flexibility or coordination plan (or part of a plan) 
                that is shorter than a period proposed by the eligible 
                applicant for the plan.
    (d) Waivers of Federal Requirements.--
            (1) In general.--Subject to the limitations in paragraphs 
        (2), (3), (4), (5), and (6), the Board may waive any statutory 
        or regulatory requirement of a covered Federal financial 
        assistance program included in an approved flexibility or 
        coordination plan, and any procedural, administrative, or 
        reporting requirement of a statute or regulation generally 
        applicable to eligible Federal financial assistance programs, 
        if that waiver is reasonably necessary for implementation of 
        the plan.
            (2) Effective period of waiver.--A waiver under this 
        subsection shall terminate on the earlier of--
                    (A) the expiration of a period that shall be 
                specified by the Board in making the waiver, and that 
                may not exceed the 5-year period beginning on the 
                effective date of the waiver; or
                    (B) any date on which the flexibility or 
                coordination plan for which the waiver is granted 
                ceases to be effective.
            (3) Requirements that may not be waived.--The Board may not 
        waive under this subsection--
                    (A) any requirement that enforces any 
                constitutional right;
                    (B) any requirement 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.);
                            (v) the Americans with Disabilities Act of 
                        1990 (42 U.S.C. 12101 et seq.);
                            (vi) the Fair Housing Act (42 U.S.C. 3601 
                        et seq.); or
                            (vii) the Individuals With Disabilities 
                        Education Act (20 U.S.C. 1400 et seq.); or
                    (C) any requirement that enforces any other civil 
                right or nondiscrimination provision, including any 
                right under--
                            (i) title VII of the Civil Rights Act of 
                        1964 (42 U.S.C. 2000e et seq.);
                            (ii) the Equal Pay Act of 1963 (29 U.S.C. 
                        206(d)); or
                            (iii) the Age Discrimination in Employment 
                        Act of 1967 (29 U.S.C. 621 et seq.).
            (4) Waivers that may not be granted.--The Board may not 
        waive under this subsection a requirement if--
                    (A) the waiver would--
                            (i) diminish national labor relations or 
                        labor standards;
                            (ii) diminish national environmental 
                        standards;
                            (iii) diminish educational equality or 
                        opportunity;
                            (iv) create a threat to public health or 
                        safety;
                            (v) diminish financial management 
                        requirements or impair the Federal Government's 
                        position regarding loans or loan guarantees;
                            (vi) diminish occupational health or 
                        safety;
                            (vii) diminish banking or financial service 
                        standards; or
                            (viii) impair pensions; or
                    (B) the waiver pertains to taxation.
            (5) Waivers for which alternative measures required.--
                    (A) In general.--The Board may not waive any 
                procedural, administrative, or reporting requirement 
                described in subparagraph (B) unless the approved 
                flexibility and coordination plan for which the waiver 
                is made contains, and the eligible applicant for the 
                plan commits to undertake, alternative measures to 
                replace the requirement to be waived.
                    (B) Requirements described.--Subparagraph (A) 
                refers to the following requirements:
                            (i) Any procedural, administrative, or 
                        reporting requirement in any statute or 
                        regulation that establishes or enforces labor 
                        relations or labor standards.
                            (ii) Any procedural, administrative, or 
                        reporting requirement in any statute or 
                        regulation that establishes or enforces 
                        environmental standards.
                            (iii) Any procedural, administrative, or 
                        reporting requirement in any statute or 
                        regulation that establishes or enforces 
                        educational equality or opportunity.
                            (iv) Any procedural, administrative, or 
                        reporting requirement in any statute or 
                        regulation that protects public health or 
                        safety.
                    (C) Finding by the board.--The Board may not waive 
                any requirement described in subparagraph (B) unless 
                the Board determines that the alternative measures 
                contained in the plan with respect to the waiver will 
                maintain or advance national goals, standards, or 
                protections as effectively as the waived requirement.
            (6) State, local, or tribal authority.--Nothing in this Act 
        shall be construed to grant the Board or any eligible applicant 
        authority to waive or otherwise preempt--
                    (A) any State, local, or tribal law or regulation; 
                or
                    (B) any State plan for the use of Federal financial 
                assistance.
            (7) Notice of requested waivers.--Prior to submitting an 
        application to the Board, eligible applicants shall provide 
        notice of all waivers of Federal, State, and local laws and 
        regulations that are requested. Notice shall be provided to the 
        community or communities deemed by the eligible applicant to be 
        affected by the waivers via publication in a newspaper of 
        general circulation. Whenever possible, notice of the requested 
        waivers shall be provided as part of the notice for the public 
        hearing.
    (e) Memoranda of Understanding Required.--
            (1) In general.--The Board may not approve any part of a 
        flexibility or coordination plan unless each eligible applicant 
        that would receive Federal financial assistance administered 
        under the plan enters into a memorandum of understanding under 
        this subsection with the Board.
            (2) Contents.--A memorandum of understanding under this 
        subsection shall specify all understandings that have been 
        reached among the Board, Federal agencies that administer 
        covered Federal financial assistance programs under the 
        flexibility or coordination plan, and approved applicants that 
        are subject to the plan, regarding the approval and 
        implementation of all approved parts of the plan. The 
        memorandum shall include understandings with respect to--
                    (A) all requirements under covered Federal 
                financial assistance programs that are to be waived 
                under subsection (d);
                    (B) all State, local, or tribal statutory and 
                regulatory requirements that are to be waived;
                    (C)(i) the total amount of Federal funds that will 
                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 will be provided or used under each covered 
                Federal financial assistance program included in those 
                parts;
                    (D) the amounts and sources of all non-Federal 
                funds and technical support that will be provided as 
                benefits under or used to administer those parts; and
                    (E) measurable performance criteria that will be 
                used during the effective period of those parts to 
                determine the extent to which the goals and performance 
                levels of the parts are achieved, and the data to be 
                collected to make that determination.
    (f) Limitation on Confidentiality Requirements.--The Board may not, 
as a condition of approval of any part of a flexibility or coordination 
plan or with respect to the implementation of an approved flexibility 
or coordination plan, establish any confidentiality requirement that 
would--
            (1) impede the exchange of information needed for the 
        design or provision of benefits under the plan; or
            (2) conflict with any law related to confidentiality.
    (g) Certification by President Required.--
            (1) In general.--A decision by the Board to approve or 
        disapprove a flexibility or coordination plan under this 
        section, or to terminate the effectiveness of such a plan under 
        section 9, shall not be effective until the end of the 60-day 
        period beginning on the date the President certifies that the 
        approval or disapproval is in accordance with this Act.
            (2) Time for certification.--The President shall make a 
        certification for purposes of paragraph (1) regarding a 
        decision of the Board, or issue a written finding that the 
        certification may not be made, within 15 days after the date of 
        the decision by the Board.

SEC. 9. IMPLEMENTATION OF APPROVED FLEXIBILITY OR COORDINATION PLANS.

    (a) Special Assistance.--To the extent permitted by law, the head 
of each Federal agency shall seek to provide special assistance to an 
eligible applicant to support implementation of an approved flexibility 
or coordination plan, including expedited processing, priority funding, 
and technical assistance.
    (b) Evaluation and Termination.--
            (1) Reports and evaluations by approved applicants, 
        generally.--An eligible applicant for an approved flexibility 
        or coordination plan, in accordance with guidance issued by the 
        Board, shall--
                    (A) submit any reports on and cooperate in any 
                audits of the implementation of the plan; and
                    (B) periodically evaluate the effect implementation 
                of the plan has had on--
                            (i) individuals who receive benefits under 
                        the plan, including the specific subgroups 
                        identified in the plan under section 
                        7(c)(5)(C)(iii)(IV);
                            (ii) communities in which those individuals 
                        live; and
                            (iii) costs of administering and providing 
                        assistance under covered Federal financial 
                        assistance programs included in the plan.
            (2) Initial 1-year report.--No later than 90 days after the 
        end of the 1-year period beginning on the date of the approval 
        by the Board of an approved flexibility or coordination plan of 
        an eligible applicant, and annually thereafter, the eligible 
        applicant shall submit to the Board 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 7(c)(5).
            (3) Termination of plan by board.--
                    (A) In general.--The Board may terminate the 
                effectiveness of an approved flexibility or 
                coordination plan if, after consultation with the 
                eligible applicant and the head of each Federal agency 
                responsible for administering a covered Federal 
                financial assistance program included in the plan, the 
                Board determines that--
                            (i) the goals and performance criteria 
                        included in the plan under section 7(c)(5) have 
                        not been met, and those goals and criteria are 
                        sound;
                            (ii) the goals and performance criteria 
                        included in the plan under section 7(c)(5) are 
                        not sound, and the plan would not meet goals 
                        and criteria that are sound;
                            (iii) the eligible applicant for the plan 
                        is unable to meet its commitments under this 
                        Act; or
                            (iv) there has been fraud or abuse 
                        involving Federal funds under the plan.
                    (B) Transition period.--In terminating an approved 
                flexibility or coordination plan under this paragraph, 
                the Board shall allow a reasonable period of time for 
                appropriate Federal agencies and eligible applicants to 
                resume administration of Federal programs that are 
                covered Federal financial assistance programs included 
                in the plan.
                    (C) Effectiveness of decision to terminate.--A 
                decision by the Board to terminate the effectiveness of 
                a flexibility or coordination plan shall take effect as 
                provided in section 8(g).
            (4) Revocation of waiver authorized.--The Board may revoke 
        a waiver under section 8(d) if the Board finds that the 
        eligible applicant--
                    (A) fails to comply with the requirements of the 
                plan;
                    (B) fails to make acceptable progress towards 
                achieving the goals and performance criteria included 
                in the plan under section 7(c)(5); or
                    (C) fails to use funds in accordance with the plan.
    (c) Final Report; Extension of Plan.--
            (1) Final report.--No later than 60 days before the end of 
        the effective period of an approved flexibility or coordination 
        plan, the approved applicant shall submit to the Board 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 covered Federal financial assistance programs 
        under the plan.
            (2) Extension of effective period of plan.--The Board may 
        extend the effective period of an approved flexibility or 
        coordination plan for up to 5 years, based on the report of an 
        approved applicant under paragraph (1).

SEC. 10. COMMUNITY ADVISORY COMMITTEES.

    (a) Establishment.--An eligible applicant that applies for approval 
of a flexibility or coordination plan under this Act shall--
            (1) designate an existing organization that meets the 
        requirements of subsection (c) to be a community advisory 
        committee for purposes of this section; or
            (2) establish a community advisory committee in accordance 
        with this section.
    (b) Functions.--A community advisory committee shall advise an 
eligible applicant in the development and implementation of its 
flexibility or coordination plan, including with respect to--
            (1) conducting public hearings; and
            (2) reviewing and commenting on all community policies, 
        programs, and actions under the plan that 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 will help to enhance the leadership role of 
        the eligible applicant in developing a flexibility or 
        coordination plan.
    (d) Opportunity for Review and Comment by Committee.--Before 
submitting an application for approval of a final proposed flexibility 
or coordination plan, an eligible applicant shall submit the final 
proposed plan for review and comment by the community advisory 
committee designated or established under this section.
    (e) Committee Review of Reports.--Before submitting any annual or 
final report on an approved Federal assistance plan, an approved 
applicant shall submit the report for review and comment to the 
community advisory committee.

SEC. 11. TECHNICAL AND OTHER ASSISTANCE.

    (a) Technical Assistance.--The Board may provide, or direct the 
head of a Federal agency to provide, technical assistance to an 
eligible applicant in developing information necessary for the design 
or implementation of a flexibility or coordination plan, if the 
eligible applicant submits a request that includes, in accordance with 
requirements established by the Board--
            (1) a description of the flexibility or coordination plan 
        the eligible applicant proposes to develop;
            (2) a description of the groups of individuals to whom 
        benefits will be provided under covered Federal financial 
        assistance programs included in the plan; and
            (3) such assurances as the Board may require that--
                    (A) in the development of the application to be 
                submitted under this Act for approval of the plan, the 
                eligible applicant will provide adequate opportunities 
                to participate to--
                            (i) individuals and families that will 
                        receive benefits under covered Federal 
                        financial assistance programs included in the 
                        plan; and
                            (ii) governmental agencies that administer 
                        those programs; and
                    (B) the plan will be developed after considering 
                fully--
                            (i) the 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 and Assignments to Board.--At the request of the Board 
and with the approval of a Federal agency head who is a member of the 
Board, staff of the agency may be detailed or assigned to the Board on 
a nonreimbursable basis.

SEC. 12. REPORTS BY BOARD.

    No less than 18 months after the date of the enactment of this Act, 
and annually thereafter, the Board shall submit a report to the 
President and the Congress on the Federal laws or regulations that are 
most frequently waived under section 8(d) with respect to approved 
flexibility or coordination plans.

SEC. 13. REPEAL.

    (a) In General.--This Act is repealed on September 30, 2001.
    (b) Continued Application With Respect to Plans in Effect.--
Notwithstanding subsection (a), this Act, as in effect immediately 
before the date specified in subsection (a), shall continue to apply to 
any approved flexibility or coordination plan in effect immediately 
before that date, and any waivers granted under section 8(d) with 
respect to such a plan shall continue in effect, until the end of the 
6-month period beginning on the date of termination of effectiveness of 
the plan or waiver, respectively, in accordance with this Act.