[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[S. 2166 Introduced in Senate (IS)]







104th CONGRESS
  2d Session
                                S. 2166

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


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 30, 1996

 Mr. Hatfield introduced the following bill; which was read twice and 
           referred to the Committee on Governmental Affairs

_______________________________________________________________________

                                 A BILL


 
To increase the overall economy and efficiency of Government operations 
  and enable more efficient use of Federal funding by enabling State, 
 local and tribal governments and private, nonprofit organizations to 
  use amounts available under certain Federal assistance programs in 
              accordance with approved 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 
Pilot Act of 1996''.

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 State, local, and tribal governments and 
        private, nonprofit organizations are dealing with increasingly 
        complex problems which require the delivery of many kinds of 
        services;
            (4) our Nation's communities are diverse and many have 
        innovative planning and community involvement strategies to 
        comprehensively meet their particular service needs for 
        providing services, but Federal, State, and local grant and 
        other requirements often hamper effective implementation of 
        such strategies; and
            (5) it is more important than ever to provide programs 
        that--
                    (A) promote more effective and efficient delivery 
                of services at all levels of government 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 the State, local, and tribal governments' 
                ability to effectively deliver services; and
                    (D) empower State, local, and tribal 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.

SEC. 3. PURPOSES.

    The purposes of this Act are to--
            (1) improve the delivery of services to the public;
            (2) promote State, local and tribal governments and 
        private, non-profit organizations and consortiums to identify 
        goals to improve their communities and the lives of their 
        citizens;
            (3) enable eligible applicants to adapt programs of Federal 
        financial assistance to the particular needs of their 
        communities by integrating programs and program funds across 
        existing Federal financial assistance programs that have 
        similar goals and purposes;
            (4) more effectively meet the goals and purposes of 
        Federal, State and local financial assistance programs;
            (5) empower eligible applicants to work together to build 
        stronger cooperative, intergovernmental and private 
        partnerships to address critical service problems;
            (6) place less emphasis in Federal financial assistance 
        programs on complying with procedures and more emphasis on 
        achieving Federal, State, local and tribal policy goals;
            (7) facilitate State, local, and tribal government efforts 
        to develop regional or metropolitan solutions to shared 
        problems; and
            (8) improve intergovernmental efficiency.

SEC. 4. DEFINITIONS.

    For purposes of this Act:
            (1) Affected federal agency.--The term ``affected Federal 
        agency'' means the Federal agency with principal authority for 
        the administration of an eligible Federal financial assistance 
        program included in a plan.
            (2) Affected state agency.--The term ``affected State 
        agency'' means--
                    (A) any State agency with authority for the 
                administration of any State program or eligible Federal 
                financial assistance program; and
                    (B) with respect to education programs, the term 
                shall include the State Education Agency as defined by 
                the Elementary and Secondary Education Act and the 
                Higher Education Act.
            (3) Approved flexibility plan.--The term ``approved 
        flexibility plan'' means a flexibility plan or that part of a 
        flexibility plan, that is approved by the Community Empowerment 
        Board under section 8.
            (4) Board.--The term ``Board'' means the Community 
        Empowerment Board established under section 5.
            (5) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (6) Eligible applicant.--The term ``eligible applicant'' 
        means a State, local, or tribal government, qualified 
        organization, or qualified consortium that is eligible to 
        receive financial assistance under 1 or more eligible Federal 
        financial assistance program.
            (7) Eligible federal financial assistance program.--The 
        term ``eligible Federal financial assistance program''--
                    (A) except as provided in subparagraph (B), 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 a State, local, or tribal government or 
                a qualified organization to carry out activities 
                consistent with national policy goals; and
                    (B) does not include--
                            (i) a Federal program under which direct 
                        financial assistance is provided by the Federal 
                        Government directly to an individual 
                        beneficiary of that financial assistance, or to 
                        a State to provide direct financial assistance, 
                        or to a State to provide direct financial or 
                        food voucher assistance directly to an 
                        individual beneficiary;
                            (ii) 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));
                            (iii) a program of assistance referred to 
                        in section 6101(4)(A)(ix) of title 31, United 
                        States Code, or section 3(10) of the 
                        Congressional Budget Act of 1974; or
                            (iv) any project specially designated in an 
                        appropriations Act or its accompanying report.
            (8) Flexibility plan.--The term ``flexibility plan'' means 
        a comprehensive plan or part of such plan for the coordination 
        or integration and the administration by an eligible applicant 
        of financial assistance provided by the Federal Government 
        under 2 or more eligible Federal financial assistance programs 
        that includes funds from Federal, State, local, or tribal 
        government or private sources to address the service needs of a 
        community.
            (9) Goals and purposes.--The term ``goals and purposes'' 
        means the goals and purposes embodied in an eligible Federal 
        financial assistance program, including the targeted population 
        embodied in that program.
            (10) 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 educational agency as defined under 
                section 14101(18) of the Elementary and Secondary 
                Education Act of 1965 (20 U.S.C. 8801(18)).
            (11) Qualified consortium.--The term ``qualified 
        consortium'' means a group that is composed of 2 or more 
        qualified organizations, State, local, or tribal agencies that 
        receive federally appropriated funds.
            (12) 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)).
            (13) Small government.--The term ``small government'' means 
        any small governmental jurisdiction defined in section 601(5) 
        of title 5, United States Code, and a tribal government.
            (14) State.--The term ``State'' means each of the 50 
        States, the District of Columbia, Puerto Rico, American Samoa, 
        Guam, and the Virgin Islands.
            (15) State legislative official.--The term ``State 
        legislative official'' means--
                    (A) the presiding officer of a chamber of a State 
                legislature; and
                    (B) the minority leader of a chamber of a State 
                legislature.
            (16) Tribal government.--The term ``tribal goverment'' 
        means the governing entity of an Indian tribe, as that term is 
        defined in the Indian Self Determination and Education 
        Assistance Act (25 U.S.C. 450b).

SEC. 5. 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 the National Drug Control Policy;
            (17) the Administrator of the Small Business 
        Administration;
            (18) the Director of the Office of Management and Budget;
            (19) the Administrator of General Services; and
            (20) other officials of the executive branch as directed by 
        the President.
    (b) Chair.--The President shall designate the Chair of the Board 
from among its members.
    (c) Functions.--
            (1) In general.--The Board shall--
                    (A) no later than 180 days after implementation of 
                this Act, select 6 States to participate in this Act;
                    (B) receive, review, and approve or disapprove 
                flexibility plans in accordance with section 7;
                    (C) consider all requests for technical assistance 
                from eligible applicants and, when appropriate, provide 
                or direct that an affected Federal agency provide the 
head of an agency that administers en eligible Federal financial 
assistance program under which substantial Federal financial assistance 
would be provided under the plan to provide technical assistance to the 
eligible applicant, and to the extent permitted by law, special 
assistance to interested small governments to support the development 
and implementation of a flexibility plan, which may include expedited 
processing;
                    (D) in consultation with the Director, monitor the 
                progress of development and implementation of 
                flexibility plans;
                    (E) in consultation with the Director, coordinate 
                and assist Federal agencies in identifying regulations 
                of eligible Federal financial assistance programs for 
                revision, repeal and coordination;
                    (F) evaluate 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 performance and outcome 
                measures upon which the success of such programs and 
                the success of the plan may be compared and evaluated; 
                and
                    (G) designate a Federal agency to be primarily 
                responsible for the oversight, monitoring, and 
                evaluation of the implementation of a plan.
            (2) Qualifications for states.--Of the 6 States selected 
        for participation under paragraph 1:
                    (A) 3 States shall each have a population of 
                3,500,000 or more as determined under the most recent 
                decennial census; and
                    (B) 3 States shall each have a population of 
                3,500,000 or less as determined under the most recent 
                decennial census.
    (d) Coordination and Assistance.--The Director, in consultation 
with the Board, shall coordinate and assist Federal agencies in 
creating--
            (1) a uniform application to be used to apply for 
        assistance from eligible Federal financial assistance programs;
            (2) a release form to be used by grantees to facilitate, 
        where appropriate and otherwise lawful, the sharing of 
        information across eligible Federal financial assistance 
        programs; and
            (3) a system wherein an organization or consortium of 
        organizations may use one proposal to apply for funding from 
        multiple eligible Federal financial assistance programs.
    (e) Details and Assignments to Board.--At the request of the Board 
and with the approval of the appropriate Federal agency, staff of the 
agency may be detailed or assigned to the Board on a nonreimbursable 
basis.
    (f) Interagency Financing.--Notwithstanding any other law, 
interagency financing is authorized to carry out the purposes of this 
Act.
    (g) Judicial Review.--The actions of the Board shall not be subject 
to judicial review.

SEC. 6. APPLICATION FOR APPROVAL OF FLEXIBILITY PLAN.

    (a) In General.--An eligible applicant may submit to the Board in 
accordance with this section an application for approval of a 
flexibility plan.
    (b) Contents of Application.--An application submitted under this 
section shall include--
            (1) a proposed flexibility plan that complies with 
        subsection (c);
            (2) written certification by the chief executive of the 
        applicant, 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;
                    (B) amounts are available from non-Federal sources 
                to pay the non-Federal share of all eligible Federal 
                financial assistance programs included in the proposed 
                plan; and
                    (C) the flexibility plan prohibits the integration 
                or combination of program funds across existing Federal 
                financial assistance programs which do not have similar 
                goals and purposes;
            (3) written certification that each entity with legal 
        authority over a Federal financial assistance program included 
        in the plan has consented to the terms of the plan;
            (4) all comments on the proposed plan submitted under 
        subsection (d) by a Governor, affected State agency, State 
        legislative official, 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;
            (5) written documentation that the eligible applicant 
        informed the affected community of the contents of the plan, 
        made the plan available for public inspection for a reasonable 
        period of time and gave the public and the affected population 
        the opportunity to comment upon the plan, including at least 
        one public hearing involving agencies, qualified organizations, 
        eligible intended beneficiaries of the plan, and others 
        directly affected by the plan;
            (6) the public comments, which shall include the comments 
        of the affected population, received on the plan and the 
        applicant's responses to the significant comments; and
            (7) other relevant information the Board may require to 
        review or approve the proposed plan.
    (c) Contents of Plan.--A flexibility plan submitted by an eligible 
applicant under this section shall include--
            (1) the geographic area and timeframe to which the plan 
        applies and the rationale for selecting the area and timeframe;
            (2) the particular groups of individuals and subgroups of 
        the targeted population, by service needs, economic 
        circumstances, or other defining factors, who currently receive 
        services and benefits under the eligible Federal financial 
        assistance programs included in the plan and the particular 
        groups of individuals, by service needs, economic 
        circumstances, or other defining factors who would receive 
        services and benefits under the plan;
            (3) the specific goals and measurable performance criteria 
        that demonstrate how the plan is expected to improve the 
        delivery and effectiveness of services to the targeted 
        population, including--
                    (A) a description of how performance shall be 
                measured under the plan when compared to the current 
performance of the eligible Federal financial assistance programs 
included in the plan; and
                    (B) a system for the comprehensive evaluation of 
                the impact of the plan on individuals who receive 
                services and benefits in the community affected by the 
                plan, that shall include--
                            (i) a list of goals to improve the 
                        community and the lives of its citizens in the 
                        geographic area covered by the plan;
                            (ii) a list of goals identified by the 
                        State in which the plan is to be implemented, 
                        if such goals have been established by the 
                        State; and
                            (iii) a description of how the plan will--
                                    (I) attain the goals listed in 
                                clauses (i) and (ii);
                                    (II) measure performance;
                                    (III) collect and maintain data 
                                including, where appropriate, data 
                                measuring the impact of the plan on 
                                those subgroups identified in section 
                                6(c)(2); and
                                    (IV) publicly disseminate data 
                                collected under III within the 
                                geographic area covered by the plan;
            (4) the eligible Federal financial assistance programs 
        included in the plan and the specific services and benefits to 
        be provided under the plan under such programs, including--
                    (A) criteria for determining eligibility for 
                services and benefits under the plan;
                    (B) the services and benefits available under the 
                plan;
                    (C) the amounts and form (such as cash, in-kind 
                contributions, or financial instruments) of non-service 
                benefits; and
                    (D) any other descriptive information the Board 
                considers necessary to approve the plan;
            (5) a description of the goals and purposes of each Federal 
        financial assistance program included in the plan and how the 
        goals and purposes of such programs shall more effectively be 
        met at the State, local and tribal level;
            (6) a general description of how the plan appropriately 
        addresses any effect that administration of each eligible 
        Federal financial assistance program included in the plan would 
        have on the administration of programs not included in the 
        plan;
            (7) a description of how the flexibility plan will 
        adequately achieve the purposes of this Act;
            (8) except for the requirements described under section 
        7(f)(3), any Federal statutory or regulatory requirement of an 
        eligible Federal financial assistance program included in the 
        plan, the waiver of which is necessary to implement the plan, 
        and the detailed justification for the waiver request;
            (9) any State, local, or tribal statutory, regulatory, or 
        other requirement, the waiver of which is necessary to 
        implement the plan, and an indication of commitment of the 
        appropriate State, local, or tribal governments to grant such 
        waivers;
            (10) a description of the Federal fiscal control and 
        related accountability procedures to be followed under the 
        flexibility plan and, as necessary, an explanation of how such 
        procedures will not diminish existing Federal requirements;
            (11) a description of the sources and amounts of all non-
        Federal funds that are required to carry out eligible Federal 
        financial assistance programs included in the plan;
            (12) verification that Federal funds made available under 
        the plan will not supplant non-Federal funds for existing 
        services and activities that promote the goals of the plan;
            (13) verification that none of the Federal funds under the 
        plan would be used to--
                    (A) meet maintenance of effort requirements of such 
                an activity; or
                    (B) meet State, local, or tribal matching shares; 
                and
            (14) any 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 shall submit an application for approval of 
        a proposed flexibility plan to each State, local and tribal 
        government and affected State agency that the applicant deems 
        to be directly affected by the plan, at least 60 days before 
        submitting the application to the Board.
            (2) Review by affected government.--The Governor, affected 
        State agency head, State legislative official, and the chief 
        executive officer of a local government that receives an 
        application submitted under paragraph (1) may each, by no later 
        than 60 days after the date of that receipt--
                    (A) prepare comments on the proposed flexibility 
                plan included in the application;
                    (B) describe and make commitments to waive any 
                State or local laws for other requirements which are 
                necessary for successful implementation of the proposed 
                plan; and
                    (C) submit the comments and commitments to the 
                eligible applicant.
            (3) Submittal to board.--Applications for approval of a 
        flexibility plan shall only be submitted to the Board between--
                    (A) October 1, 1997 and March 31, 1998; or
                    (B) October 1, 1998 and March 31, 1999.
            (4) Action by affected government.--If the Governor, 
        affected State agency head, State legislative official or the 
        chief executive officer of a local government--
                    (A) fails to act on or otherwise endorse a plan 
                application within 60 days after receiving an 
                application under paragraph (1);
                    (B) does not make and submit to the eligible 
                applicant the commitments described in paragraphs (2) 
                (A) and (B); or
                    (C) disagrees with all or part of the proposed 
                flexibility 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 the commitment made under 
                paragraph (2)(B), including by adding an updated 
                description of the ability of the proposed flexibility 
                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) Tribal Sovereignty.--Nothing under this Act shall be construed 
to affect, or otherwise alter, the sovereign relationship between 
tribal governments and the Federal Government.
    (f) Eligibility for Other Assistance.--Disapproval by the Board of 
a flexibility plan submitted by an eligible applicant under this Act 
shall not affect the eligibility of the applicant for assistance under 
any Federal program.
    (g) State, Local, or Tribal Authority.--Nothing in this Act shall 
be construed to grant the Board, Federal agency, or any eligible 
applicant authority to waive or otherwise preempt--
            (1) any State, local, or tribal law or regulation including 
        the legal authority under State law of any affected State 
        agency, State entity, or public official over programs that are 
        under the jurisdiction of the agency, entity or official; or
            (2) the existing authority of a State, State affected 
        agency, local, or tribal government or qualified organization 
        or qualified consortium with respect to an eligible Federal 
        financial assistance program included in the plan unless such 
        entity has consented to the terms of the plan.

SEC. 7. REVIEW AND APPROVAL OF FLEXIBILITY PLANS AND WAIVER REQUESTS.

    (a) Review of Applications.--Upon receipt of an application for 
approval of a proposed flexibility plan, the Board shall notify the 
eligible applicant as to whether or not the plan is complete. If the 
Board determines a plan is complete, the Board shall--
            (1) establish procedures for consultation with the 
        applicant and other interested parties during the review 
        process;
            (2) publish notice of the application for approval in the 
        Federal Register and make available the contents to any 
        interested party upon written request;
            (3) if appropriate, coordinate public hearings on the plan 
        by either the Board or the appropriate Federal agency;
            (4) approve or disapprove plans submitted under--
                    (i) section 6(d)(3)(A) no later than July 31, 1998; 
                or
                    (ii) section 6(d)(3)(B) no later than July 31, 
                1999;
            (5) in the case of any disapproval of a plan, include 
        written justification of the reasons for disapproval in the 
        notice of disapproval sent to the applicant;
            (6) publicly announce and forward to Congress on July 31, 
        1998 and July 31, 1999, the list of approved flexibility plans, 
        including an identification of approved plans that request 
        statutory or regulatory waivers and the identification of such 
        requested waivers.
    (b) Approval.--
            (1) In general.--The Board may approve a flexibility plan 
        for which an application is submitted by an eligible applicant 
        under this Act, if the Board determines that--
                    (A) the contents of the application for approval of 
                the plan comply with the requirements of this Act; and
                    (B) the contents of the flexibility plan indicate 
                that the plan will effectively achieve the purposes of 
                this Act described in section 3 by adhering to the 
                conditions described in sections 6 and 7.
            (2) Restriction.--(A) The Board may approve no more than 30 
        plans; and
            (B) only three approved plans may be submitted by state 
        applicants.
            (3) Requirement to disapprove plan.--The Board must 
        disapprove a flexibility plan if the Board determines that--
                    (A) implementation of the plan would result in any 
                increase in the total amount of obligations or outlays 
                of discretionary appropriations or direct spending 
                under Federal financial assistance programs, over the 
                amounts of such obligations and outlays that would 
                occur under those programs without implementation of 
                the plan; or
                    (B) the flexibility plan fails to comply with 
                paragraph (1).
            (4) Specification of period of effectiveness.--In approving 
        any flexibility plan, the Board shall specify the period during 
        which the plan is effective, which in no case shall be greater 
        than 5 years from the date of approval.
    (c) Memoranda of Understanding Required.--
            (1) In general.--An approved flexibility plan may not take 
        effect until the Board receives a signed memorandum of 
        understanding agreed to by the eligible applicant that would 
        receive Federal financial assistance administered under the 
        flexibility plan and by each affected Federal agency.
            (2) Contents.--A memorandum of understanding under this 
        subsection shall specify all understandings that have been 
        reached by the affected Federal agencies and the eligible 
        applicant. The memorandum shall include understandings with 
        respect to--
                    (A) the conditions described in sections 6 and 7;
                    (B) the effective dates of all State, local or 
                tribal government waivers;
                    (C) technical or special assistance being provided 
                to the eligible applicant;
                    (D) the effective date and timeframe of the plan 
                and each Federal waiver approved in the plan; and
                    (E)(i) the total amount of Federal funds that will 
                be provided as services and benefits under or used to 
                administer eligible Federal financial assistance 
                programs included in the plan; 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 eligible 
                Federal financial assistance program included in the 
                plan.
            (3) Condition for approval of waiver request.--Prior to 
        entrance into the memorandum with an eligible applicant, the 
        affected federal agencies may approve a waiver if it is 
        consistent with the goals and purposes of the eligible federal 
        financial assistance program included in the plan.
    (d) Limitation on Confidentiality Requirements.--The Board may not, 
as a condition of approval of a flexibility plan or with respect to the 
implementation of an approved flexibility plan, establish any 
confidentiality requirement that would--
            (1) impede the exchange of information needed for the 
        design or provision of services and benefits under the plans; 
        or
            (2) conflict with law.
    (e) Limitation on the Use of Funds.--The Board may not approve any 
plan that includes funds under an eligible federal financial assistance 
program to--
            (1) support tuition vouchers for children to attend private 
        preschool, elementary or secondary schools, including before 
        and after school programs; or
            (2) otherwise pay their cost to attend such schools.
    (f) Waivers of Federal Requirements.--
            (1) In general.--Notwithstanding any other law and subject 
        to the provisions of this Act, including paragraphs (2) and 
        (3), affected Federal agencies may waive, for a period of time 
        not to exceed 5 years from the date the Board receives a signed 
        memorandum of understanding, any statutory or regulatory 
        requirement of an eligible Federal assistance program include 
        in an approved flexibility plan of an eligible applicant if 
        that waiver is--
                    (A) necessary for implementation of the flexibility 
                plan;
                    (B) not disapproved by the Board; and
                    (C) necessary to effectively achieve the purposes 
                of this Act described in section 3 by adhering to the 
                conditions described in sections 6 and 7.
            (2) Effective period of waiver.--A waiver granted under 
        this section shall terminate on the earlier of--
                    (A) the expiration of a period specified by the 
                affected Federal agency not to exceed five years from 
                the date the Board receives the signed memorandum of 
                understanding; or
                    (B) any date on which the flexibility plan for 
                which the waiver is granted ceases to be effective;
            (3) Restriction on waiver authority.--An affected Federal 
        agency may not grant a wavier for a statutory or regulatory 
        requirement of an eligible Federal financial assistance program 
        requested under this section that--
                    (A) may be waived under another provision of law 
                except in accordance with the requirements and 
                limitations imposed by that other provision of law;
                    (B) enforces statutory or constitutional rights of 
                individuals including the right to equal access and 
                opportunity in housing and education, including any 
                requirement under the individuals with Disabilities 
                Education Act (20 U.S.C. 1400 et seq);
                    (C) enforces any civil rights that prohibit 
                discrimination on the basis of race, color, religion, 
                sex, national origin, age, handicap, or disability;
                    (D) protects public health and safety, the 
                environment, labor standards, worker rights, health and 
                pension benefits or worker health and safety;
                    (E) provides for a maintenance of effort, matching 
                share or prohibition on supplanting;
                    (F) grants any person a cause of action; or
                    (G) permits, requires or limits the participation 
                of private schools, private school children, teachers 
                or personnel or religious organizations.

SEC. 8. IMPLEMENTATION, AMENDING AND TERMINATION OF APPROVED 
              FLEXIBILITY PLANS.

    (a) Implementation.--
            (1) The Board, in consultation with the Director, shall 
        issue guidance to implement this Act within 180 days after the 
        date of enactment of this Act.
            (2) Notwithstanding any other law, any service or benefit 
        that is provided under an eligible Federal financial assistance 
        program included in an approved flexibility plan shall be paid 
        and administered in the manner specified in the approved 
        flexibility plan.
            (3) The authority provided under this Act to waive 
        provisions of grant agreements may be exercised only as long as 
        the funds provided for the grant program in question are 
        available for obligation by the Federal Government.
    (b) Amending of Flexibility Plan.--
            (1) In the event that an eligible applicant--
                    (A) desires and amendment to an approved 
                flexibility plan in order to better meet the purposes 
                of this Act; or
                    (B) requires an amendment to ensure continued 
                implementation of an approved flexibility plan, the 
                applicant shall--
                            (i) submit the proposed amendment to the 
                        Board for review and approval; and
                            (ii) upon approval, enter into a revised 
                        memorandum of understanding with the affected 
                        Federal agency.
            (2) Approval by the Board and, when appropriate, affected 
        Federal agency, shall be based upon the same conditions 
        required for approval of a flexibility plan.
    (c) Termination of Plan.--
            (1) Termination of plan by board.--
                    (A) In general.--The Board shall terminate an 
                approved flexibility plan, if, after consultation with 
                the affected Federal agencies, the Board determines 
                that--
                            (i) the applicant of the approved 
                        flexibility plan is unable to meet the 
                        commitments under this Act; or
                            (ii) audit or oversight activities 
                        determine there has been fraud or abuse 
                        involving Federal funds under the plan.
                    (B) Transition period.--In terminating an approved 
                flexibility 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 eligible 
                Federal financial assistance programs included in the 
                plan.
            (2) Revocation of waiver.--
                    (A) The Board may recommend that an affected 
                Federal agency, and an affected Federal agency may, 
                revoke a waiver under section 7(f) if the applicant of 
                the approved flexibility plan fails to--
                            (i) comply with the requirements of the 
                        plan;
                            (ii) make acceptable progress towards 
                        achieving the goals and performance criteria 
                        set forth in the plan; or
                            (iii) use funds in accordance with the 
                        plan.
                    (B) Affected Federal agencies shall revoke all 
                waivers issued under section 7(f) for a flexibility 
                plan if the Board terminates the plan.
                    (C) Explanation required.--In the case of 
                termination of a plan or revocation of a waiver, as 
                appropriate, the Board or affected Federal agencies 
                shall provide for the former eligible applicant a 
written justification of the reasons for termination or revocation.

SEC. 9. EVALUATIONS AND REPORTS.

    (a) Approved Applicants.--
            (1) In general.--An applicant of an approved flexibility 
        plan, in accordance with guidance issued by the Board, shall--
                    (A) submit any reports on and cooperate in any 
                audits of the implementation of its approved 
                flexibility plan; and
                    (B) monitor the effect implementation of the plan 
                has had on--
                            (i) individuals and the specific subgroups 
                        identified in section 6(c)(2) who receive 
                        services and benefits under the plan;
                            (ii) communities in which those individuals 
                        live;
                            (iii) costs of administering and providing 
                        assistance under eligible Federal financial 
                        assistance programs included in the plan; and
                            (iv) performance of the eligible Federal 
                        financial assistance programs included in the 
                        plan compared to the performance of such 
                        programs prior to implementation of the plan.
            (2) Initial 1-year report.--No later than 90 days after the 
        end of the 1-year period beginning on the date the plan takes 
        effect, and annually thereafter, the approved applicant, 
        respectively, shall submit to the Board a report on the 
        principal activities, achievements, and shortcomings under the 
        plan during the period covered by the report, comparing those 
        achievements and shortcomings to the goals and performance 
        criteria included in the plan under section 6(c)(3).
            (3) Final report.--No later than 120 days after the end of 
        the effective period of an approved flexibility plan, the 
        approved applicant shall submit to the Board a final report on 
        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 the 
        eligible Federal financial assistance programs under the plan.
    (b) Board.--No later than two years after the date of enactment of 
this Act, and annually thereafter, the Board shall submit a report to 
the President and the Congress on the Federal statutory and regulatory 
requirements of eligible Federal financial assistance programs that are 
most frequently waived under 7(f) with respect to approved flexibility 
plans. The President shall review the report and identify those 
statutory and regulatory requirements that the President determines 
should be amended or repealed.
    (c) Director.--Two years after this Act goes into effect, and no 
less than 60 days after repeal of this Act, the Director shall report 
on its progress in achieving the functions outlined in section 5(d).
    (d) General Accounting Office.--
            (1) Beginning on the date of enactment of this Act, the 
        General Accounting Office shall--
                    (A) evaluate the effectiveness of eligible Federal 
                financial assistance programs included in flexibility 
                plans approved pursuant to this Act compared with such 
                programs not included in a flexibility plan;
                    (B) establish and maintain, through the effective 
                date of this statute, a program for the ongoing 
                collection of data and analysis of each eligible 
                Federal financial assistance program included in an 
                approved flexibility plan.
            (2) No later than January 1, 2005, the General Accounting 
        Office shall submit a report to Congress and the President that 
        describes and evaluates the results of the evaluations 
        conducted pursuant to paragraph (1) and any recommendations on 
        how to improve flexibility in the administration of eligible 
        Federal financial assistance programs.
    (e) Advisory Commission on Intergovernmental Relations.--No later 
than January 1, 2005, the Advisory Commission on Intergovernmental 
Relations shall submit a report to the Congress and President that--
            (1) describes the extent to which this Act has improved the 
        ability of State, local and tribal governments, particularly 
        smaller units of government, to make more effective use of two 
        or more Federal financial assistance programs included in a 
        flexibility plan;
            (2) evaluates if or how the flexibility provided by this 
        Act has improved the system of Federal financial assistance to 
        State, and tribal governments, and enabled governments and 
        community organizations to work together more effectively; and
            (3) includes recommendations with respect to flexibility 
        for State, local and tribal governments.

SEC. 10. REPEAL.

    This Act is repealed on January 1, 2005.
                                 <all>