[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5129 Reported in House (RH)]
<DOC>
Union Calendar No. 231
117th CONGRESS
2d Session
H. R. 5129
[Report No. 117-311]
To amend the Community Services Block Grant Act to reauthorize and
modernize the Act.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
August 31, 2021
Ms. Bonamici (for herself, Mr. Thompson of Pennsylvania, Ms. McCollum,
Ms. Stefanik, Mr. DeSaulnier, and Mr. Comer) introduced the following
bill; which was referred to the Committee on Education and Labor
May 6, 2022
Additional sponsors: Mr. McGovern, Mr. Rodney Davis of Illinois, Mr.
Langevin, Mr. Rogers of Kentucky, Mr. Cicilline, Mr. Fitzpatrick, Mrs.
Axne, Mr. McKinley, Ms. Norton, Mr. Morelle, Mr. Moulton, Mr. Lawson of
Florida, Mrs. Hayes, Mr. Reed, Mr. Huffman, Mr. Suozzi, Mr. Sean
Patrick Maloney of New York, Mrs. Luria, Mr. Levin of California, Ms.
Pingree, Mr. Trone, Mr. Courtney, Mr. Lowenthal, Mr. Stanton, Mr.
Welch, Ms. Brownley, Ms. Tenney, Mr. Carbajal, Mr. Vicente Gonzalez of
Texas, Mrs. Beatty, Mrs. Trahan, Mr. O'Halleran, Mr. Guthrie, Mr. Van
Drew, Ms. Adams, Mr. Aguilar, Mr. Amodei, Ms. Leger Fernandez, Mr.
Gibbs, Mr. Balderson, Mr. Young, Mr. Correa, Mr. Costa, Mr. Evans, Mr.
Kind, Mr. Mrvan, Mr. Ryan, Mr. Larson of Connecticut, Mr. Michael F.
Doyle of Pennsylvania, Mr. Carson, Mr. Newhouse, Ms. Pressley, Ms.
Schrier, Mr. Panetta, Mr. Katko, Ms. Craig, Mr. Johnson of Ohio, Mr.
Valadao, Mr. Delgado, Mrs. Bustos, Mr. Kim of New Jersey, Mr. Smith of
Washington, Mr. Case, Mr. Kilmer, Mr. Keller, Ms. Titus, Mrs. McBath,
Mr. Kahele, Mr. Pocan, Ms. Houlahan, Mr. Gallego, Ms. Ross, Ms. Wild,
Ms. Wilson of Florida, Mr. Takano, Mr. Fitzgerald, Mr. Feenstra, Mr.
Crow, Mr. Pappas, Mr. Jones, Mr. Kinzinger, Ms. Stevens, Mr. Levin of
Michigan, Mr. Bowman, Mr. Mfume, Mr. Sablan, Mr. Bentz, Ms. Kuster, Ms.
Blunt Rochester, Mr. Lynch, Mrs. Cherfilus-McCormick, Mr. Carey, Mr.
Bishop of Georgia, Mr. Cuellar, Mr. Auchincloss, Mr. Schneider, Mr.
Carter of Louisiana, Mr. Nadler, Mr. Brown of Maryland, Mr. Danny K.
Davis of Illinois, Ms. Lee of California, Ms. Dean, Mr. Payne, Mr.
Thompson of California, Mr. Grijalva, Mr. Raskin, Mr. Cooper, Mr.
Upton, Ms. Moore of Wisconsin, Ms. Barragan, Ms. Manning, Ms. Kaptur,
Ms. Tlaib, Mr. Kildee, Mrs. Watson Coleman, Mr. DeFazio, Ms. Chu, Ms.
Clark of Massachusetts, Mr. Cohen, Mr. Higgins of New York, and Ms.
Johnson of Texas
May 6, 2022
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 August
31, 2021]
_______________________________________________________________________
A BILL
To amend the Community Services Block Grant Act to reauthorize and
modernize the Act.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Community Services Block Grant
Modernization Act of 2022''.
SEC. 2. REAUTHORIZATION.
Subtitle B of title VI of the Omnibus Budget Reconciliation Act of
1981 (42 U.S.C. 9901 et seq.) is amended to read as follows:
``Subtitle B--Community Services Block Grant Program
``SEC. 671. SHORT TITLE.
``This subtitle may be cited as the `Community Services Block Grant
Act'.
``SEC. 672. PURPOSES.
``The purposes of this subtitle are--
``(1) to reduce poverty in the United States by supporting
the activities of community action agencies and other community
services network organizations that improve the economic
security of low-income individuals and families and create new
economic opportunities in the communities where they live; and
``(2) to accomplish the purposes described in paragraph (1)
by--
``(A) strengthening community capabilities for
identifying poverty conditions and opportunities to
alleviate such conditions;
``(B) empowering residents of the low-income
communities served to respond to the unique problems
and needs in their communities through their maximum
feasible participation in advising, planning, and
evaluating the programs, projects, and services funded
under this subtitle;
``(C) using innovative community-based approaches
that produce a measurable impact on the causes and
effects of poverty, including whole family approaches
that create opportunities for, and address the needs
of, parents and children together;
``(D) coordinating Federal, State, local, and other
assistance, including private resources, related to the
reduction of poverty so that resources can be used in a
manner responsive to local needs and conditions; and
``(E) broadening the resources directed to the
elimination of poverty, so as to promote partnerships
that include--
``(i) private, religious, charitable, and
neighborhood-based organizations; and
``(ii) individuals, businesses, labor
organizations, professional organizations, and
other organizations engaged in expanding
opportunities for all individuals.
``SEC. 673. DEFINITIONS.
``In this subtitle:
``(1) Agency-wide strategic plan.--The term `agency-wide
strategic plan' means a plan that has been adopted by an
eligible entity in the previous 5 years and establishes goals
that include meeting needs identified by the entity in
consultation with residents of the community through a process
of comprehensive community needs assessment.
``(2) Poverty line.--The term `poverty line' means the
poverty guideline calculated by the Secretary from the most
recent data available from the Bureau of the Census. The
Secretary shall revise the poverty line annually (or at any
shorter interval the Secretary determines to be feasible and
desirable). The required revision shall be accomplished by
multiplying the official poverty thresholds from the Bureau of
the Census by the percentage change in the Consumer Price Index
for All Urban Consumers during the annual or other interval
immediately preceding the time at which the revision is made.
``(3) Community action agency.--The term `community action
agency' means an eligible entity (which meets the requirements
of paragraph (1) or (2), as appropriate, of section 680(c))
that delivers multiple programs, projects, and services to a
variety of low-income individuals and families.
``(4) Community action plan.--The term `community action
plan' means a detailed plan, including a budget, that is
adopted by an eligible entity, for expenditures of funds
appropriated for a fiscal year under this subtitle for the
activities supported directly or indirectly by such funds.
``(5) Community services network organization.--The term
`community services network organization' means any of the
following organizations funded under this subtitle:
``(A) A grantee.
``(B) An eligible entity.
``(C) A Tribal grantee.
``(D) An association with a membership composed
primarily of grantees, eligible entities, Tribal
grantees, or associations of grantees, eligible
entities, or Tribal grantees.
``(6) Department.--The term `Department' means the
Department of Health and Human Services.
``(7) Eligible entity.--The term `eligible entity' means an
entity--
``(A) that is an eligible entity described in
section 673(1) of the Community Services Block Grant
Act (as in effect immediately before the date of the
enactment of the Community Services Block Grant
Modernization Act of 2022) as of the day before such
date of enactment, or has been designated by the
process described in section 680(a) (including an
organization serving migrant or seasonal farmworkers
that is so described or designated); and
``(B) that has a tripartite board described in
paragraph (1) or (2), as appropriate, of section
680(c).
``(8) Evidence-based practice.--The term `evidence-based
practice' means an activity, strategy, or intervention that--
``(A) demonstrates a statistically significant
effect on improving relevant outcomes based on at least
one well-designed and well-implemented experimental or
quasi-experimental study, or at least one well-designed
and well-implemented correlational study with
statistical controls for selection bias, and includes
ongoing efforts to examine the effects of such
activity, strategy, or intervention; or
``(B) demonstrates a rationale based on high-
quality research findings or positive evaluation that
such activity, strategy, or intervention is likely to
improve relevant outcomes, and includes ongoing efforts
to examine the effects of such activity, strategy, or
intervention.
``(9) Grantee.--The term `grantee' means a recipient of a
grant under section 675 or 676.
``(10) Private, nonprofit organization.--The term `private,
nonprofit organization' means a domestic organization that is--
``(A) described in section 501(c)(3) of the
Internal Revenue Code of 1986 and exempt from taxation
under section 501(a) of such Code; and
``(B) described in paragraph (1) or (2) of section
509(a) of the Internal Revenue Code of 1986.
``(11) Secretary.--The term `Secretary' means the Secretary
of Health and Human Services.
``(12) Service area.--The term `service area' means the
unique geographic area which the State has designated as the
area to be served by an eligible entity with funding under
section 679(a)(1).
``(13) State.--The term `State' means any of the several
States, the District of Columbia, Puerto Rico, Guam, American
Samoa, the United States Virgin Islands, or the Commonwealth of
the Northern Mariana Islands.
``(14) Tribal grantee.--The term `Tribal grantee' means an
Indian Tribe or Tribal organization, as defined in section
677(a), that receives a grant under section 677(c).
``SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.
``(a) Authorization of Program.--The Secretary is authorized to
carry out a community services block grant program and to make grants
through the program, under sections 675 and 676, to States to support
local community action plans carried out by eligible entities to reduce
poverty in the communities served by such entities.
``(b) Authority of Secretary.--The Secretary is authorized to carry
out other community programs described in section 690.
``SEC. 675. GRANTS TO TERRITORIES.
``(a) Apportionment.--The Secretary shall apportion the amount
reserved under section 691(c)(1) for each fiscal year on the basis of
need, based on the most recent applicable data available from the
Bureau of the Census to account for poverty, to eligible jurisdictions
among Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
``(b) Grants.--The Secretary shall make a grant to each eligible
jurisdiction to which subsection (a) applies for the amount apportioned
under subsection (a).
``(c) Plans for Apportionment to Territories.--No later than six
months after the enactment of this Act, the Secretary shall make
publicly available the Department's plan for apportioning funds among
territories, including factors that contribute to the calculation of
need and methodology for calculating the apportionment for each
territory. The Secretary must make publicly available any updates or
changes to this plan no less frequently than any time new applicable
data are available from the Bureau of Census.
``SEC. 676. ALLOTMENTS AND GRANTS TO STATES.
``(a) Allotments in General.--From the amount appropriated under
section 691(a) for each fiscal year and remaining after the Secretary
makes the reservations required by section 691(c), the Secretary shall
allot to each eligible State, subject to section 677, an amount that
bears the same ratio to such remaining amount as the amount received by
the State for fiscal year 1981 under section 221 of the Economic
Opportunity Act of 1964 bore to the total amount received by all States
for fiscal year 1981 under such section, except as provided in
subsection (b).
``(b) Minimum Allotments.--
``(1) In general.--The Secretary shall allot to each State
not less than \1/2\ of 1 percent of the amount appropriated
under section 691(a) for such fiscal year and remaining after
the Secretary makes the reservations required by section
691(c).
``(2) Years with greater available funds.--Notwithstanding
paragraph (1), if the amount appropriated under section 691(a)
for a fiscal year and remaining after the Secretary makes the
reservations required by section 691(c) exceeds $900,000,000,
no State shall receive under this section less than \3/4\ of 1
percent of the remaining amount.
``(c) Grants and Payments.--Subject to section 677, the Secretary
shall make grants to eligible States for the allotments described in
subsections (a) and (b). The Secretary shall make payments for the
grants in accordance with section 6503(a) of title 31, United States
Code. The Secretary shall allocate the amounts allotted under
subsections (a) and (b) on a quarterly basis at a minimum, notify the
States of their respective allocations, and make each State's first
allocation amount in a fiscal year available for expenditure by the
State no later than 30 days after receipt of an approved apportionment
from the Office of Management and Budget and, for subsequent allocation
amounts in the fiscal year, not later than 30 days after the start of
the period for which the Secretary is allocating the funds.
``(d) Definition.--In this section, the term `State' does not
include Guam, American Samoa, the United States Virgin Islands, and the
Commonwealth of the Northern Mariana Islands.
``SEC. 677. PAYMENTS TO INDIAN TRIBES.
``(a) Definitions.--In this section:
``(1) Indian.--The term `Indian' means a member of an
Indian Tribe or Tribal organization.
``(2) Indian tribe or tribal organization.--The term
`Indian Tribe or Tribal organization' means a Tribe, band, or
other organized group recognized in the State in which the
Tribe, band, or group resides, or considered by the Secretary
of the Interior to be an Indian Tribe or an Indian organization
for any purpose.
``(b) Reservation.--
``(1) Application.--Paragraph (2) shall apply only if, with
respect to any State, the Secretary--
``(A) receives a request from the governing body of
an Indian Tribe or Tribal organization in such State
that assistance under this subtitle be made available
directly to such Indian Tribe or Tribal organization;
and
``(B) determines that the members of such Indian
Tribe or Tribal organization would be better served by
means of grants made directly to such Indian Tribe or
Tribal organization to provide benefits under this
subtitle.
``(2) Amount.--The Secretary shall reserve from amounts
allotted to a State under section 676 for a fiscal year not
less than the amount that bears the same ratio to the State
allotment for the fiscal year as the population of all eligible
Indians in that particular State for whom a determination has
been made under paragraph (1) bears to the population of all
individuals eligible for assistance through a grant made under
section 676 to such State.
``(c) Awards.--The amount reserved by the Secretary on the basis of
a determination made under subsection (b)(1)(B) shall be made available
by grant to the Indian Tribe or Tribal organization serving the Indians
for whom the determination has been made under subsection (b)(1)(B).
``(d) Plan.--In order for an Indian Tribe or Tribal organization to
be eligible for a grant award for a fiscal year under this section, the
Indian Tribe or Tribal organization shall submit to the Secretary a
plan for such fiscal year that meets such criteria as the Secretary may
prescribe by regulation.
``(e) Alternative Performance Measurement System.--The Secretary
may implement alternative requirements for implementation by an Indian
Tribe or Tribal Organization of the requirements of section 686(a).
``SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND
APPLICATIONS.
``(a) State Lead Agency.--
``(1) Designation.--The chief executive officer of a State
desiring to receive a grant under section 675 or 676 shall
designate, in an application submitted to the Secretary under
subsection (b), an appropriate State agency that agrees to
comply with the requirements of paragraph (2), to act as a lead
agency for purposes of carrying out State activities under this
subtitle.
``(2) Duties of state lead agencies.--The State lead
agency--
``(A) shall be authorized by the chief executive
officer to convene State agencies and coordinate
information and activities funded under this subtitle;
``(B) shall develop the State plan to be submitted
to the Secretary under subsection (b), which shall be
based primarily on the community action plans of
eligible entities, submitted to the State as a
condition of receiving funding under this subtitle;
``(C) may revise an existing State plan for
submission to the Secretary, if considered a major
revision under criteria established by the Secretary in
regulations required under section 689(a)(1));
``(D) in conjunction with the development or
revision of the State plan as required under subsection
(b)--
``(i) shall hold at least 1 hearing in the
State on the proposed plan or a proposed major
revision to a plan to provide to the public an
opportunity to comment on the public record on
the proposed use and distribution of funds
under the plan;
``(ii) not less than 15 days before the
hearing, shall distribute notice of the hearing
and a copy of the proposed plan or major plan
revision statewide to the public and directly
to the chief executive officer and the
chairperson of the board of each of the
eligible entities (or designees) and other
community services network organizations; and
``(iii) in the case of any proposed plan
revision, without regard to whether it is a
major revision, shall notify and distribute a
copy of the proposed revision statewide
directly to the chief executive officer and the
chairperson of the board of each of the
eligible entities (or designees) and other
community services network organizations,
before submission of such proposed revision to
the Secretary; and
``(E) at least every 3 years, in conjunction with
the development of the State plan, shall hold at least
1 legislative hearing.
``(b) State Application for State Program and State Plan.--
Beginning with the first fiscal year following the transition period
described in section 3 of the Community Services Block Grant
Modernization Act of 2022, to be eligible to receive a grant under
section 675 or 676, a State shall prepare and submit to the Secretary
for approval an application containing a State plan covering a period
of not more than 2 fiscal years. The application shall be submitted not
later than 60 days before the beginning of the first fiscal year
covered by the plan, and shall contain such information as the
Secretary shall require, including--
``(1) a description of the manner in which funds made
available through the grant under section 675 or 676 will be
used to carry out the State activities described in section
679(b) and the State's community action plans;
``(2) a description summarizing the community action plans
of the eligible entities serving the State;
``(3) an assurance that the State and all eligible entities
in the State will participate in a performance measurement
system under section 686(a)(1)(A);
``(4) a plan for the State's oversight of eligible
entities;
``(5) an assurance that the State will make payments to
eligible entities in accordance with section 679(a)(2);
``(6) an assurance that no eligible entity in the State
that received, in the previous fiscal year, funding through a
grant made under section 675 or 676 will have funding reduced
below the proportional share of funding the entity received
from the State in the previous fiscal year, or eliminated, or
its designation as an eligible entity terminated, unless, after
providing the affected entity (or entities, as applicable) with
notice and an opportunity for a hearing on the record, the
State determines that cause exists for the reduction or
elimination of funding or for termination of such designation,
subject to review by the Secretary as provided in section
684(c); and--
``(A) in the case of failure of an eligible entity
to comply with the terms of a corrective action plan
relating to correction of a serious deficiency, except
according to the procedures set forth in section
684(b); and
``(B) for purposes of this subsection, the term
`cause' means--
``(i) the failure of an eligible entity to
comply with the terms of a corrective action
plan relating to correction of a serious
deficiency as described in subsection 684(b);
or
``(ii) a statewide proportional
distribution of funds provided through a
community services block grant under this
subtitle to respond to--
``(I) the results of the most
recently available census or other
appropriate demographic data;
``(II) severe economic dislocation;
or
``(III) the designation of an
eligible entity to serve a geographic
area that has been unserved for at
least the previous 5 years;
``(7) an assurance that each eligible entity serving the
State has established procedures that permit a low-income
individual or organization to petition for adequate
representation of such individuals or organizations,
respectively, on the board of the eligible entity;
``(8) a description of outcome measures to be used to
measure State and eligible entity performance in achieving the
goals of the State plan and the community action plans,
respectively;
``(9) an assurance that the State will develop a policy on
board vacancies in accordance with section 680(c)(3) and
provide guidance to assist eligible entities in filling board
vacancies; and
``(10) an assurance that the State and the eligible
entities in the State will coordinate, and establish linkages
between, governmental and other social services programs to
assure the effective delivery of such services to low-income
individuals and to avoid duplication of such services, and a
description of how the State and the eligible entities will
coordinate the provision of employment and training activities,
as defined in section 3 of the Workforce Innovation and
Opportunity Act, in the State and in communities with entities
providing activities through statewide and local workforce
development systems under such Act.
``(c) Approval.--The Secretary shall notify the chief executive
officer of each State submitting an application containing a State plan
under this section of the approval, disapproval, or approval in part,
of the application, not later than 60 days after receiving the
application. In the event of a full or partial disapproval, the
Secretary's notification shall include a description of changes
necessary for final approval. In the event of a partial approval, the
Secretary may allow grantee use of funds for activities included in the
portions of the plan which the Secretary has approved. In the event a
State application fails to be approved in whole or in part before the
end of the third month of the period covered by such plan the Secretary
may award funding as specified in section 684(a)(5)(B).
``(d) Public Inspection.--Each plan and major revision to a State
plan prepared under this section shall be distributed for public
inspection and comment. A hearing on such plan or major revision shall
be held as required under subparagraphs (C) and (D) of subsection
(a)(2), but a State application for merger, combination, or
privatization of entities under section 680(b) shall not be considered
a major revision.
``(e) Eligible Entity Application and Community Action Plan.--
Beginning with the first fiscal year following the transition period
described in section 3 of the Community Services Block Grant
Modernization Act of 2022, to be eligible to receive a subgrant under
section 679(a), each eligible entity shall prepare and submit to the
State an application containing a community action plan or plans
covering a period of not more than 2 fiscal years. Such application
shall be submitted in a reasonable and timely manner as required by the
State. The application shall contain information on the intended
implementation of the eligible entity's activities, including
demonstrating how the activities will--
``(1) meet needs identified in the most recent
comprehensive community needs assessment which has been
conducted in the previous 3 years and which may be coordinated
with community needs assessments conducted for other programs;
and
``(2) achieve the purposes of this subtitle through
programs, projects, and services.
``SEC. 679. STATE AND LOCAL USES OF FUNDS.
``(a) State Subgrants to Eligible Entities and Other
Organizations.--
``(1) In general.--A State that receives a grant under
section 675 or 676 shall use not less than 90 percent to make
subgrants to eligible entities that enable the entities to
implement programs, projects, and services for a purpose
described in section 672.
``(2) Obligational requirements.--
``(A) Date of obligation.--The State shall obligate
the funds for subgrants described in paragraph (1) and
make such subgrants available for expenditure by
eligible entities not later than the later of--
``(i) the 30th day after the date on which
the State receives from the Secretary a notice
of funding availability for the State's
application under section 678 for a first or
subsequent allocation for a fiscal year; or
``(ii) the first day of the State program
year for which funds are to be expended under
the State application.
``(B) Exception.--If funds are appropriated to
carry out this subtitle for less than a full fiscal
year, a State may request an exception from the
Secretary from the requirement to make subgrants
available for expenditure by eligible entities in
accordance with subparagraph (A), except that a State
may not accumulate more than one fiscal quarter's worth
of funding without making such funds available for
expenditure by eligible entities.
``(C) Availability.--Funds allocated to eligible
entities through subgrants made under paragraph (1) for
a fiscal year shall be available for obligation by the
eligible entity during that fiscal year and the
succeeding fiscal year.
``(b) Statewide Activities.--
``(1) Use of remainder.--
``(A) In general.--A State that receives a grant
under section 675 or 676 shall, after carrying out
subsection (a), use the remainder of the grant funds
for activities described in the State's application
under section 678(b) as described in subparagraph (B)
and for administrative expenses subject to the
limitations in paragraph (2).
``(B) Training and technical assistance.--After
applying subsection (a), the State may use the
remaining grant funds for the purposes of--
``(i) providing to eligible entities
training and technical assistance and resources
to respond to statewide or regional conditions
that create economic insecurity, including
emergency conditions;
``(ii) supporting professional development
activities for eligible entities that enhance
the skills of their local personnel (including
members of the board of directors of such
entities) in organizational management, service
delivery, and program development and
management, giving priority to activities
carried out through partnerships of such
entities with institutions of higher education;
``(iii) supporting information and
communication resources for the comprehensive
community needs assessments described in
section 678(e)(1);
``(iv) supporting performance measurement
systems consistent with the requirements of
section 686;
``(v) promoting coordination and
cooperation among eligible entities in the
State, including supporting activities of a
statewide association of community services
network organizations;
``(vi) providing training and technical
assistance and resources to assist eligible
entities in building and using evidence of
effectiveness in reducing poverty conditions,
including entities participating in or
proposing to participate in the Community
Action Innovations Program established under
section 682(a)(2);
``(vii) supporting efforts of eligible
entities to identify and respond to physical
and behavioral health challenges (including
substance use disorders) experienced by low-
income individuals, families, and communities;
and
``(viii) analyzing the distribution of
funds made available under this subtitle within
the State to determine if such funds have been
targeted to the areas of greatest need.
``(2) Administrative cap.--
``(A) Limitation.--Of the amounts remaining after
the required funding for subgrants described under
subsection (a)(1), a State shall not spend more than 5
percent of its grant under section 675 or 676 for
administrative expenses.
``(B) Definition.--In this paragraph, the term
`administrative expenses'--
``(i) means the costs incurred by the
State's lead agency for carrying out planning
and management activities, including
monitoring, oversight, and reporting as
required by this Act; and
``(ii) does not include the cost of
activities conducted under paragraph (1)(B)
other than monitoring.
``(c) Eligible Entity Use of Funds.--An eligible entity that
receives a subgrant under subsection (a)(1) shall use the subgrant
funds to carry out a community action plan that shall include--
``(1) programs, projects, and services that provide low-
income individuals and families with opportunities--
``(A) to identify and develop strategies to remove
obstacles and solve problems that block access to
opportunity, economic stability, and achievement of
self-sufficiency;
``(B) to secure and retain meaningful employment at
a family supporting wage;
``(C) to secure an adequate education, improve
literacy and language skills, and obtain job-related
skills;
``(D) to make effective use of available income and
build assets;
``(E) to obtain and maintain adequate housing and a
safe and healthy living environment;
``(F) to address health needs and improve health
and well-being;
``(G) to obtain emergency materials or other
assistance to meet immediate and urgent needs,
including to meet the collective needs of a community,
and prevent greater or more prolonged economic
instability;
``(H) to secure and identify assistance related to
reducing energy expenses and reducing energy
consumption; and
``(I) to achieve greater participation in community
affairs; and
``(2) activities that develop and maintain--
``(A) partnerships for the purpose of addressing
community, economic, and social conditions of poverty
and promoting healthy communities, between the eligible
entity and--
``(i) State and local public entities; and
``(ii) private partners, including
statewide and local businesses, associations of
private employers, and private charitable and
civic organizations;
``(B) linkages with public and private
organizations for coordinating initiatives, services,
and investments so as to avoid duplication, and
maximize the effective use, of community resources for
creating economic opportunity, including developing
lasting social and economic assets; and
``(C) new investments in the community to reduce
the incidence of poverty, including developing lasting
social and economic assets.
``(d) Eligibility Criterion.--
``(1) Subject to paragraph (2), 200 percent of the poverty
line shall be used as a criterion of eligibility for services,
assistance, or resources provided directly to individuals or
families through the community services block grant program
established under this subtitle.
``(2) A State or Tribal grantee may establish procedures to
ensure that a participant in a program, project, or service
funded under this subtitle remains eligible to participate as
long as the participant is successfully progressing toward
achievement of the goals of the program, project, or service,
regardless of the income eligibility criteria used to determine
the participant's initial eligibility.
``SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.
``(a) Designation and Redesignation of Eligible Entities in
Unserved Areas.--
``(1) In general.--If any geographic area of a State is
not, or ceases to be, served by an eligible entity, the State
lead agency may, in consultation with local officials and
organizations representing the area, solicit one or more
applications and designate a new community action agency to
provide programs, projects, and services to the area, that is--
``(A) a community action agency that is a private,
nonprofit organization and that is geographically
located in an area in reasonable proximity of, or
contiguous to, the unserved area and that is already
providing similar programs, projects, and services, and
that has demonstrated financial capacity to manage and
account for Federal funds; or
``(B) if no community action agency described in
subparagraph (A) is available, a private, nonprofit
organization (which may include an eligible entity)
that is geographically located in, or is in reasonable
proximity to, the unserved area and that is capable of
providing a broad range of programs, projects, and
services designed to achieve the purposes of this
subtitle as stated in section 672.
``(2) Requirement.--In order to serve as the eligible
entity for the service area, an entity described in paragraph
(1) shall agree to ensure that the governing board of directors
of the entity will meet the requirements of subsection (c).
``(3) Community.--A service area referred to in this
subsection or a portion thereof shall be treated as a community
for purposes of this subtitle.
``(4) Interim designation.--If no entity that meets the
requirements of paragraphs (1) and (2) is available for
designation as a permanent eligible entity, the State may
designate a private, nonprofit agency (or public agency if a
private, nonprofit is not available) on an interim basis for no
more than 1 year while the State completes a selection process
for a permanent eligible entity that meets the requirements of
paragraphs (1) and (2). An agency designated on an interim
basis shall be capable of providing programs, projects, and
services designed to achieve the purposes of this subtitle as
stated in section 672 and have demonstrated financial capacity
to manage and account for Federal funds, and may be designated
as a permanent eligible entity only if, by the time of
permanent designation, it meets all the requirements of
paragraphs (1) and (2).
``(b) Merger, Combination, or Privatization of Eligible Entities.--
``(1) In general.--If an eligible entity receiving subgrant
funds makes a determination described in paragraph (2) and
notifies the State, the State--
``(A) shall assist in developing a plan for
implementing such merger, combination, or
privatization, including a budget for transitional
costs not to exceed 2 years in duration;
``(B) in the case of a merger or combination, shall
provide to the merged or combined entity an amount of
funding under section 679(a)(1) equal to the sum of
amounts the merged or combined entities each received
under section 679(a)(1) immediately before the merger
or combination.
``(2) Covered merger, combination, or privatization.--This
subsection applies when--
``(A) 2 or more eligible entities determine that
the geographic areas of a State that they serve can be
more effectively served under common control or shared
management; or
``(B) a public organization that is an eligible
entity determines that the area it serves can be more
effectively served if it becomes a private, nonprofit
organization.
``(3) Plans.--A State may establish requirements for
merger, combination, or privatization plans and for a
determination that the merged, combined, or privatized entity,
or entities, will be capable of conducting a broad range of
programs, projects, and services designed to achieve the
purposes of this subtitle as stated in section 672 consistent
with the comprehensive community needs assessments for the
areas served.
``(4) State determination.--If a State determines that a
merged, combined, or privatized entity or entities will be
capable of conducting a broad range of programs, projects, and
services as specified in paragraph (3), it shall designate the
merged, combined, or privatized entity or entities to serve the
area(s) in question without soliciting applications from other
entities.
``(c) Tripartite Boards.--
``(1) Private, nonprofit organizations.--
``(A) Board.--In order for a private, nonprofit
organization to be considered to be an eligible entity
for purposes of section 673(7), the entity shall be
governed by a tripartite board of directors described
in subparagraph (C) that fully participates in the
development, planning, implementation, oversight, and
evaluation of the programs, projects, and services
carried out or provided through the subgrant made under
section 679(a)(1) and all activities of the entity.
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the
private, nonprofit organization.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) \1/3\ of the members of the board are
elected public officials holding office on the
date of selection, or their representatives
(but if an elected public official chooses not
to serve, such official may designate a
representative to serve as the voting board
member);
``(ii) not fewer than \1/3\ of the members
are persons chosen in accordance with
democratic selection procedures adequate to
assure that such members are representative of
low-income individuals and families in the
service area; and if selected to represent a
specific geographic area, such member resides
in that area; and
``(iii) the remainder of the members may be
comprised of representatives from business,
industry, labor, religious, educational,
charitable, or other significant groups and
interests in the community.
``(D) Expertise.--The eligible entity shall ensure
that the members of the board are provided resources,
which may include contracted services with individuals
and organizations with expertise in financial
management, accounting, and law, to support the work of
the board.
``(E) Compliance with tax-exempt and other
requirements.--The board of a private, nonprofit
organization shall ensure that the board operates and
conducts activities under the subgrant made under
section 679(a)(1) in a manner that complies with--
``(i) the requirements for maintaining tax-
exempt status under section 501(a) of the
Internal Revenue Code of 1986 (26 U.S.C.
501(a)) regarding the governance of charities
under section 501(c)(3) of the Internal Revenue
Code of 1986 (26 U.S.C. 501(c)(3)); and
``(ii) applicable requirements of State
nonprofit law.
``(2) Public organizations.--
``(A) Board.--In order for a local public
(governmental) entity to be considered to be an
eligible entity for purposes of section 673(7), the
entity shall ensure that the programs, projects, and
services carried out or provided through the subgrant
made under section 679(a)(1) are administered under the
supervision of a tripartite board described in
subparagraph (C) that fully participates in the
development, planning, implementation, oversight, and
evaluation of such programs, projects, and services.
``(B) Selection.--The members of the board referred
to in subparagraph (A) shall be selected by the local
public entity.
``(C) Composition of board.--The board shall be
composed so as to assure that--
``(i) not more than \1/3\ of the members of
the board are employees or officials, including
elected officials, of the unit of government in
which the organization is located;
``(ii) not fewer than \1/3\ of the members
are persons chosen in accordance with
democratic selection procedures adequate to
assure that such members are representative of
low-income individuals and families in the
service area; and if selected to represent a
specific geographic area, such member resides
in that area; and
``(iii) the remainder of the members may be
comprised of representatives from business,
industry, labor, religious, educational,
charitable, or other significant groups and
interests in the community.
``(D) Expertise.--The eligible entity shall ensure
that the members of the board are provided resources,
which may include contracted services with individuals
and organizations with expertise in financial
management, accounting, and law, to support the work of
the board.
``(E) Compliance with state requirements and
policy.--The board of a public organization shall
ensure that the board operates in a manner that
complies with State requirements for open meetings,
financial transparency, and State open records policy.
``(3) Board vacancies.--To fulfill the requirements under
this section, an eligible entity shall fill a board vacancy not
later than 6 months after such vacancy arises. In the event
that an eligible entity is unable to fill a board vacancy in
the 6-month period, the entity shall certify to the State that
it is making a good faith effort to fill the vacancy and shall
receive 1 additional 6-month period to fill such vacancy.
``(4) Safeguard.--Neither the Federal Government nor a
State or local government shall require a religious
organization to alter its form of internal governance, except
(for purposes of administration of the community services block
grant program) as provided in section 680(c).
``(d) Operations and Duties of the Board.--The duties of a board
described in paragraph (1) or (2) of subsection (c) shall include--
``(1) in the case of a board for a private, nonprofit
organization that is an eligible entity, having legal and
financial responsibility for administering and overseeing the
eligible entity, including making proper use of Federal funds;
``(2) establishing terms for officers and adopting a code
of ethical conduct, including a conflict of interest policy for
board members;
``(3) participating in each comprehensive community needs
assessment, developing and adopting for the corresponding
eligible entity an agency-wide strategic plan, and preparing
the community action plan for the use of funds under this
subtitle;
``(4) approving the eligible entity's operating budget;
``(5) reviewing all major policies such that--
``(A) for private, nonprofit organizations that are
eligible entities, a review includes conducting annual
performance reviews of the eligible entity's chief
executive officer (or individual holding an equivalent
position); and
``(B) for local public entities that are eligible
entities, a review includes participating in annual
performance reviews of the eligible entity's chief
executive officer (or individual holding an equivalent
position);
``(6) performing oversight of the eligible entity to
include--
``(A) conducting assessments of the eligible
entity's progress in carrying out programmatic and
financial provisions in the community action plan; and
``(B) in the case of any required corrective
action, reviewing the eligible entity's plans and
progress in remedying identified deficiencies; and
``(7) concerning personnel policies and procedures--
``(A) in the case of private, nonprofit
organizations that are eligible entities, adopting
personnel policies and procedures, including for
hiring, annual evaluation, compensation, and
termination, of the eligible entity's chief executive
officer (or individual holding a similar position); and
``(B) in the case of local public entities that are
eligible entities, reviewing personnel policies and
procedures, including for hiring, annual evaluation,
compensation, and termination, of the eligible entity's
chief executive officer (or individual holding a
similar position).
``SEC. 681. OFFICE OF COMMUNITY SERVICES.
``(a) Office.--
``(1) Establishment.--The Secretary shall establish an
Office of Community Services in the Department to carry out the
functions of this subtitle.
``(2) Director.--The Office shall be headed by a Director
(referred to in this section as the `Director').
``(b) Grants, Contracts, and Cooperative Agreements.--The
Secretary, acting through the Director, shall carry out the functions
of this subtitle through grants, contracts, or cooperative agreements.
``SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.
``(a) Activities.--
``(1) In general.--The Secretary shall--
``(A) use amounts reserved under section 691(c)(2)
for training, technical assistance, planning,
assessment, and performance measurement, as described
in this section and in sections 684 and 686, to assist
States, eligible entities, Tribal grantees, and other
community services network organizations in--
``(i) building and using evidence of
effectiveness in reducing poverty conditions,
including through development and dissemination
of information about clearinghouses and other
resources that identify relevant evidence-based
initiatives, for use in connection with the
Community Action Innovations Program
established under paragraph (2);
``(ii) carrying out professional
development activities that expand the capacity
of eligible entities and Tribal grantees;
``(iii) carrying out performance
measurement, data collection, and reporting
activities related to programs, projects, and
services carried out under this subtitle; and
``(iv) correcting programmatic
deficiencies, including such deficiencies of
eligible entities or Tribal grantees; and
``(B) distribute the amounts reserved under section
691(c)(2)(A) through grants, contracts, or cooperative
agreements with eligible entities, Tribal grantees, and
other community services network organizations
described in subsection (b) for--
``(i) professional development for key
community services network organization
personnel;
``(ii) activities to improve community
services network organization programs,
financial management, compliance, and
governance practices (including practices
related to performance management information
systems);
``(iii) activities that train community
services network organizations and their staff
and board members to effectively address the
needs of low-income families and communities
through place-based strategies that address
local causes and conditions of poverty through
coordinated investment and integrated service
delivery; and
``(iv) activities that train community
services network organizations in building and
using evidence of effectiveness in reducing
poverty conditions and that support effective
administration of funds under the Community
Action Innovations Program established under
paragraph (2).
``(2) Innovative and evidence-based projects to reduce
poverty.--
``(A) In general.--The Secretary shall use amounts
reserved under section 691(c)(3) for a Community Action
Innovations Program to--
``(i) award grants, contracts, or
cooperative agreements to eligible entities,
Tribal grantees, and other community services
network organizations, including consortia of
such entities, grantees, or organizations to
facilitate innovation and use of evidence-based
practice designed to reduce poverty conditions,
including through whole family approaches that
create opportunities for, and address the needs
of, parents and children together; and
``(ii) disseminate results for public use.
``(B) Projects.--The Secretary shall award funds
from its Community Action Innovations Program for
projects to enable--
``(i) replication or expansion of
innovative practices with demonstrated evidence
of effectiveness, with priority given to those
with the strongest evidence base as determined
through a broad review of available studies; or
``(ii) testing of innovative practices to
determine their effectiveness, with priority
given to those incorporating rigorous,
independent evaluation to further build the
evidence base.
``(C) Use of funds.--The funds reserved for use
under this paragraph may be used by awardees for
resources or activities necessary to replicate, expand,
or test innovative and evidence-based practices,
including costs of training and technical assistance,
evaluation, data collection, and technology.
``(D) Expenses.--The funds reserved for use under
this paragraph may be used for reasonable expenses of
awardees, associated with administration of projects
and dissemination of their results.
``(E) Awards and obligation.--The Secretary shall
award and obligate funds reserved for projects under
this paragraph during the first program year for which
the funds are appropriated. Grant funds awarded under
this paragraph shall remain available for expenditure
by the awardee not later than 36 months after the date
of award by the Secretary, unless a longer period of
availability is approved by the Secretary based on
extenuating circumstances and demonstrated evidence of
effectiveness.
``(b) Eligible Entities, Tribal Grantees, and Other Community
Services Network Organizations.--Eligible entities, Tribal grantees,
and other community services network organizations referred to in
subsection (a)(1)(B) shall include such entities, grantees, and
organizations (and their partners, including institutions of higher
education) with demonstrated expertise in providing training for
individuals and organizations on methods of effectively addressing the
needs of low-income families and communities and, if appropriate,
expertise in Tribal issues.
``(c) Training and Technical Assistance Process.--`The process for
determining the training and technical assistance to be carried out
under subsection (a)(1) shall--
``(1) ensure that the needs of eligible entities, Tribal
grantees, and programs relating to improving program quality
(including quality of financial management practices) are
addressed to the maximum extent feasible; and
``(2) incorporate mechanisms to ensure responsiveness to
local needs, including an ongoing procedure for obtaining input
from the national and State networks of eligible entities.
``SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.
``In order to determine whether eligible entities receiving
subgrants under this subtitle meet performance goals, administrative
standards, financial management requirements, and other requirements
under this subtitle, the State shall conduct the following reviews of
eligible entities:
``(1) A full onsite review of each eligible entity at least
once during each 3-year period.
``(2) An onsite review of each newly designated eligible
entity immediately after the completion of the first year in
which such entity receives funds through the community services
block grant program under this subtitle.
``(3) Followup reviews, including onsite reviews scheduled
in a corrective action plan (including return visits), in a
calendar quarter for eligible entities with programs, projects,
or services that fail to meet the State's performance criteria,
standards, financial management requirements, or other
significant requirements established under this subtitle.
``(4) Other reviews as appropriate, including reviews of
eligible entities with programs, projects, and services that
have had other Federal, State, or local grants (other than
assistance provided under this subtitle) terminated for cause.
``(5) In conducting reviews, including as required by
paragraph (1), a State may conduct a remote (including virtual)
review of an eligible entity in extraordinary circumstances if
approved by the Secretary on a case-by-case basis.
``SEC. 684. ASSESSMENTS; CORRECTIVE ACTION; REDUCTION OR ELIMINATION OF
FUNDING.
``(a) Assessments of States by the Secretary.--
``(1) In general.--The Secretary shall conduct, in not
fewer than 1/5 of the States in each fiscal year, assessments
(including investigations) of State compliance with this
subtitle, including requirements relating to the use of funds
received under this subtitle, requirements applicable to State
plans submitted under section 678(b), and requirements of
section 679(a)(2).
``(2) Report to states.--The Secretary shall submit to each
State assessed, and make available to the public on the
Department's website, a report containing--
``(A) the results of such assessment; and
``(B)(i) recommendations for improvements designed
to enhance the benefit and impact of the activities
carried out with such funds; and
``(ii) in the event a serious deficiency is found
regarding a State's compliance with this subtitle,
including requirements relating to the use of funds
received under this subtitle, a proposed corrective
action plan.
``(3) State response.--Not later than 45 days after
receiving a report under paragraph (2)--
``(A) a State that received recommendations under
paragraph (2)(B)(i) shall submit to the Secretary and
make available to the public on the State lead agency's
website a plan of action in response to the
recommendations; and
``(B) a State that received a proposed corrective
action plan under paragraph (2)(B)(ii) shall agree to
implement the corrective action plan proposed by the
Secretary or propose to the Secretary and make
available to the public on the State lead agency's
website a different corrective action plan, developed
by the State in a timely manner that the State will
implement upon approval by the Secretary.
``(4) Report to congress.--The Secretary shall submit the
results of the assessments annually, as part of the report
submitted by the Secretary in accordance with section
686(b)(2).
``(5) Enforcement.--
``(A) Reduction or elimination of funding.--If the
Secretary determines, in a final decision based on an
assessment conducted under this section, that a State
fails to meet the requirements of this subtitle, the
Secretary may, after providing adequate notice and an
opportunity for a hearing, initiate proceedings to
reduce or eliminate the amount of funding apportioned
and allocated to the State as described in section 675
or 676, as applicable (and, if necessary, deobligate
such funding).
``(B) Direct awards to other entities.--
``(i) Reduction or elimination of state
funding; lack of approved state plan.--If the
Secretary reduces or eliminates funding to a
State under subparagraph (A), the Secretary
shall award funding directly as provided under
clauses (ii) and (iii). If, for a particular
fiscal year, a State plan is not approved by
the Secretary in accordance with section
678(c), the Secretary may award funding
directly as provided under clauses (ii) and
(iii).
``(ii) Direct funding to eligible
entities.--If funding specified in section
679(a)(1) is reduced or eliminated due to the
Secretary's reduction or elimination of funding
under subparagraph (A), or if the Secretary
chooses to award funding directly due to the
lack of an approved State plan as authorized in
clause (i), the Secretary shall award financial
assistance in the amount of such reduced or
eliminated funding, or in the amount the State
would have received for the purposes specified
in section 679(a)(1) had a State plan been
approved, directly (by grant or cooperative
agreement) to affected eligible entities
(provided that any such entity has not had its
funding under this subtitle eliminated or its
designation as an eligible entity terminated by
the State in accordance with subsections (b)
and (c) of section 684) to carry out the
activities described in section 679(c). In
awarding such funding, the Secretary shall
ensure that each such affected eligible entity
receives the same proportionate share of
funding under section 679(a)(1) that it
received in the previous fiscal year.
``(iii) Statewide funds.--If funding
specified in section 679(b) is reduced or
eliminated due to the Secretary's reduction or
elimination of funding under subparagraph (A),
or if the Secretary chooses to award funding
directly due to the lack of an approved State
plan as authorized in clause (i), the Secretary
shall reserve an amount equal to the amount of
such reduced or eliminated funds, or to the
amount the State would have received for the
purposes specified in section 679(b) had a
State plan been approved. The Secretary may use
such amount for such purposes directly or
through a grant or cooperative agreement to
community services network organizations (other
than the State itself).
``(iv) Reduction.--In the case of
expenditure as provided in accordance with this
subparagraph, the Secretary shall reduce
funding the State would otherwise have received
under section 675 or 676 (and, if necessary,
deobligate such funding) for the appropriate
fiscal year by an amount equal to the amount so
expended.
``(6) Training and technical assistance.--The Secretary,
through the Department's own employees or contractors (rather
than under grants, contracts, or cooperative agreements issued
under section 682), shall provide training and technical
assistance to States with respect to the development or
implementation of the States' corrective action plans.
``(b) Determination of Eligible Entity Failure To Comply.--
``(1) Corrective action by eligible entities.--If the State
determines, on the basis of a review pursuant to section 683 or
section 685, that there is a serious deficiency regarding an
eligible entity's compliance with this subtitle, the State
shall inform the entity of the serious deficiencies that shall
be corrected and provide technical assistance for the
corrective action.
``(2) Eligible entity corrective action plans.--An eligible
entity that is found to have a serious deficiency under
paragraph (1) shall develop, in a timely manner, a corrective
action plan that shall be subject to the approval of the State,
and that shall specify--
``(A) the deficiencies to be corrected;
``(B) the actions to be taken to correct such
deficiencies; and
``(C) the timetable for accomplishment of the
corrective actions specified.
``(3) Final decision.--If the State determines, on the
basis of a final decision in a review conducted under section
683, that an eligible entity fails to comply with the terms of
a corrective action plan under paragraph (2) relating to
correction of a serious deficiency for the eligible entity, the
State may, after providing adequate notice and an opportunity
for a hearing, initiate proceedings to withhold, reduce, or
eliminate the funding provided under section 679(a)(1) to the
eligible entity (including, in the case of elimination of
funding, terminating the designation under this subtitle of the
eligible entity) unless the entity corrects the serious
deficiency.
``(c) Review.--A State's decision to withhold, reduce, or eliminate
funding, or to terminate the designation of an eligible entity (or
eligible entities, as applicable) may be reviewed by the Secretary.
Upon request by a community services network organization, the
Secretary shall review such a determination. The review shall be
completed not later than 60 days after the Secretary receives from the
State all necessary documentation relating to the determination. The
State shall submit such documentation within a reasonable time frame
established by the Secretary.
``(d) Direct Assistance.--Whenever the Secretary determines that a
State has violated the State plan described in section 678(b)
(including the assurance described in section 678(b)(6)) and the State
has reduced or eliminated the funding provided under section 679(a) to
any eligible entity or entities or terminated the eligible entity
designation of any eligible entity or entities before the completion of
the State proceedings described in section 678(b)(6) (including, if
applicable, the proceedings required by subsection (b)) and the
Secretary's review as required by subsection (c), the Secretary may
provide financial assistance under this subtitle to the affected
eligible entity or entities directly until the violation is corrected
by the State. In such a case, the Secretary may reduce funding the
State would otherwise have received under section 675 or 676 (and, if
necessary, deobligate such funding) for the appropriate fiscal year by
an amount equal to the financial assistance provided directly by the
Secretary to such eligible entity or entities.
``SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.
``(a) Fiscal Controls, Procedures, Audits, and Inspections.--A
State that receives funds under this subtitle shall--
``(1) establish fiscal control and fund accounting
procedures necessary to assure the proper disbursal of, and
accounting for, Federal funds paid to the State under this
subtitle, including procedures for monitoring the funds
provided under this subtitle;
``(2) ensure that cost and accounting standards of the
Office of Management and Budget apply to a subrecipient of the
funds under this subtitle;
``(3) in accordance with subsections (b) and (c), prepare,
not less than once each year, an audit of the expenditures of
the State of amounts received under this subtitle; and
``(4) make appropriate books, documents, papers, and
records available to the Secretary and the Comptroller General
of the United States, or any of their duly authorized
representatives, for examination, copying, or mechanical
reproduction, on or off the premises of the appropriate entity,
upon a reasonable request for the items.
``(b) Independent Entity.--Subject to subsection (c), each audit
required by subsection (a)(3) shall be conducted by an entity
independent of any agency administering activities or services under
this subtitle and shall be conducted in accordance with generally
accepted accounting principles.
``(c) Single Audit Requirements.--
``(1) In general.--Any audit under this subsection shall be
conducted in the manner and to the extent provided in chapter
75 of title 31, United States Code (commonly known as the
`Single Audit Act Amendments of 1984') except in the event a
serious financial deficiency is identified.
``(2) Serious financial deficiency.--In the event that such
a deficiency is identified, the Secretary shall order--
``(A) an audit conducted as described in subsection
(a); or
``(B) an audit of each of the accounts involved, in
accordance with subsections (b) and (d).
``(d) Submission of Copies.--Not later than 30 days after the
completion of each audit in a State as required in subsection (a)(3),
the chief executive officer of the State shall submit copies of such
audit, at no charge, to any eligible entity that was the subject of the
audit, to the legislature of the State, and to the Secretary.
``(e) Repayments.--If the Secretary, after review of the audit,
finds that a State has not expended an amount of funds in accordance
with this subtitle, the Secretary is authorized to withhold funds from
a State under this subtitle until the State remedies the improperly
expended funds for the original purposes for which the grant funds were
intended.
``(f) Response to Complaints.--The Secretary shall respond in an
expeditious manner to complaints of a substantial or serious nature
that a State has failed to use grant funds received under section 675
or 676 or to carry out State activities under this subtitle in
accordance with the provisions of this subtitle.
``(g) Investigations.--Whenever the Secretary determines that there
is a pattern of complaints regarding failures described in subsection
(f) or a complaint of a serious deficiency concerning any State, the
Secretary shall conduct an investigation of the use of the funds
received under this subtitle by such State in order to ensure
compliance with the provisions of this subtitle.
``SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.
``(a) State Accountability and Reporting Requirements.--
``(1) Performance measurement.--
``(A) In general.--Beginning with the first fiscal
year following the transition period described in
section 3 of the Community Services Block Grant
Modernization Act of 2022, each State that receives
funds under this subtitle shall participate, and shall
ensure that all eligible entities in the State
participate, in a results-oriented performance
measurement system that the Secretary is satisfied
meets the requirements of section 689(b)(1).
``(B) Subcontractors.--The State may elect to have
subcontractors of the eligible entities under this
subtitle participate in the results-oriented
performance measurement system. If the State makes that
election, references in this section to eligible
entities shall be considered to include such
subcontractors.
``(C) Eligible entity reports.--Eligible entities
shall provide the results measured by their performance
measurement system and such other reports as the State
may require.
``(2) Annual report.--Each State receiving funds under this
subtitle shall annually prepare, and submit to the Secretary by
March 31 of each year, a report on the performance of the State
and eligible entities in the State, including achievement with
respect to performance measurements that were used by community
services network organizations in the State for the previous
fiscal year. Each State shall also include in the report--
``(A) an accounting of the expenditure of funds
received by the State through the community services
block grant program, including an accounting of funds
spent on administrative or indirect costs by the State
and the eligible entities and funds spent by the
eligible entities on local programs, projects, and
services;
``(B) information on the number and characteristics
of participants served under this subtitle in the
State, based on data collected from the eligible
entities;
``(C) a summary describing the training and
technical assistance offered by the State under
subparagraph (B) of section 679(b)(1) during the year
covered by the report;
``(D) information on the total budget and
activities of the eligible entities receiving subgrants
from the State under this subtitle, including local and
private resources available for a purpose described in
section 672; and
``(E) a report on the manner in which the State and
eligible entities and other recipients of funds under
this subtitle have implemented results-oriented
management practices based on their performance
measurement systems.
``(b) Reporting Requirements.--
``(1) Contents.--Not later than September 30 of each year,
the Secretary shall, directly or by grant or contract, prepare
a report including--
``(A) the information included in the State annual
reports under subsection (a)(2) for the preceding
fiscal year;
``(B) a report on the performance of the Department
in the preceding year regarding carrying out critical
roles and responsibilities under this subtitle,
including with regard to timeliness in allocating and
making appropriated funds available for expenditure to
States, approvals or notifications to States concerning
State plans and plan revisions, and conducting
assessments of States and implementation of State
corrective action plans (including status of and
follow-up on recommendations made in previous State
assessments and corrective action plans);
``(C) a description of the training and technical
assistance activities funded by the Secretary under
section 682 and the results of those activities; and
``(D) a report on the Community Action Innovations
Program authorized under section 682(a)(2), including a
description of training and technical assistance funded
by the Secretary, the rationale for projects that
received support, a description of funded activities
and their results, and a summary of ways in which the
Program has expanded use of evidence-based practice or
contributed to building the evidence base designed to
reduce poverty conditions.
``(2) Submission.--The Secretary shall submit to the
Committee on Education and Labor of the House of
Representatives and to the Committee on Health, Education,
Labor, and Pensions of the Senate the report described in
paragraph (1) and any recommendations the Secretary may have
with respect to such report.
``(3) Electronic data system for reports to states and
eligible entities.--The Secretary, through the Department's own
employees or contractors (rather than under grants, contracts,
or cooperative agreements issued under section 682), shall
provide technical assistance, including support for the
development and maintenance of an electronic data system for
the reports under this section, to the States and eligible
entities to enhance the quality and timeliness of reports
submitted under this subtitle. The system shall be coordinated
and consistent with the data systems established for other
programs of the Department that are managed by eligible
entities, including all programs of the Administration for
Children and Families or successor administrative units in
which the office is located.
``SEC. 687. LIMITATIONS ON USE OF FUNDS.
``(a) Construction of Facilities.--
``(1) Limitations.--Except as provided in paragraphs (2)
and (3) of this subsection and in paragraphs (2) and (3) of
section 690(a), grants or subgrants made under this subtitle
may not be for the purchase or improvement of land, or the
purchase, construction or permanent improvement of any building
or other facility.
``(2) Waiver.--The Secretary may waive the limitation
contained in paragraph (1) upon a State request for such a
waiver if the Secretary finds that--
``(A) the request describes extraordinary
circumstances to justify the purchase or improvement of
land, or the purchase, construction, or permanent
improvement of any building or other facilities; and
``(B) permitting the waiver will contribute to the
ability of the State and eligible entities to carry out
a purpose described in section 672 at substantially
reduced costs.
``(3) Architectural barriers to accessibility.--Grants or
subgrants made under this subtitle may be used by eligible
entities or Tribal grantees for making material improvements in
the accessibility of the physical structures for individuals
with disabilities seeking services of such entities.
``(b) Political Activities.--
``(1) Treatment as a state or local agency.--For purposes
of chapter 15 of title 5, United States Code, any entity that
assumes responsibility for planning, developing, and
coordinating activities under this subtitle and receives
assistance under this subtitle shall be deemed to be a State or
local agency. For purposes of paragraphs (1) and (2) of section
1502(a) of such title, any entity receiving assistance under
this subtitle shall be deemed to be a State or local agency.
``(2) Prohibitions.--A program, project, or service
assisted under this subtitle, and any individual employed by,
or assigned to or in, such a program, project, or service
(during the hours in which the individual is working on behalf
of the program, project, or service) shall not engage in--
``(A) any partisan or nonpartisan political
activity or any political activity associated with a
candidate, or contending faction or group, in an
election for public or party office; or
``(B) any activity to provide voters or prospective
voters with transportation to the polls or similar
assistance in connection with any election.
``(3) Registration.--None of the funds appropriated to
carry out this subtitle may be used to conduct voter
registration activities. Nothing in this subtitle prohibits
entities receiving assistance under this subtitle from making
its facilities available during hours of operation for use by
nonpartisan organizations to increase the number of eligible
citizens who register to vote in elections for Federal office.
``(c) Nondiscrimination.--
``(1) In general.--No person shall, on the basis of race,
color, national origin, or sex, be excluded from participation
in, be denied the benefits of, or be subjected to
discrimination under, any program, project, or service funded
in whole or in part with funds made available under this
subtitle. Any prohibition against discrimination on the basis
of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101
et seq.) or with respect to an otherwise qualified individual
with a disability as provided in section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et
seq.), shall also apply to any such program, project, or
service.
``(2) Action of secretary.--Whenever the Secretary
determines that a State that has received a payment under this
subtitle has failed to comply with paragraph (1) or an
applicable regulation, the Secretary shall notify the chief
executive officer of the State and shall request that the
officer secure compliance. If within a reasonable period of
time, not to exceed 60 days, the chief executive officer fails
or refuses to secure compliance, the Secretary is authorized
to--
``(A) refer the matter to the Attorney General with
a recommendation that an appropriate civil action be
instituted;
``(B) exercise the powers and functions provided by
title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.), the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.), section 504 of the Rehabilitation
Act of 1973 (29 U.S.C. 794), or title II of the
Americans with Disabilities Act of 1990 (42 U.S.C.
12131 et seq.), as may be applicable; or
``(C) take such other action as may be provided by
law.
``(3) Action of attorney general.--When a matter is
referred to the Attorney General pursuant to paragraph (2), or
whenever the Attorney General has reason to believe that the
State is engaged in a pattern or practice of discrimination in
violation of the provisions of this subsection, the Attorney
General may bring a civil action in any appropriate United
States district court for such relief as may be appropriate,
including injunctive relief.
``SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.
``During each fiscal year for which an eligible entity receives a
subgrant under section 679(a), such entity shall--
``(1) inform custodial parents or legal guardians that
participate in programs, projects, or services carried out or
provided under this subtitle about the availability of child
support services; and
``(2) refer custodial parents or legal guardians to the
child support offices of State and local governments.
``SEC. 689. REGULATIONS.
``(a) Regulations.--The Secretary shall promulgate regulations
implementing this subtitle, including regulations regarding--
``(1) State plans, including the form and information
required for State plans submitted to the Secretary, and
criteria for determining whether a State plan revision is to be
considered a major revision;
``(2) community action plans, including the form and
information required for community action plans submitted to
States;
``(3) State monitoring of eligible entities; and
``(4) reports to the Secretary described in section 686.
``(b) Guidance.--
``(1) Performance measurement.--The Secretary shall issue
guidance regarding State and local performance measurement
systems. Guidance may include one or more model performance
measurement systems, facilitated by the Secretary, that States
and eligible entities may use to measure their performance in
carrying out the requirements of this subtitle and in achieving
the goals of their community action plans.
``(2) Comprehensive analysis of poverty conditions.--The
Secretary shall issue guidance (including models) for
comprehensive community needs assessments described in section
678(e)(1). The guidance shall include methods for preparing an
analysis of all poverty conditions affecting a community and of
local and regional assets for alleviating such conditions.
``SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.
``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
``(1) In general.--The Secretary shall, from funds
appropriated under section 691(b), make grants, loans, or
guarantees to States and public agencies and private, nonprofit
organizations, or enter into contracts or jointly financed
cooperative arrangements with States and public agencies and
private, nonprofit organizations (and for-profit organizations,
to the extent specified in paragraph (2)(E)) for each of the
objectives described in paragraphs (2) through (4).
``(2) Community economic development.--
``(A) Economic development activities.--The
Secretary shall make grants described in paragraph (1)
on a competitive basis to private, nonprofit
organizations that are community development
corporations to provide technical and financial
assistance for economic development activities designed
to address the economic needs of low-income individuals
and families by creating employment and business
development opportunities.
``(B) Consultation.--The Secretary shall exercise
the authority provided under subparagraph (A) after
consultation with other relevant Federal officials.
``(C) Governing boards.--For a community
development corporation to receive funds to carry out
this paragraph, the corporation shall be governed by a
board that shall--
``(i) consist of residents of the community
and business and civic leaders; and
``(ii) have as a principal purpose
planning, developing, or managing low-income
housing or community development projects.
``(D) Geographic distribution.--In making grants to
carry out this paragraph, the Secretary shall take into
consideration the geographic distribution of funding
among States and the relative proportion of funding
among rural and urban areas.
``(E) Reservation.--Of the amounts made available
to carry out this paragraph, the Secretary may reserve
not more than 1 percent for each fiscal year to make
grants to private, nonprofit organizations or to enter
into contracts with private, nonprofit, or for-profit
organizations to provide technical assistance to aid
community development corporations in developing or
implementing activities funded to carry out this
paragraph and to evaluate activities funded to carry
out this paragraph.
``(3) Rural community development activities.--The
Secretary shall provide the assistance described in paragraph
(1) for rural community development activities, which shall
include providing--
``(A) grants to private, nonprofit organizations to
enable the organizations to provide assistance
concerning home repair to rural low-income families and
planning and developing low-income rural rental housing
units; and
``(B) grants to multi-State, regional, private,
nonprofit organizations to enable the organizations to
provide training and technical assistance to small,
rural communities concerning meeting their community
facility needs.
``(4) Broadband navigator projects.--
``(A) Navigator project authority.--The Secretary
is authorized to provide assistance described in
paragraph (1) for broadband navigator projects
consistent with the purposes of this Act to address the
educational and economic needs of low-income
individuals and communities.
``(B) Navigator grants.--The Secretary shall make
grants consistent with subparagraph (A) to community
action agencies and Tribal grantees to enable them to
provide assistance through trained navigators to low-
income individuals and communities to help facilitate
access to affordable high-speed broadband service,
internet-enabled devices, digital literacy training,
technical support, and other services to meet the
broadband and digital needs of such individuals and
communities.
``(C) Priority.--Priority in the awarding of such
grants under paragraph (4) shall be given to community
action agencies and Tribal grantees serving underserved
areas with the most significant unmet broadband and
digital needs.
``(D) Technical assistance.--Of the amounts made
available to carry out broadband navigator projects,
the Secretary may reserve up to 5 percent for grant
review, technical assistance, and evaluation.
``(b) Evaluation.--The Secretary shall require all activities
receiving assistance under this section to be evaluated for their
effectiveness. Funding for such evaluations shall be provided as a
stated percentage of the assistance or through a separate grant or
contract awarded by the Secretary specifically for the purpose of
evaluation of a particular activity or group of activities.
``(c) Annual Report.--The Secretary shall compile an annual report
containing a summary of the evaluations required under subsection (b)
and a listing of all activities assisted under this section. The
Secretary shall annually submit such report to the chairperson of the
Committee on Education and Labor of the House of Representatives and
the chairperson of the Committee on Health, Education, Labor, and
Pensions of the Senate.
``SEC. 691. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated to carry
out this subtitle (excluding section 690)--
``(1) $1,000,000,000 for each of fiscal years 2023 through
2027; and
``(2) such sums as may be necessary for fiscal years 2028
through 2032.
``(b) Discretionary Programs.--There are authorized to be
appropriated to carry out section 690 such sums as may be necessary for
fiscal years 2023 through 2032.
``(c) Reservations by the Secretary.--Of the amounts appropriated
under subsection (a) for each fiscal year, the Secretary shall
reserve--
``(1) \1/2\ of 1 percent for carrying out section 675
(relating to grants to territories);
``(2) 2 percent for activities authorized in section
682(a)(1), of which--
``(A) not less than 50 percent of the amount
reserved by the Secretary under this paragraph shall be
awarded through grants, contracts, or cooperative
agreements to eligible entities, Tribal grantees, and
other community services network organizations
described in section 682(b), for the purpose of
carrying out activities described in section
682(a)(1)(B); and
``(B) the remainder of the amount reserved by the
Secretary under this paragraph may be awarded through
grants, contracts, or cooperative agreements to
eligible entities, Tribal grantees, and other community
services network organizations described in section
682(b), or other entities with demonstrated expertise
in providing training for individuals and organizations
on methods of effectively addressing the needs of low-
income families and communities and, if appropriate,
expertise in Tribal issues;
``(3) 1 percent for the Community Action Innovations
Program authorized in section 682(a)(2); and
``(4) up to $5,000,000 for each of the fiscal years 2023,
2024, and 2025, to carry out section 686(b)(3).
``SEC. 692. REFERENCES.
``A reference in any provision of law to the poverty line set forth
in section 624 or 625 of the Economic Opportunity Act of 1964 shall be
construed to be a reference to the poverty line defined in section 673
of this subtitle. Except as otherwise provided, any reference in any
provision of law to any community action agency designated under title
II of the Economic Opportunity Act of 1964 shall be construed to be a
reference to an entity eligible to receive funds under the community
services block grant program.''.
SEC. 3. TRANSITION PERIOD.
(a) Transition Period.--The Secretary of Health and Human Services
shall expeditiously announce a transition period for the implementation
of any changes in regulations, procedures, guidance, and reporting
requirements of the Community Services Block Grant Act (42 U.S.C. 9901
et seq.) as amended by this Act, from the regulations, procedures,
guidance, and reporting requirements of the Community Services Block
Grant Act (42 U.S.C. 9901 et seq.) as in effect immediately before the
date of enactment of this Act.
(b) Federal Training.--The transition period shall include the
availability of Federal training for States and eligible entities
regarding compliance with new requirements under the Community Services
Block Grant Act (42 U.S.C. 9901 et seq.) as amended by this Act.
(c) Timing.--The transition period described in this section--
(1) may not extend later than the date that is 3 months
prior to the start of the second fiscal year after the date of
enactment of the Community Services Block Grant Modernization
Act of 2022;
(2) notwithstanding (1), may not extend later than two
years after the date of enactment of the Community Services
Block Grant Modernization Act of 2022 for the issuance of final
regulations implementing this subtitle; and
(3) may require that certain regulations, procedures, and
reporting requirements be adopted before other regulations,
procedures, or reporting requirements.
SEC. 4. CONFORMING AMENDMENTS.
Section 306(a)(6)(C)(ii) of the Older Americans Act of 1965 (42
U.S.C. 3026(a)(6)(C)(ii)) is amended by inserting ``or subsequent
years'' after ``fiscal year 1982'' and by striking ``section 676B of
the Community Services Block Grant Act'' and inserting ``section 680(c)
of the Community Services Block Grant Act''.
Union Calendar No. 231
117th CONGRESS
2d Session
H. R. 5129
[Report No. 117-311]
_______________________________________________________________________
A BILL
To amend the Community Services Block Grant Act to reauthorize and
modernize the Act.
_______________________________________________________________________
May 6, 2022
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed