[Congressional Record Volume 144, Number 11 (Thursday, February 12, 1998)]
[Senate]
[Pages S747-S749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. GLENN (for himself, Mr. Thompson, Mr. Levin, Mr. 
        Lieberman, and Mr. Akaka):
  S. 1642. A bill to improve the effectiveness and performance of 
Federal financial assistance programs, simplify Federal financial 
assistance application and reporting requirements, and improve the 
delivery of services to the public; to the Committee on Governmental 
Affairs.


      the federal financial assistance management improvement act

  Mr. GLENN. Mr. President, I rise today to introduce the Federal 
Financial Assistance Management Improvement Act of 1998--legislation 
designed to improve the efficiency and effectiveness of Federal 
financial assistance and grant-in-aid programs.
  According to the Advisory Commission on Intergovernmental Relations, 
there are over 600 different Federal grant programs to state and local 
governments and other service providers. Not only is that a large 
number of programs in the aggregate, we also have an abundance of 
separate grant programs even in areas where only one general purpose is 
being served. For example, in the budget subfunction of social services 
alone, there are over 80 different Federal grant programs. In 
elementary and secondary education, there are a similar number of 
Federal programs.
  Almost all of these different grant programs serve worthy goals and 
purposes. However, they inevitably carry with them separate redtape, 
regulations, and procedures that frustrate those at the state, local 
and nonprofit level who must coordinate the services and carry out the 
responsibilities in all these separate programs. Furthermore, in many 
of these grant programs, ``getting out the money'' is the primary 
emphasis. Administrative performance and efficiency are a secondary 
emphasis, or in some cases not emphasized at all, so we have little 
understanding at any level of government how well the

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programs are actually working. Part of this problem stems from the fact 
that the money passes through 3 sometimes 4 different sets of hands 
before it reaches its intended beneficiaries. So it's hard to know 
where responsibility lies when it comes to making sure that the money 
is spent efficiently, properly and in a way to maximize the goals and 
objectives of the underlying program.
  We've been working for several years in the Governmental Affairs 
Committee on ways to cut Federal redtape while improving performance. 
We tried to reduce Federal burdens with enactment of the Paperwork 
Reduction Act and Unfunded Mandates Reform Act, while strengthening the 
effectiveness of Federal programs with the Government Performance 
Results Act.
  This bill builds on those initiatives. It requires that Federal 
agencies develop plans that, among other things: establish uniform 
applications for related grant programs; develop common rules for 
Federal requirements that cut across multiple grant programs; and, 
emphasize use of electronic reporting via the Internet. Agencies would 
have 18 months to develop their plans, with OMB overseeing their 
development. They would work closely with state and local governments 
and the nonprofit community in the setting of performance measures to 
achieve the bill's goals. The bill sunsets in 5 years following a 
review by the National Academy of Public Administration.
  Americans want government services to work better. But they also want 
government to live within its means, to balance its books. In other 
words, they want more cost-effective government, and that's at all 
levels. I believe this bill helps lead us in that direction. I'm 
pleased that Chairman Thompson, along with Senators Levin, Lieberman, 
and Akaka, have joined me cosponsoring the bill and I look forward to 
considering it in the Governmental Affairs Committee.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 1642

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

     SECTION 1. TITLE.

       This Act may be cited as the ``Federal Financial Assistance 
     Management Improvement Act of 1998''.

     SEC. 2. FINDINGS.

       Congress finds that--
       (1) there are over 600 different Federal financial 
     assistance programs to implement domestic policy;
       (2) while the assistance described in paragraph (1) has 
     been directed at critical problems, some Federal 
     administrative requirements may be duplicative, burdensome or 
     conflicting, thus impeding cost-effective delivery of 
     services at the local level;
       (3) State, local, and tribal governments and private, 
     nonprofit organizations are dealing with increasingly complex 
     problems that require the delivery and coordination of many 
     kinds of services; and
       (4) streamlining and simplification of Federal financial 
     assistance administrative procedures and reporting 
     requirements will improve the delivery of services to the 
     public.

     SEC. 3. PURPOSES.

       The purposes of this Act are to--
       (1) improve the effectiveness and performance of Federal 
     financial assistance programs;
       (2) simplify Federal financial assistance application and 
     reporting requirements;
       (3) improve the delivery of services to the public; and
       (4) facilitate greater coordination among those responsible 
     for delivering such services.

     SEC. 4. DEFINITIONS.

       In this Act:
       (1) Common rule.--The term ``common rule'' means a 
     government-wide uniform rule for any generally applicable 
     requirement established to achieve national policy objectives 
     that applies to multiple Federal financial assistance 
     programs across Federal agencies.
       (2) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (3) Federal agency.--The term ``Federal agency'' means any 
     agency as defined under section 551(1) of title 5, United 
     States Code.
       (4) Federal financial assistance program.--The term 
     ``Federal financial assistance program'' 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.
       (5) 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(10) 
     of title 31, United States Code);
       (B) any combination of political subdivisions described in 
     subparagraph (A); 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)).
       (6) Qualified organization.--The term ``qualified 
     organization'' means a private, nonprofit organization 
     described in section 501(c)(3) of the Internal Revenue Code 
     of 1986 that is exempt from taxation under section 501(a) of 
     the Internal Revenue Code of 1986.
       (7) State.--The term ``State'' means each of the 50 States, 
     the District of Columbia, Puerto Rico, American Samoa, Guam, 
     and the Virgin Islands.
       (8) Tribal government.--The term ``tribal government'' 
     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. DUTIES OF THE DIRECTOR.

       (a) In General.--The Director, in consultation with agency 
     heads, shall direct, coordinate, and assist Federal agencies 
     in establishing--
       (1) a uniform application, or set of uniform applications, 
     to be used by an applicant to apply for assistance from 
     multiple Federal financial assistance programs that serve 
     similar purposes and are administered by different Federal 
     agencies;
       (2) ways to streamline and simplify Federal financial 
     assistance administrative procedures and reporting 
     requirements for grantees;
       (3) a uniform system wherein an applicant may apply for, 
     manage, and report on the use of, funding from multiple 
     Federal financial assistance programs across different 
     Federal agencies;
       (4) a process for applicants to electronically apply for, 
     and report on the use of, funds from Federal financial 
     assistance programs;
       (5) use of common rules for multiple Federal financial 
     assistance programs across different Federal agencies;
       (6) improved interagency and intergovernmental coordination 
     of information collection and sharing of data pertaining to 
     Federal financial assistance programs, including the 
     development of a release form to be used by grantees to 
     facilitate the sharing of information across multiple Federal 
     financial assistance programs;
       (7) a process to strengthen the information resources 
     management capacity of State, local, and tribal governments 
     and qualified organizations pertaining to the administration 
     of Federal financial assistance programs; and
       (8) specific annual goals and objectives to further the 
     purposes of this Act.
       (b) Actions Consistent With Statutory Requirements.--The 
     actions taken by the Director under subsection (a) shall be 
     consistent with statutory requirements relating to any 
     applicable Federal financial assistance program.
       (c) Lead Agency and Working Groups.--The Director may 
     designate a lead agency to assist the Director in carrying 
     out the responsibilities under this section. The Director may 
     use interagency working groups to assist in carrying out such 
     responsibilities.
       (d) Review of Plans and Reports.--
       (1) In general.--The Director shall--
       (A) review agency plans and reports developed under section 
     6 for adequacy;
       (B) monitor the annual performance of each agency toward 
     achieving the goals and objectives stated in the agency plan; 
     and
       (C) ensure that each agency plan does not diminish 
     standards to measure performance and accountability of 
     financial assistance programs.
       (2) Report.--Not later than 3 years after the date of 
     enactment of this Act, the Director shall report to Congress 
     on implementation of this section. Such a report may be 
     included as part of any of the general management reports 
     required under law.
       (e) Exemptions.--
       (1) In general.--The Director may exempt any Federal agency 
     from the requirements of this Act if the Director determines 
     that the agency does not have a significant number of Federal 
     financial assistance programs.
       (2) Agencies exempted.--Not later than November 1 of each 
     fiscal year, the Director shall submit to the Committee on 
     Governmental Affairs of the Senate and the Committee on 
     Government Reform and Oversight of the House of 
     Representatives--
       (A) a list of each agency exempted under this subsection in 
     the preceding fiscal year; and
       (B) an explanation for each such exemption.
       (f) Guidance.--Not later than 120 days after the date of 
     enactment of this Act, the Director shall issue guidance to 
     Federal agencies on implementation of the requirements of 
     this Act. Such guidance shall include a statement on the 
     common rules that the Director intends to review and 
     standardize under this Act.

     SEC. 6. DUTIES OF FEDERAL AGENCIES.

       (a) In General.--Not later than 18 months after the date of 
     enactment of this Act, each Federal agency shall develop and 
     implement a plan that--
       (1) streamlines and simplifies the application, 
     administrative, and reporting procedures for each financial 
     assistance program administered by the agency;

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       (2) demonstrates active participation in the interagency 
     process required the applicable provisions of section 5(a);
       (3) demonstrates agency use, or plans for use, of the 
     uniform application (or set of applications) and system 
     developed under section 5(a) (1) and (3);
       (4) designates a lead agency official for carrying out the 
     responsibilities of the agency under this Act;
       (5) allows applicants to electronically apply for, and 
     report on the use of, funds from the Federal financial 
     assistance program administered by the agency;
       (6) strengthens the information resources management 
     capacity of State, local and tribal governments and qualified 
     organizations pertaining to the administration of the 
     financial assistance program administered by the agency; and
       (7) in cooperation with State, local, and tribal 
     governments and qualified organizations, establishes specific 
     annual goals and objectives to further the purposes of this 
     Act and measure annual performance in achieving those goals 
     and objectives.
       (b) Plan Consistent With Statutory Requirements.--Each plan 
     developed and implemented under this section shall be 
     consistent with statutory requirements relating to any 
     applicable Federal financial assistance program.
       (c) Comment and Consultation on Agency Plans.--
       (1) Comment.--Each Federal agency shall publish the plan 
     developed under subsection (a) in the Federal Register and 
     shall receive public comment on the plan through the Federal 
     Register and other means (including electronic means). To the 
     maximum extent practicable, each Federal agency shall hold 
     public hearings or related public forums on the plan.
       (2) Consultation.--The lead official designated under 
     subsection (a)(4) shall consult regularly with 
     representatives of State, local and tribal governments and 
     qualified organizations during development of the plan. 
     Consultation with representatives of State, local, and tribal 
     governments shall be in accordance with section 204 of the 
     Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534).
       (d) Submission of Plan.--Each Federal agency shall submit 
     the plan developed under subsection (a) to the Director and 
     Congress and report annually thereafter on the implementation 
     of the plan and performance of the agency in meeting the 
     goals and objectives specified under subsection (a)(7). Such 
     a report may be included as part of any of the general 
     management reports required under law.

     SEC. 7. EVALUATION.

       (a) In General.--The Director (or the lead agency 
     designated under section 5(c)) shall contract with the 
     National Academy of Public Administration to evaluate the 
     effectiveness of this Act. Not later than 4 years after the 
     date of enactment of this Act the evaluation shall be 
     submitted to the lead agency, the Director, and Congress.
       (b) Contents.--The evaluation under subsection (a) shall--
       (1) assess the effectiveness of this Act in meeting the 
     purposes of this Act and make specific recommendations to 
     further the implementation of this Act;
       (2) evaluate actual performance of each agency in achieving 
     the goals and objectives stated in agency plans; and
       (3) assess the level of coordination and cooperation among 
     the Director, Federal agencies, State, local, and tribal 
     governments, and qualified organizations in implementing this 
     Act.

     SEC. 8. EFFECTIVE DATE AND SUNSET.

       This Act shall take effect on the date of enactment of this 
     Act and shall cease to be effective on and after 5 years 
     after such date of enactment.
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