[Congressional Record Volume 145, Number 30 (Thursday, February 25, 1999)]
[Senate]
[Pages S2009-S2011]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. VOINOVICH (for himself, Mr. Thompson, Mr. Lieberman, and 
        Mr. Durbin):
  S. 468. 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.
  Mr. VOINOVICH. Mr. President, today I am pleased to introduce the 
``Federal Financial Assistance Management Improvement Act of 1999'', 
legislation that was championed in the previous Congress by my friend 
and predecessor, Senator John Glenn. As a Governor, I supported this 
bill as an important step toward detangling the web of duplicative 
federal grants available to States, localities and community 
organizations. As a Senator, I am pleased to pick it up where Senator 
Glenn left off. I would also like to thank Senator Thompson, Senator 
Lieberman and Senator Durbin for joining me as original cosponsors of 
this bill.
  Scores of programs, often administered by the same federal agency, 
have similar purposes but are subject to different application and 
reporting requirements. This unnecessary duplication of effort wastes 
time, paper, and does nothing to improve program performance for the 
benefit of our constituents. The Federal Financial Assistance 
Management Improvement Act is intended to streamline the grant 
application process, allowing those who serve their communities to 
focus on the job at hand--not on page after page of paperwork. The 
legislation directs federal agencies to simplify and coordinate the 
application requirements of related programs. The result, I hope, will 
be service to the public which is better, faster and more effective 
than before.
  In other words, today in this country, if you want to apply for 
Federal assistance, every agency has a different form. If you have to 
report on what you are doing with that Federal assistance, every agency 
has a different form. We want to make those forms uniform across the 
board, which we know will relieve a lot of pressure and paperwork on 
the folks who are involved in these programs.
  Another important component of this bill is the requirement that 
agencies develop a process to allow State and local governments and 
non-profit organizations to apply for and report on the use of funds 
electronically. Using the Internet as a substitute for cumbersome 
paperwork is a welcome innovation in the way the federal government 
does business, and I am pleased that the Federal Financial Assistance 
Management Improvement Act is leading the effort.
  We need to bring technology into the Federal Government and allow 
people to do the same thing that they do when they are dealing with the 
private sector.
  This bill was crafted in the last Congress by Senator Glenn after 
bipartisan, bicameral negotiations with the Administration, and while I 
was sorry that it was not enacted before the end of the 105th Congress, 
I am pleased to be able to introduce it today. The legislation is 
supported by the National Governors' Association and others in the 
State and local government and non-profit community because of the real 
potential it has to reduce red tape and improve services to our 
communities. I urge all my colleagues to support this important 
legislation.
  Mr. President, I ask unanimous consent that the text of the bill and 
a letter of support from State and local government organizations be 
printed in the Record.
  There being no objection, the material was ordered to be printed in 
the Record, as follows:

                                 S. 468

       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 ``Federal Financial Assistance 
     Management Improvement Act of 1999''.

     SEC. 2. FINDINGS.

       The 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) the Nation's State, local, and tribal governments and 
     private, nonprofit organizations are dealing with 
     increasingly complex problems which 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) Director.--The term ``Director'' means the Director of 
     the Office of Management and Budget.
       (2) Federal agency.--The term ``Federal agency'' means any 
     agency as defined under section 551(1) of title 5, United 
     States Code.

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       (3) Federal financial assistance.--The term ``Federal 
     financial assistance'' has the same meaning as defined in 
     section 7501(a)(5) of title 31, United States Code, under 
     which Federal financial assistance is provided, directly or 
     indirectly, to a non-Federal entity.
       (4) Local government.--The term ``local government'' means 
     a political subdivision of a State that is a unit of general 
     local government (as defined under section 7501(a)(11) of 
     title 31, United States Code);
       (5) Non-federal entity.--The term ``non-Federal entity'' 
     means a State, local government, or nonprofit organization.
       (6) Nonprofit organization.--The term ``nonprofit 
     organization'' means any corporation, trust, association, 
     cooperative, or other organization that--
       (A) is operated primarily for scientific, educational, 
     service, charitable, or similar purposes in the public 
     interest;
       (B) is not organized primarily for profit; and
       (C) uses net proceeds to maintain, improve, or expand the 
     operations of the organization.
       (7) State.--The term ``State'' means any State of the 
     United States, the District of Columbia, the Commonwealth of 
     Puerto Rico, the Virgin Islands, Guam, American Samoa, the 
     Commonwealth of the Northern Mariana Islands, and the Trust 
     Territory of the Pacific Islands, and any instrumentality 
     thereof, any multi-State, regional, or interstate entity 
     which has governmental functions, and any Indian Tribal 
     Government.
       (8) Tribal government.--The term ``tribal government'' 
     means an Indian tribe, as that term is defined in section 
     7501(a)(9) of title 31, United States Code.
       (9) Uniform administrative rule.--The term ``uniform 
     administrative 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.

     SEC. 5. 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 Federal 
     financial assistance programs administered by the agency;
       (2) demonstrates active participation in the interagency 
     process under section 6(a)(2);
       (3) demonstrates appropriate agency use, or plans for use, 
     of the common application and reporting system developed 
     under section 6(a)(1);
       (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) ensures recipients of Federal financial assistance 
     provide timely, complete, and high quality information in 
     response to Federal reporting requirements; and
       (7) establishes specific annual goals and objectives to 
     further the purposes of this Act and measure annual 
     performance in achieving those goals and objectives, which 
     may be done as part of the agency's annual planning 
     responsibilities under the Government Performance and Results 
     Act of 1993 (Public Law 103-62; 107 Stat. 285).
       (b) Extension.--If one or more agencies are unable to 
     comply with the requirements of subsection (a), the Director 
     shall report to the Committee on Governmental Affairs of the 
     Senate and the Committee on Government Reform of the House of 
     Representatives the reasons for noncompliance. After 
     consultation with such committees, the Director may extend 
     the period for plan development and implementation for each 
     noncompliant agency for up to 12 months.
       (c) Comment and Consultation on Agency Plans.--
       (1) Comment.--Each agency shall publish the plan developed 
     under subsection (a) in the Federal Register and shall 
     receive public comment of the plan through the Federal 
     Register and other means (including electronic means). To the 
     maximum extent practicable, each Federal agency shall hold 
     public forums on the plan.
       (2) Consultation.--The lead official designated under 
     subsection (a)(4) shall consult with representatives of non-
     Federal entities during development and implementation 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 
     report may be included as part of any of the general 
     management reports required under law.

     SEC. 6. DUTIES OF THE DIRECTOR.

       (a) In General.--The Director, in consultation with agency 
     heads, and representatives of non-Federal entities, shall 
     direct, coordinate, and assist Federal agencies in 
     establishing--
       (1) a common application and reporting system, including--
       (A) a common application or set of common applications, 
     wherein a non-Federal entity can apply for Federal financial 
     assistance from multiple Federal financial assistance 
     programs that serve similar purposes and are administered by 
     different Federal agencies;
       (B) a common system, including electronic processes, 
     wherein a non-Federal entity can apply for, manage, and 
     report on the use of funding from multiple Federal financial 
     assistance programs that serve similar purposes and are 
     administered by different Federal agencies; and
       (C) uniform administrative rules for Federal financial 
     assistance programs across different Federal agencies; and
       (2) an interagency process for addressing--
       (A) ways to streamline and simplify Federal financial 
     assistance administrative procedures and reporting 
     requirements for non-Federal entities;
       (B) improved interagency and intergovernmental coordination 
     of information collection and sharing of data pertaining to 
     Federal financial assistance programs, including appropriate 
     information sharing consistent with section 552a of title 5, 
     United States Code; and
       (C) improvements in the timeliness, completeness, and 
     quality of information received by Federal agencies from 
     recipients of Federal financial assistance.
       (b) 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.
       (c) Review of Plans and Reports.--Upon the request of the 
     Director, agencies shall submit to the Director, for the 
     Director's review, information and other reporting regarding 
     agency implementation of this Act.
       (d) Exemptions.--The Director may exempt any Federal agency 
     or Federal financial assistance program from the requirements 
     of this Act if the Director determines that the Federal 
     agency does not have a significant number of Federal 
     financial assistance programs. The Director shall maintain a 
     list of exempted agencies which shall be available to the 
     public through the Office of Management and Budget's Internet 
     site.

     SEC. 7. EVALUATION.

       (a) In General.--The Director (or the lead agency 
     designated under section 6(b)) 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. The 
     evaluation shall be performed with input from State, local, 
     and tribal governments, and nonprofit organizations.
       (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 among the Director, 
     Federal agencies, State, local, and tribal governments, and 
     nonprofit organizations in implementing this Act.

     SEC. 8. COLLECTION OF INFORMATION.

       Nothing in this Act shall be construed to prevent the 
     Director or any Federal agency from gathering, or to exempt 
     any recipient of Federal financial assistance from providing, 
     information that is required for review of the financial 
     integrity or quality of services of an activity assisted by a 
     Federal financial assistance program.

     SEC. 9. JUDICIAL REVIEW.

       There shall be no judicial review of compliance or 
     noncompliance with any of the provisions of this Act. No 
     provision of this Act shall be construed to create any right 
     or benefit, substantive or procedural, enforceable by any 
     administrative or judicial action.

     SEC. 10. STATUTORY REQUIREMENTS.

       Nothing in this Act shall be construed as a means to 
     deviate from the statutory requirements relating to 
     applicable Federal financial assistance programs.

     SEC. 11. EFFECTIVE DATE AND SUNSET.

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

  Mr. THOMPSON. Mr. President, I am pleased to support the Federal 
Financial Assistance Management Improvement Act of 1999. As a strong 
believer in our federalist system of government, I am pleased to be an 
original cosponsor of this legislation, which will cut red tape and 
waste in Federal grant and other assistance programs that impact State 
and local government, as well as nonprofit organizations. It is fitting 
that my good friend from Ohio, George Voinovich, is now providing 
leadership on this effort in the Senate. As a governor and Chairman of 
the National Governors' Association, George Voinovich strongly 
supported this bill from outside Congress. While we reported the bill 
out of the Governmental Affairs Committee and passed it through the 
Senate last year, unfortunately it did not become law. It's time to get 
the job done.
  This legislation will improve the performance of Federal grant and 
other

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assistance programs by streamlining their application, administration, 
and reporting requirements for grant recipients--including State, local 
and tribal governments and nonprofit organizations. The Federal 
agencies, with guidance from the Office of Management and Budget, would 
develop plans within 18 months to streamline application, 
administrative and reporting requirements, develop uniform applications 
for related programs, develop and expand the use of electronic 
applications and reporting via the Internet, demonstrate interagency 
coordination in simplifying requirements for cross-cutting programs, 
and set annual goals to further the purposes of the Act.
  Agencies would then consult with outside parties in developing their 
plans. The agencies would submit their plans and annual reports to the 
Director of OMB and to Congress, and they could be made a part of other 
management reports required under law. In addition to overseeing and 
coordinating agency activities, OMB would develop more common rules to 
cut across programs and would develop a release form to allow grant 
information to be shared across programs.
  This legislation has been endorsed by many organizations representing 
our State and local government partners, including the National 
Governors' Association, the National Conference of State Legislatures, 
the National League of Cities, the Council of State Governments, and 
the National Association of Counties. It is a good government, common 
sense initiative. Let's pull together and pass this bill into law.
                                 ______