SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Block Grant Performance Standards 
Act of 1995''.

SEC. 2. ADMINISTRATION OF BLOCK GRANTS.

    Chapter 73 of title 31, United States Code, is amended by adding at 
the end thereof the following new subchapter:

         ``SUBCHAPTER II--CONDITIONS APPLICABLE TO BLOCK GRANTS

``Sec. 7321. Purposes
    ``The purposes of this subchapter are to--
            ``(1) enable more efficient use of Federal, State, and 
        local resources;
            ``(2) establish accountability for achieving the purposes 
        of block grant programs; and
            ``(3) establish effective partnerships to address critical 
        issues of public interest.
``Sec. 7322. Definitions
    ``For purposes of this subchapter, the term--
            ``(1) `block grant program' means a program in which 
        Federal funds are directly allocated to States, localities, or 
        other recipients for use at the discretion of such States, 
        localities, or recipients in meeting stated Federal purposes; 
        and
            ``(2) `plan' means a block grant strategic plan described 
        under section 7324.
``Sec. 7323. Requirement of approved block grant strategic plans
    ``No payment may be paid under any block grant program to any 
eligible entity unless such entity has submitted and received approval 
for a plan.
``Sec. 7324. Block grant strategic plans
    ``The head of an agency administering a block grant program shall 
designate the criteria that shall be included in a block grant 
strategic plan. At a minimum, each plan shall contain--
            ``(1) a description of goals and objectives, including 
        outcome related goals and objectives for each of the designated 
        program activities for each of the first 6 fiscal years of the 
        plan;
            ``(2) a description of how the goals and objectives are to 
        be achieved, including a description of the operational 
        processes, skills and technology, and the human, capital, 
        information and other objectives required to meet the goals and 
        objectives for the current fiscal year;
            ``(3) a description of performance indicators to be used in 
        measuring or assessing the relevant output service levels and 
        outcomes of each of the mandatory program activities; and
            ``(4) a description of the program evaluation to be used in 
        comparing actual results with established goals and objectives, 
        and the designation of results as highly successful or failing 
        to meet the goals and objectives of the program.
``Sec. 7325. Review and approval of block grant strategic plans
    ``After receipt of a plan, the head of an agency shall--
            ``(1) no later than 90 days after the receipt of the 
        application, approve or disapprove all or part of the plan;
            ``(2) no later than 15 days after the date of such approval 
        or disapproval, notify the applicant in writing of the approval 
        or disapproval; and
            ``(3) in the case of any disapproval of a plan, include a 
        written justification of the reasons for disapproval in the 
        written notice of disapproval.
``Sec. 7326. Community advisory committees
    ``(a) An entity applying for a block grant shall establish a 
community advisory committee in accordance with this section.
    ``(b) A community advisory committee shall advise an applicant in 
the development and implementation of a plan, including advice with 
respect to--
            ``(1) conducting public hearings; and
            ``(2) receiving comment and reviews from communities 
        affected by the plan.
    ``(c) Membership of the community advisory committee shall 
include--
            ``(1) persons with leadership experience in private 
        business and voluntary organizations;
            ``(2) elected officials representing jurisdictions included 
        in the plan;
            ``(3) representatives of participating qualified 
        organizations;
            ``(4) the general public; and
            ``(5) individuals and representatives of community 
        organizations who shall help to enhance the leadership role of 
        the local government in developing a plan.
    ``(d) Before submitting an application for approval, or any reports 
required as a condition of receiving any payment under a block grant 
program, the applicant shall submit such application or report to the 
community advisory committee for review and comment. Any comments of 
the committee shall be submitted with the application or report to the 
head of an agency.
``Sec. 7327. Technical and other assistance
    ``The head of an agency administering a block grant program may 
provide technical assistance to applicants for block grants in 
developing information necessary for the design or implementation of a 
plan.
``Sec. 7328. Conditional termination or alteration of block grant 
              strategic plan
    ``(a) The head of an agency administering a block grant program 
shall establish procedures by regulation for implementing penalties of 
not less than 5 percent of the grant a recipient would otherwise 
receive for failing to meet the goals and objectives included in the 
plan for a block grant.
    ``(b) The head of an agency shall establish procedures by 
regulation for--
            ``(1) suspending the grant a recipient would otherwise 
        receive for a period of 3 years for failure for 2 consecutive 
        years to meet the goals and objectives included in the plan for 
        a block grant; and
            ``(2) reallocating the amount of the grant a recipient 
        would otherwise receive to other governmental or nonprofit 
        institutions within the plan.
``Sec. 7329. Administration with other conditions of block grant 
              programs
    ``The provisions of this subchapter (including all conditions and 
requirements) shall supersede any other provision of law relating to 
the administration of any block grant program only to the extent of any 
inconsistency with such other provision.''.

SEC. 3. TECHNICAL AND CONFORMING AMENDMENTS.

    (a) Table of Sections.--Chapter 73 of title 31, United States Code, 
is amended by striking out the chapter heading and the table of 
sections and inserting in lieu thereof the following:

                ``CHAPTER 73--ADMINISTERING BLOCK GRANTS

                  ``SUBCHAPTER I--BLOCK GRANT AMOUNTS

``Sec.
``7301. Purpose.
``7302. Definitions.
``7303. Reports and public hearings on proposed uses of amounts.
``7304. Availability of records.
``7305. State auditing requirements.
         ``SUBCHAPTER II--CONDITIONS APPLICABLE TO BLOCK GRANTS

``7321. Purposes.
``7322. Definitions.
``7323. Requirement of approved block grant strategic plans.
``7324. Block grant strategic plans.
``7325. Review and approval of block grant strategic plans.
``7326. Community advisory committees.
``7327. Technical and other assistance.
``7328. Conditional termination or alteration of block grant strategic 
                            plan.
``7329. Administration with other conditions of block grant programs.

                 ``SUBCHAPTER I--BLOCK GRANT AMOUNTS''.

    (b) Chapter References.--Chapter 73 of title 31, United States 
Code, is amended--
            (1) in section 7301 in the matter preceding paragraph (1) 
        by striking out ``chapter'' and inserting in lieu thereof 
        ``subchapter''; and
            (2) in section 7302 in the matter preceding paragraph (1) 
        by striking out ``chapter'' and inserting in lieu thereof 
        ``subchapter''.

SEC. 4. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1997, and shall apply to 
payments under block grant programs on and after such date.
Block Grant Performance Standards Act of 1995 - Amends Federal law to establish performance criteria to be included in a block grant strategic plan.  Requires an entity applying for a block grant to establish a community advisory committee to advise the entity in the development and implementation of a plan.
Block Grant Performance Standards Act of 1995