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;
            (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.
Federal Financial Assistance Management Improvement Act of 1998 - Directs the Director of the Office of Management and Budget, in consultation with Federal agency heads, to coordinate and assist Federal agencies in establishing:  (1) a uniform Federal financial assistance application or set of such uniform applications; (2) ways to streamline Federal financial assistance administrative procedures and reporting requirements for grantees; (3) a uniform Federal financial assistance system; (4) an electronic application and reporting process; (5) use of common rules; (6) improved interagency and intergovernmental coordination of information collection and sharing of data, including the development of a release form to be used by grantees; (7) a process to strengthen the information resources management capacity of State and local governments and qualified organizations; and (8) specific annual goals and objectives to further the purposes of this Act.  Permits the Director to designate a lead agency to assist him or her and use interagency working groups to assist in carrying out such responsibilities. 
Requires the Director to:  (1) review agency plans and reports developed under this Act for adequacy; (2) monitor each agency's annual performance toward achieving the goals and objectives stated in the agency's plan; (3) ensure that each agency plan does not diminish standards to measure performance and accountability of financial assistance programs; and (4) report to the Congress on implementation of this Act. 
Exempts 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.  Requires the Director, not later than November 1 of each fiscal year, to submit to the Senate Committee on Governmental Affairs and the House Committee on Government Reform and Oversight:  (1) a list of each agency exempted in the preceding fiscal year; and (2) an explanation for each such exemption. 
Directs the Director to issue guidance on implementation of the requirements of this Act, including a statement on the common rules that he or she intends to review and standardize under this Act. 
Sets specifications for the development and implementation of plans by Federal agencies, including for each agency to designate a lead agency official for carrying out the agency's responsibilities under this Act.  Requires the lead official to consult regularly with representatives of State and local governments and qualified organizations during development of the plan.  Requires each Federal agency to submit the plan to the Director and the Congress and report annually thereafter on the implementation of the plan and the agency's performance in meeting the goals and objectives specified under this Act. 
Directs the Director or the lead agency to contract with the National Academy of Public Administration to evaluate the effectiveness of this Act.  Requires the evaluation to be submitted to the lead agency, the Director, and the Congress.   Terminates this Act five years after enactment.
Federal Financial Assistance Management Improvement Act of 1998