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‘‘(c) PENALTY.—An offense described in this section is
punishable by a fine of not more than $10,000 or imprison-
ment for not more than five years, or both.
‘‘(d) JURISDICTION.—There is Federal jurisdiction
over an offense under this section if the person committing
the offense was an officer or employee of the United States
at the time the offense was committed.
‘‘CIVIL LIABILITY
‘‘SEC. 408. CIVIL ACTION.—An aggrieved person, other
than a foreign power or an agent of a foreign power, as
defined in section 101 (a) or (b)(1)(A), respectively, of this
Act, whose premises, property, information, or material has
been subjected to a physical search within the United States
or about whom information obtained by such a physical
search has been disclosed or used in violation of section 407
shall have a cause of action against any person who com-
mitted such violation and shall be entitled to recover—
‘‘(a) actual damages;
‘‘(b) punitive damages; and
‘‘(c) reasonable attorney’s fees and other inves-
tigative and litigation costs reasonably incurred.
‘‘DEFINITIONS
‘‘SEC. 409. As used in this title:
‘‘(a) The terms ‘foreign power,’ ‘agent of a for-
eign power,’ ‘international terrorism,’ ‘sabotage,’ ‘for-
eign intelligence information,’ ‘Attorney General,’
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‘United States person,’ ‘United States’,’ ‘person,’ and
‘State’ shall have the same meaning as in Section 101
of this Act.
‘‘(b) ‘Physical search’ means any physical intru-
sion into premises or property (including examina-
tion of the interior of property by technical means)
or any seizure, reproduction or alteration of informa-
tion, material or property, under circumstances in
which a person has a reasonable expectation of pri-
vacy and a warrant would be required for law en-
forcement purposes, but does not include ‘electronic
surveillance’ as defined in subsection 101(f) of this
Act.
‘‘(c) ‘Minimization procedures’ with respect to
physical search, means—
‘‘(1) specific procedures, which shall be
adopted by the Attorney General, that are rea-
sonably designed in light of the purposes and
technique of the particular physical search, to
minimize the acquisition and retention, and pro-
hibit the dissemination, of non-publicly available
information concerning unconsenting United
States persons consistent with the need of the
United States persons consistent with the need of
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the United States to obtain, produce, and dis-
seminate foreign intelligence information;
‘‘(2) procedures that require that non-pub-
licly available information, which is not foreign
intelligence information, as defined in subsection
101(e)(1) of this Act, shall not be disseminated
in a manner that identifies any United States
person, without such person’s consent, unless
such person’s identity is necessary to understand
such foreign intelligence information or assess its
importance; and
‘‘(3) notwithstanding paragraphs (1) and
(2), procedures that allow for the retention and
dissemination of information that is evidence of
a crime which has been, is being, or is about to
be committed and that is to be retained or dis-
seminated for law enforcement purposes.’’
‘‘(d) ‘Aggrieved person’ means a person whose
premises, property, information, or material is the
target of physical search or any other person whose
premises, property, information, or material was sub-
ject to physical search.
‘‘(e) ‘Foreign Intelligence Surveillance Court’
means the court established by section 103(a) of this
Act.
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‘‘(f) ‘Court of Review’ means the court estab-
lished by section 103(b) of this Act.
‘‘EFFECTIVE DATE
‘‘SEC. 410. The provisions of this title shall become ef-
fective 90 days after the date of enactment of this title, ex-
cept that any physical search approved by the Attorney
General to gather foreign intelligence information shall not
be deemed unlawful for failure to follow the procedures of
this title, if that search is conducted within 180 days follow-
ing the date of enactment of this title pursuant to regula-
tions issued by the Attorney General, which are in the pos-
session of the Select Committee on Intelligence of the Senate
and the Permanent Select Committee on Intelligence of the
House of Representatives prior to the date of enactment.’’.
TITLE 
XI—LOCAL 
EMPOWER-
MENT AND FLEXIBILITY
SEC. 1101. SHORT TITLE.
This title may be cited as the ‘‘Local Empowerment
and Flexibility Act of 1994’’.
SEC. 1102. FINDINGS.
The Congress finds that—
(1) historically, Federal social service programs
have addressed the Nation’s social problems by pro-
viding categorical assistance with detailed require-
ments relating to the use of funds;
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(2) while the assistance described in paragraph
(1) has been directed at critical problems, some pro-
gram requirements may inadvertently impede the ef-
fective delivery of social services;
(3) the Nation’s local governments and private,
nonprofit organizations are dealing with increasingly
complex social problems which require the delivery of
many kinds of social services;
(4) the Nation’s communities are diverse, and
different social needs are present in different commu-
nities;
(5) it is more important than ever to provide
programs that—
(A) promote local delivery of social services
to meet the full range of needs of individuals and
families;
(B) respond flexibly to the diverse needs of
the Nation’s communities;
(C) reduce the barriers between programs
that impede local governments’ ability to effec-
tively deliver social services; and
(D) empower local governments and pri-
vate, nonprofit organizations to be innovative in
creating programs that meet the unique needs of
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the people in their communities while continuing
to address national social service goals; and
(6) many communities have innovative planning
and community involvement strategies for social serv-
ices, but Federal, State, and local regulations often
hamper full implementation of local plans.
SEC. 1103. PURPOSES.
The purposes of this title are to—
(1) enable more efficient use of Federal, State,
and local resources;
(2) place less emphasis in Federal social service
programs on measuring resources and procedures and
more emphasis on achieving Federal, State, and local
social services goals;
(3) enable local governments and private, non-
profit organizations to adapt programs of Federal as-
sistance to the particular needs of low income citizens
and the operating practices of recipients, by—
(A) drawing upon appropriations available
from more than one Federal program; and
(B) integrating programs and program
funds across existing Federal assistance cat-
egories; and
(4) enable local governments and private, non-
profit organizations to work together and build
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stronger cooperative partnerships to address critical
social service problems.
SEC. 1104. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘approved local flexibility plan’’
means a local flexibility plan that combines funds
from Federal, State, local government or private
sources to address the social service needs of a commu-
nity (or any part of such a plan) that is approved
by the Community Enterprise Board under section
1106;
(2) the term ‘‘community advisory committee’’
means such a committee established by a local govern-
ment under section 1110;
(3) the term ‘‘Community Enterprise Board’’
means the board established by the President that is
composed of the—
(A) Vice President;
(B) Assistant to the President for Domestic
Policy;
(C) Assistant to the President for Economic
Policy;
(D) Secretary of the Treasury;
(E) Attorney General;
(F) Secretary of the Interior;
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(G) Secretary of Agriculture;
(H) Secretary of Commerce;
(I) Secretary of Labor;
(J) Secretary of Health and Human Serv-
ices;
(K) Secretary of Housing and Urban Devel-
opment;
(L) Secretary of Transportation;
(M) Secretary of Education;
(N) Administrator of the Environmental
Protection Agency;
(O) Director of National Drug Control Pol-
icy;
(P) Administrator of the Small Business
Administration;
(Q) Director of the Office of Management
and Budget; and
(R) Chair of the Council of Economic Ad-
visers.
(4) the term ‘‘covered Federal assistance pro-
gram’’ means an eligible Federal assistance program
that is included in a local flexibility plan of a local
government;
(5) the term ‘‘eligible Federal assistance pro-
gram’’—
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(A) means a Federal program under which
assistance is available, directly or indirectly, to
a local government or a qualified organization to
carry out a program for—
(i) economic development;
(ii) employment training;
(iii) health;
(iv) housing;
(v) nutrition;
(vi) other social services; or
(vii) rural development; and
(B) does not include a Federal program
under which assistance is provided by the Fed-
eral Government directly to a beneficiary of that
assistance or to a State as a direct payment to
an individual;
(6) the term ‘‘eligible local government’’ means a
local government that is eligible to receive assistance
under 1 or more covered Federal programs;
(7) the term ‘‘local flexibility plan’’ means a
comprehensive plan for the integration and adminis-
tration by a local government of assistance provided
by the Federal Government under 2 or more eligible
Federal assistance programs;
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(8) the term ‘‘local government’’ means a sub-
division of a State that is a unit of general local gov-
ernment (as defined under section 6501 of title 31,
United States Code);
(9) the term ‘‘low income’’ means having an in-
come that is not greater than 200 percent of the Fed-
eral poverty income level;
(10) the term ‘‘priority funding’’ means giving
higher priority (including by the assignment of extra
points, if applicable) to applications for Federal as-
sistance submitted by a local government having an
approved local flexibility program, by—
(A) a person located in the jurisdiction of
such a government; or
(B) a qualified organization eligible for as-
sistance under a covered Federal assistance pro-
gram included in such a plan;
(11) 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; and
(12) the term ‘‘State’’ means the 50 States, the
District of Columbia, Puerto Rico, American Samoa,
Guam, and the Virgin Islands.
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SEC. 1105. DEMONSTRATION PROGRAM.
The Community Enterprise Board shall—
(1) establish and administer a local flexibility
demonstration program by approving local flexibility
plans in accordance with the provisions of this title;
(2) no later than 180 days after the date of the
enactment of this Act, select no more than 30 local
governments from no more than 6 States to partici-
pate in such program, of which—
(A) 3 States shall each have a population of
3,500,000 or more as determined under the most
recent decennial census; and
(B) 3 States shall each have a population of
3,500,000 or less as determined under the most
recent decennial census.
SEC. 1106. PROVISION OF FEDERAL ASSISTANCE IN AC-
CORDANCE WITH APPROVED LOCAL FLEXI-
BILITY PLAN.
(a) PAYMENTS TO LOCAL GOVERNMENTS.—Notwith-
standing any other provision of law, amounts available to
a local government or a qualified organization under a cov-
ered Federal assistance program included in an approved
local flexibility plan shall be provided to and used by the
local government or organization in accordance with the
approved local flexibility plan.
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(b) ELIGIBILITY FOR BENEFITS.—An individual or
family that is eligible for benefits or services under a cov-
ered Federal assistance program included in an approved
local flexibility plan may receive those benefits only in ac-
cordance with the approved local flexibility plan.
SEC. 1107. APPLICATION FOR APPROVAL OF LOCAL FLEXI-
BILITY PLAN.
(a) IN GENERAL.—A local government may submit to
the Community Enterprise Board in accordance with this
section an application for approval of a local flexibility
plan.
(b) CONTENTS OF APPLICATION.—An application sub-
mitted under this section shall include—
(1) a proposed local flexibility plan that com-
plies with subsection (c);
(2) certification by the chief executive of the local
government, and such additional assurances as may
be required by the Community Enterprise Board,
that—
(A) the local government has the ability and
authority to implement the proposed plan, di-
rectly or through contractual or other arrange-
ments, throughout the geographic area in which
the proposed plan is intended to apply;
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(B) amounts are available from non-Federal
sources to pay the non-Federal share of all cov-
ered Federal assistance programs included in the
proposed plan; and
(C) low income individuals and families
that reside in that geographic area participated
in the development of the proposed plan;
(3) any comments on the proposed plan submit-
ted under subsection (d) by the Governor of the State
in which the local government is located;
(4) public comments on the plan including the
transcript of at least 1 public hearing and comments
of the appropriate community advisory committee es-
tablished under section 1110; and
(5) other relevant information the Community
Enterprise Board may require to approve the pro-
posed plan.
(c) CONTENTS OF PLAN.—A local flexibility plan sub-
mitted by a local government under this section shall in-
clude—
(1) the geographic area to which the plan applies
and the rationale for defining the area;
(2) the particular groups of individuals, by age,
service needs, economic circumstances, or other defin-
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ing factors, who shall receive services and benefits
under the plan;
(3)(A) specific goals and measurable performance
criteria, a description of how the plan is expected to
attain those goals and criteria;
(B) a description of how performance shall be
measured; and
(C) a system for the comprehensive evaluation of
the impact of the plan on participants, the commu-
nity, and program costs;
(4) the eligible Federal assistance programs to be
included in the plan as covered Federal assistance
programs and the specific benefits that shall be pro-
vided under the plan under such programs, includ-
ing—
(A) criteria for determining eligibility for
benefits under the plan;
(B) the services available;
(C) the amounts and form (such as cash, in-
kind contributions, or financial instruments) of
nonservice benefits; and
(D) any other descriptive information the
Community Enterprise Board considers nec-
essary to approve the plan;
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(5) except for the requirements under section
1109(b)(3), any Federal statutory or regulatory re-
quirement applicable under a covered Federal assist-
ance program included in the plan, the waiver of
which is necessary to implement the plan;
(6) fiscal control and related accountability pro-
cedures applicable under the plan;
(7) a description of the sources of all non-Federal
funds that are required to carry out covered Federal
assistance programs included in the plan;
(8) written consent from each qualified organiza-
tion for which consent is required under section
1107(b)(2); and
(9) other relevant information the Community
Enterprise Board may require to approve the plan.
(d) PROCEDURE FOR APPLYING.—(1) To apply for ap-
proval of a local flexibility plan, a local government shall
submit an application in accordance with this section to
the Governor of the State in which the local government
is located.
(2) A Governor who receives an application from a
local government under paragraph (1) may, by no later
than 30 days after the date of that receipt—
(A) prepare comments on the proposed local
flexibility plan included in the application;
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(B) describe any State laws which are necessary
to waive for successful implementation of a local
plan; and
(C) submit the application and comments to the
Community Enterprise Board.
(3) If a Governor fails to act within 30 days after re-
ceiving an application under paragraph (2), the applicable
local government may submit the application to the Com-
munity Enterprise Board.
SEC. 1108. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY
PLANS.
(a) REVIEW OF APPLICATIONS.—Upon receipt of an
application for approval of a local flexibility plan under
this title, the Community Enterprise Board shall—
(1) approve or disapprove all or part of the plan
within 45 days after receipt of the application;
(2) notify the applicant in writing of that ap-
proval or disapproval by not later than 15 days after
the date of that approval or disapproval; and
(3) in the case of any disapproval of a plan, in-
clude a written justification of the reasons for dis-
approval in the notice of disapproval sent to the
applicant.
(b) APPROVAL.—(1) The Community Enterprise
Board may approve a local flexibility plan for which an
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application is submitted under this title, or any part of
such a plan, if a majority of members of the Board deter-
mines that—
(A) the plan or part shall improve the effective-
ness and efficiency of providing benefits under covered
Federal programs included in the plan by reducing
administrative inflexibility, duplication, and unnec-
essary expenditures;
(B) the applicant local government has ade-
quately considered, and the plan or part of the plan
appropriately addresses, any effect that administra-
tion of each covered Federal program under the plan
or part of the plan shall have on administration of
the other covered Federal programs under that plan
or part of the plan;
(C) the applicant local government has or is de-
veloping data bases, planning, and evaluation proc-
esses that are adequate for implementing the plan or
part of the plan;
(D) the plan shall more effectively achieve Fed-
eral assistance goals at the local level and shall better
meet the needs of local citizens;
(E) implementation of the plan or part of the
plan shall adequately achieve the purposes of this title
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and of each covered Federal assistance program under
the plan or part of the plan;
(F) the plan and the application for approval of
the plan comply with the requirements of this title;
(G) the plan or part of the plan is adequate to
ensure that individuals and families that receive ben-
efits under covered Federal assistance programs in-
cluded in the plan or part shall continue to receive
benefits that meet the needs intended to be met under
the program;
(H) the qualitative level of those benefits shall
not be reduced for any individual or family; and
(I) the local government has—
(i) waived the corresponding local laws nec-
essary for implementation of the plan; and
(ii) sought any necessary waivers from the
State.
(2) The Community Enterprise Board may not ap-
prove any part of a local flexibility plan if—
(A) implementation of that part would result in
any increase in the total amount of obligations or
outlays of discretionary appropriations or direct
spending under covered Federal assistance programs
included in that part, over the amounts of such obli-