allotment of such funds under clauses (i) 
and (ii). 
(d) RULE FOR PROVIDING FUNDS TO COMMUNITY- 
BASED ORGANIZATIONS.—In providing funds under this 
title to community-based organizations, a unit of general 
local government or State shall, to the extent practicable, 
give priority to community-based organizations that will 
provide services or functions in accordance with this title 
to— 
(1) public use microdata areas that have a pov-
erty rate of 12 percent or more; or 
(2) units of general local government that have 
an unemployment rate that is 2 percent higher than 
the national unemployment rate. 
SEC. 103. USES OF FUNDS BY UNITS OF GENERAL LOCAL 
GOVERNMENT AND COMMUNITY-BASED OR-
GANIZATIONS. 
(a) ENTITLEMENT COMMUNITIES.—Of the amount of 
funds received under section 104(c)(1) for each fiscal year, 
a unit of general local government that is an entitlement 
community— 
(1) may use not more than 5 percent for ad-
ministrative purposes; 
(2) may use up to 50 percent of the remainder 
of such funds (after using the funds pursuant to 
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paragraph (1)) to continue to provide employee com-
pensation to employees employed by the unit, as of 
the date the unit receives funds under section 
104(c)(1), in positions that— 
(A) provide local services to the public; and 
(B) would otherwise be terminated or re-
duced as a result of fiscal constraints of such 
unit; 
(3) may provide up to 50 percent of the remain-
der of such funds (after using the funds pursuant to 
paragraph (1) and (2)) to a community-based orga-
nization to employ individuals newly hired or em-
ployed under a contract entered into on or after the 
date on which the unit receives funds under section 
104(c)(1) to provide services or functions that are 
not customarily provided by the unit, of which— 
(A) not less than 93 percent shall be used 
by the organization to provide employee com-
pensation to such individuals; 
(B) not more than 5 percent may be used 
by the organization for supportive services; and 
(C) not more than 2 percent may be used 
by the organization for administrative purposes; 
and 
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(4) shall use all of the remainder of such funds 
(after using the funds pursuant to paragraphs (1) 
through (3)), to the extent that the unit determines 
that it has a need for additional employees, to pro-
vide employee compensation to individuals newly 
hired by the unit to carry out the local public serv-
ices described in subclauses (I) and (II) of sub-
section (c)(1)(B)(i) for the unit. 
(b) NONENTITLEMENT AREAS.—Of the amount of 
funds received under section 104(c)(2)(B) for each fiscal 
year— 
(1) a unit of general local government that is 
located in a nonentitlement area of a State— 
(A) may use not more than 2 percent for 
administrative purposes; and 
(B) shall use all of the remainder of such 
funds (after using the funds pursuant to sub-
paragraph (A)) to provide employee compensa-
tion to individuals described in clause (i) or (iii) 
of section 102(c)(2)(A), as determined by the 
State; and 
(2) a community-based organization— 
(A) shall use not less than 93 percent to 
provide employee compensation to individuals 
described in section 102(c)(2)(A)(ii); 
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(B) may use up to 5 percent for supportive 
services; and 
(C) may use up to 2 percent for adminis-
trative purposes. 
(c) FUNDED POSITIONS; CONSULTATION BY CHIEF 
EXECUTIVE OFFICERS.— 
(1) FUNDED POSITIONS.— 
(A) 
FULL-TIME, 
FULL-YEAR
EMPLOY-
MENT.— 
(i) IN GENERAL.—An individual hired 
under this title by a unit of general local 
government or community-based organiza-
tion shall fill a position that offers full- 
time, full-year employment. 
(ii) DEFINITIONS.—For purposes of 
this subparagraph— 
(I) the term ‘‘full-time’’, when 
used in relation to employment, has 
the meaning already established or, if 
the meaning has not been established, 
determined to be appropriate for pur-
poses of this title, by the unit of gen-
eral local government or community- 
based organization hiring an indi-
vidual under this title; and 
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(II) the term ‘‘full-year’’, when 
used in relation to employment, means 
a position that provides employment 
for a 12-month period, except that in 
the case of a position that provides a 
service required by a unit or organiza-
tion for only the duration of a school 
year, the term means a position that 
provides employment for such dura-
tion. 
(B) SERVICES FOR UNITS.—An individual 
hired under this title— 
(i) by a unit of general local govern-
ment, shall fill a position to assist the unit 
in— 
(I) restoring local public services 
terminated on or after the date that is 
5 years before the date of enactment 
of this title; 
(II) expanding existing local pub-
lic services; or 
(III) retaining local public serv-
ices that would otherwise be reduced 
as a result of the fiscal constraints of 
such unit; or 
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(ii) by a community-based organiza-
tion, shall fill a position to provide services 
or functions that are not customarily pro-
vided by a unit of general local govern-
ment. 
(2) CONSULTATION BY CHIEF EXECUTIVE OFFI-
CERS.—A chief executive officer of a unit of general 
local government shall consult with the local commu-
nity and labor organizations representing employees 
of such unit in determining the positions that should 
be funded under this title for such unit for each fis-
cal year. 
SEC. 104. STATEMENTS OF NEED; APPROVAL AND ALLOT-
MENT OF FUNDS. 
(a) SUBMISSION OF STATEMENTS; NOTICE OF AL-
LOTMENT AND INTENT.— 
(1) IN GENERAL.— 
(A) NOTICE
OF
ALLOCATION.—The Sec-
retary shall post on a publicly accessible Inter-
net Web site of the Department of Labor, the 
total amount of funds made available for allot-
ment under this title for a fiscal year to each 
unit of general local government that is an enti-
tlement community and each State that is eligi-
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ble to receive funds under this title for such fis-
cal year. 
(B) SUBMISSION.—In order to receive 
funds under this title for a fiscal year for which 
funds are appropriated to carry out this title, a 
unit of general local government, community- 
based organization, or a State shall submit a 
statement in accordance with paragraph (2) or 
(3), as applicable, certifying the information de-
scribed in subsection (b) for such fiscal year. 
(C) NOTICE OF INTENT.— 
(i) IN GENERAL.—Seven days prior to 
the submission of a statement under sub-
paragraph (B), a unit of general local gov-
ernment that is an entitlement community 
or State shall publish public notice of the 
intent to submit a statement under such 
subparagraph, which includes a copy of the 
statement. 
(ii) INTERNET
WEB
SITE.—In pub-
lishing public notice under clause (i), a 
unit of general local government or State 
shall post the notice and information de-
scribed in such clause on a publicly avail-
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statement certifying the information described 
in subsection (b) with respect to the units of 
general local government and community-based 
organizations that the State plans to fund, 
using funds the State receives under this title, 
for such fiscal year. 
(b) INFORMATION CERTIFIED.—A statement sub-
mitted under subsection (a) shall certify, with respect to 
a unit of general local government or community-based or-
ganization, as applicable, the following information: 
(1) The amount of funds requested by such 
unit or organization. 
(2) The number of individuals who will receive 
employee compensation with such funds. 
(3) The job titles of, and the amount of em-
ployee compensation and the employers (units or or-
ganizations) for, the positions that will be filled by 
the individuals. 
(4) Whether the positions will— 
(A) in the case of employment with a unit, 
assist in retaining, restoring, or expanding an 
existing local public service; or 
(B) in the case of employment with an or-
ganization, provide services or functions that 
are not customarily provided by a unit that is 
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an entitlement community, or a unit located in 
a nonentitlement area of a State. 
(5) The estimated date of hiring for the posi-
tions. 
(6) A statement documenting the need for the 
services to be carried out by the individuals hired for 
the positions. 
(7) In the case of a unit that desires to use 
funds received under this title to continue to provide 
employee compensation for existing employees of the 
unit in accordance with section 102(c)(2)(A)(i) or 
103(a)(2), a statement documenting the fiscal con-
straints of the unit that would result in the termi-
nation or reduction of the positions of such employ-
ees. 
(8) A description of the unit’s or organization’s 
plan to target recruitment efforts for positions fund-
ed under this title in accordance with section 105(b). 
(9) An assurance by the unit or organization 
that the unit or organization will comply with all 
provisions of this title. 
(10) An assurance by the unit or organization 
that the unit or organization will comply with all ap-
plicable Federal, State, and local labor laws, includ-
ing laws concerning wages and hours, labor rela-
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tions, family and medical leave, occupational safety 
and health, and nondiscrimination. 
(c) APPROVAL AND ALLOTMENT OF FUNDS.— 
(1) ENTITLEMENT COMMUNITIES.—Within 30 
days of receipt of a statement submitted under sub-
section (a)(2)(A) by unit of general local government 
that is an entitlement community, the Secretary 
shall allot to the unit the amount of funds requested 
by the unit for a fiscal year, not to exceed the total 
amount of funds available to be allotted under sec-
tion 102(b)(1) to the unit for such fiscal year. 
(2) NONENTITLEMENT AREAS.— 
(A) APPROVAL
BY
THE
SECRETARY.— 
Within 30 days of receipt of a statement sub-
mitted under subsection (a)(3)(B) by a State 
with respect to a unit of general local govern-
ment located in a nonentitlement area, or a 
community-based organization to provide serv-
ices or functions that are not customarily pro-
vided by a unit of general local government lo-
cated in a nonentitlement area, for a fiscal 
year, the Secretary shall allot to the State the 
amount of funds requested by the State for 
such unit or organization for such fiscal year, 
not to exceed the total amount of funds avail-
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able to be allotted under section 102(b)(2) to 
the State for such fiscal year. 
(B) STATE ALLOTMENT OF FUNDS.—Not 
later than 15 days after receiving an allotment 
of funds from the Secretary under subpara-
graph (A), the State shall allot, in accordance 
with section 102(c)(2), all of the funds to the 
unit or organization for which such funds were 
provided by the Secretary under subparagraph 
(A). 
(3) WITHHELD FUNDS.—Notwithstanding para-
graphs (1) and (2), any funds under this title with-
held pursuant to a grievance filed under section 
110(b) shall be withheld until such grievance is re-
solved. 
(d) REALLOTMENT OF FUNDS.— 
(1) UNITS.—The funds made available for allot-
ment under this title for a fiscal year for a unit of 
general local government that is an entitlement com-
munity that does not submit, within 6 months after 
the date the Secretary posts a notice of allotment 
under subsection (a)(1)(A) for such unit, to the Sec-
retary a statement under subsection (a) that indi-
cates an intention to hire at least 1 individual under 
this title for such fiscal year, shall be made available 
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to be reallotted by the Secretary for the fiscal year 
immediately following such fiscal year, in accordance 
with the allotment formula under section 102(b)(1). 
(2) STATES.—The funds made available for al-
lotment under this title for a fiscal year for a State 
that does not submit, within 6 months after the date 
the Secretary posts a notice of allotment under sub-
section (a)(1)(A) for such State, shall be allotted by 
the Secretary to units of general local government 
and community-based organizations located in the 
nonentitlement area of the State to carry out the 
purposes of this title for such fiscal year. 
SEC. 105. COMPLIANCE WITH LOCAL LAWS AND CON-
TRACTS; RECRUITMENT REQUIREMENTS. 
(a) COMPLIANCE WITH LOCAL LAWS
AND CON-
TRACTS.—In hiring individuals for positions funded under 
this title, or using funds under this title to continue to 
provide employee compensation for existing employees, a 
unit of general local government or community-based or-
ganization shall comply with all applicable Federal, State, 
and local laws, personnel policies and regulations, and col-
lective bargaining agreements, as if such individual was 
hired, or such employee compensation was provided, with-
out assistance under this title. 
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(b) TARGETING RECRUITMENT EFFORTS.—In re-
cruiting individuals for positions funded under this title, 
a unit of general local government or community-based or-
ganization shall target recruitment efforts with respect to 
individuals who— 
(1) have been in receipt of unemployment com-
pensation for at least 25 weeks; 
(2) have exhausted unemployment compensa-
tion within the last 2 years; 
(3) are veterans; or 
(4) are unemployed individuals who are not eli-
gible to receive unemployment compensation because 
they do not have sufficient wages to meet the min-
imum qualifications for such compensation. 
(c) BONUS GRANTS.— 
(1) IN
GENERAL.—From the amounts made 
available under paragraph (2), the Secretary may 
award a grant to each unit of general local govern-
ment and each community-based organization where 
at least 15 percent of the individuals hired for a po-
sition under this title by such unit or organization 
for a fiscal year are individuals described in sub-
section (b). 
(2) AUTHORIZATION
OF
APPROPRIATIONS.— 
There 
are 
authorized 
to 
be 
appropriated 
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