H. R. 782—58
‘‘(1) The applicant’s ability to administer a program that
serves the greatest number of eligible individuals, giving par-
ticular consideration to individuals with greatest economic
need, greatest social need, poor employment history or pros-
pects, and over the age of 60.
‘‘(2) The applicant’s ability to administer a program that
provides employment for eligible individuals in the communities
in which such individuals reside, or in nearby communities,
that will contribute to the general welfare of the community.
‘‘(3) The applicant’s ability to administer a program that
moves eligible individuals into unsubsidized employment.
‘‘(4) The applicant’s ability to move individuals with mul-
tiple barriers to employment into unsubsidized employment.
‘‘(5) The applicant’s ability to coordinate with other
organizations at the State and local level.
‘‘(6) The applicant’s plan for fiscal management of the
program to be administered with funds received under this
section.
‘‘(7) Any additional criteria that the Secretary deems appro-
priate in order to minimize disruption for current enrollees.
‘‘(d) RESPONSIBILITY TESTS.—
‘‘(1) IN GENERAL.—Before final selection of a grantee, the
Secretary shall conduct a review of available records to assess
the applicant’s overall responsibility to administer Federal
funds.
‘‘(2) REVIEW.—As part of the review described in paragraph
(1), the Secretary may consider any information, including the
organization’s history with regard to the management of other
grants.
‘‘(3) FAILURE TO SATISFY TEST.—The failure to satisfy any
one responsibility test that is listed in paragraph (4), except
for those listed in subparagraphs (A) and (B) of such paragraph,
does not establish that the organization is not responsible
unless such failure is substantial or persistent (for 2 or more
consecutive years).
‘‘(4) TEST.—The responsibility tests include review of the
following factors:
‘‘(A) Efforts by the organization to recover debts, after
three demand letters have been sent, that are established
by final agency action and have been unsuccessful, or that
there has been failure to comply with an approved repay-
ment plan.
‘‘(B) Established fraud or criminal activity of a signifi-
cant nature within the organization.
‘‘(C) Serious administrative deficiencies identified by
the Secretary, such as failure to maintain a financial
management system as required by Federal regulations.
‘‘(D) Willful obstruction of the audit process.
‘‘(E) Failure to provide services to applicants as agreed
to in a current or recent grant or to meet applicable
performance measures.
‘‘(F) Failure to correct deficiencies brought to the
grantee’s attention in writing as a result of monitoring
activities, reviews, assessments, or other activities.
H. R. 782—59
‘‘(G) Failure to return a grant closeout package or
outstanding advances within 90 days of the grant expira-
tion date or receipt of closeout package, whichever is later,
unless an extension has been requested and granted.
‘‘(H) Failure to submit required reports.
‘‘(I) Failure to properly report and dispose of Govern-
ment property as instructed by the Secretary.
‘‘(J) Failure to have maintained effective cash manage-
ment or cost controls resulting in excess cash on hand.
‘‘(K) Failure to ensure that a subrecipient complies
with its Office of Management and Budget Circular A–
133 audit requirements specified at section 667.200(b) of
title 20, Code of Federal Regulations.
‘‘(L) Failure to audit a subrecipient within the required
period.
‘‘(M) Final disallowed costs in excess of 5 percent of
the grant or contract award if, in the judgment of the
grant officer, the disallowances are egregious findings.
‘‘(N) Failure to establish a mechanism to resolve a
subrecipient’s audit in a timely fashion.
‘‘(5) DETERMINATION.—Applicants that are determined to
be not responsible shall not be selected as grantees.
‘‘(6) DISALLOWED COSTS.—Interest on disallowed costs shall
accrue in accordance with the Debt Collection Improvement
Act of 1996.
‘‘(e) NATIONAL PERFORMANCE MEASURES AND COMPETITION FOR
PUBLIC AND PRIVATE NONPROFIT AGENCIES AND ORGANIZATIONS.—
‘‘(1) IN GENERAL.—Not later than 120 days after the end
of each program year, the Secretary shall determine if each
public or private nonprofit agency or organization that is a
grantee has met the national performance measures established
pursuant to section 513(a)(3).
‘‘(2) TECHNICAL
ASSISTANCE
AND
CORRECTIVE
ACTION
PLAN.—
‘‘(A) IN GENERAL.—If the Secretary determines that
a grantee fails to meet the national performance measures
for a program year, the Secretary shall provide technical
assistance and require such organization to submit a correc-
tive action plan not later than 160 days after the end
of the program year.
‘‘(B) CONTENT.—The plan submitted under subpara-
graph (A) shall detail the steps the grantee will take to
meet the national performance measures in the next pro-
gram year.
‘‘(C) AFTER SECOND YEAR OF FAILURE.—If a grantee
fails to meet the national performance measures for a
second consecutive program year, the Secretary shall con-
duct a national competition to award, for the first full
program year following the determination (minimizing, to
the extent possible, the disruption of services provided
to enrollees), an amount equal to 25 percent of the funds
awarded to the grantee for such year.
‘‘(D) COMPETITION AFTER THIRD CONSECUTIVE YEAR OF
FAILURE.—If a grantee fails to meet the national perform-
ance measures for a third consecutive program year, the
Secretary shall conduct a national competition to award
the amount of the grant remaining after deduction of the
H. R. 782—60
portion specified in subparagraph (C) for the first full pro-
gram year following the determination. The eligible
applicant that receives the grant through the national com-
petition shall continue service to the geographic areas for-
merly served by the grantee that previously received the
grant.
‘‘(3) COMPETITION REQUIREMENTS FOR PUBLIC AND PRIVATE
NONPROFIT AGENCIES AND ORGANIZATIONS IN A STATE.—
‘‘(A) IN GENERAL.—In addition to the actions required
under paragraph (2), the Secretary shall take corrective
action if the Secretary determines at the end of any pro-
gram year that, despite meeting the established national
performance measures, a public or private nonprofit agency
or organization that is a grantee has attained levels of
performance 20 percent or more below the national
performance measures with respect to the project carried
out in a State and has failed to meet the performance
measures as established by the Secretary for the State
grantee in such State, and there are not factors, such
as the factors described in section 513(a)(2)(B), or size
of the project, that justify the performance.
‘‘(B) FIRST YEAR OF FAILURE.—After the first program
year of failure to meet the performance criteria described
in subparagraph (A), the Secretary shall require a correc-
tive action plan, and may require the transfer of the respon-
sibility for the project to other grantees, provide technical
assistance, and take other appropriate actions.
‘‘(C) SECOND
YEAR
OF
FAILURE.—After the second
consecutive program year of failure to meet the perform-
ance criteria described in subparagraph (A), the corrective
actions to be taken by the Secretary may include the
transfer of the responsibility for a portion or all of the
project to a State or public or private nonprofit agency
or organization, or a competition for a portion or all of
the funds to carry out such project among all eligible enti-
ties that meet the responsibility tests under section 514(d)
except for the grantee that is the subject of the corrective
action.
‘‘(D) THIRD YEAR OF FAILURE.—After the third consecu-
tive program year of failure to meet the performance cri-
teria described in subparagraph (A), the Secretary shall
conduct a competition for the funds to carry out such
project among all eligible entities that meet the responsi-
bility tests under section 514(d) except for the grantee
that is the subject of the corrective action.
‘‘(4) REQUEST BY GOVERNOR.—Upon the request of the Gov-
ernor of a State for a review of the performance of a public
or private nonprofit agency or organization within the State,
the Secretary shall undertake such a review in accordance
with the criteria described in paragraph (3)(A). If the perform-
ance of such grantee is not justified under such criteria, the
Secretary shall take corrective action in accordance with para-
graph (3).
‘‘(f ) PERFORMANCE MEASURES AND COMPETITION FOR STATES.—
‘‘(1) IN GENERAL.—Not later than 120 days after the end
of the program year, the Secretary shall determine if a State
H. R. 782—61
grantee has met the performance measures established pursu-
ant to section 513(a)(4).
‘‘(2) TECHNICAL
ASSISTANCE
AND
CORRECTIVE
ACTION
PLAN.—If a State that receives a grant fails to meet the perform-
ance measures for a program year, the Secretary shall provide
technical assistance and require the State to submit a corrective
action plan not later than 160 days after the end of the program
year.
‘‘(3) CONTENT.—The plan described in paragraph (2) shall
detail the steps the State will take to meet the standards.
‘‘(4) FAILURE TO MEET PERFORMANCE MEASURES FOR SECOND
AND THIRD YEARS.—
‘‘(A) AFTER SECOND YEAR OF FAILURE.—If a State fails
to meet the performance measures for a second consecutive
program year, the Secretary shall provide for the conduct
by the State of a competition to award, for the first full
program year following the determination (minimizing, to
the extent possible, the disruption of services provided
to enrollees), an amount equal to 25 percent of the funds
available to the State for such year.
‘‘(B) AFTER THIRD YEAR OF FAILURE.—If the State fails
to meet the performance measures for a third consecutive
program year, the Secretary shall provide for the conduct
by the State of a competition to award the funds allocated
to the State for the first full program year following the
Secretary’s determination that the State has not met the
performance measures.
‘‘SEC. 515. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) There is authorized to be appropriated to carry out this
title—
‘‘(1) $475,000,000 for fiscal year 2001 and such sums as
may be necessary for fiscal year 2002 through 2005; and
‘‘(2) such additional sums as may be necessary for each
such fiscal year to enable the Secretary, through programs
under this title, to provide for at least 70,000 part-time employ-
ment positions for eligible individuals.
For purposes of paragraph (2), ‘part-time employment position’
means an employment position within a workweek of at least 20
hours.
‘‘(b) Amounts appropriated under this section for any fiscal
year shall be available for obligation during the annual period
which begins on July 1 of the calendar year immediately following
the beginning of such fiscal year and which ends on June 30
of the following calendar year. The Secretary may extend the period
during which such amounts may be obligated or expended in the
case of a particular organization or agency receiving funds under
this title if the Secretary determines that such extension is nec-
essary to ensure the effective use of such funds by such organization
or agency.
‘‘(c) At the end of the program year, the Secretary may recap-
ture any unexpended funds for the program year, and reobligate
such funds within the 2 succeeding program years for—
‘‘(1) incentive grants;
‘‘(2) technical assistance; or
‘‘(3) grants or contracts for any other program under this
title.