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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-
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gations and outlays that would occur under those pro-
grams without implementation of the part; or
(B) in the case of a plan or part that applies to
assistance to a qualified organization under an eligi-
ble Federal assistance program, the qualified organi-
zation does not consent in writing to the receipt of
that assistance in accordance with the plan.
(3) The Community Enterprise Board shall dis-
approve a part of a local flexibility plan if a majority of
the Board disapproves that part of the plan based on a fail-
ure of the part to comply with paragraph (1).
(4) In approving any part of a local flexibility plan,
the Community Enterprise Board shall specify the period
during which the part is effective. An approved local flexi-
bility plan shall not be effective after the date of the termi-
nation of effectiveness of this title under section 1113(a).
(5) Disapproval by the Community Enterprise Board
of any part of a local flexibility plan submitted by a local
government under this title shall not affect the eligibility
of a local government, a qualified organization, or any in-
dividual for benefits under any Federal program.
(c) MEMORANDA OF UNDERSTANDING.—(1) The Com-
munity Enterprise Board may not approve a part of a local
flexibility plan unless each local government and each
qualified organization that would receive assistance under
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the plan enters into a memorandum of understanding
under this subsection with the Community Enterprise
Board.
(2) A memorandum of understanding under this sub-
section shall specify all understandings that have been
reached by the Community Enterprise Board, the local gov-
ernment, and each qualified organization that is subject to
a local flexibility plan, regarding the approval and imple-
mentation of all parts of a local flexibility plan that are
the subject of the memorandum, including understandings
with respect to—
(A) all requirements under covered Federal as-
sistance programs that are to be waived by the Com-
munity Enterprise Board under section 1109(b);
(B)(i) the total amount of Federal funds that
shall be provided as benefits under or used to admin-
ister covered Federal assistance programs included in
those parts; or
(ii) a mechanism for determining that amount,
including specification of the total amount of Federal
funds that shall be provided or used under each cov-
ered Federal assistance program included in those
parts;
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(C) the sources of all non-Federal funds that
shall be provided as benefits under or used to admin-
ister those parts;
(D) measurable performance criteria that shall
be used during the term of those parts to determine
the extent to which the goals and performance levels
of the parts are achieved; and
(E) the data to be collected to make that deter-
mination.
(d) LIMITATION
ON
CONFIDENTIALITY
REQUIRE-
MENTS.—The Community Enterprise Board may not, as a
condition of approval of any part of a local flexibility plan
or with respect to the implementation of any part of an
approved local flexibility plan, establish any confidentiality
requirement that would—
(1) impede the exchange of information needed
for the design or provision of benefits under the parts;
or
(2) conflict with law.
SEC. 1109. IMPLEMENTATION OF APPROVED LOCAL FLEXI-
BILITY PLANS; WAIVER OF REQUIREMENTS.
(a) PAYMENTS AND ADMINISTRATION IN ACCORDANCE
WITH PLAN.—Notwithstanding any other law, any benefit
that is provided under a covered Federal assistance pro-
gram included in an approved local flexibility plan shall
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be paid and administered in the manner specified in the
approved local flexibility plan.
(b) WAIVER OF REQUIREMENTS.—(1) Notwithstand-
ing any other law and subject to paragraphs (2) and (3),
the Community Enterprise Board may waive any require-
ment applicable under Federal law to the administration
of, or provision of benefits under, any covered Federal as-
sistance program included in an approved local flexibility
plan, if that waiver is—
(A) reasonably necessary for the implementation
of the plan; and
(B) approved by a majority of members of the
Community Enterprise Board.
(2) The Community Enterprise Board may not waive
a requirement under this subsection unless the Board finds
that waiver of the requirement shall not result in a quali-
tative reduction in services or benefits for any individual
or family that is eligible for benefits under a covered Fed-
eral assistance program.
(3) The Community Enterprise Board may not waive
any requirement under this subsection—
(A) that enforces any constitutional or statutory
right of an individual, including any right under—
(i) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
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(ii) section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 701 et seq.);
(iii) title IX of the Education Amendments
of 1972 (86 Stat. 373 et seq.);
(iv) the Age Discrimination Act of 1975 (42
U.S.C. 6101 et seq.); or
(v) the Americans with Disabilities Act of
1990;
(B) for payment of a non-Federal share of fund-
ing of an activity under a covered Federal assistance
program; or
(C) for grants received on a maintenance of ef-
fort basis.
(c) SPECIAL ASSISTANCE.—To the extent permitted by
law, the head of each Federal agency shall seek to provide
special assistance to a local government or qualified organi-
zation to support implementation of an approved local
flexibility plan, including expedited processing, priority
funding, and technical assistance.
(d) EVALUATION AND TERMINATION.—(1) A local gov-
ernment, in accordance with regulations issued by the Com-
munity Enterprise Board, shall—
(A) submit such reports on and cooperate in such
audits of the implementation of its approved local
flexibility plan; and
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(B) periodically evaluate the effect implementa-
tion of the plan has had on—
(i) individuals who receive benefits under
the plan;
(ii) communities in which those individuals
live; and
(iii) costs of administering covered Federal
assistance programs included in the plan.
(2) No later than 90 days after the end of the 1-year
period beginning on the date of the approval by the Commu-
nity Enterprise Board of an approved local flexibility plan
of a local government, and annually thereafter, the local
government shall submit to the Community Enterprise
Board a report on the principal activities and achievements
under the plan during the period covered by the report,
comparing those achievements to the goals and performance
criteria included in the plan under section 1107(c)(3).
(3)(A) If the Community Enterprise Board, after con-
sultation with the head of each Federal agency responsible
for administering a covered Federal assistance program in-
cluded in an approved local flexibility plan of a local gov-
ernment, determines—
(i) that the goals and performance criteria in-
cluded in the plan under section 1107(c)(3) have not
been met; and
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(ii) after considering any experiences gained in
implementation of the plan, that those goals and cri-
teria are sound;
the Community Enterprise Board may terminate the effec-
tiveness of the plan.
(B) In terminating the effectiveness of an approved
local flexibility plan under this paragraph, the Community
Enterprise Board shall allow a reasonable period of time
for appropriate Federal, State, and local agencies and
qualified organizations to resume administration of Federal
programs that are covered Federal assistance programs in-
cluded in the plan.
(e) FINAL REPORT; EXTENSION OF PLANS.—(1) No
later than 45 days after the end of the effective period of
an approved local flexibility plan of a local government,
or at any time that the local government determines that
the plan has demonstrated its worth, the local government
shall submit to the Community Enterprise Board a final
report on its implementation of the plan, including a full
evaluation of the successes and shortcomings of the plan and
the effects of that implementation on individuals who re-
ceive benefits under those programs.
(2) The Community Enterprise Board may extend the
effective period of an approved local flexibility plan for such
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period as may be appropriate, based on the report of a local
government under paragraph (1).
SEC. 1110. COMMUNITY ADVISORY COMMITTEES.
(a) ESTABLISHMENT.—A local government that ap-
plies for approval of a local flexibility plan under this title
shall establish a community advisory committee in accord-
ance with this section.
(b) FUNCTIONS.—A community advisory committee
shall advise a local government in the development and im-
plementation of its local flexibility plan, including advice
with respect to—
(1) conducting public hearings;
(2) representing the interest of low income indi-
viduals and families; and
(3) reviewing and commenting on all community
policies, programs, and actions under the plan which
affect low income individuals and families, with the
purpose of ensuring maximum coordination and re-
sponsiveness of the plan in providing benefits under
the plan to those individuals and families.
(c) MEMBERSHIP.—The membership of a community
advisory committee shall—
(1) consist of—
(A) low income individuals, who shall—
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(i) comprise at least one-third of the
membership; and
(ii) include minority individuals who
are participants or who qualify to partici-
pate in eligible Federal assistance pro-
grams;
(B) representatives of low income individ-
uals and families;
(C) persons with leadership experience in
the private and voluntary sectors;
(D) local elected officials;
(E) representatives of participating quali-
fied organizations; and
(F) the general public; and
(2) include individuals and representatives of
community organizations who shall help to enhance
the leadership role of the local government in develop-
ing a local flexibility plan.
(d) OPPORTUNITY
FOR REVIEW
AND COMMENT
BY
COMMITTEE.—Before submitting an application for ap-
proval of a final proposed local flexibility plan, a local gov-
ernment shall submit the final proposed plan for review and
comment by a community advisory committee established
by the local government.
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(e) COMMITTEE REVIEW OF REPORTS.—Before sub-
mitting annual or final reports on an approved assistance
plan, a local government or private nonprofit organization
shall submit the report for review and comment to the com-
munity advisory committee.
SEC. 1111. TECHNICAL AND OTHER ASSISTANCE.
(a) TECHNICAL ASSISTANCE.—(1) The Community
Enterprise Board may provide, or direct that the head of
a Federal agency provide, technical assistance to a local
government or qualified organization in developing infor-
mation necessary for the design or implementation of a
local flexibility plan.
(2) Assistance may be provided under this subsection
if a local government makes a request that includes, in ac-
cordance with requirements established by the Community
Enterprise Board—
(A) a description of the local flexibility plan the
local government proposes to develop;
(B) a description of the groups of individuals to
whom benefits shall be provided under covered Federal
assistance programs included in the plan; and
(C) such assurances as the Community Enter-
prise Board may require that—
(i) in the development of the application to
be submitted under this title for approval of the
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plan, the local government shall provide ade-
quate opportunities to participate to—
(I) low income individuals and fami-
lies that shall receive benefits under covered
Federal assistance programs included in the
plan; and
(II) governmental agencies that admin-
ister those programs; and
(ii) the plan shall be developed after consid-
ering fully—
(I) needs expressed by those individuals
and families;
(II) community priorities; and
(III) available governmental resources
in the geographic area to which the plan
shall apply.
(b) DETAILS TO BOARD.—At the request of the Chair-
man of the Community Enterprise Board and with the ap-
proval of an agency head who is a member of the Board,
agency staff may be detailed to the Community Enterprise
Board on a nonreimbursable basis.
SEC. 1112. COMMUNITY ENTERPRISE BOARD.
(a) FUNCTIONS.—The Community Enterprise Board
shall—
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(1) receive, review, and approve or disapprove
local flexibility plans for which approval is sought
under this title;
(2) upon request from an applicant for such ap-
proval, direct the head of an agency that administers
a covered Federal assistance program under which
substantial Federal assistance would be provided
under the plan to provide technical assistance to the
applicant;
(3) monitor the progress of development and im-
plementation of local flexibility plans;
(4) perform such other functions as are assigned
to the Community Enterprise Board by this title; and
(5) issue regulations to implement this title
within 180 days after the date of its enactment.
(b) REPORTS.—No less than 18 months after the date
of the enactment of this Act, and annually thereafter, the
Community Enterprise Board shall submit a report on the
5 Federal regulations that are most frequently waived by
the Community Enterprise Board for local governments
with approved local flexibility plans to the President and
the Congress. The President shall review the report and de-
termine whether to amend or terminate such Federal regu-
lations.
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SEC. 1113. TERMINATION AND REPEAL; REPORT.
(a) TERMINATION AND REPEAL.—This title is repealed
on the date that is 5 years after the date of the enactment
of this Act.
(b) REPORT.—No later than 4 years after the date of
the enactment of this Act, the Comptroller General of the
United States shall submit to the Congress, a report that—
(1) describes the extent to which local govern-
ments have established and implemented approved
local flexibility plans;
(2) evaluates the effectiveness of covered Federal
assistance programs included in approved local flexi-
bility plans; and
(3) includes recommendations with respect to
continuing local flexibility.
TITLE XII—HERO ACT
SEC. 1201. SHORT TITLE.
This title may be cited as the ‘‘Heroic Efforts to Rescue
Others Act’’ (HERO Act).
SEC. 1202. FINDINGS.
Congress finds that—
(1) existing Occupational Safety and Health Ad-
ministration regulations require the issuance of a ci-
tation to an employer in a circumstance in which an
employee of such employer has voluntarily acted in a
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heroic manner to rescue individuals from imminent
harm during work hours;
(2) application of such regulations to employers
in such circumstance causes hardships to those em-
ployers who are responsible for employees who per-
form heroic acts to save individuals from imminent
harm;
(3) strict application of such regulations in such
circumstance penalizes employers as a result of the
time lost and legal fees incurred to defend against
such citations; and
(4) in order to save employers the cost of unnec-
essary enforcement an exemption from the issuance of
a citation to an employer under certain situations re-
lated to such circumstance is appropriate.
SEC. 1203. CITATIONS.
Section 9 of the Occupational Safety and Health Act
(29 U.S.C. 658) is amended by adding at the end the follow-
ing new subsection:
‘‘(d)(1) No citation may be issued under this section
for a rescue activity by an employer’s employee of an indi-
vidual in imminent harm unless—
‘‘(A)(i) such employee is designated or assigned
by the employee’s employer with responsibility to per-
form or assist in rescue operations; and
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‘‘(ii) the employer fails to provide protection of
the safety and health of such employee, including fail-
ing to provide appropriate training and rescue equip-
ment;
‘‘(B)(i) such employee is directed by the employ-
ee’s employer to perform rescue activities in the course
of carrying out the employee’s job duties; and
‘‘(ii) the employer fails to provide protection of
the safety and health of such employee, including fail-
ing to provide appropriate training and rescue equip-
ment; or
‘‘(C)(i) such employee—
‘‘(I) is employed in a workplace that re-
quires such employee to carry out duties that are
directly related to a workplace operation where
the likelihood of life-threatening accidents is fore-
seeable, such as a workplace operation where em-
ployees are located in confined spaces or trench-
es, handle hazardous waste, respond to emer-
gency situations, perform excavations, or per-
form construction over water;
‘‘(II) has not been designated or assigned to
perform or assist in rescue operations; and
‘‘(III) voluntarily elects to rescue such an
individual; and
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‘‘(ii) the employer has failed to instruct employ-
ees not designated or assigned to perform or assist in
rescue operations—
‘‘(I) of the arrangements for rescue;
‘‘(II) not to attempt rescue; and
‘‘(III) of the hazards of attempting rescue
without adequate training or equipment.
‘‘(2) For purposes of this subsection, the term ‘immi-
nent harm’ means the existence of any condition or practice
that could reasonably be expected to cause death or serious
physical harm before such condition or practice can be
abated.’’.
TITLE XIII—MISCELLANEOUS
PROVISIONS
SEC. 1301. ECONOMIC AND EMPLOYMENT IMPACT ACT.
(a) SHORT TITLE.—This section may be cited as the
‘‘Economic and Employment Impact Act’’.
(b) FINDINGS AND PURPOSES.—
(1) FINDINGS.—The Congress finds that—
(A) compliance with Federal regulations is
estimated to cost the private sector and State
and 
local 
governments 
as 
much 
as
$850,000,000,000 a year;
(B) excessive Federal regulation and man-
dates increase the cost of doing business and thus
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hinder economic growth and employment oppor-
tunities;
(C) State and local governments are forced
to absorb the cost of unfunded Federal mandates;
and
(D) in addition to budget and deficit esti-
mates, Congress and the executive branch deci-
sion makers need to be aware of regulatory cost
impacts of proposed Federal actions on the pri-
vate sector and State, local, and tribal govern-
ments.
(2) PURPOSES.—The purposes of this section
are—
(A) to ensure that the people of United
States are fully apprised of the impact of Fed-
eral legislative and regulatory activity on eco-
nomic growth and employment;
(B) to require both the Congress and the ex-
ecutive branch to acknowledge and to take re-
sponsibility for the fiscal and economic effects of
legislative and regulatory actions and activities;
(C) to provide a means to ensure that con-
gressional and executive branch action are fo-
cused on enhancing economic growth and provid-
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ing increased job opportunities for the people of
United States; and
(D) to protect against congressional or exec-
utive branch actions which hinder economic
growth or eliminate jobs for the people of United
States.
(c) ECONOMIC
AND EMPLOYMENT IMPACT STATE-
MENTS FOR LEGISLATION.—
(1) PREPARATION.—The Director of the Congres-
sional Budget Office (referred to as the ‘‘Director’’)
shall prepare an economic and employment impact
statement, as described in paragraph (2), to accom-
pany each bill or joint resolution reported by any
committee (except the Committee on Appropriations)
of the House of Representatives or the Senate or con-
sidered on the floor of either House.
(2) CONTENTS.—The economic and employment
impact statement required by paragraph (1) shall in-
clude the following:
(A) An estimate of the numbers of individ-
uals and businesses who would be regulated by
the bill or joint resolution and a determination
of the groups and classes of such individuals and
businesses;
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(B) A determination of the economic impact
of such regulation on individuals, consumers,
and businesses affected.
(C)(i) An estimate of the costs which would
be incurred by the private sector in carrying out
or complying with such bill or joint resolution in
the fiscal year in which it is to become effective,
and in each of the 4 fiscal years following such
fiscal year, together with the basis for each such
estimate.
(ii) Estimates required by this subpara-
graph shall include specific data on costs im-
posed on groups and classes of individuals and
businesses, including small business and consum-
ers, and employment impacts on those individ-
uals and businesses.
(D) An estimate of the costs that would be
incurred by State and local governments, which
shall include—
(i) the estimates required by section
403 of the Congressional Budget Act of
1974; and
(ii) an evaluation of the extent of the
costs of the Federal mandates arising from
such bill or joint resolution in comparison
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with funding assistance provided by the
Federal Government to address the costs of
complying with such mandates.
(3) REPORT
NOT
AVAILABLE.—If compliance
with the requirements of paragraph (1) is impractica-
ble, the Director shall submit a statement setting forth
the reasons for noncompliance.
(4) STATEMENT TO ACCOMPANY COMMITTEE RE-
PORTS.—The economic and employment impact state-
ment required by this subsection shall accompany
each bill or joint resolution reported or otherwise con-
sidered on the floor of either House. Such statement
shall be printed in the committee report upon timely
submission to the committee. If not timely filed or
otherwise unavailable for publication in the commit-
tee report, the economic and regulatory statement
shall be published in the Congressional Record not
less than 2 calendar days prior to any floor consider-
ation of a bill or joint resolution subject to the provi-
sions of this subsection by either House.
(5) COMMITTEE STATEMENTS OPTIONAL.—Noth-
ing in this subsection shall be construed to modify or
otherwise affect the requirements of paragraph 11(b)
of rule XXVI of the Standing Rules of the Senate, re-
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garding preparation of an evaluation of regulatory
impact.
(d) ECONOMIC AND EMPLOYMENT IMPACT STATEMENT
FOR EXECUTIVE BRANCH REGULATIONS.—
(1) PREPARATION.—Each Federal department or
executive branch agency shall prepare an economic
and employment impact statement, as described in
paragraph (2), to accompany regulatory actions.
(2) CONTENTS.—The economic and employment
impact statement required by paragraph (1) shall in-
clude the following:
(A) An estimate of the numbers of individ-
uals and businesses who would be regulated by
the regulatory action and a determination of the
groups and classes of such individuals and busi-
nesses.
(B) A determination of the economic impact
of such regulation on individuals, consumers,
and businesses affected.
(C)(i) An estimate of the costs which would
be incurred by the private sector in carrying out
or complying with such regulatory action in the
fiscal year in which it is to become effective and
in each of the 4 fiscal years following such fiscal
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year, together with the basis for each such esti-
mate;
(ii) The estimate required by this subpara-
graph shall include specific data on costs on
groups and classes of individuals and businesses,
including small business and consumers, and
employment impacts on those individuals and
businesses.
(D) An estimate of the costs that would be
incurred by State and local governments, which
shall include—
(i) an estimate of cost which would be
incurred by State and local governments in
carrying out or complying with the regu-
latory action in the fiscal year in which it
is to become effective and in each of the 4
fiscal years following such fiscal year, to-
gether with the basis for such estimate;
(ii) a comparison of the estimates of
costs described in clause (i), with any avail-
able estimates of costs made by any Federal
or State agency;
(iii) if the agency determines that the
regulatory action is likely to result in an-
nual cost to State and local governments of
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$200,000,000 or more, or is likely to have
exceptional fiscal consequences for a geo-
graphic region or a particular level of gov-
ernment, a statement by the agency detail-
ing such results or consequences; and
(iv) an evaluation of the extent of the
costs of the Federal mandates arising from
the regulatory action in comparison with
funding assistance provided by the Federal
Government to address the costs of comply-
ing with such mandates.
(4) REPORT
NOT
AVAILABLE.—If compliance
with the requirements of paragraph (1) is impractica-
ble, the agency or department shall submit a state-
ment setting forth the reasons for noncompliance.
(5) STATEMENT TO ACCOMPANY FEDERAL REGU-
LATORY
ACTIONS.—The economic and employment
impact statement with respect to a regulatory action
required by this subsection shall be published in the
Federal Register together with the publication of such
regulatory action. If the regulatory action is not pub-
lished in the Federal Register, the economic and em-
ployment impact statement shall be made available to
the public in a timely manner.
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(6) DEFINITION
OF ‘‘REGULATORY
ACTION’’.—
For purposes of this subsection, the term ‘‘regulatory
action’’ means any substantive action by a Federal
agency (required to be or customarily published in the
Federal Register) that promulgates or is expected to
lead to the promulgation of a final rule or regulation,
including notices of inquiry, advance notices of pro-
posed rulemaking, notices of proposed rulemaking, in-
terim final rules, and final rules and regulations.
(e) PROVISION FOR NATIONAL SECURITY EMERGENCY
WAIVER.—
(1) CONGRESSIONAL ECONOMIC IMPACT STATE-
MENTS.—The Congress may waive the requirements of
subsection (c) at any time in which a declaration of
war is in effect, or in response to a national security
emergency at the request of the President.
(2) EXECUTIVE REGULATIONS ECONOMIC IMPACT
STATEMENTS.—The President may waive the require-
ments of subsection (d) at any time in which a dec-
laration of war is in effect, or in response to a na-
tional security emergency as determined by the Presi-
dent in consultation with Congress.
(f) EFFECTIVE DATE.—This section shall take effect 30
days after the date enactment of this Act.
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SEC. 
1302. 
URBAN 
UNIVERSITY 
BUSINESS 
INITIATIVE
GRANTS.
(a) 
URBAN
UNIVERSITY
BUSINESS
INITIATIVE
GRANTS.—
(1) AUTHORIZATION.—The Secretary of Com-
merce (hereafter in this section referred to as the
‘‘Secretary’’) is authorized to make grants to eligible
institutions in accordance with this section.
(2) APPLICATION.—
(A) IN
GENERAL.—An eligible institution
seeking assistance under this section shall submit
to the Secretary an application at such time, in
such form, and containing or accompanied by
such information and assurances as the Sec-
retary may require by regulation.
(B) CONTENTS.—Except as provided in sub-
paragraph (C), each application submitted pur-
suant to subparagraph (A) shall include—
(i) a description of the activities and
services for which assistance is sought;
(ii) evidence of coordination with any
small business development centers in exist-
ence in the community; and
(iii) documentation of the formation of
a consortium that includes, in addition to
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eligible institutions, one or more of the fol-
lowing entities:
(I) A nonprofit organization.
(II) A business or other employer.
(C) WAIVER.—The Secretary may waive the
requirements of subparagraph (B)(iii) for any
applicant who can demonstrate to the satisfac-
tion of the Secretary that the applicant has de-
vised an integrated and coordinated plan that
otherwise meets the requirements of this section.
(3) SELECTION PROCEDURES.—Not later than
120 days after the date of enactment of this section,
the Secretary shall, by regulation, develop a formal
procedure for the submission of applications under
this section and shall publish in the Federal Register
an announcement of that procedure and the availabil-
ity of funds under this section.
(b) AUTHORIZED ACTIVITIES.—
(1) IN
GENERAL.—Funds provided under this
section shall be used to design and implement pro-
grams to assist businesses, especially those in lower
income urban communities, to become more produc-
tive and able to compete in the global marketplace.
(2) SPECIFIC AUTHORIZED ACTIVITIES.—Activi-
ties conducted with funds made available under this
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section may include research on, or planning and im-
plementation of technology transfer, technical train-
ing, the delivery of services, or technical assistance
in—
(A) business development;
(B) business creation;
(C) business expansion; and
(D) human resource management.
(c) PEER REVIEW PANEL.—
(1) ESTABLISHMENT.—Not later than 90 days
after the date on which the Secretary publishes the
announcement in the Federal Register in accordance
with subsection (a)(3), the Secretary shall appoint a
peer review panel (hereafter in this section referred to
as the ‘‘panel’’).
(2) MEMBERSHIP.—In appointing the panel
under paragraph (1), the Secretary shall consult with
officials of other Federal agencies and with non-Fed-
eral organizations in order to ensure that—
(A) the panel membership is geographically
balanced; and
(B) the panel is composed of representatives
from public and private institutions of higher
education, labor, business, and nonprofit organi-
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zations having expertise in business development
in lower income urban communities.
(3) DUTIES.—The panel shall—
(A) review applications submitted under
this section; and
(B) make recommendations to the Secretary
concerning the selection of grant recipients.
(d) DISBURSEMENT OF FUNDS.—
(1) LIMITATION
ON
AMOUNT.—The Secretary
shall not provide assistance under this section to any
recipient which exceeds $400,000 during any 1-year
period.
(2) EQUITABLE
GEOGRAPHIC
DISTRIBUTION.—
The Secretary shall award grants under this section
in a manner that achieves equitable geographic dis-
tribution of such grants.
(e) DEFINITIONS.—For purposes of this section, the fol-
lowing definitions shall apply:
(1) LOWER
INCOME
URBAN
COMMUNITY.—The
term ‘‘lower income urban community’’ means an
urban area in which the percent of residents living
below the Federal poverty level is not less than 115
percent of the statewide average.
(2) URBAN AREA.—