‘‘(12) SERVICE AREA.—The term ‘service area’ 
means the unique geographic area which the State has 
designated as the area to be served by an eligible enti-
ty with funding under section 679(a)(1). 
‘‘(13) STATE.—The term ‘State’ means any of 
the several States, the District of Columbia, Puerto 
Rico, Guam, American Samoa, the United States Vir-
gin Islands, or the Commonwealth of the Northern 
Mariana Islands. 
‘‘(14) TRIBAL
GRANTEE.—The term ‘Tribal 
grantee’ means an Indian Tribe or Tribal organiza-
tion, as defined in section 677(a), that receives a 
grant under section 677(c). 
‘‘SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES 
BLOCK GRANT PROGRAM. 
‘‘(a) AUTHORIZATION OF PROGRAM.—The Secretary is 
authorized to carry out a community services block grant 
program and to make grants through the program, under 
sections 675 and 676, to States to support local community 
action plans carried out by eligible entities to reduce pov-
erty in the communities served by such entities. 
‘‘(b) AUTHORITY OF SECRETARY.—The Secretary is 
authorized to carry out other community programs de-
scribed in section 690. 
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‘‘SEC. 675. GRANTS TO TERRITORIES. 
‘‘(a) APPORTIONMENT.—The Secretary shall apportion 
the amount reserved under section 691(c)(1) for each fiscal 
year on the basis of need, based on the most recent applica-
ble data available from the Bureau of the Census to account 
for poverty, to eligible jurisdictions among Guam, Amer-
ican Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands. 
‘‘(b) GRANTS.—The Secretary shall make a grant to 
each eligible jurisdiction to which subsection (a) applies for 
the amount apportioned under subsection (a). 
‘‘(c) PLANS FOR APPORTIONMENT TO TERRITORIES.— 
No later than six months after the enactment of this Act, 
the Secretary shall make publicly available the Depart-
ment’s plan for apportioning funds among territories, in-
cluding factors that contribute to the calculation of need 
and methodology for calculating the apportionment for each 
territory. The Secretary must make publicly available any 
updates or changes to this plan no less frequently than any 
time new applicable data are available from the Bureau 
of Census. 
‘‘SEC. 676. ALLOTMENTS AND GRANTS TO STATES. 
‘‘(a) ALLOTMENTS IN GENERAL.—From the amount 
appropriated under section 691(a) for each fiscal year and 
remaining after the Secretary makes the reservations re-
quired by section 691(c), the Secretary shall allot to each 
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eligible State, subject to section 677, an amount that bears 
the same ratio to such remaining amount as the amount 
received by the State for fiscal year 1981 under section 221 
of the Economic Opportunity Act of 1964 bore to the total 
amount received by all States for fiscal year 1981 under 
such section, except as provided in subsection (b). 
‘‘(b) MINIMUM ALLOTMENTS.— 
‘‘(1) IN GENERAL.—The Secretary shall allot to 
each State not less than 1⁄2 of 1 percent of the amount 
appropriated under section 691(a) for such fiscal year 
and remaining after the Secretary makes the reserva-
tions required by section 691(c). 
‘‘(2) 
YEARS
WITH
GREATER
AVAILABLE 
FUNDS.—Notwithstanding paragraph (1), if the 
amount appropriated under section 691(a) for a fis-
cal year and remaining after the Secretary makes the 
reservations required by section 691(c) exceeds 
$900,000,000, no State shall receive under this section 
less than 3⁄4 of 1 percent of the remaining amount. 
‘‘(c) GRANTS AND PAYMENTS.—Subject to section 677, 
the Secretary shall make grants to eligible States for the 
allotments described in subsections (a) and (b). The Sec-
retary shall make payments for the grants in accordance 
with section 6503(a) of title 31, United States Code. The 
Secretary shall allocate the amounts allotted under sub-
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sections (a) and (b) on a quarterly basis at a minimum, 
notify the States of their respective allocations, and make 
each State’s first allocation amount in a fiscal year avail-
able for expenditure by the State no later than 30 days after 
receipt of an approved apportionment from the Office of 
Management and Budget and, for subsequent allocation 
amounts in the fiscal year, not later than 30 days after 
the start of the period for which the Secretary is allocating 
the funds. 
‘‘(d) DEFINITION.—In this section, the term ‘State’ 
does not include Guam, American Samoa, the United States 
Virgin Islands, and the Commonwealth of the Northern 
Mariana Islands. 
‘‘SEC. 677. PAYMENTS TO INDIAN TRIBES. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) INDIAN.—The term ‘Indian’ means a mem-
ber of an Indian Tribe or Tribal organization. 
‘‘(2) INDIAN TRIBE OR TRIBAL ORGANIZATION.— 
The term ‘Indian Tribe or Tribal organization’ 
means a Tribe, band, or other organized group recog-
nized in the State in which the Tribe, band, or group 
resides, or considered by the Secretary of the Interior 
to be an Indian Tribe or an Indian organization for 
any purpose. 
‘‘(b) RESERVATION.— 
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‘‘(1) APPLICATION.—Paragraph (2) shall apply 
only if, with respect to any State, the Secretary— 
‘‘(A) receives a request from the governing 
body of an Indian Tribe or Tribal organization 
in such State that assistance under this subtitle 
be made available directly to such Indian Tribe 
or Tribal organization; and 
‘‘(B) determines that the members of such 
Indian Tribe or Tribal organization would be 
better served by means of grants made directly to 
such Indian Tribe or Tribal organization to pro-
vide benefits under this subtitle. 
‘‘(2) AMOUNT.—The Secretary shall reserve from 
amounts allotted to a State under section 676 for a 
fiscal year not less than the amount that bears the 
same ratio to the State allotment for the fiscal year 
as the population of all eligible Indians in that par-
ticular State for whom a determination has been 
made under paragraph (1) bears to the population of 
all individuals eligible for assistance through a grant 
made under section 676 to such State. 
‘‘(c) AWARDS.—The amount reserved by the Secretary 
on the basis of a determination made under subsection 
(b)(1)(B) shall be made available by grant to the Indian 
Tribe or Tribal organization serving the Indians for whom 
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the determination has been made under subsection 
(b)(1)(B). 
‘‘(d) PLAN.—In order for an Indian Tribe or Tribal 
organization to be eligible for a grant award for a fiscal 
year under this section, the Indian Tribe or Tribal organi-
zation shall submit to the Secretary a plan for such fiscal 
year that meets such criteria as the Secretary may prescribe 
by regulation. 
‘‘(e) ALTERNATIVE
PERFORMANCE
MEASUREMENT 
SYSTEM.—The Secretary may implement alternative re-
quirements for implementation by an Indian Tribe or Trib-
al Organization of the requirements of section 686(a). 
‘‘SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY 
ACTION PLANS AND APPLICATIONS. 
‘‘(a) STATE LEAD AGENCY.— 
‘‘(1) DESIGNATION.—The chief executive officer 
of a State desiring to receive a grant under section 
675 or 676 shall designate, in an application sub-
mitted to the Secretary under subsection (b), an ap-
propriate State agency that agrees to comply with the 
requirements of paragraph (2), to act as a lead agen-
cy for purposes of carrying out State activities under 
this subtitle. 
‘‘(2) DUTIES OF STATE LEAD AGENCIES.—The 
State lead agency— 
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‘‘(6) an assurance that no eligible entity in the 
State that received, in the previous fiscal year, fund-
ing through a grant made under section 675 or 676 
will have funding reduced below the proportional 
share of funding the entity received from the State in 
the previous fiscal year, or eliminated, or its designa-
tion as an eligible entity terminated, unless, after 
providing the affected entity (or entities, as applica-
ble) with notice and an opportunity for a hearing on 
the record, the State determines that cause exists for 
the reduction or elimination of funding or for termi-
nation of such designation, subject to review by the 
Secretary as provided in section 684(c); and— 
‘‘(A) in the case of failure of an eligible en-
tity to comply with the terms of a corrective ac-
tion plan relating to correction of a serious defi-
ciency, except according to the procedures set 
forth in section 684(b); and 
‘‘(B) for purposes of this subsection, the 
term ‘cause’ means— 
‘‘(i) the failure of an eligible entity to 
comply with the terms of a corrective action 
plan relating to correction of a serious defi-
ciency as described in subsection 684(b); or 
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‘‘(ii) a statewide proportional distribu-
tion of funds provided through a commu-
nity services block grant under this subtitle 
to respond to— 
‘‘(I) the results of the most re-
cently available census or other appro-
priate demographic data; 
‘‘(II) severe economic dislocation; 
or 
‘‘(III) the designation of an eligi-
ble entity to serve a geographic area 
that has been unserved for at least the 
previous 5 years; 
‘‘(7) an assurance that each eligible entity serv-
ing the State has established procedures that permit 
a low-income individual or organization to petition 
for adequate representation of such individuals or or-
ganizations, respectively, on the board of the eligible 
entity; 
‘‘(8) a description of outcome measures to be 
used to measure State and eligible entity performance 
in achieving the goals of the State plan and the com-
munity action plans, respectively; 
‘‘(9) an assurance that the State will develop a 
policy on board vacancies in accordance with section 
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680(c)(3) and provide guidance to assist eligible enti-
ties in filling board vacancies; and 
‘‘(10) an assurance that the State and the eligi-
ble entities in the State will coordinate, and establish 
linkages between, governmental and other social serv-
ices programs to assure the effective delivery of such 
services to low-income individuals and to avoid dupli-
cation of such services, and a description of how the 
State and the eligible entities will coordinate the pro-
vision of employment and training activities, as de-
fined in section 3 of the Workforce Innovation and 
Opportunity Act, in the State and in communities 
with entities providing activities through statewide 
and local workforce development systems under such 
Act. 
‘‘(c) APPROVAL.—The Secretary shall notify the chief 
executive officer of each State submitting an application 
containing a State plan under this section of the approval, 
disapproval, or approval in part, of the application, not 
later than 60 days after receiving the application. In the 
event of a full or partial disapproval, the Secretary’s notifi-
cation shall include a description of changes necessary for 
final approval. In the event of a partial approval, the Sec-
retary may allow grantee use of funds for activities in-
cluded in the portions of the plan which the Secretary has 
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approved. In the event a State application fails to be ap-
proved in whole or in part before the end of the third month 
of the period covered by such plan the Secretary may award 
funding as specified in section 684(a)(5)(B). 
‘‘(d) PUBLIC INSPECTION.—Each plan and major revi-
sion to a State plan prepared under this section shall be 
distributed for public inspection and comment. A hearing 
on such plan or major revision shall be held as required 
under subparagraphs (C) and (D) of subsection (a)(2), but 
a State application for merger, combination, or privatiza-
tion of entities under section 680(b) shall not be considered 
a major revision. 
‘‘(e) ELIGIBLE ENTITY APPLICATION AND COMMUNITY 
ACTION PLAN.—Beginning with the first fiscal year fol-
lowing the transition period described in section 3 of the 
Community Services Block Grant Modernization Act of 
2022, to be eligible to receive a subgrant under section 
679(a), each eligible entity shall prepare and submit to the 
State an application containing a community action plan 
or plans covering a period of not more than 2 fiscal years. 
Such application shall be submitted in a reasonable and 
timely manner as required by the State. The application 
shall contain information on the intended implementation 
of the eligible entity’s activities, including demonstrating 
how the activities will— 
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‘‘(1) meet needs identified in the most recent 
comprehensive community needs assessment which has 
been conducted in the previous 3 years and which 
may be coordinated with community needs assess-
ments conducted for other programs; and 
‘‘(2) achieve the purposes of this subtitle through 
programs, projects, and services. 
‘‘SEC. 679. STATE AND LOCAL USES OF FUNDS. 
‘‘(a) STATE SUBGRANTS TO ELIGIBLE ENTITIES AND 
OTHER ORGANIZATIONS.— 
‘‘(1) IN GENERAL.—A State that receives a grant 
under section 675 or 676 shall use not less than 90 
percent to make subgrants to eligible entities that en-
able the entities to implement programs, projects, and 
services for a purpose described in section 672. 
‘‘(2) OBLIGATIONAL REQUIREMENTS.— 
‘‘(A) DATE
OF
OBLIGATION.—The State 
shall obligate the funds for subgrants described 
in paragraph (1) and make such subgrants 
available for expenditure by eligible entities not 
later than the later of— 
‘‘(i) the 30th day after the date on 
which the State receives from the Secretary 
a notice of funding availability for the 
State’s application under section 678 for a 
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first or subsequent allocation for a fiscal 
year; or 
‘‘(ii) the first day of the State program 
year for which funds are to be expended 
under the State application. 
‘‘(B) EXCEPTION.—If funds are appro-
priated to carry out this subtitle for less than a 
full fiscal year, a State may request an exception 
from the Secretary from the requirement to make 
subgrants available for expenditure by eligible 
entities in accordance with subparagraph (A), 
except that a State may not accumulate more 
than one fiscal quarter’s worth of funding with-
out making such funds available for expenditure 
by eligible entities. 
‘‘(C) AVAILABILITY.—Funds allocated to eli-
gible entities through subgrants made under 
paragraph (1) for a fiscal year shall be available 
for obligation by the eligible entity during that 
fiscal year and the succeeding fiscal year. 
‘‘(b) STATEWIDE ACTIVITIES.— 
‘‘(1) USE OF REMAINDER.— 
‘‘(A) IN GENERAL.—A State that receives a 
grant under section 675 or 676 shall, after car-
rying out subsection (a), use the remainder of the 
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grant funds for activities described in the State’s 
application under section 678(b) as described in 
subparagraph (B) and for administrative ex-
penses subject to the limitations in paragraph 
(2). 
‘‘(B) TRAINING
AND
TECHNICAL
ASSIST-
ANCE.—After applying subsection (a), the State 
may use the remaining grant funds for the pur-
poses of— 
‘‘(i) providing to eligible entities train-
ing and technical assistance and resources 
to respond to statewide or regional condi-
tions that create economic insecurity, in-
cluding emergency conditions; 
‘‘(ii) supporting professional develop-
ment activities for eligible entities that en-
hance the skills of their local personnel (in-
cluding members of the board of directors of 
such entities) in organizational manage-
ment, service delivery, and program devel-
opment and management, giving priority to 
activities carried out through partnerships 
of such entities with institutions of higher 
education; 
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‘‘(iii) 
supporting 
information 
and 
communication resources for the comprehen-
sive community needs assessments described 
in section 678(e)(1); 
‘‘(iv) supporting performance measure-
ment systems consistent with the require-
ments of section 686; 
‘‘(v) promoting coordination and co-
operation among eligible entities in the 
State, including supporting activities of a 
statewide association of community services 
network organizations; 
‘‘(vi) providing training and technical 
assistance and resources to assist eligible en-
tities in building and using evidence of ef-
fectiveness in reducing poverty conditions, 
including entities participating in or pro-
posing to participate in the Community Ac-
tion Innovations Program established under 
section 682(a)(2); 
‘‘(vii) supporting efforts of eligible en-
tities to identify and respond to physical 
and behavioral health challenges (including 
substance use disorders) experienced by low- 
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income individuals, families, and commu-
nities; and 
‘‘(viii) analyzing the distribution of 
funds made available under this subtitle 
within the State to determine if such funds 
have been targeted to the areas of greatest 
need. 
‘‘(2) ADMINISTRATIVE CAP.— 
‘‘(A) LIMITATION.—Of the amounts remain-
ing after the required funding for subgrants de-
scribed under subsection (a)(1), a State shall not 
spend more than 5 percent of its grant under 
section 675 or 676 for administrative expenses. 
‘‘(B) DEFINITION.—In this paragraph, the 
term ‘administrative expenses’— 
‘‘(i) means the costs incurred by the 
State’s lead agency for carrying out plan-
ning and management activities, including 
monitoring, oversight, and reporting as re-
quired by this Act; and 
‘‘(ii) does not include the cost of activi-
ties conducted under paragraph (1)(B) 
other than monitoring. 
‘‘(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible 
entity that receives a subgrant under subsection (a)(1) shall 
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use the subgrant funds to carry out a community action 
plan that shall include— 
‘‘(1) programs, projects, and services that pro-
vide low-income individuals and families with oppor-
tunities— 
‘‘(A) to identify and develop strategies to re-
move obstacles and solve problems that block ac-
cess to opportunity, economic stability, and 
achievement of self-sufficiency; 
‘‘(B) to secure and retain meaningful em-
ployment at a family supporting wage; 
‘‘(C) to secure an adequate education, im-
prove literacy and language skills, and obtain 
job-related skills; 
‘‘(D) to make effective use of available in-
come and build assets; 
‘‘(E) to obtain and maintain adequate 
housing and a safe and healthy living environ-
ment; 
‘‘(F) to address health needs and improve 
health and well-being; 
‘‘(G) to obtain emergency materials or other 
assistance to meet immediate and urgent needs, 
including to meet the collective needs of a com-
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munity, and prevent greater or more prolonged 
economic instability; 
‘‘(H) to secure and identify assistance re-
lated to reducing energy expenses and reducing 
energy consumption; and 
‘‘(I) to achieve greater participation in 
community affairs; and 
‘‘(2) activities that develop and maintain— 
‘‘(A) partnerships for the purpose of ad-
dressing community, economic, and social condi-
tions of poverty and promoting healthy commu-
nities, between the eligible entity and— 
‘‘(i) State and local public entities; 
and 
‘‘(ii) private partners, including state-
wide and local businesses, associations of 
private employers, and private charitable 
and civic organizations; 
‘‘(B) linkages with public and private orga-
nizations for coordinating initiatives, services, 
and investments so as to avoid duplication, and 
maximize the effective use, of community re-
sources for creating economic opportunity, in-
cluding developing lasting social and economic 
assets; and 
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‘‘(C) new investments in the community to 
reduce the incidence of poverty, including devel-
oping lasting social and economic assets. 
‘‘(d) ELIGIBILITY CRITERION.— 
‘‘(1) Subject to paragraph (2), 200 percent of the 
poverty line shall be used as a criterion of eligibility 
for services, assistance, or resources provided directly 
to individuals or families through the community 
services block grant program established under this 
subtitle. 
‘‘(2) A State or Tribal grantee may establish 
procedures to ensure that a participant in a program, 
project, or service funded under this subtitle remains 
eligible to participate as long as the participant is 
successfully progressing toward achievement of the 
goals of the program, project, or service, regardless of 
the income eligibility criteria used to determine the 
participant’s initial eligibility. 
‘‘SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS. 
‘‘(a) DESIGNATION AND REDESIGNATION OF ELIGIBLE 
ENTITIES IN UNSERVED AREAS.— 
‘‘(1) IN GENERAL.—If any geographic area of a 
State is not, or ceases to be, served by an eligible enti-
ty, the State lead agency may, in consultation with 
local officials and organizations representing the 
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area, solicit one or more applications and designate 
a new community action agency to provide programs, 
projects, and services to the area, that is— 
‘‘(A) a community action agency that is a 
private, nonprofit organization and that is geo-
graphically located in an area in reasonable 
proximity of, or contiguous to, the unserved area 
and that is already providing similar programs, 
projects, and services, and that has demonstrated 
financial capacity to manage and account for 
Federal funds; or 
‘‘(B) if no community action agency de-
scribed in subparagraph (A) is available, a pri-
vate, nonprofit organization (which may include 
an eligible entity) that is geographically located 
in, or is in reasonable proximity to, the unserved 
area and that is capable of providing a broad 
range of programs, projects, and services de-
signed to achieve the purposes of this subtitle as 
stated in section 672. 
‘‘(2) REQUIREMENT.—In order to serve as the el-
igible entity for the service area, an entity described 
in paragraph (1) shall agree to ensure that the gov-
erning board of directors of the entity will meet the 
requirements of subsection (c). 
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‘‘(3) COMMUNITY.—A service area referred to in 
this subsection or a portion thereof shall be treated as 
a community for purposes of this subtitle. 
‘‘(4) INTERIM DESIGNATION.—If no entity that 
meets the requirements of paragraphs (1) and (2) is 
available for designation as a permanent eligible enti-
ty, the State may designate a private, nonprofit agen-
cy (or public agency if a private, nonprofit is not 
available) on an interim basis for no more than 1 
year while the State completes a selection process for 
a permanent eligible entity that meets the require-
ments of paragraphs (1) and (2). An agency des-
ignated on an interim basis shall be capable of pro-
viding programs, projects, and services designed to 
achieve the purposes of this subtitle as stated in sec-
tion 672 and have demonstrated financial capacity to 
manage and account for Federal funds, and may be 
designated as a permanent eligible entity only if, by 
the time of permanent designation, it meets all the re-
quirements of paragraphs (1) and (2). 
‘‘(b) MERGER, COMBINATION, OR PRIVATIZATION OF 
ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—If an eligible entity receiving 
subgrant funds makes a determination described in 
paragraph (2) and notifies the State, the State— 
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‘‘(A) shall assist in developing a plan for 
implementing such merger, combination, or pri-
vatization, including a budget for transitional 
costs not to exceed 2 years in duration; 
‘‘(B) in the case of a merger or combina-
tion, shall provide to the merged or combined en-
tity an amount of funding under section 
679(a)(1) equal to the sum of amounts the 
merged or combined entities each received under 
section 679(a)(1) immediately before the merger 
or combination. 
‘‘(2) COVERED MERGER, COMBINATION, OR PRI-
VATIZATION.—This subsection applies when— 
‘‘(A) 2 or more eligible entities determine 
that the geographic areas of a State that they 
serve can be more effectively served under com-
mon control or shared management; or 
‘‘(B) a public organization that is an eligi-
ble entity determines that the area it serves can 
be more effectively served if it becomes a private, 
nonprofit organization. 
‘‘(3) PLANS.—A State may establish require-
ments for merger, combination, or privatization plans 
and for a determination that the merged, combined, 
or privatized entity, or entities, will be capable of 
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conducting a broad range of programs, projects, and 
services designed to achieve the purposes of this sub-
title as stated in section 672 consistent with the com-
prehensive community needs assessments for the areas 
served. 
‘‘(4) STATE DETERMINATION.—If a State deter-
mines that a merged, combined, or privatized entity 
or entities will be capable of conducting a broad 
range of programs, projects, and services as specified 
in paragraph (3), it shall designate the merged, com-
bined, or privatized entity or entities to serve the 
area(s) in question without soliciting applications 
from other entities. 
‘‘(c) TRIPARTITE BOARDS.— 
‘‘(1) PRIVATE, NONPROFIT ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a private, non-
profit organization to be considered to be an eli-
gible entity for purposes of section 673(7), the 
entity shall be governed by a tripartite board of 
directors described in subparagraph (C) that 
fully participates in the development, planning, 
implementation, oversight, and evaluation of the 
programs, projects, and services carried out or 
provided through the subgrant made under sec-
tion 679(a)(1) and all activities of the entity. 
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‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the private, nonprofit organization. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) 1⁄3 of the members of the board are 
elected public officials holding office on the 
date of selection, or their representatives 
(but if an elected public official chooses not 
to serve, such official may designate a rep-
resentative to serve as the voting board 
member); 
‘‘(ii) not fewer than 1⁄3 of the members 
are persons chosen in accordance with 
democratic selection procedures adequate to 
assure that such members are representative 
of low-income individuals and families in 
the service area; and if selected to represent 
a specific geographic area, such member re-
sides in that area; and 
‘‘(iii) the remainder of the members 
may be comprised of representatives from 
business, industry, labor, religious, edu-
cational, charitable, or other significant 
groups and interests in the community. 
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‘‘(D) EXPERTISE.—The eligible entity shall 
ensure that the members of the board are pro-
vided resources, which may include contracted 
services with individuals and organizations with 
expertise in financial management, accounting, 
and law, to support the work of the board. 
‘‘(E) COMPLIANCE WITH TAX-EXEMPT AND 
OTHER REQUIREMENTS.—The board of a private, 
nonprofit organization shall ensure that the 
board operates and conducts activities under the 
subgrant made under section 679(a)(1) in a 
manner that complies with— 
‘‘(i) the requirements for maintaining 
tax-exempt status under section 501(a) of 
the Internal Revenue Code of 1986 (26 
U.S.C. 501(a)) regarding the governance of 
charities under section 501(c)(3) of the In-
ternal Revenue Code of 1986 (26 U.S.C. 
501(c)(3)); and 
‘‘(ii) applicable requirements of State 
nonprofit law. 
‘‘(2) PUBLIC ORGANIZATIONS.— 
‘‘(A) BOARD.—In order for a local public 
(governmental) entity to be considered to be an 
eligible entity for purposes of section 673(7), the 
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entity shall ensure that the programs, projects, 
and services carried out or provided through the 
subgrant made under section 679(a)(1) are ad-
ministered under the supervision of a tripartite 
board described in subparagraph (C) that fully 
participates in the development, planning, im-
plementation, oversight, and evaluation of such 
programs, projects, and services. 
‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the local public entity. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
‘‘(i) not more than 1⁄3 of the members 
of the board are employees or officials, in-
cluding elected officials, of the unit of gov-
ernment in which the organization is lo-
cated; 
‘‘(ii) not fewer than 1⁄3 of the members 
are persons chosen in accordance with 
democratic selection procedures adequate to 
assure that such members are representative 
of low-income individuals and families in 
the service area; and if selected to represent 
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a specific geographic area, such member re-
sides in that area; and 
‘‘(iii) the remainder of the members 
may be comprised of representatives from 
business, industry, labor, religious, edu-
cational, charitable, or other significant 
groups and interests in the community. 
‘‘(D) EXPERTISE.—The eligible entity shall 
ensure that the members of the board are pro-
vided resources, which may include contracted 
services with individuals and organizations with 
expertise in financial management, accounting, 
and law, to support the work of the board. 
‘‘(E) COMPLIANCE WITH STATE REQUIRE-
MENTS AND POLICY.—The board of a public or-
ganization shall ensure that the board operates 
in a manner that complies with State require-
ments for open meetings, financial transparency, 
and State open records policy. 
‘‘(3) BOARD VACANCIES.—To fulfill the require-
ments under this section, an eligible entity shall fill 
a board vacancy not later than 6 months after such 
vacancy arises. In the event that an eligible entity is 
unable to fill a board vacancy in the 6-month period, 
the entity shall certify to the State that it is making 
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a good faith effort to fill the vacancy and shall receive 
1 additional 6-month period to fill such vacancy. 
‘‘(4) SAFEGUARD.—Neither the Federal Govern-
ment nor a State or local government shall require a 
religious organization to alter its form of internal 
governance, except (for purposes of administration of 
the community services block grant program) as pro-
vided in section 680(c). 
‘‘(d) OPERATIONS AND DUTIES OF THE BOARD.—The 
duties of a board described in paragraph (1) or (2) of sub-
section (c) shall include— 
‘‘(1) in the case of a board for a private, non-
profit organization that is an eligible entity, having 
legal and financial responsibility for administering 
and overseeing the eligible entity, including making 
proper use of Federal funds; 
‘‘(2) establishing terms for officers and adopting 
a code of ethical conduct, including a conflict of inter-
est policy for board members; 
‘‘(3) participating in each comprehensive com-
munity needs assessment, developing and adopting for 
the corresponding eligible entity an agency-wide stra-
tegic plan, and preparing the community action plan 
for the use of funds under this subtitle; 
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‘‘(4) approving the eligible entity’s operating 
budget; 
‘‘(5) reviewing all major policies such that— 
‘‘(A) for private, nonprofit organizations 
that are eligible entities, a review includes con-
ducting annual performance reviews of the eligi-
ble entity’s chief executive officer (or individual 
holding an equivalent position); and 
‘‘(B) for local public entities that are eligi-
ble entities, a review includes participating in 
annual performance reviews of the eligible enti-
ty’s chief executive officer (or individual holding 
an equivalent position); 
‘‘(6) performing oversight of the eligible entity to 
include— 
‘‘(A) conducting assessments of the eligible 
entity’s progress in carrying out programmatic 
and financial provisions in the community ac-
tion plan; and 
‘‘(B) in the case of any required corrective 
action, reviewing the eligible entity’s plans and 
progress in remedying identified deficiencies; 
and 
‘‘(7) concerning personnel policies and proce-
dures— 
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‘‘(A) in the case of private, nonprofit orga-
nizations that are eligible entities, adopting per-
sonnel policies and procedures, including for hir-
ing, annual evaluation, compensation, and ter-
mination, of the eligible entity’s chief executive 
officer (or individual holding a similar posi-
tion); and 
‘‘(B) in the case of local public entities that 
are eligible entities, reviewing personnel policies 
and procedures, including for hiring, annual 
evaluation, compensation, and termination, of 
the eligible entity’s chief executive officer (or in-
dividual holding a similar position). 
‘‘SEC. 681. OFFICE OF COMMUNITY SERVICES. 
‘‘(a) OFFICE.— 
‘‘(1) ESTABLISHMENT.—The Secretary shall es-
tablish an Office of Community Services in the De-
partment to carry out the functions of this subtitle. 
‘‘(2) DIRECTOR.—The Office shall be headed by 
a Director (referred to in this section as the ‘Direc-
tor’). 
‘‘(b) GRANTS, CONTRACTS, AND COOPERATIVE AGREE-
MENTS.—The Secretary, acting through the Director, shall 
carry out the functions of this subtitle through grants, con-
tracts, or cooperative agreements. 
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‘‘SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RE-
LATED ACTIVITIES. 
‘‘(a) ACTIVITIES.— 
‘‘(1) IN GENERAL.—The Secretary shall— 
‘‘(A) use amounts reserved under section 
691(c)(2) for training, technical assistance, plan-
ning, assessment, and performance measurement, 
as described in this section and in sections 684 
and 686, to assist States, eligible entities, Tribal 
grantees, and other community services network 
organizations in— 
‘‘(i) building and using evidence of ef-
fectiveness in reducing poverty conditions, 
including through development and dissemi-
nation of information about clearinghouses 
and other resources that identify relevant 
evidence-based initiatives, for use in connec-
tion with the Community Action Innova-
tions Program established under paragraph 
(2); 
‘‘(ii) carrying out professional develop-
ment activities that expand the capacity of 
eligible entities and Tribal grantees; 
‘‘(iii) carrying out performance meas-
urement, data collection, and reporting ac-
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tivities related to programs, projects, and 
services carried out under this subtitle; and 
‘‘(iv) correcting programmatic defi-
ciencies, including such deficiencies of eligi-
ble entities or Tribal grantees; and 
‘‘(B) distribute the amounts reserved under 
section 691(c)(2)(A) through grants, contracts, or 
cooperative agreements with eligible entities, 
Tribal grantees, and other community services 
network organizations described in subsection (b) 
for— 
‘‘(i) professional development for key 
community services network organization 
personnel; 
‘‘(ii) activities to improve community 
services network organization programs, fi-
nancial management, compliance, and gov-
ernance practices (including practices re-
lated to performance management informa-
tion systems); 
‘‘(iii) activities that train community 
services network organizations and their 
staff and board members to effectively ad-
dress the needs of low-income families and 
communities through place-based strategies 
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that address local causes and conditions of 
poverty through coordinated investment and 
integrated service delivery; and 
‘‘(iv) activities that train community 
services network organizations in building 
and using evidence of effectiveness in reduc-
ing poverty conditions and that support ef-
fective administration of funds under the 
Community Action Innovations Program 
established under paragraph (2). 
‘‘(2) 
INNOVATIVE
AND
EVIDENCE-BASED 
PROJECTS TO REDUCE POVERTY.— 
‘‘(A) IN GENERAL.—The Secretary shall use 
amounts reserved under section 691(c)(3) for a 
Community Action Innovations Program to— 
‘‘(i) award grants, contracts, or cooper-
ative agreements to eligible entities, Tribal 
grantees, and other community services net-
work organizations, including consortia of 
such entities, grantees, or organizations to 
facilitate innovation and use of evidence- 
based practice designed to reduce poverty 
conditions, including through whole family 
approaches that create opportunities for, 
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and address the needs of, parents and chil-
dren together; and 
‘‘(ii) disseminate results for public use. 
‘‘(B) 
PROJECTS.—The 
Secretary 
shall 
award funds from its Community Action Inno-
vations Program for projects to enable— 
‘‘(i) replication or expansion of inno-
vative practices with demonstrated evidence 
of effectiveness, with priority given to those 
with the strongest evidence base as deter-
mined through a broad review of available 
studies; or 
‘‘(ii) testing of innovative practices to 
determine their effectiveness, with priority 
given to those incorporating rigorous, inde-
pendent evaluation to further build the evi-
dence base. 
‘‘(C) USE OF FUNDS.—The funds reserved 
for use under this paragraph may be used by 
awardees for resources or activities necessary to 
replicate, expand, or test innovative and evi-
dence-based practices, including costs of training 
and technical assistance, evaluation, data collec-
tion, and technology. 
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‘‘(D) EXPENSES.—The funds reserved for 
use under this paragraph may be used for rea-
sonable expenses of awardees, associated with ad-
ministration of projects and dissemination of 
their results. 
‘‘(E) AWARDS AND OBLIGATION.—The Sec-
retary shall award and obligate funds reserved 
for projects under this paragraph during the 
first program year for which the funds are ap-
propriated. Grant funds awarded under this 
paragraph shall remain available for expendi-
ture by the awardee not later than 36 months 
after the date of award by the Secretary, unless 
a longer period of availability is approved by the 
Secretary based on extenuating circumstances 
and demonstrated evidence of effectiveness. 
‘‘(b) ELIGIBLE ENTITIES, TRIBAL GRANTEES, AND 
OTHER
COMMUNITY
SERVICES
NETWORK
ORGANIZA-
TIONS.—Eligible entities, Tribal grantees, and other com-
munity services network organizations referred to in sub-
section (a)(1)(B) shall include such entities, grantees, and 
organizations (and their partners, including institutions of 
higher education) with demonstrated expertise in providing 
training for individuals and organizations on methods of 
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‘‘(1) State plans, including the form and infor-
mation required for State plans submitted to the Sec-
retary, and criteria for determining whether a State 
plan revision is to be considered a major revision; 
‘‘(2) community action plans, including the form 
and information required for community action plans 
submitted to States; 
‘‘(3) State monitoring of eligible entities; and 
‘‘(4) reports to the Secretary described in section 
686. 
‘‘(b) GUIDANCE.— 
‘‘(1) PERFORMANCE
MEASUREMENT.—The Sec-
retary shall issue guidance regarding State and local 
performance measurement systems. Guidance may in-
clude one or more model performance measurement 
systems, facilitated by the Secretary, that States and 
eligible entities may use to measure their performance 
in carrying out the requirements of this subtitle and 
in achieving the goals of their community action 
plans. 
‘‘(2) COMPREHENSIVE
ANALYSIS
OF
POVERTY 
CONDITIONS.—The Secretary shall issue guidance (in-
cluding models) for comprehensive community needs 
assessments described in section 678(e)(1). The guid-
ance shall include methods for preparing an analysis 
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