ameliorate the effects of poverty on people who live
in these communities.
(2) Present antipoverty programs funded by
community service programs date back to 1964,
when President Lyndon Johnson ‘‘declared war on
poverty,’’ and Congress passed the Economic Oppor-
tunity Act of 1964.
(3) Community service programs have helped
millions of people from low-income communities ac-
quire meaningful employment, adequate education,
necessary emergency assistance, economic self-suffi-
ciency, child care, weatherization, transportation,
consumer counseling, and numerous other opportuni-
ties for self-advancement.
(4) Community service programs provide special
services for older individuals, migrant workers, and
Native Americans.
(5) Community service programs have strength-
ened the capability of low-income communities to
plan and coordinate Federal, State, and other pro-
grams related to the elimination of poverty, so that
these other programs respond to the local needs and
conditions through the efforts of local officials, orga-
nizations, and interested and affected citizens.
(6) Community service programs have stimu-
lated a more concentrated utilization of all available
local, State, private, and Federal resources to enable
low-income families, and low income individuals of
all ages in rural and urban areas to attain the skills,
knowledge, motivation, and opportunities needed for
them to become fully self-sufficient.
(7) Development and implementation of com-
munity service programs serve the poor or low-in-
come areas with the maximum feasible participation
of residents of the areas and members of the groups
served, so as to best stimulate and take full advan-
tage of capabilities for self-advancement and ensure
that such programs and projects are otherwise
meaningful to and widely utilized by their intended
beneficiaries.
(8) Community service programs have broad-
ened the resource base of programs directed at the
elimination of poverty, to secure (in addition to the
services and assistance of pubic officials, private reli-
gious, charitable, and neighborhood organizations,
and individual citizens) a more active role of busi-
ness, labor, and professional groups able to provide
employment opportunities or otherwise influence the
quality and quantity of services of concern to the
poor.
(9) Community service program funds provided
under the Community Services Block Grant Act (42
U.S.C. 9901 et seq.) are used to leverage a signifi-
cant amount of private funding which, when com-
bined and coordinated with Federal and State pro-
gram funds, results in effective, cost-efficient, and
comprehensive local strategies to alleviate poverty.
(10) Ninety-five percent of the funds provided
under such Act are directly spent on antipoverty
programs.
(11) Local antipoverty programs funded under
the Community Services Block Grant Act do not du-
plicate local social service programs, according to a
1986 study by the General Accounting Office.
(b) PURPOSE.—It is the purpose of this Act to estab-
lish a national corporation on community service
empowerment to administer the community services
empowerment partnership program established by this Act
and to serve as a focal point for Federal efforts to promote
community services empowerment.
SEC. 3. AMENDMENT TO TITLE VI OF THE OMNIBUS BUDG-
ET RECONCILIATION ACT OF 1981.
Title VI of the Omnibus Budget Reconciliation Act
of 1981 is amended by inserting after subtitle B (relating
to the community services block grant program) the fol-
lowing:
‘‘Subtitle C—Community Services
Empowerment
‘‘CHAPTER 
1—NATIONAL 
COMMUNITY
SERVICES EMPOWERMENT PARTNER-
SHIP CORPORATION
‘‘SEC. 
685. 
NATIONAL 
COMMUNITY 
SERVICES
EMPOWERMENT 
PARTNERSHIP 
CORPORA-
TION.
‘‘(a) ESTABLISHMENT.—There is established in the
executive branch of the Federal Government the National
Community Services Empowerment Partnership Corpora-
tion.
‘‘(b) BOARD OF DIRECTORS.—
‘‘(1) APPOINTMENT.—The Corporation shall be
headed by a board of directors appointed by the
President, by and with the advice and consent of the
Senate. Members of the board shall be appointed
from among individuals who have experience in com-
munity services empowerment policies and programs
and shall be appointed as follows:
‘‘(A) One individual shall be appointed
from among individuals who represent organiza-
tions that—
‘‘(i) were officially designated as com-
munity action agencies or community ac-
tion programs under section 210 of the
Economic Opportunity Act of 1964 (42
U.S.C. 2790) for fiscal year 1981, and did
not lose the designation as a result of fail-
ure to comply with such Act, or
‘‘(ii) came into existence during fiscal
year 1982 as direct successors in interest
to such community action agencies or com-
munity action programs,
and meet the requirements under section
675(c)(3) of the Community Services Block
Grant Act (42 U.S.C. 9904(c)(3)),
‘‘(B) One individual shall be appointed
from among individuals who represent local
governments.
‘‘(C) One individual shall be appointed
from among individuals who represent State
governments.
‘‘(D) Two individuals shall be appointed
from among individuals who represent private
philanthropic organizations.
‘‘(E) Two individuals from communities
with a concentration or substantial number of
low-income individuals.
‘‘(F) One individual shall be appointed
from among individuals who have experience in
finance and community development lending.
‘‘(G) Two individuals shall be appointed
from among individuals who have experience in
the operation of private business enterprises.
‘‘(H) Two individuals shall be appointed
from among individuals who represent commu-
nity development corporations.
‘‘(I) Two Federal officers who have respon-
sibility for developing community services
empowerment policy, ex officio.
‘‘(2) CHAIRPERSON.—The board shall elect, for
a 2-year term, a chairperson from among the mem-
bers of the board.
‘‘(3) COMPENSATION.—The members of the
board shall serve without compensation but shall re-
ceive travel expenses, including a per diem allowance
in lieu of subsistence, in accordance with sections
5702 and 5703 of title 5, United States Code.
‘‘(4) AUTHORITY TO ISSUE RULES.—The board
may issue rules to carry out this subtitle. The board
shall issue rules—
‘‘(A) establishing criteria that shall be ap-
plied by community services empowerment cor-
porations and emerging community services
empowerment corporations for the purpose of
selecting recipients of financial assistance pro-
vided under this subtitle by such corporations,
‘‘(B) specifying the terms and conditions
that shall apply to loans and loan guarantees
made under this subtitle by such corporations,
and
‘‘(C) prohibiting conflicts of interest appli-
cable to such corporations, and to all officers
and employees of such corporations.
‘‘(5) QUORUM.—A majority of the members of
the board shall constitute a quorum.
‘‘(6) OFFICERS
AND
EMPLOYEES.—(A) The
board shall appoint a chief executive officer.
‘‘(B) The board may employ such other officers
and employees as the board considers necessary to
carry out the functions of the Corporation.
‘‘(C) With the approval of the board, the chief
executive officer may appoint and remove such em-
ployees of the Corporation and such officer considers
necessary to carry out the functions of the Corpora-
tion.
‘‘(c) AUTHORITY TO RECEIVE GIFTS.—The Corpora-
tion may receive gifts of cash. Such gifts shall be available
to the Corporation only to carry out this subtitle and shall
be in addition to funds appropriated to carry out this sub-
title.
‘‘(d) AUTHORITY TO APPOINT A COMMUNITY SERV-
ICES EMPOWERMENT ADVISORY COMMITTEE.—The Cor-
poration 
may 
appoint 
a 
Community 
Services
Empowerment Advisory Committee to advise the Corpora-
tion with respect to carrying out this subtitle. Such com-
mittee shall be composed of—
‘‘(1) representatives of community services
empowerment corporations, and
‘‘(2) individuals who have expertise in commu-
nity services empowerment.
‘‘SEC. 685A. INSPECTOR GENERAL OF THE CORPORATION.
‘‘(a) ESTABLISHMENT AND DUTIES.—There is estab-
lished in the Corporation an Office of the Inspector Gen-
eral. The Office shall be headed by the Inspector General
of the Corporation who shall have the duties, responsibil-
ities, and authorities specified in the Inspector General
Act of 1978 (5 U.S.C. App.).
‘‘(b) REFERENCES.—For purposes of subsection (a),
references in the Inspector General Act of 1978 (5 U.S.C.
App.) to the establishment involved, to the head of the
establishment, and to an Inspector General shall be
deemed to be references to the Corporation, the Board of
Directors of the Corporation, and the Inspector General
of the Corporation, respectively.
‘‘CHAPTER 
2—COMMUNITY 
SERVICES
EMPOWERMENT 
PARTNERSHIP 
IN-
VESTMENT FUNDS
‘‘SEC. 686. GRANTS.
‘‘(a) GENERAL AUTHORITY.—The Corporation may
make grants on a competitive basis to eligible community
services empowerment corporations and to emerging com-
munity services empowerment corporations, to establish,
to maintain, or to expand revolving funds that are used
to make or guarantee loans to, to make capital invest-
ments in, or to provide technical assistance and training
to new or expanding locally-owned private business enter-
prises intended to provide business and employment op-
portunities for low-income individuals in urban neighbor-
hoods and rural areas.
‘‘(b) AUTHORITY TO MAKE SPECIAL EMPHASIS
GRANTS.—Not less than 10 percent of the funds appro-
priated under section 689D(a) for any fiscal year shall be
reserved by the Corporation to make grants to eligible
community services empowerment corporations that agree
to make loans and loan guarantees to, and capital invest-
ments in, locally-owned private business enterprises with
fewer than 15 full-time employees (or the equivalent there-
of) in communities with a persistently high rate of unem-
ployment. Loans and capital investments made under this
subsection to a particular locally-owned private business
enterprise may not exceed $35,000 in the aggregate.
‘‘SEC. 686A. ELIGIBILITY FOR GRANTS.
‘‘(a) 
ELIGIBILITY
OF
COMMUNITY
SERVICES
EMPOWERMENT CORPORATIONS.—To be eligible to re-
ceive a grant under section 686, a community services
empowerment corporation shall submit to the Corporation
an application in such form, and containing such informa-
tion, as the board of the Corporation may require by rule,
including—
‘‘(1) a community services investment plan that
identifies and describes the economic characteristics
of the communities to be served through financial
assistance provided under this chapter by the appli-
cant, the types of locally-owned private business en-
terprises to be assisted, and the impact of such as-
sistance on low-income individuals,
‘‘(2) in the case of a grant requested under sec-
tion 686(a), an assurance that the applicant will ob-
tain an amount of non-Federal funds that is not less
than the amount of the grant requested and will ex-
pend such amount to carry out such plan,
‘‘(3) an assurance that the applicant will ad-
minister under this subtitle a revolving fund into
which are deposited the requested grant, the funds
required by paragraph (2), donated funds (if any),
and amounts required by section 686D(c) to be paid
into such fund,
‘‘(4) evidence of good working relationships
with the organizations referred to in section
685(b)(1)(A),
‘‘(5) evidence of good working relationships
with local and regional job training programs,
‘‘(6) evidence of good working relationships
with local business and financial interests, as well as
leaders in the community the applicant proposes to
serve, and
‘‘(7) an assurance that the applicant will target
job creation and job-preservation opportunities by
providing financial assistance so that 75 percent of
such opportunities are for the benefit of—
‘‘(A) low-income individuals,
‘‘(B) individuals who are unemployed or
underemployed,
‘‘(C) individuals who are participating or
have participated in job training programs au-
thorized by the Job Training Partnership Act
or the Family Support Act of 1988, or
‘‘(D) individuals whose jobs are termi-
nated, to enable such individuals to find subse-
quent employment without experiencing a pe-
riod of unemployment.
‘‘(b) ELIGIBILITY OF EMERGING COMMUNITY SERV-
ICES EMPOWERMENT CORPORATIONS.—To be eligible to
receive a grant under section 686(a), an emerging commu-
nity services empowerment corporation shall submit to the
Corporation an application in such form, and containing
such information, as the board of the Corporation may
require by rule, including—
‘‘(1) a community services investment plan that
identifies and describes the economic characteristics
of the communities to be served through financial
assistance provided under this chapter, the types of
locally owned private business enterprises to be as-
sisted, and the impact of such assistance on low-in-
come individuals, and
‘‘(2) an assurance that the applicant will ad-
minister under this subtitle a revolving fund into
which are deposited the requested grant, donated
funds (if any), and amounts required by section
686D(c) to be paid into such fund.
‘‘SEC. 686B. SELECTION OF APPLICANTS TO RECEIVE
GRANTS.
‘‘In selecting applicants to receive grants under this
chapter, the Corporation shall ensure that—
‘‘(1) financial assistance provided under this
chapter by such applicants is provided to locally
owned private business enterprises located in com-
munities in which there is a concentration or sub-
stantial number of low-income individuals,
‘‘(2) the applicant possesses the technical and
management capability to administer a revolving
fund under this chapter, and
‘‘(3) a representative cross section of applicants
are 
approved, 
including 
community 
services
empowerment corporations in large, small, urban,
and rural communities and community services
empowerment corporations that represent diverse
populations.
‘‘SEC. 686C. LIMITATIONS ON AMOUNT OF GRANTS MADE BY
THE CORPORATION.
‘‘The aggregate amount of grants made under this
chapter by the Corporation—
‘‘(1) to a particular community services
empowerment 
corporation 
may 
not 
exceed
$2,000,000, and
‘‘(2) to a particular emerging community serv-
ices empowerment corporation may not exceed
$500,000.
‘‘SEC. 686D. LIMITATIONS ON USE OF REVOLVING FUNDS.
‘‘(a) LIMITATION ON CAPITAL INVESTMENTS.—The
amount of a capital investment made from a revolving
fund administered under this chapter may not exceed 50
percent of the ownership of the locally owned private busi-
ness enterprise in which such investment is made.
‘‘(b) LIMITATION ON ADMINISTRATIVE COSTS, AND
TECHNICAL ASSISTANCE AND TRAINING.—Not more than
10 percent of the aggregate amount withdrawn from a re-
volving fund administered under this chapter may be ex-
pended by a community services empowerment corporation
collectively for administrative costs incurred by such cor-
poration, technical assistance, and training.
‘‘(c) LIMITATION ON LOAN REPAYMENTS AND PRO-
CEEDS FROM CAPITAL INVESTMENTS.—Funds received
by a community services empowerment corporation as—
‘‘(1) a repayment of a loan, or
‘‘(2) proceeds from a capital investment,
made by such corporation from a revolving fund adminis-
tered under this chapter shall be deposited in such revolv-
ing fund.
‘‘CHAPTER 3—CAPACITY ENHANCEMENT
GRANTS
‘‘SEC. 687. GRANTS.
‘‘The Corporation may make grants to emerging com-
munity services empowerment corporations to increase the
capacity of such corporations to carry out community serv-
ices empowerment projects.
‘‘SEC. 687A. EXPENDITURE OF GRANTS.
‘‘Grants made under section 687 shall be expended—
‘‘(1) to evaluate the need for, and feasibility of
operating, particular locally owned private business
enterprises to provide business and employment op-
portunities for low-income individuals,
‘‘(2) to develop the capacity of emerging com-
munity services empowerment corporations to assist
such enterprises to prepare business plans, and
‘‘(3) to develop the skills necessary for such
corporations to raise funds to assist such enter-
prises.
‘‘SEC. 687B. LIMITATION ON AMOUNT OF GRANTS.
‘‘The aggregate amount of grants made in a fiscal
year under this chapter by the Corporation to a particular
emerging community services empowerment corporation
may not exceed $75,000.
‘‘CHAPTER 
4—TECHNICAL 
ASSISTANCE
AND TRAINING; RESEARCH AND DEM-
ONSTRATION
‘‘SEC. 688. TECHNICAL ASSISTANCE AND TRAINING.
‘‘The Corporation may make grants to community
services empowerment corporations (other than emerging
community services empowerment corporations), and to
nonprofit private organizations the Corporation deter-
mines to be qualified, to provide to emerging community
services empowerment corporations technical assistance
and training relating to the operation of locally owned pri-
vate business enterprises.
‘‘SEC. 688A. RESEARCH AND DEMONSTRATION.
‘‘The Corporation may make grants to community
services empowerment corporations and to institutions of
higher education to carry out research and demonstration
projects that—
‘‘(1) identify current problems relating to the
need for community services empowerment in urban
neighborhoods, and in rural areas, that have a con-
centration or substantial number of low-income indi-
viduals, including particular populations of such in-
dividuals; and
‘‘(2) identify methods to reduce such need.
‘‘CHAPTER 5—GENERAL PROVISIONS
‘‘SEC. 689. AUDITS.
‘‘(a) ANNUAL AUDIT.—The Corporation shall either
audit community services empowerment corporations and
recipients of financial assistance from such corporations,
or require such corporations and such recipients to submit
an audit to the Corporation, in each year in which such
corporations administer and such recipients use such as-
sistance received under this subtitle.
‘‘(b) REQUIREMENT APPLICABLE
TO SUBMITTED
AUDITS.—Any audit submitted under subsection (a) to
the Corporation shall be conducted by a certified public
accountant in accordance with generally accepted auditing
standards.
‘‘(c) RETENTION OF AUDITS.—Each audit prepared
to comply with this section shall be retained by the Cor-
poration for a period of not less than 5 years.
‘‘SEC. 689A. REPORTS.
‘‘The Corporation shall submit annually to the Presi-
dent, the Committee on Education and Labor of the
House of Representatives, and the Committee on Labor
and Human Resources of the Senate a report contain-
ing—
‘‘(1) a description of the extent to which such
assistance contributed to the self-sufficiency and
community services empowerment of communities,
and of the amount of non-Federal cash contributed
in connection with providing such assistance,
‘‘(2) an assessment of the business and employ-
ment opportunities that resulted from providing fi-
nancial and other assistance under this subtitle,
‘‘(3) a description of the locally owned private
business enterprises, the technical assistance and
training, and the research and demonstration
projects assisted under this subtitle, including a de-
scription of the persons and communities that par-
ticipated and the types of such enterprises so
assisted,
‘‘(4) an itemized statement of the costs in-
curred by community services empowerment corpora-
tions in connection with carrying out this subtitle,
‘‘(5) an itemized statement identifying profits
received by such corporations in connection with car-
rying out this subtitle,
‘‘(6) a description of the extent to which organi-
zations that contributed cash under this subtitle to
such corporations participated in the business enter-
prises, technical assistance and training, and re-
search and demonstration projects assisted under
this subtitle,
‘‘(7) a description of the efforts of the Corpora-
tion to provide technical assistance and training
under this subtitle,
‘‘(8) a statement specifying the number of
emerging community services empowerment corpora-
tions that received grants under section 686(b), and
‘‘(9) a summary of the results of the research
and demonstration projects carried out under chap-
ter 4.
‘‘SEC. 689B. REPAYMENT OF FUNDS.
‘‘If the Corporation determines on the record, after
an opportunity for a hearing, that a private corporation
that administers a revolving fund under this subtitle—
‘‘(1) is not in substantial compliance with this
subtitle and the rules issued by the board of the
Corporation to carry out this subtitle, or
‘‘(2) ceases to be a services empowerment cor-
poration,
then such private corporation shall terminate such fund,
shall pay the balance of such fund to the Corporation, and
with a concentration or substantial number of
low-income individuals,
‘‘(4) the term ‘emerging community services
empowerment corporation’ means a community serv-
ices empowerment corporation that has completed at
least 1, but not more than 2, community services
empowerment projects,
‘‘(5) the term ‘institution of higher education’
has the meaning given it in section 1201(a) of the
Higher Education Act of 1965 (20 U.S.C. 1141(a)),
‘‘(6) the term ‘low-income individual’ means an
individual whose family income does not exceed the
poverty line,
‘‘(7) the term ‘nonprofit private corporation’
means a private corporation no part of the earnings
of which inures to the benefit of any member, found-
er, contributor, or individual, and
‘‘(8) the term ‘poverty line’ has the meaning
given such term in section 673(2) of the Community
Services Block Grant Act and includes any adjust-
ment required by such section.
‘‘SEC. 689D. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) 
GRANTS
TO
COMMUNITY
SERVICES
EMPOWERMENT CORPORATIONS.—There is authorized to
be appropriated $150,000,000 in the aggregate for fiscal
years 1994, 1995, and 1996 to make grants under section
686 to community services empowerment corporations.
‘‘(b) GRANTS TO EMERGING COMMUNITY SERVICES
EMPOWERMENT CORPORATIONS.—There is authorized to
be appropriated $90,000,000 in the aggregate for fiscal
years 1994, 1995, and 1996 to make grants under sec-
tions 686(a) and 687 to emerging community services
empowerment corporations. Of the amount appropriated
under this subsection—
‘‘(1) 80 percent shall be available to make
grants under section 686(a), and
‘‘(2) 20 percent shall be available to make
grants under section 687.
‘‘(c) GRANTS
FOR TECHNICAL ASSISTANCE
AND
TRAINING, AND FOR RESEARCH AND DEMONSTRATION.—
There is authorized to be appropriated $10,000,000 in the
aggregate for fiscal years 1994, 1995, and 1996 to carry
out chapter 4.’’.
SEC. 4. CONFORMING AMENDMENT.
Section 5315 of title 5, United States Code, is
amended by adding at the end the following:
‘‘Inspector 
General, 
National 
Services
Empowerment Partnership Corporation.’’.
Æ
HR 818 IH——2