‘‘SEC. 680. STATE PLANS AND APPLICATIONS; COMMUNITY 
ACTION 
PROGRAM 
PLANS 
AND 
APPLICA-
TIONS. 
‘‘(a) STATE LEAD AGENCY.— 
‘‘(1) DESIGNATION.—The chief executive officer 
of a State desiring to receive a grant under section 
677 or 678 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 
agency for purposes of carrying out State activities 
under this subtitle. 
‘‘(2) DUTIES OF LEAD STATE AGENCIES.—The 
lead agency shall 
‘‘(A) be authorized by the chief executive 
officer to convene State agencies and coordi-
nate— 
‘‘(i) information and activities funded 
under this subtitle; and 
‘‘(ii) information and activities of any 
State agencies whose State programs are 
intended to reduce poverty, including agen-
cies administering resources that support 
development of jobs and housing in com-
munities; 
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‘‘(B) develop the State plan to be sub-
mitted to the Secretary under subsection (b), 
which shall be based primarily on the commu-
nity action program plans of eligible entities, 
submitted to the State as a condition of receiv-
ing funding under this subtitle for approval by 
the State; 
‘‘(C) assist eligible entities— 
‘‘(i) in conducting periodic comprehen-
sive community needs assessments, not less 
often than every 4 years; 
‘‘(ii) in developing community action 
program plans; and 
‘‘(iii) in developing community action 
strategic plans; 
‘‘(D) coordinate plans for the activities of 
the State and other organizations under this 
subtitle, and activities of recipients of training 
or technical assistance with the community ac-
tion program plans; 
‘‘(E) in conjunction with the development 
of the State plan as required under subsection 
(b)— 
‘‘(i) hold at least one hearing in the 
State on the proposed plan, to provide to 
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the public an opportunity to comment on 
the public record on the proposed use and 
distribution of funds under the plan; and 
‘‘(ii) not less than 15 days prior to 
the hearing, distribute notice of the hear-
ing and a copy of the proposed plan state-
wide to the public and directly to the chief 
executive officer and the chairperson of the 
Board of Directors of the eligible entities 
(or designees) and any subgrantees (or 
designees) and other interested parties; 
‘‘(F) not less often than every 3 years, in 
conjunction with the development of the State 
plan, hold at least 1 legislative hearing; 
‘‘(G) conduct reviews of eligible entities as 
required under section 684; 
‘‘(H) adopt and report on State perform-
ance benchmarks, as described in section 
680(c); and 
‘‘(I) provided further that, in the event a 
lead agency chooses to exercise its option to del-
egate one or more of its duties to another orga-
nization by contract, grant, or cooperative 
agreement, such delegation shall not include its 
duties under subsection (G). 
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‘‘(b) STATE APPLICATION FOR STATE PROGRAM AND 
STATE PLAN.—Beginning with the first fiscal year fol-
lowing the transition year, to be eligible to receive a grant 
under section 677 or 678, a State shall prepare and sub-
mit to the Secretary for approval an application containing 
a State plan covering a period of not more than two fiscal 
years. The application shall be submitted not later than 
30 days prior to the beginning of the first fiscal year cov-
ered by the plan, and shall contain such information as 
the Secretary shall require, including— 
‘‘(1) a description of the manner in which funds 
made available through the grant under section 677 
or 678 will be used to carry out the State activities 
described in section 680A(b) and the State’s commu-
nity action program plans; 
‘‘(2) a summary of the community action pro-
gram plans of the eligible entities serving the State; 
‘‘(3) an assurance that each plan responds to 
needs identified in the comprehensive community 
needs assessment for the service area assigned to the 
entity and is consistent with one or more purposes 
described in section 672 and that the plan has been 
adopted by the governing body of each eligible enti-
ty; 
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‘‘(4) an assurance that the State has approved 
all such community action program plans that are 
consistent with the purposes and requirements of 
this subtitle; 
‘‘(5) at the State’s option, a statewide strategic 
plan that— 
‘‘(A) includes the State’s strategy for im-
plementing its responsibilities under section 
680(a); 
‘‘(B) may include the community action 
strategic plans of the eligible entities and such 
other matters as the State shall determine to be 
necessary to complete its strategic plan; 
‘‘(6) a description of the State’s performance 
measurement system; 
‘‘(7) a plan for the State’s oversight of eligible 
entities, including, but not limited to— 
‘‘(A) the training provided to State over- 
sight personnel regarding Federal law, regula-
tions and policy, and applicable State practices; 
‘‘(B) the policies and procedures adopted 
for the State’s monitoring: 
‘‘(C) the State’s system for implementing 
the training and, when necessary, requiring a 
corrective action plan for eligible entities; 
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‘‘(D) the management training and tech-
nical assistance made available to eligible enti-
ties; and 
‘‘(E) the method used for assessing the 
quality of such training; 
‘‘(8) an assurance that any eligible entity in the 
State that received, in the previous fiscal year, fund-
ing through a grant made under section 677 or 678 
will not have such funding withheld, nor reduced 
below the proportional share of funding the entity 
received from the State in the previous fiscal year, 
nor eliminated— 
‘‘(A) except according to the procedures 
set forth in subsection (b), (c), (d), or (e) of 
section 685; or 
‘‘(B) unless the Secretary, in approving an 
application under this section, approves a 
change in the proportional distribution of funds 
under section 680(A)(a)(1) when included as 
part of a State’s application submitted under 
section 680(b); 
‘‘(9) a description of the State’s requirements 
that ensure that each eligible entity serving the 
State establishes procedures that permit low-income 
individuals, or a community organization or religious 
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organization, that considers low-income individuals 
or the organization, respectively, to be inadequately 
represented on the Board of Directors of the eligible 
entity, to petition for adequate representation of 
such individuals or organization, respectively, on the 
Board; 
‘‘(10) a description of the State’s requirements, 
and financial or other support, for each community 
action program plan and community action strategic 
plan of an eligible entity in the State and for the 
comprehensive community needs assessment de-
scribed in subsection (a)(2)(C) on which the commu-
nity action program plans are based, which assess-
ment may be coordinated with community needs as-
sessments conducted for programs other than the 
program carried out under this subtitle; 
‘‘(11) an assurance that the State and all eligi-
ble entities in the State will participate in a perform-
ance measurement system that meets the require-
ments of this subtitle, and a description of the man-
agement and program information that will be used 
to measure State and eligible entity performance in 
achieving the goals of the State plan and the com-
munity action program plans, respectively; and 
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‘‘(12) an assurance that the State’s perform-
ance measurement system for eligible entities is 
based, for each eligible entity, upon the results of 
implementing the entity’s own community action 
program plan and the achievement of the goals of 
the plan and performance benchmarks described in 
subsection (c) as adjusted, if necessary, for changes 
in available funding. 
‘‘(c) STATE PERFORMANCE REQUIREMENTS
AND 
BENCHMARKS.— 
‘‘(1) 
PERFORMANCE
REQUIREMENTS.—Con-
sistent with the requirements of section 687, fol-
lowing the transition period described in subsection 
691(a), in order to be eligible for a grant under sec-
tion 677 or 678, each State shall adopt performance 
requirements and the performance benchmarks de-
scribed in paragraph (2), to be included as part of 
the performance measurement system described in 
section 687 and shall provide related training for 
State personnel carrying out a State program under 
this subtitle. 
‘‘(2) ANNUAL
STATE
PERFORMANCE
BENCH-
MARKS.—Each State shall include in the State plan 
submitted under subsection (b), for each fiscal year 
after the transition period, performance measure-
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ments for lead agency management quality including 
those promulgated by the Secretary, and the State 
annual performance benchmarks regarding pro-
grammatic activities described in section 680A(b) 
and other performance measures which shall in-
clude— 
‘‘(A) indicators of timely distribution and 
effective management of Federal funds by the 
lead agency and of the compliance with the re-
quirements for State personnel and for manage-
ment of activities funded under this subtitle 
(other than this subsection); and 
‘‘(B) indicators concerning the results of 
activities funded by the State under this sub-
section. 
‘‘(d) 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, within 
30 days after receiving the application. 
‘‘(1) In the event of a partial approval, the Sec-
retary’s notification shall include a description of 
changes necessary for final approval but the Sec-
retary shall not require submission of the State stra-
tegic plan described in subsection (b)(4). In the 
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event of such partial approval, the Secretary may 
allow grantee use of funds for activities included in 
the portions of the plan which the Secretary has ap-
proved. 
‘‘(2) In the event a State application fails to be 
approved in whole or in part before the end of the 
third month of the State program covered by such 
plan the Secretary may allocate funds as provided in 
section 685(b)(3)(C). 
‘‘(e) REVISION AND INSPECTION.— 
‘‘(1) REVISIONS.—The chief executive officer of 
a State may revise a State plan submitted under 
this section and shall submit an application con-
taining the revised plan to the Secretary for ap-
proval according to the procedures described in sub-
sections (b) and (c). 
‘‘(2) PUBLIC INSPECTION.—Each plan and revi-
sion to a State plan prepared under this section 
shall be distributed for public inspection as required 
under subsection (a)(2)(E), but a State application 
for merger incentive funds shall not be considered a 
revision. 
‘‘(f) APPLICATION FOR COMMUNITY ACTION PRO-
GRAM AND COMMUNITY ACTION PROGRAM PLAN.—Begin-
ning with the first fiscal year following the transition year, 
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to be eligible to receive a subgrant under section 680A(a), 
each eligible entity shall prepare and submit to the State 
for approval an application containing a community action 
program plan or plans covering a period of not more than 
two fiscal years. Such application shall be submitted no 
later than 90 days before the date for submission of the 
State application to the Secretary. The application shall 
contain information on the intended implementation of the 
eligible entity’s activities, including demonstrating— 
‘‘(1) how the program— 
‘‘(A) meets needs identified in the most re-
cent comprehensive community needs assess-
ment, and is consistent with the entity’s com-
munity action strategic plan for that period; 
and 
‘‘(B) achieves the purposes of this subtitle 
through programs, projects, and services, which 
may include the activities described in section 
683. 
‘‘(2) ELIGIBLE
ENTITY
PERFORMANCE
RE-
QUIREMENTS
AND
BENCHMARKS.—Not later than 
the end of the period described in section 691(a), 
each eligible entity participating in a program fund-
ed under this subtitle shall— 
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‘‘(A) adopt performance benchmarks that 
include indicators concerning attainment of the 
goals of the entity’s annual community action 
program plans described in section 673(2), indi-
cators of timely and effective management of 
Federal and other funds, and indicators of com-
pliance with the requirements of this subtitle; 
‘‘(B) participate in a statewide perform-
ance measurement system under section 687, 
including— 
‘‘(i) contributing to reports on indica-
tors of results as measured by the state-
wide system; 
‘‘(ii) establishing and tracking per-
formance on indicators concerning attain-
ment of the goals of the entity’s commu-
nity action strategic plan and community 
action program plan; 
‘‘(ii) measuring the entity’s perform-
ance regarding governance, organizational 
development, and professional development 
of agency personnel; and 
‘‘(iv) establishing an internal manage-
ment system that incorporates information 
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regarding results into subsequent plans, 
procedures, and budgets; and 
‘‘(C) conduct community-wide comprehen-
sive community needs assessments including as-
sessments of local opportunities to reduce pov-
erty and use the results as a basis for commu-
nity action strategic plans, for programs, 
projects, and services provided by the entity, for 
public engagement in addressing the causes of 
poverty and the expansion of local economic op-
portunities, and for the development of linkages 
among partners that will reinforce initiatives 
funded under this subtitle. 
‘‘SEC. 680A. 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 677 or 678 shall reserve 2 per-
cent of the funds made available through the grant 
for the Community Action Innovations Program de-
scribed in subsection (c) and, of the remainder, use 
not less than 90 percent to make subgrants to eligi-
ble entities to enable the entities to implement pro-
grams, projects, or services for a purpose described 
in section 672. 
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‘‘(2) OBLIGATIONAL REQUIREMENTS.— 
‘‘(A) DATE
OF
OBLIGATION.—The State 
shall obligate the funds from the portion de-
scribed in paragraph (1) to make subgrants 
under paragraph (1) not later than the later 
of— 
‘‘(i) the 30th day after the date on 
which the State receives from the Sec-
retary a Notice of Funding Availability for 
the State’s approved State application 
under section 680; or 
‘‘(ii) the first day of the State pro-
gram year for which such funds are ap-
proved to be expended under the State ap-
plication. 
‘‘(B) AVAILABILITY.—Funds allocated to 
eligible entities through subgrants made in ac-
cordance with paragraph (1) for a fiscal year 
shall be available for obligation by the eligible 
entity during that fiscal year and the suc-
ceeding fiscal year, subject to paragraph (3). 
‘‘(3) RECAPTURE AND REDISTRIBUTION OF UN-
OBLIGATED FUNDS.— 
‘‘(A) RECAPTURING FUNDS.—A State may 
recapture and redistribute funds distributed to 
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an eligible entity for a fiscal year through a 
subgrant made under paragraph (1) that are 
unobligated at the end of the fiscal year if such 
unobligated funds exceed 20 percent of the 
amount of funds so distributed to such eligible 
entity for such fiscal year unless the community 
action program plan approved by the State in-
cluded a higher percentage of unobligated 
funds. 
‘‘(B) REDISTRIBUTING FUNDS.—In redis-
tributing funds recaptured in accordance with 
this paragraph, a State shall redistribute such 
funds to another eligible entity that is a com-
munity action agency and is capable of pro-
viding services similar to the services provided 
by the original recipient of funds in the area 
served. If no such community action agency is 
available, the State may redistribute the funds 
to a private, nonprofit organization that has 
demonstrated capacity to deliver similar services 
to residents of the community and that is lo-
cated in that service area, for activities con-
sistent with the objectives of this subtitle. 
‘‘(b) STATEWIDE ACTIVITIES.— 
‘‘(1) USE OF REMAINDER.— 
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‘‘(A) IN GENERAL.—A State that receives 
a grant under section 677 or 678 shall, after 
carrying out subsection (a), use the remainder 
of the grant funds for activities described in the 
State’s application approved by the Secretary 
under section 680(b) as described in subpara-
graphs (B) and (C) and for administrative ex-
penses subject to the limitations in paragraph 
(2). 
‘‘(B) TRAINING AND TECHNICAL ASSIST-
ANCE.—After applying subsection (a) and sub-
paragraph (C), the State may use the remain-
ing grant funds for the purposes of— 
‘‘(i) providing to eligible entities train-
ing and technical assistance and resources 
to respond to specific statewide or regional 
conditions that create economic insecurity, 
including, but not limited to, emergency 
conditions; 
‘‘(ii) supporting professional develop-
ment activities for eligible entities that en-
hance the skills of their local personnel (in-
cluding skills of members of the board of 
directors of such entities) that such per-
sonnel need to manage private, nonprofit 
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organizations, including skills for designing 
and delivering effective support to individ-
uals seeking opportunities for economic se-
curity, and skills for designing and man-
aging programs, projects, or services that 
lead to change in the economic and social 
assets and opportunities of the community, 
giving priority to activities carried out 
through partnerships of the organizations 
with institutions of higher education; 
‘‘(iii) supporting information and com-
munication resources for the comprehen-
sive community needs assessments de-
scribed in section 680(a)(2)(C); 
‘‘(iv) supporting performance meas-
urement systems consistent with the re-
quirements of sections 680(c) and 682(b), 
including establishing systems to measure 
the effectiveness of training delivered 
under clause (i), and publishing the results 
of measurements taken under the systems; 
‘‘(v) promoting coordination and co-
operation among eligible entities in the 
State including supporting activities of a 
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statewide association of community serv-
ices network organizations; and 
‘‘(vi) supporting the activities of pri-
vate non-profit organizations which meet 
the purposes of this title and which coordi-
nate such activities with community serv-
ices network organizations in the State. 
‘‘(C) INNOVATIVE PROJECTS TO REDUCE 
POVERTY.— 
‘‘(i) IN
GENERAL.—The State shall 
use 
amounts 
reserved 
under 
Section 
680A(a)(1) for a Community Action Inno-
vations Program to award subgrants, con-
tracts, or cooperative agreements to eligi-
ble entities, or their associations, to carry 
out innovative projects to test or replicate 
promising new practices designed to reduce 
poverty conditions and to disseminate the 
results of such projects for public use. 
‘‘(ii) EXPENSES.—The funds reserved 
for projects under this subparagraph may 
be used for reasonable expenses, of States 
and subgrantees, associated with adminis-
tration of such projects and dissemination 
of their results. 
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‘‘(iii) AWARDS AND OBLIGATION.—A 
State shall award and obligate funds re-
served for projects under this subpara-
graph during the first program year for 
which the funds are appropriated. Funds 
provided under this subparagraph shall re-
main available until expended for an inno-
vative project if the period for that expend-
iture is specified in an approved plan de-
scribed in subparagraph (D) for that inno-
vative project. 
‘‘(iv) MATCHING REQUIREMENTS.—In 
the case of innovative projects that are 
funded in part by funds authorized under 
a Federal law other than this subtitle, that 
includes requirements for matching the 
Federal funds with non-Federal funds, 
funds made available under this subsection 
may be deemed to be local funding for pur-
poses of requirements of such law. 
‘‘(v) REAL PROPERTY.—Land or fa-
cilities improved through a project receiv-
ing an award under this subparagraph, for 
which the amount of the award is less than 
50 percent of the total project cost, shall 
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not be subject to the provisions of section 
688(a). 
‘‘(vi) ELIGIBILITY.—Activities funded 
under this section may include participants 
with incomes not exceeding 80 percent of 
the area median income. 
‘‘(D) PLAN FOR STATE USE OF TRAINING, 
TECHNICAL
ASSISTANCE, 
AND
INNOVATION 
FUNDS.—To be eligible to use grant funds as 
described in subparagraph (B) or (C), each 
State shall submit, not later than the end of the 
transition period described in section 691(a), as 
part of the annual State plan submitted under 
section 680(b), a training, technical assistance, 
and innovation plan, developed in consultation 
with the community service network organiza-
tions in the State, that— 
‘‘(i) shall cover up to 2 years; and 
‘‘(ii) shall set forth information de-
scribing the way the requirements of that 
subparagraph will be implemented and a 
quality assurance system for providers of 
the training, technical assistance, or inno-
vation project involved. 
‘‘(2) ADMINISTRATIVE CAP.— 
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‘‘(A) LIMITATION.—No State may spend 
more than 5 percent of the remainder of the 
funds after the reservation for the State com-
munity action innovations fund as described in 
section 680A(a)(1) 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 ac-
tivities conducted under paragraph (1)(B) 
other than monitoring. 
‘‘(c) ELIGIBLE ENTITY USE OF FUNDS.—An eligible 
entity that receives a subgrant under section 680A(a) shall 
use the subgrant funds to carry out a community action 
program plan with programs, projects, and services that 
shall include— 
‘‘(1) 
the 
activities 
described 
in 
section 
680(a)(2)(C) regarding periodic assessment of pov-
erty conditions and opportunities to alleviate such 
conditions in connection with convening community- 
wide planning activities; and activities that achieve 
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greater participation of the residents of the commu-
nities served in the affairs of the community and the 
organization and one of more of the activities in sub-
section (2) or (3); 
‘‘(2) programs, projects, or services that are de-
signed to assist low-income individuals and families 
by providing access to local opportunities for achiev-
ing and maintaining economic security, which may 
include opportunities for the individuals and fami-
lies— 
‘‘(A) to secure and retain meaningful em-
ployment at a family-supporting wage; 
‘‘(B) to secure an adequate education, im-
prove literacy and language ability, and obtain 
job-related skills; 
‘‘(C) to make better use of available in-
come and build assets; 
‘‘(D) to obtain and maintain adequate 
housing and a healthy living environment, in-
cluding addressing the heath care needs of indi-
viduals and families with services and through 
changes in local institutions and workplaces (in-
cluding institutions and workplaces managed by 
the eligible entity); and 
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‘‘(E) to obtain emergency materials or 
other assistance to meet immediate individual 
or community urgent needs and prevent greater 
or more prolonged economic instability; and 
‘‘(3) programs, projects, or services that im-
prove living conditions, increase employment, and ex-
pand other economic opportunities in the community 
served, which may include— 
‘‘(A) activities that develop and maintain 
partnerships for the purpose of changing com-
munity, economic, and social conditions of pov-
erty, between the eligible entity and— 
‘‘(i) State and local public entities 
(such as schools, institutions of higher edu-
cation, housing authorities, and law en-
forcement agencies); and 
‘‘(ii) private partners, including state-
wide and local businesses, associations of 
private employers, and private charitable 
and civic organizations; 
‘‘(B) activities that establish linkages 
among organizations for coordinating initia-
tives, services, and investments so as to avoid 
duplication, and maximize the effective use of 
community resources for creating economic op-
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portunity, including developing lasting social 
and economic assets; and 
‘‘(C) activities that mobilize new invest-
ments in the community to reduce the incidence 
of poverty, including developing lasting social 
and economic assets. 
‘‘SEC. 681. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS. 
‘‘(a) DESIGNATION AND REDESIGNATION OF ELIGI-
BLE ENTITIES IN UNSERVED AREAS.— 
‘‘(1) IN GENERAL.—If any geographic area of a 
State is not, or ceases to be, served by an eligible 
entity the lead agency shall, in consultation with 
local officials and organizations representing the 
area, solicit one or more applications and designate 
a new community action agency to provide pro-
grams, projects, or services to the area that is— 
‘‘(A) a community action agency that is 
geographically located in an area within reason-
able proximity of or contiguous to the unserved 
area that is already providing similar programs, 
projects, or 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-
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vate, nonprofit organization (which may include 
an eligible entity) that is geographically located 
in, or in reasonable proximity to, the unserved 
area and that is capable of providing a broad 
range of programs, projects, or services de-
signed to achieve the purposes of this subtitle 
as stated in Section 672. 
‘‘(2) REQUIREMENT.—In order to serve as the 
eligible entity for the service area, an entity de-
scribed in paragraph (1) shall agree to ensure that 
the governing board of directors of the entity will 
meet the requirements of subsection (b)(1)(C). 
‘‘(3) COMMUNITY.—A service area referred to 
in this subsection or a portion thereof shall be treat-
ed as a community for purposes of this subtitle. 
‘‘(b) MERGERS OF ELIGIBLE ENTITIES.— 
‘‘(1) IN GENERAL.—If two or more eligible enti-
ties determine that the geographic areas of a State 
which they serve can be more effectively served 
under a single corporate structure, a State shall as-
sist in developing a plan for implementing such 
merger, including a budget for transitional costs not 
to exceed two years duration, and, upon approving 
such plans, may notify the Secretary that the enti-
ties are in need of and eligible for funds from the 
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merger 
incentive 
fund 
established 
in 
section 
683(a)(1)(B)(iv). 
‘‘(2) PLANS.—States may establish require-
ments for merger plans and for a determination that 
the merged entity, or entities, will be capable of con-
ducting a program consistent with the comprehen-
sive needs assessments for the areas served. 
‘‘(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(1), 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 
program, project, or service carried out or pro-
vided through the subgrant made under section 
680A(a) and all activities of the entity. 
‘‘(B) SELECTION.—The members of the 
board referred to in subparagraph (A) shall be 
selected by the entity. 
‘‘(C) COMPOSITION OF BOARD.—The board 
shall be composed so as to assure that— 
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‘‘(i) 1⁄3 of the members of the board 
are elected public officials holding office on 
the date of selection, or their representa-
tives; 
‘‘(ii)(I) not fewer than 1⁄3 of the mem-
bers are persons chosen in accordance with 
democratic selection procedures adequate 
to assure that the members referred to in 
this clause are representative of low-income 
individuals and families in the service area; 
and 
‘‘(II) each member who is a represent-
ative of low-income individuals and families 
and is also selected to represent a specific 
subarea under subclause (I) resides in such 
area; and 
‘‘(iii) the remainder of the members 
are representatives of business, industry, 
labor, religious, educational, charitable, or 
other significant private groups in the 
community. 
‘‘(D) 
EXPERTISE.—The 
eligible 
entity 
shall ensure that the members of the board in-
clude or have direct access to individuals with 
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sponsible for implementing multiple Federal and 
other community-based initiatives; 
‘‘(3) ensure that personnel and contractors of 
the Department with responsibility for State pro-
grams under this subtitle acquire the knowledge, 
skills, and abilities described in paragraph (2); 
‘‘(4) establish minimum requirements for the 
knowledge and skills of State personnel responsible 
for overseeing the activities authorized by this sub-
title; 
‘‘(5) promulgate performance indicators for 
State management of the funds, operations and pro-
grammatic requirements of this subtitle; 
‘‘(6) establish and publish uniform procedures 
for use by Federal and State monitors of the activi-
ties authorized by this subtitle; 
‘‘(7) promulgate regulations with respect to the 
procedures for State and local corrective action 
plans described in section 687 (including promul-
gating a definition of a serious deficiency for pur-
poses of that section) to ensure prompt resolution of 
deficiencies and adherence to the uniform adminis-
trative requirements described in section 676(b); and 
‘‘(8) disseminate or cause to be disseminated 
guidance regarding the organizational practices and 
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State will implement upon approval by the 
Secretary under subparagraph (C). 
‘‘(B) CONTENTS.—Any corrective action 
plan proposed under this paragraph shall speci-
fy— 
‘‘(i) the serious and other deficiencies 
to be corrected; 
‘‘(ii) the actions to be taken to correct 
such deficiencies; and 
‘‘(iii) the timetable for accomplish-
ment of the corrective actions specified, 
which shall provide that each serious defi-
ciency is corrected by not later than 90 
days after the date the State received no-
tice of the finding under subsection (a) 
and of the specific deficiency to be cor-
rected. 
‘‘(C) APPROVAL PROCESSES.— 
‘‘(i) IN GENERAL.—Not later than 15 
days after the Secretary receives a State 
proposed corrective action plan in accord-
ance with subparagraph (A), the Secretary 
shall act— 
‘‘(I) by approving the proposed 
plan; or 
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