I
104TH CONGRESS
1ST SESSION
H. R. 2086
To increase the overall economy and efficiency of Government operations
and enable more efficient use of Federal funding, by enabling local
governments and private, nonprofit organizations to use amounts avail-
able under certain Federal assistance programs in accordance with ap-
proved local flexibility plans.
IN THE HOUSE OF REPRESENTATIVES
JULY 20, 1995
Mr. SHAYS (for himself and Mr. CLINGER) introduced the following bill; which
was referred to the Committee on Government Reform and Oversight
A BILL
To increase the overall economy and efficiency of Government
operations and enable more efficient use of Federal fund-
ing, by enabling local governments and private, nonprofit
organizations to use amounts available under certain
Federal assistance programs in accordance with approved
local flexibility plans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Local Empowerment
and Flexibility Act of 1995’’.
SEC. 2. FINDINGS.
The Congress finds that—
(1) historically, Federal programs have ad-
dressed the Nation’s problems by providing categor-
ical financial assistance with detailed requirements
relating to the use of funds;
(2) while the assistance described in paragraph
(1) has been directed at critical problems, some pro-
gram requirements may inadvertently impede the ef-
fective delivery of services;
(3) the Nation’s local governments and private,
nonprofit organizations are dealing with increasingly
complex problems which require the delivery of many
kinds of services;
(4) the Nation’s communities are diverse, and
different needs are present in different communities;
(5) it is more important than ever to provide
programs that—
(A) promote more effective and efficient
local delivery of services to meet the full range
of needs of individuals, families, and society;
(B) respond flexibly to the diverse needs of
the Nation’s communities;
(C) reduce the barriers between programs
that impede local governments’ ability to effec-
tively deliver services; and
(D) empower local governments and pri-
vate, nonprofit organizations to be innovative in
creating programs that meet the unique needs
of their communities while continuing to ad-
dress national policy goals; and
(6) many communities have innovative planning
and community involvement strategies for providing
services, but Federal, State, and local regulations
often hamper full implementation of local plans.
SEC. 3. PURPOSES.
The purposes of this Act are to—
(1) enable more efficient use of Federal, State,
and local resources;
(2) place less emphasis in Federal service pro-
grams on measuring resources and procedures and
more emphasis on achieving Federal, State, and
local policy goals;
(3) enable local governments and private, non-
profit organizations to adapt programs of Federal fi-
nancial assistance to the particular needs of their
communities, by—
(A) drawing upon appropriations available
from more than one Federal program; and
(B) integrating programs and program
funds across existing Federal financial assist-
ance categories; and
(4) enable local governments and private, non-
profit organizations to work together and build
stronger cooperative partnerships to address critical
service problems.
SEC. 4. DEFINITIONS.
For purposes of this Act—
(1) the term ‘‘approved local flexibility plan’’
means a local flexibility plan that combines funds
from Federal, State, local government or private
sources to address the service needs of a community
(or any part of such a plan) that is approved by the
Flexibility Council under section 5;
(2) the term ‘‘community advisory committee’’
means such a committee established by a local gov-
ernment under section 9;
(3) the term ‘‘Flexibility Council’’ means the
council composed of the—
(A) Assistant to the President for Domes-
tic Policy;
(B) Assistant to the President for Eco-
nomic Policy;
(C) Secretary of the Treasury;
(D) Attorney General;
(E) Secretary of the Interior;
(F) Secretary of Agriculture;
(G) Secretary of Commerce;
(H) Secretary of Labor;
(I) Secretary of Health and Human Serv-
ices;
(J) Secretary of Housing and Urban De-
velopment;
(K) Secretary of Transportation;
(L) Secretary of Education;
(M) Secretary of Energy;
(N) Secretary of Veterans Affairs;
(O) Secretary of Defense;
(P) Director of Federal Emergency Man-
agement Agency;
(Q) Administrator of the Environmental
Protection Agency;
(R) Director of National Drug Control
Policy;
(S) Administrator of the Small Business
Administration;
(T) Director of the Office of Management
and Budget; and
(U) Chair of the Council of Economic Ad-
visers.
(4) the term ‘‘covered Federal financial assist-
ance program’’ means an eligible Federal financial
assistance program that is included in a local flexi-
bility plan of a local government;
(5) the term ‘‘eligible Federal financial assist-
ance program’’—
(A) means a Federal program under which
financial assistance is available, directly or indi-
rectly, to a local government or a qualified or-
ganization to carry out the specified program;
and
(B) does not include a Federal program
under which financial assistance is provided by
the Federal Government directly to a bene-
ficiary of that financial assistance or to a State
as a direct payment to an individual;
(6) the term ‘‘eligible local government’’ means
a local government that is eligible to receive finan-
cial assistance under 1 or more covered Federal pro-
grams;
(7) the term ‘‘local flexibility plan’’ means a
comprehensive plan for the integration and adminis-
tration by a local government of financial assistance
provided by the Federal Government under 2 or
more eligible Federal financial assistance programs;
(8) the term ‘‘local government’’ means a sub-
division of a State that is a unit of general local gov-
ernment (as defined under section 6501 of title 31,
United States Code);
(9) the term ‘‘priority funding’’ means giving
higher priority (including by the assignment of extra
points, if applicable) to applications for Federal fi-
nancial assistance submitted by a local government
having an approved local flexibility program, by—
(A) a person located in the jurisdiction of
such a government; or
(B) a qualified organization eligible for as-
sistance under a covered Federal financial as-
sistance program included in such a plan;
(10) the term ‘‘qualified organization’’ means a
private, nonprofit organization described in section
501(c)(3) of the Internal Revenue Code of 1986 that
is exempt from taxation under section 501(a) of the
Internal Revenue Code of 1986; and
(11) the term ‘‘State’’ means the 50 States, the
District of Columbia, Puerto Rico, American Samoa,
Guam, and the Virgin Islands.
SEC. 5. PROVISION OF FEDERAL FINANCIAL ASSISTANCE IN
ACCORDANCE 
WITH 
APPROVED 
LOCAL
FLEXIBILITY PLAN.
(a) PAYMENTS TO LOCAL GOVERNMENTS.—Notwith-
standing any other provision of law, amounts available to
a local government or a qualified organization under a cov-
ered Federal financial assistance program included in an
approved local flexibility plan shall be provided to and
used by the local government or organization in accord-
ance with the approved local flexibility plan.
(b) ELIGIBILITY FOR BENEFITS.—An individual or
family that is eligible for benefits or services under a cov-
ered Federal financial assistance program included in an
approved local flexibility plan may receive those benefits
only in accordance with the approved local flexibility plan.
SEC. 6. APPLICATION FOR APPROVAL OF LOCAL FLEXIBIL-
ITY PLAN.
(a) IN GENERAL.—A local government may submit
to the Flexibility Council in accordance with this section
an application for approval of a local flexibility plan.
(b) CONTENTS
OF APPLICATION.—An application
submitted under this section shall include—
(1)(A) a proposed local flexibility plan that
complies with subsection (c); or
(B) a strategic plan submitted in application
for designation as an enterprise community or an
empowerment zone under section 1391 of the Inter-
nal Revenue Code of 1986;
(2) certification by the chief executive of the
local government, and such additional assurances as
may be required by the Flexibility Council, that—
(A) the local government has the ability
and authority to implement the proposed plan,
directly or through contractual or other ar-
rangements, throughout the geographic area in
which the proposed plan is intended to apply;
and
(B) amounts are available from non-Fed-
eral sources to pay the non-Federal share of all
covered Federal financial assistance programs
included in the proposed plan; and
(3) any comments on the proposed plan submit-
ted under subsection (d) by the Governor of the
State in which the local government is located;
(4) public comments on the plan including the
transcript of at least 1 public hearing and comments
of the appropriate community advisory committee
established under section 9; and
(5) other relevant information the Flexibility
Council may require to approve the proposed plan.
(c) CONTENTS OF PLAN.—A local flexibility plan sub-
mitted by a local government under this section shall
include—
(1) the geographic area to which the plan ap-
plies and the rationale for defining the area;
(2) the particular groups of individuals, by serv-
ice needs, economic circumstances, or other defining
factors, who shall receive services and benefits under
the plan;
(3)(A) specific goals and measurable perform-
ance criteria, a description of how the plan is ex-
pected to attain those goals and criteria;
(B) a description of how performance shall be
measured; and
(C) a system for the comprehensive evaluation
of the impact of the plan on participants, the com-
munity, and program costs;
(4) the eligible Federal financial assistance pro-
grams to be included in the plan as covered Federal
financial assistance programs and the specific bene-
fits that shall be provided under the plan under such
programs, including—
(A) criteria for determining eligibility for
benefits under the plan;
(B) the services available;
(C) the amounts and form (such as cash,
in-kind contributions, or financial instruments)
of nonservice benefits; and
(D) any other descriptive information the
Flexibility Council considers necessary to ap-
prove the plan;
(5) except for the requirements under section
8(b)(3), any Federal statutory or regulatory require-
ment applicable under a covered Federal financial
assistance program included in the plan, the waiver
of which is necessary to implement the plan;
(6) fiscal control and related accountability pro-
cedures applicable under the plan;
(7) a description of the sources of all non-Fed-
eral funds that are required to carry out covered
Federal financial assistance programs included in
the plan;
(8) written consent from each qualified organi-
zation for which consent is required under section
6(b)(2); and
(9) other relevant information the Flexibility
Council may require to approve the plan.
(d) PROCEDURE FOR APPLYING.—(1) To apply for
approval of a local flexibility plan, a local government shall
submit an application in accordance with this section to
the Governor of the State in which the local government
is located.
(2) A Governor who receives an application from a
local government under paragraph (1) may, by no later
than 30 days after the date of that receipt—
(A) prepare comments on the proposed local
flexibility plan included in the application;
(B) describe any State laws which are necessary
to waive for successful implementation of a local
plan; and
(C) submit the application and comments to the
Flexibility Council.
(3) If a Governor fails to act within 30 days after
receiving an application under paragraph (2), the applica-
ble local government may submit the application to the
Flexibility Council.
SEC. 7. REVIEW AND APPROVAL OF LOCAL FLEXIBILITY
PLANS.
(a) REVIEW OF APPLICATIONS.—Upon receipt of an
application for approval of a local flexibility plan under
this Act, the Flexibility Council shall—
(1) approve or disapprove all or part of the plan
within 45 days after receipt of the application;
(2) notify the applicant in writing of that ap-
proval or disapproval by not later than 15 days after
the date of that approval or disapproval; and
(3) in the case of any disapproval of a plan, in-
clude a written justification of the reasons for dis-
approval in the notice of disapproval sent to the
applicant.
(b) APPROVAL.—(1) The Flexibility Council may ap-
prove a local flexibility plan for which an application is
submitted under this Act, or any part of such a plan, if
a majority of members of the Council determines that—
(A) the plan or part shall improve the effective-
ness and efficiency of providing benefits under cov-
ered Federal programs included in the plan by re-
ducing administrative inflexibility, duplication, and
unnecessary expenditures;
(B) the applicant local government has ade-
quately considered, and the plan or part of the plan
appropriately addresses, any effect that administra-
tion of each covered Federal program under the plan
or part of the plan shall have on administration of
the other covered Federal programs under that plan
or part of the plan;
(C) the applicant local government has or is de-
veloping data bases, planning, and evaluation proc-
esses that are adequate for implementing the plan or
part of the plan;
(D) the plan shall more effectively achieve Fed-
eral financial assistance goals at the local level and
shall better meet the needs of local citizens;
(E) implementation of the plan or part of the
plan shall adequately achieve the purposes of this
Act and of each covered Federal financial assistance
program under the plan or part of the plan;
(F) the plan and the application for approval of
the plan comply with the requirements of this Act;
(G) the plan or part of the plan is adequate to
ensure that individuals and families that receive ben-
efits under covered Federal financial assistance pro-
grams included in the plan or part shall continue to
receive benefits that meet the needs intended to be
met under the program; and
(H) the local government has—
(i) waived the corresponding local laws nec-
essary for implementation of the plan; and
(ii) sought any necessary waivers from the
State.
(2) The Flexibility Council may not approve any part
of a local flexibility plan if—
(A) implementation of that part would result in
any increase in the total amount of obligations or
outlays of discretionary appropriations or direct
spending under covered Federal financial assistance
programs included in that part, over the amounts of
such obligations and outlays that would occur under
those programs without implementation of the part;
or
(B) in the case of a plan or part that applies
to assistance to a qualified organization under an el-
igible Federal financial assistance program, the
qualified organization does not consent in writing to
the receipt of that assistance in accordance with the
plan.
(3) The Flexibility Council shall disapprove a part of
a local flexibility plan if a majority of the Council dis-
approves that part of the plan based on a failure of the
part to comply with paragraph (1).
(4) In approving any part of a local flexibility plan,
the Flexibility Council shall specify the period during
which the part is effective. An approved local flexibility
plan shall not be effective after the date of the termination
of effectiveness of this Act under section 13.
(5) Disapproval by the Flexibility Council of any part
of a local flexibility plan submitted by a local government
under this Act shall not affect the eligibility of a local gov-
ernment, a qualified organization, or any individual for
benefits under any Federal program.
(c) MEMORANDA
OF UNDERSTANDING.—(1) The
Flexibility Council may not approve a part of a local flexi-
bility plan unless each local government and each qualified
organization that would receive financial assistance under
the plan enters into a memorandum of understanding
under this subsection with the Flexibility Council.
(2) A memorandum of understanding under this sub-
section shall specify all understandings that have been
reached by the Flexibility Council, the local government,
and each qualified organization that is subject to a local
flexibility plan, regarding the approval and implementa-
tion of all parts of a local flexibility plan that are the sub-
ject of the memorandum, including understandings with
respect to—
(A) all requirements under covered Federal fi-
nancial assistance programs that are to be waived by
the Flexibility Council under section 8(b);
(B)(i) the total amount of Federal funds that
shall be provided as benefits under or used to ad-
minister covered Federal financial assistance pro-
grams included in those parts; or
(ii) a mechanism for determining that amount,
including specification of the total amount of Fed-
eral funds that shall be provided or used under each
covered Federal financial assistance program in-
cluded in those parts;
(C) the sources of all non-Federal funds that
shall be provided as benefits under or used to ad-
minister those parts;
(D) measurable performance criteria that shall
be used during the term of those parts to determine
the extent to which the goals and performance levels
of the parts are achieved; and
(E) the data to be collected to make that deter-
mination.
(d) LIMITATION
ON CONFIDENTIALITY REQUIRE-
MENTS.—The Flexibility Council may not, as a condition
of approval of any part of a local flexibility plan or with
respect to the implementation of any part of an approved
local flexibility plan, establish any confidentiality require-
ment that would—
(1) impede the exchange of information needed
for the design or provision of benefits under the
parts; or
(2) conflict with law.
SEC. 8. IMPLEMENTATION OF APPROVED LOCAL FLEXIBIL-
ITY PLANS; WAIVER OF REQUIREMENTS.
(a) PAYMENTS AND ADMINISTRATION IN ACCORD-
ANCE WITH PLAN.—Notwithstanding any other law, any
benefit that is provided under a covered Federal financial
assistance program included in an approved local flexibil-
ity plan shall be paid and administered in the manner
specified in the approved local flexibility plan.
(b) WAIVER OF REQUIREMENTS.—(1) Notwithstand-
ing any other law and subject to paragraphs (2) and (3),
the Flexibility Council may waive any requirement applica-
ble under Federal law to the administration of, or provi-
sion of benefits under, any covered Federal assistance pro-
gram included in an approved local flexibility plan, if that
waiver is—
(A) reasonably necessary for the implementa-
tion of the plan; and
(B) approved by a majority of members of the
Flexibility Council.
(2) The Flexibility Council may not waive a require-
ment under this subsection unless the Council finds that
waiver of the requirement shall not result in a qualitative
reduction in services or benefits for any individual or fam-
ily that is eligible for benefits under a covered Federal fi-
nancial assistance program.
(3) The Flexibility Council may not waive any re-
quirement under this subsection—
(A) that enforces any constitutional or statu-
tory right of an individual, including any right
under—
(i) title VI of the Civil Rights Act of 1964
(42 U.S.C. 2000d et seq.);
(ii) section 504 of the Rehabilitation Act of
1973 (29 U.S.C. 701 et seq.);
(iii) title IX of the Education Amendments
of 1972 (86 Stat. 373 et seq.);
(iv) the Age Discrimination Act of 1975
(42 U.S.C. 6101 et seq.); or
(v) the Americans with Disabilities Act of
1990;
(B) for payment of a non-Federal share of
funding of an activity under a covered Federal fi-
nancial assistance program; or
(C) for grants received on a maintenance of ef-
fort basis.
(c) SPECIAL ASSISTANCE.—To the extent permitted
by law, the head of each Federal agency shall seek to pro-
vide special assistance to a local government or qualified
organization to support implementation of an approved
local flexibility plan, including expedited processing, prior-
ity funding, and technical assistance.
(d) EVALUATION AND TERMINATION.—(1) A local
government, in accordance with regulations issued by the
Flexibility Council, shall—
(A) submit such reports on and cooperate in
such audits of the implementation of its approved
local flexibility plan; and
(B) periodically evaluate the effect implementa-
tion of the plan has had on—
(i) individuals who receive benefits under
the plan;
(ii) communities in which those individuals
live; and
(iii) costs of administering covered Federal
financial assistance programs included in the
plan.
(2) No later than 90 days after the end of the 1-
year period beginning on the date of the approval by the
Flexibility Council of an approved local flexibility plan of
a local government, and annually thereafter, the local gov-
ernment shall submit to the Flexibility Council a report
on the principal activities and achievements under the plan
during the period covered by the report, comparing those
achievements to the goals and performance criteria in-
cluded in the plan under section 6(c)(3).
(3)(A) The Flexibility Council may terminate the ef-
fectiveness of an approved local flexibility plan, if the
Flexibility Council, after consultation with the head of
each Federal agency responsible for administering a cov-
ered Federal financial assistance program included in
such, determines—
(i) that the goals and performance criteria in-
cluded in the plan under section 6(c)(3) have not
been met; and
(ii) after considering any experiences gained in
implementation of the plan, that those goals and cri-
teria are sound.
(B) In terminating the effectiveness of an approved
local flexibility plan under this paragraph, the Flexibility
Council shall allow a reasonable period of time for appro-
priate Federal, State, and local agencies and qualified or-
ganizations to resume administration of Federal programs
that are covered Federal financial assistance programs in-
cluded in the plan.
(e) FINAL REPORT; EXTENSION OF PLANS.—(1) No
later than 45 days after the end of the effective period
of an approved local flexibility plan of a local government,
or at any time that the local government determines that
the plan has demonstrated its worth, the local government
shall submit to the Flexibility Council a final report on
its implementation of the plan, including a full evaluation
of the successes and shortcomings of the plan and the ef-
fects of that implementation on individuals who receive
benefits under those programs.
(2) The Flexibility Council may extend the effective
period of an approved local flexibility plan for such period
as may be appropriate, based on the report of a local gov-
ernment under paragraph (1).
SEC. 9. COMMUNITY ADVISORY COMMITTEES.
(a) ESTABLISHMENT.—A local government that ap-
plies for approval of a local flexibility plan under this Act
shall establish a community advisory committee in accord-
ance with this section.
(b) FUNCTIONS.—A community advisory committee
shall advise a local government in the development and
implementation of its local flexibility plan, including advice
with respect to—
(1) conducting public hearings; and
(2) reviewing and commenting on all commu-
nity policies, programs, and actions under the plan
which affect low income individuals and families,
with the purpose of ensuring maximum coordination
and responsiveness of the plan in providing benefits
under the plan to those individuals and families.
(c) MEMBERSHIP.—The membership of a community
advisory committee shall—
(1) consist of—
(A) persons with leadership experience in
the private and voluntary sectors;
(B) local elected officials;
(C) representatives of participating quali-
fied organizations; and
(D) the general public; and
(2) include individuals and representatives of
community organizations who shall help to enhance
the leadership role of the local government in devel-
oping a local flexibility plan.
(d) OPPORTUNITY FOR REVIEW AND COMMENT BY
COMMITTEE.—Before submitting an application for ap-
proval of a final proposed local flexibility plan, a local gov-
ernment shall submit the final proposed plan for review
and comment by a community advisory committee estab-
lished by the local government.
(e) COMMITTEE REVIEW OF REPORTS.—Before sub-
mitting annual or final reports on an approved Federal
assistance plan, a local government or private nonprofit
organization shall submit the report for review and com-
ment to the community advisory committee.
SEC. 10. TECHNICAL AND OTHER ASSISTANCE.
(a) TECHNICAL ASSISTANCE.—(1) The Flexibility
Council may provide, or direct that the head of a Federal
agency provide, technical assistance to a local government
or qualified organization in developing information nec-
essary for the design or implementation of a local flexibil-
ity plan.
(2) Assistance may be provided under this subsection
if a local government makes a request that includes, in
accordance with requirements established by the Flexibil-
ity Council—
(A) a description of the local flexibility plan the
local government proposes to develop;
(B) a description of the groups of individuals to
whom benefits shall be provided under covered Fed-
eral assistance programs included in the plan; and
(C) such assurances as the Flexibility Council
may require that—
(i) in the development of the application to
be submitted under this title for approval of the
plan, the local government shall provide ade-
quate opportunities to participate to—
(I) individuals and families that shall
receive benefits under covered Federal fi-
nancial assistance programs included in
the plan; and
(II) governmental agencies that ad-
minister those programs; and
(ii) the plan shall be developed after con-
sidering fully—
(I) needs expressed by those individ-
uals and families;
(II) community priorities; and
(III) available governmental resources
in the geographic area to which the plan
shall apply.
(b) DETAILS TO COUNCIL.—At the request of the
Flexibility Council and with the approval of an agency
head who is a member of the Council, agency staff may
be detailed to the Flexibility Council on a nonreimbursable
basis.
SEC. 11. FLEXIBILITY COUNCIL.
(a) FUNCTIONS.—The Flexibility Council shall—
(1) receive, review, and approve or disapprove
local flexibility plans for which approval is sought
under this Act;
(2) upon request from an applicant for such ap-
proval, direct the head of an agency that administers
a covered Federal financial assistance program
under which substantial Federal financial assistance
would be provided under the plan to provide tech-
nical assistance to the applicant;
(3) monitor the progress of development and
implementation of local flexibility plans;
(4) perform such other functions as are as-
signed to the Flexibility Council by this Act; and
(5) issue regulations to implement this Act
within 180 days after the date of its enactment.
(b) REPORTS.—No less than 18 months after the
date of the enactment of this Act, and annually thereafter,
the Flexibility Council shall submit a report on the 5 Fed-
eral regulations that are most frequently waived by the
Flexibility Council for local governments with approved
local flexibility plans to the President and the Congress.
The President shall review the report and determine
whether to amend or terminate such Federal regulations.
SEC. 12. REPORT.
No later than 54 months after the date of the enact-
ment of this Act, the Comptroller General of the United
States shall submit to the Congress, a report that—
(1) describes the extent to which local govern-
ments have established and implemented approved
local flexibility plans;
(2) evaluates the effectiveness of covered Fed-
eral assistance programs included in approved local
flexibility plans; and
(3) includes recommendations with respect to
local flexibility.
SEC. 13. REPEAL.
This Act is repealed on the date that is 5 years after
the date of the enactment of this Act.
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