rior, to be an Indian tribe or an Indian organization 
for any purpose. 
‘‘(b) RESERVATION.— 
‘‘(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 
within such State that assistance under this 
subtitle be made available directly to such tribe 
or organization; and 
‘‘(B) determines that the members of such 
Indian tribe or tribal organization would be bet-
ter served by means of grants made directly to 
such tribe or organization to provide benefits 
under this subtitle. 
‘‘(2) AMOUNT.—The Secretary shall reserve 
from amounts allotted to a State under section 678 
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 for 
whom a determination has been made under para-
graph (1)(B) bears to the population of all individ-
uals eligible for assistance through a grant made 
under section 678 to such State. 
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‘‘(c) AWARDS.—The amount reserved by the Sec-
retary on the basis of a determination made under sub-
section (b)(1)(B) shall be made available by grant to the 
Indian tribe or tribal organization serving the Indians for 
whom 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 tribe or organization shall sub-
mit 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 promulgate alternative re-
quirements for tribal implementation of the requirements 
of section 680(c). 
‘‘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 
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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; 
‘‘(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— 
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‘‘(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 
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 or 
plan revision statewide to the public and 
directly to the chief executive officer and 
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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 subparagraph (G). 
‘‘(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 
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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; 
‘‘(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— 
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‘‘(A) includes the State’s strategy for im-
plementing its responsibilities under section 
680(a); and 
‘‘(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; 
‘‘(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; 
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‘‘(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 statewide proportional distribu-
tion of funds under section 680(A)(a)(1) when 
such change is included as part of a State’s ap-
plication submitted under section 680(e)(1) to 
respond to— 
‘‘(i) the results of the most recently 
available census or other appropriate de-
mographic data; 
‘‘(ii) severe economic dislocation; or 
‘‘(iii) the designation of a new eligible 
entity in an unserved geographic area. 
‘‘(9) a description of the State’s requirements 
that ensure that each eligible entity serving the 
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State establishes procedures that permit low-income 
individuals, or a community organization or religious 
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 
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achieving the goals of the State plan and the com-
munity action program plans, respectively; and 
‘‘(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 section 
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 
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submitted under subsection (b), for each fiscal year 
after the transition period, performance measure-
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-
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retary shall not require submission of the State stra-
tegic plan described in subsection (b)(4). In the 
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 and com-
ment. A hearing on such plan or revision shall be 
held as required under subsection (a)(2)(E), but a 
State application for merger incentive funds shall 
not be considered a revision. 
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