consistently failed to use its resources to provide ec-
onomical and effective legal assistance of high qual-
ity as measured by generally accepted professional
standards, and after notice and an opportunity to
correct such failure has been provided to such recipi-
ent, grantee, or contractor.
The Corporation may deny an application for refunding
of a recipient or other grantee or contractor when the Cor-
poration has identified an applicant for financial assist-
ance under this title that is better able to provide high
quality, comprehensive, economical, and effective legal as-
sistance for the geographic area served by such recipient,
grantee, or contractor, consistent with the provisions of
subsections (a)(2) and (c) of section 1007 of this title.
‘‘(B) Financial assistance under this title may not be
terminated or suspended, an application for refunding
under this title may not be denied, and the annual level
of financial assistance under this title may not be reduced
by more than 5 percent or $20,000, whichever is less, un-
less the recipient or other grantee or contractor involved
has been afforded reasonable notice and, at the request
of the recipient, grantee, or contractor, a timely and fair
hearing before an independent hearing examiner pursuant
to regulations issued by the Corporation. Such regulations
shall provide for commencement of the hearing before an
independent hearing examiner at the earliest appropriate
date, but in no case more than 45 days after a request
for such a hearing is received. As soon as practical after
the hearing, but in no case more than 60 days after its
conclusion, the independent hearing examiner shall make
a recommended decision on the matter involved. A copy
of the recommended decision shall be sent to the Corpora-
tion and the recipient, grantee, or contractor involved. If
neither the Corporation nor the recipient, grantee, or con-
tractor involved requests review by the president of the
Corporation of that recommended decision within 10 days
after the date the recipient, grantee, or contractor receives
a copy of the decision, that decision shall become final.
Within 30 days after receipt of a request for a review of
a recommended decision, the president of the Corporation
shall make a final decision with respect to that rec-
ommended decision. In addition to other remedies pro-
vided by law, the recipient, grantee, or contractor may ap-
peal the final decision to the Board.’’.
(c) MONITORING AND INDEPENDENT EVALUATIONS
OF PROGRAMS.—Section 1007(d) (42 U.S.C. 2996f(d)) is
amended to read as follows:
‘‘(d)(1) The Corporation shall monitor recipients and
other grantees and contractors of the Corporation in order
to ensure that the provisions of this title, the rules, regula-
tions, guidelines, and instructions issued under this title,
and other laws are carried out by such recipients, grant-
ees, and contractors, and shall provide for independent
evaluations to determine whether such recipients, grant-
ees, and contractors are providing economical and effective
legal assistance of high quality to eligible clients. The Cor-
poration shall adopt standards and procedures to imple-
ment the provisions of section 1006(b)(1)(A) and this sub-
section as regulations under section 1008(e).
‘‘(2) The standards and procedures adopted under
paragraph (1) shall take into account—
‘‘(A) that the responsibility of the Corporation
with regard to monitoring and evaluation is to en-
sure compliance with this title, the rules, regula-
tions, guidelines, and instructions issued under this
title, and any other laws and to provide for inde-
pendent evaluations to assess the extent to which the
overall delivery of legal assistance by a recipient or
other grantee or contractor is economical, effective,
and of high quality and not to manage the day-to-
day operations of recipients and other grantees and
contractors;
‘‘(B) that each recipient or other grantee or
contractor has the responsibility to manage its day-
to-day operations and to assure that its employees