Title: Community Services Block Grant Modernization Act of 2022
Policy area: Social Welfare

Summary:
Community Services Block Grant Modernization Act of 2021
This bill reauthorizes the Community Services Block Grant program through FY2031 and otherwise modifies the program. The program supports various antipoverty activities, primarily through formula-based allotments to states, Indian tribes, and territories.
In particular, the bill makes changes to the program's administration and leadership; performance measurement; and allotments to states and territories.
The bill also expands eligibility for services and activities funded by the program to 200% of the federal poverty line (FPL). Under current law, eligibility is generally set at the FPL.

[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5129 Introduced in House (IH)]

<DOC>






117th CONGRESS
  1st Session
                                H. R. 5129

  To amend the Community Services Block Grant Act to reauthorize and 
                           modernize the Act.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            August 31, 2021

Ms. Bonamici (for herself, Mr. Thompson of Pennsylvania, Ms. McCollum, 
 Ms. Stefanik, Mr. DeSaulnier, and Mr. Comer) introduced the following 
    bill; which was referred to the Committee on Education and Labor

_______________________________________________________________________

                                 A BILL


 
  To amend the Community Services Block Grant Act to reauthorize and 
                           modernize the Act.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Community Services Block Grant 
Modernization Act of 2021''.

SEC. 2. REAUTHORIZATION.

    Subtitle B of title VI of the Omnibus Budget Reconciliation Act of 
1981 (42 U.S.C. 9901 et seq.) is amended to read as follows:

          ``Subtitle B--Community Services Block Grant Program

``SEC. 671. SHORT TITLE.

    ``This subtitle may be cited as the `Community Services Block Grant 
Act'.

``SEC. 672. PURPOSES.

    ``The purposes of this subtitle are--
            ``(1) to reduce poverty in the United States by supporting 
        the activities of community action agencies that improve the 
        economic security of low-income individuals and families and 
        create new economic opportunities in the communities where they 
        live; and
            ``(2) to accomplish the purposes described in paragraph (1) 
        by--
                    ``(A) strengthening community capabilities for 
                identifying poverty conditions and opportunities to 
                alleviate such conditions;
                    ``(B) empowering residents of the low-income 
                communities served to respond to the unique problems 
                and needs within their communities through their 
                maximum feasible participation in advising, planning 
                and evaluating the programs, projects, and services 
                funded under this subtitle;
                    ``(C) using innovative community-based approaches 
                that produce a measurable impact on the causes and 
                effects of poverty, including whole family approaches 
                that create opportunities for, and address the needs 
                of, parents and children together;
                    ``(D) coordinating Federal, State, local, and other 
                assistance, including private resources, related to the 
                reduction of poverty so that resources can be used in a 
                manner responsive to local needs and conditions; and
                    ``(E) broadening the resources directed to the 
                elimination of poverty, so as to promote partnerships 
                that include--
                            ``(i) private, religious, charitable, and 
                        neighborhood-based organizations; and
                            ``(ii) individuals, businesses, labor 
                        organizations, professional organizations, and 
                        other organizations engaged in expanding 
                        opportunities for all individuals.

``SEC. 673. DEFINITIONS.

    ``In this subtitle:
            ``(1) Agency-wide strategic plan.--The term `agency-wide 
        strategic plan' means a plan that has been adopted by an 
        eligible entity within the past 5 years and establishes goals 
        that include meeting needs identified by the entity in 
        consultation with residents of the community through a process 
        of comprehensive community needs assessment.
            ``(2) Community action agency.--The term `community action 
        agency' means an eligible entity (which meets the requirements 
        of paragraph (1) or (2), as appropriate, of section 680(c)) 
        that delivers multiple programs, projects, and services to a 
        variety of low-income individuals and families.
            ``(3) Community action plan.--The term `community action 
        plan' means a detailed plan, including a budget, that is 
        adopted by an eligible entity, for expenditures of funds 
        appropriated for a fiscal year under this subtitle for the 
        activities supported directly or indirectly by such funds.
            ``(4) Community services network organization.--The term 
        `community services network organization' means any of the 
        following organizations funded under this subtitle:
                    ``(A) A grantee.
                    ``(B) An eligible entity.
                    ``(C) An association with a membership composed 
                primarily of grantees, eligible entities, or 
                associations of grantees or eligible entities.
            ``(5) Department.--The term `Department' means the 
        Department of Health and Human Services.
            ``(6) Eligible entity.--The term `eligible entity' means an 
        entity--
                    ``(A) that is an eligible entity described in 
                section 673(1) (as in effect on the day before the date 
                of enactment of the Community Services Block Grant 
                Modernization Act of 2021) as of the day before such 
                date of enactment, or has been designated by the 
                process described in section 680(a) (including an 
                organization serving migrant or seasonal farmworkers 
                that is so described or designated); and
                    ``(B) that has a tripartite board described in 
                paragraph (1) or (2), as appropriate, of section 
                680(c).
            ``(7) Evidence-based practice.--The term `evidence-based 
        practice' means an activity, strategy, or intervention that--
                    ``(A) demonstrates a statistically significant 
                effect on improving relevant outcomes based on at least 
                one well-designed and well-implemented experimental or 
                quasi-experimental study, or at least one well-designed 
                and well-implemented correlational study with 
                statistical controls for selection bias, and includes 
                ongoing efforts to examine the effects of such 
                activity, strategy, or intervention; or
                    ``(B) demonstrates a rationale based on high-
                quality research findings or positive evaluation that 
                such activity, strategy, or intervention is likely to 
                improve relevant outcomes; and includes ongoing efforts 
                to examine the effects of such activity, strategy, or 
                intervention.
            ``(8) Grantee.--The term `grantee' means a recipient of a 
        grant under section 675 or 676 of this subtitle.
            ``(9) Poverty line.--
                    ``(A) In general.--The term `poverty line' means 
                the official poverty line defined by the Office of 
                Management and Budget, based on the most recent data 
                available from the Bureau of the Census. The Secretary 
                shall revise the poverty line annually (or at any 
                shorter interval the Secretary determines to be 
                feasible and desirable). The required revision shall be 
                accomplished by multiplying the official poverty line 
                by the percentage change in the Consumer Price Index 
                for All Urban Consumers during the annual or other 
                interval immediately preceding the time at which the 
                revision is made.
                    ``(B) Community services block grant eligibility 
                criterion.--Subject to subparagraph (C), 200 percent of 
                the poverty line, as defined in subparagraph (A), shall 
                be used as a criterion of eligibility for services or 
                assistance provided to individuals or families through 
                the community services block grant program established 
                under this subtitle.
                    ``(C) Procedures for continued eligibility.--A 
                State may establish procedures to ensure that a 
                participant in a program, project, or service funded 
                under this subtitle remains eligible to participate as 
                long as the participant is successfully progressing 
                toward achievement of the goals of the program, 
                project, or service, regardless of any income 
                eligibility criteria used to determine the 
                participant's initial eligibility.
            ``(10) Private, nonprofit organization.--The term `private, 
        nonprofit organization' means a domestic organization that is--
                    ``(A) described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 and exempt from taxation 
                under section 501(a) of such Code; and
                    ``(B) described in paragraph (1) or (2) of section 
                509(a) of the Internal Revenue Code of 1986.
            ``(11) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(12) Service area.--The term `service area' means the 
        unique geographic area which the State has designated as the 
        area to be served by an eligible entity with funding under 
        section 679(a)(1).
            ``(13) State.--The term `State' means any of the several 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the United States Virgin Islands, American Samoa, 
        or the Commonwealth of the Northern Mariana Islands.

``SEC. 674. AUTHORIZATION OF COMMUNITY SERVICES BLOCK GRANT PROGRAM.

    ``(a) Authorization of Program.--The Secretary is authorized to 
carry out a community services block grant program and to make grants 
through the program, under sections 675 and 676, to States to support 
local community action plans carried out by eligible entities to reduce 
poverty in the communities served by such entities.
    ``(b) Authority of Secretary.--The Secretary is authorized to carry 
out other community programs described in section 690.
    ``(c) Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements.--Notwithstanding any other provision of the Omnibus 
Budget Reconciliation Act of 1981 (Public Law 97-35) or of section 
75.101(d)(1), part 75 of title 45, Code of Federal Regulations, funds 
authorized to be appropriated under this subtitle shall be subject to 
all subparts of the uniform administrative requirements, cost 
principles, and audit requirements for Federal awards as adopted in 
regulations promulgated by the Secretary to implement the Uniform 
Administrative Requirements, Cost Principles, and Audit Requirements 
under part 200 of title 2, Code of Federal Regulations, or any 
corresponding similar regulation (including part 75 of title 45, Code 
of Federal Regulations, or any corresponding similar regulation), 
except for provisions on termination, withholding and suspension of 
funds, as well as all other Federal laws and regulations related to 
intergovernmental financial transactions and to administration of 
federally funded grants and cooperative agreements between States and 
nonprofit organizations, or local governments, as applicable.

``SEC. 675. GRANTS TO TERRITORIES.

    ``(a) Apportionment.--The Secretary shall apportion the amount 
reserved under section 691(c)(1) for each fiscal year on the basis of 
need to eligible jurisdictions, among Guam, American Samoa, the United 
States Virgin Islands, and the Commonwealth of the Northern Mariana 
Islands.
    ``(b) Grants.--The Secretary shall make a grant to each eligible 
jurisdiction to which subsection (a) applies for the amount apportioned 
under subsection (a).

``SEC. 676. ALLOTMENTS AND GRANTS TO STATES.

    ``(a) Allotments in General.--From the amount appropriated under 
section 691(a) for each fiscal year and remaining after the Secretary 
makes the reservations required by section 691(c), the Secretary shall 
allot to each eligible State, subject to section 677, an amount that 
bears the same ratio to such remaining amount as the amount received by 
the State for fiscal year 1981 under section 221 of the Economic 
Opportunity Act of 1964 bore to the total amount received by all States 
for fiscal year 1981 under such section, except as provided in 
subsection (b).
    ``(b) Minimum Allotments.--
            ``(1) In general.--The Secretary shall allot to each State 
        not less than \1/2\ of 1 percent of the amount appropriated 
        under section 691(a) for such fiscal year and remaining after 
        the Secretary makes the reservations required by section 
        691(c).
            ``(2) Years with greater available funds.--Notwithstanding 
        paragraph (1), if the amount appropriated under section 691(a) 
        for a fiscal year and remaining after the Secretary makes the 
        reservations required by section 691(c) exceeds $900,000,000, 
        no State shall receive under this section less than \3/4\ of 1 
        percent of the remaining amount.
    ``(c) Grants and Payments.--Subject to section 677, the Secretary 
shall make grants to eligible States for the allotments described in 
subsections (a) and (b). The Secretary shall make payments for the 
grants in accordance with section 6503(a) of title 31, United States 
Code. The Secretary shall allocate the amounts allotted under 
subsections (a) and (b) quarterly, notify the States of their 
respective allocations and make each State's quarterly allocation 
amount available for expenditure by the State no later than 30 days 
after the start of the fiscal quarter for which the Secretary is 
allocating the funds.
    ``(d) Definition.--In this section, the term `State' does not 
include Guam, American Samoa, the United States Virgin Islands, and the 
Commonwealth of the Northern Mariana Islands.

``SEC. 677. PAYMENTS TO INDIAN TRIBES.

    ``(a) Definitions.--In this section:
            ``(1) Indian.--The term `Indian' means a member of an 
        Indian tribe or tribal organization.
            ``(2) Indian tribe or tribal organization.--The term 
        `Indian tribe or tribal organization' means a tribe, band, or 
        other organized group recognized in the State in which the 
        tribe, band, or group resides, or considered by the Secretary 
        of the Interior, 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 better 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 676 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 paragraph 
        (1) bears to the population of all individuals eligible for 
        assistance through a grant made under section 676 to such 
        State.
    ``(c) Awards.--The amount reserved by the Secretary on the basis of 
a determination made under subsection (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 submit 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 implement alternative requirements for tribal implementation of the 
requirements of section 686(a).

``SEC. 678. STATE PLANS AND APPLICATIONS; COMMUNITY ACTION PLANS AND 
              APPLICATIONS.

    ``(a) State Lead Agency.--
            ``(1) Designation.--The chief executive officer of a State 
        desiring to receive a grant under section 675 or 676 shall 
        designate, in an application submitted to the Secretary under 
        subsection (b), an appropriate 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 state lead agencies.--The State lead 
        agency--
                    ``(A) shall be authorized by the chief executive 
                officer to convene State agencies and coordinate 
                information and activities funded under this subtitle;
                    ``(B) shall develop the State plan to be submitted 
                to the Secretary under subsection (b), which shall be 
                based primarily on the community action plans of 
                eligible entities, submitted to the State as a 
                condition of receiving funding under this subtitle;
                    ``(C) in conjunction with the development or 
                revision of the State plan as required under subsection 
                (b)--
                            ``(i) shall hold at least one hearing in 
                        the State on the proposed plan or proposed 
                        revised 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, shall distribute notice of the hearing 
                        and a copy of the proposed plan or plan 
                        revision statewide to the public and directly 
                        to the chief executive officer and the 
                        chairperson of the board of each of the 
                        eligible entities (or designees) and other 
                        community services network organizations; and
                    ``(D) not less often than every 3 years, in 
                conjunction with the development of the State plan, 
                shall hold at least 1 legislative hearing.
    ``(b) State Application for State Program and State Plan.--
Beginning with the first fiscal year following the transition period 
described in section 3 of the Community Services Block Grant 
Modernization Act of 2021, to be eligible to receive a grant under 
section 675 or 676, a State shall prepare and submit to the Secretary 
for approval an application containing a State plan covering a period 
of not more than 2 fiscal years. The application shall be submitted not 
later than 60 days prior to the beginning of the first fiscal year 
covered 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 675 or 676 will be 
        used to carry out the State activities described in section 
        679(b) and the State's community action plans;
            ``(2) a description summarizing the community action plans 
        of the eligible entities serving the State;
            ``(3) an assurance that the State and all eligible entities 
        in the State will participate in a performance measurement 
        system under section 686(a)(1)(A);
            ``(4) a plan for the State's oversight of eligible 
        entities;
            ``(5) an assurance that the State will pay eligible 
        entities in advance consistent with the Uniform Guidance;
            ``(6) an assurance that no eligible entity in the State 
        that received, in the previous fiscal year, funding through a 
        grant made under section 675 or 676 will 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, nor its designation as an eligible entity 
        terminated, unless, after providing the affected entity (or 
        entities, as applicable) with notice and an opportunity for a 
        hearing on the record, the State determines that cause exists 
        for such withholding, reduction, or elimination of funding or 
        for termination of designation, subject to review by the 
        Secretary as provided in subsection (c) of section 684; and, in 
        the case of failure of an eligible entity to comply with the 
        terms of a corrective action plan relating to correction of a 
        serious deficiency, except according to the procedures set 
        forth in subsection (b) of section 684. For purposes of this 
        subsection, the term `cause' means--
                    ``(A) the failure of an eligible entity to comply 
                with the terms of a corrective action plan relating to 
                correction of a serious deficiency as described in 
                subsection 684(b); or
                    ``(B) a statewide proportional distribution of 
                funds provided through a community services block grant 
                under this subtitle to respond to--
                            ``(i) the results of the most recently 
                        available census or other appropriate 
                        demographic data;
                            ``(ii) severe economic dislocation; or
                            ``(iii) the designation of an eligible 
                        entity to serve a geographic area that has been 
                        unserved for at least the previous 5 years;
            ``(7) an assurance that each eligible entity serving the 
        State has established procedures that permit a low-income 
        individual or organization to petition for adequate 
        representation of such individuals or organizations, 
        respectively, on the board of the eligible entity; and
            ``(8) a description of outcome measures to be used to 
        measure State and eligible entity performance in achieving the 
        goals of the State plan and the community action plans, 
        respectively.
    ``(c) 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 45 days after receiving the application. In 
the event of a full or partial disapproval, the Secretary's 
notification shall include a description of changes necessary for final 
approval. In the event of a partial approval, the Secretary may allow 
grantee use of funds for activities included in the portions of the 
plan which the Secretary has approved. In the event a State application 
fails to be approved in whole or in part before the end of the third 
month of the period covered by such plan the Secretary may award 
funding directly to eligible entities and other community services 
network organizations in the State (other than the State itself) as 
specified in section 684(a)(5)(B).
    ``(d) Public Inspection.--Each plan and revision to a State plan 
prepared under this section shall be distributed for public inspection 
and comment. A hearing on such plan or revision shall be held as 
required under subparagraphs (C) and (D) of subsection (a)(2), but a 
State application for merger, combination, or privatization of entities 
under section 680(b) shall not be considered a revision.
    ``(e) Eligible Entity Application and Community Action Plan.--
Beginning with the first fiscal year following the transition period 
described in section 3 of the Community Services Block Grant 
Modernization Act of 2021, to be eligible to receive a subgrant under 
section 679(a), each eligible entity shall prepare and submit to the 
State an application containing a community action plan or plans 
covering a period of not more than 2 fiscal years. Such application 
shall be submitted in a reasonable and timely manner as required by the 
State. The application shall contain information on the intended 
implementation of the eligible entity's activities, including 
demonstrating how the activities will--
            ``(1) meet needs identified in the most recent 
        comprehensive community needs assessment which has been 
        conducted within the past 3 years and which may be coordinated 
        with community needs assessments conducted for other programs; 
        and
            ``(2) achieve the purposes of this subtitle through 
        programs, projects, and services.

``SEC. 679. 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 675 or 676 shall use not less than 90 percent to make 
        subgrants to eligible entities that enable the entities to 
        implement programs, projects, and services for a purpose 
        described in section 672.
            ``(2) Obligational requirements.--
                    ``(A) Date of obligation.--The State shall obligate 
                the funds for subgrants described in paragraph (1) not 
                later than the later of--
                            ``(i) the 30th day after the date on which 
                        the State receives from the Secretary a notice 
                        of funding availability for the State's 
                        application under section 678; or
                            ``(ii) the first day of the State program 
                        year for which such funds are to be expended 
                        under the State application.
                    ``(B) Availability.--The State shall make available 
                to eligible entities for expenditure the funds for 
                subgrants described in paragraph (1) not later than 30 
                days after receiving notice from the Secretary of the 
                State's quarterly allocation under section 676(c). 
                Funds allocated to eligible entities through subgrants 
                made under paragraph (1) for a fiscal year shall be 
                available for obligation by the eligible entity during 
                that fiscal year and the succeeding fiscal year.
    ``(b) Statewide Activities.--
            ``(1) Use of remainder.--
                    ``(A) In general.--A State that receives a grant 
                under section 675 or 676 shall, after carrying out 
                subsection (a), use the remainder of the grant funds 
                for activities described in the State's application 
                under section 678(b) as described in subparagraph (B) 
                and for administrative expenses subject to the 
                limitations in paragraph (2).
                    ``(B) Training and technical assistance.--After 
                applying subsection (a), the State may use the 
                remaining grant funds for the purposes of--
                            ``(i) providing to eligible entities 
                        training and technical assistance and resources 
                        to respond to statewide or regional conditions 
                        that create economic insecurity, including, but 
                        not limited to, emergency conditions;
                            ``(ii) supporting professional development 
                        activities for eligible entities that enhance 
                        the skills of their local personnel (including 
                        members of the board of directors of such 
                        entities) in organizational management, service 
                        delivery, and program development and 
                        management, giving priority to activities 
                        carried out through partnerships of such 
                        entities with institutions of higher education;
                            ``(iii) supporting information and 
                        communication resources for the comprehensive 
                        community needs assessments described in 
                        section 678(e)(1);
                            ``(iv) supporting performance measurement 
                        systems consistent with the requirements of 
                        section 686;
                            ``(v) promoting coordination and 
                        cooperation among eligible entities in the 
                        State, including supporting activities of a 
                        statewide association of community services 
                        network organizations;
                            ``(vi) providing training and technical 
                        assistance and resources to assist eligible 
                        entities in building and using evidence 
                        designed to reduce poverty conditions, 
                        including entities participating in or 
                        proposing to participate in the Community 
                        Action Innovations Program established under 
                        section 682(a)(2); and
                            ``(vii) supporting efforts of eligible 
                        entities to identify and respond to physical 
                        and behavioral health challenges (including 
                        substance use disorders) experienced by low-
                        income individuals, families, and communities.
            ``(2) Administrative cap.--
                    ``(A) Limitation.--Of the amounts remaining after 
                the required funding for subgrants described under 
                subsection (a)(1), a State shall not spend more than 5 
                percent of its grant under section 675 or 676 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 planning 
                        and management activities, including 
                        monitoring, oversight, and reporting as 
                        required by this Act; and
                            ``(ii) does not include the cost of 
                        activities conducted under paragraph (1)(B) 
                        other than monitoring.
    ``(c) Eligible Entity Use of Funds.--An eligible entity that 
receives a subgrant under subsection (a)(1) shall use the subgrant 
funds to carry out a community action plan that shall include--
            ``(1) programs, projects, and services that provide low-
        income individuals and families with opportunities--
                    ``(A) to identify and develop strategies to remove 
                obstacles and solve problems that block access to 
                opportunity, economic stability, and achievement of 
                self-sufficiency;
                    ``(B) to secure and retain meaningful employment at 
                a family supporting wage;
                    ``(C) to secure an adequate education, improve 
                literacy and language skills, and obtain job-related 
                skills;
                    ``(D) to make effective use of available income and 
                build assets;
                    ``(E) to obtain and maintain adequate housing and a 
                safe and healthy living environment;
                    ``(F) to address health needs and improve health 
                and well-being;
                    ``(G) to obtain emergency materials or other 
                assistance to meet immediate individual or community 
                urgent needs and prevent greater or more prolonged 
                economic instability; and
                    ``(H) to achieve greater participation in community 
                affairs; and
            ``(2) activities that develop and maintain--
                    ``(A) partnerships for the purpose of addressing 
                community, economic, and social conditions of poverty 
                and promoting healthy communities, between the eligible 
                entity and--
                            ``(i) State and local public entities; and
                            ``(ii) private partners, including 
                        statewide and local businesses, associations of 
                        private employers, and private charitable and 
                        civic organizations;
                    ``(B) linkages with public and private 
                organizations for coordinating initiatives, services, 
                and investments so as to avoid duplication, and 
                maximize the effective use of community resources for 
                creating economic opportunity, including developing 
                lasting social and economic assets; and
                    ``(C) new investments in the community to reduce 
                the incidence of poverty, including developing lasting 
                social and economic assets.

``SEC. 680. ELIGIBLE ENTITIES AND TRIPARTITE BOARDS.

    ``(a) Designation and Redesignation of Eligible 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 State 
        lead agency may, in consultation with local officials and 
        organizations representing the area, solicit one or more 
        applications and designate a new community action agency to 
        provide programs, projects, and services to the area, that is--
                    ``(A) a community action agency that is a private, 
                nonprofit organization and that is geographically 
                located in an area within reasonable proximity of, or 
                contiguous to, the unserved area that is already 
                providing similar programs, projects, and services, and 
                that has demonstrated financial capacity to manage and 
                account for Federal funds; or
                    ``(B) if no community action agency described in 
                subparagraph (A) is available, a private, nonprofit 
                organization (which may include an eligible entity) 
                that is geographically located in, or is in reasonable 
                proximity to, the unserved area and that is capable of 
                providing a broad range of programs, projects, and 
                services designed 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 described in paragraph 
        (1) shall agree to ensure that the governing board of directors 
        of the entity will meet the requirements of subsection (c).
            ``(3) Community.--A service area referred to in this 
        subsection or a portion thereof shall be treated as a community 
        for purposes of this subtitle.
    ``(b) Merger, Combination, or Privatization of Eligible Entities.--
            ``(1) In general.--If an eligible entity receiving subgrant 
        funds makes a determination described in paragraph (2) and 
        notifies the State, the State--
                    ``(A) shall assist in developing a plan for 
                implementing such merger, combination, or 
                privatization, including a budget for transitional 
                costs not to exceed 2 years in duration;
                    ``(B) in the case of a merger or combination, shall 
                provide to the merged or combined entity an amount of 
                funding under section 679(a)(1) equal to the sum of 
                amounts the merged or combined entities each received 
                under section 679(a)(1) immediately prior to the merger 
                or combination.
            ``(2) Covered merger, combination, or privatization.--This 
        subsection applies when--
                    ``(A) 2 or more eligible entities determine that 
                the geographic areas of a State that they serve can be 
                more effectively served under common control or shared 
                management; or
                    ``(B) a public organization that is an eligible 
                entity determines that the area it serves can be more 
                effectively served if it becomes a private, nonprofit 
                organization.
            ``(3) Plans.--A State may establish requirements for 
        merger, combination, or privatization plans and for a 
        determination that the merged, combined, or privatized entity, 
        or entities, will be capable of conducting a broad range of 
        programs, projects, and services designed to achieve the 
        purposes of this subtitle as stated in section 672 consistent 
        with the comprehensive needs assessments for the areas served.
            ``(4) State determination.--If a State determines that a 
        merged, combined, or privatized entity or entities will be 
        capable of conducting a broad range of programs, projects, and 
        services as specified in subsection (b)(3) above, it shall 
        designate the merged, combined, or privatized entity or 
        entities to serve the area(s) in question without soliciting 
        applications from other entities.
    ``(c) Tripartite Boards.--
            ``(1) Private, nonprofit organizations.--
                    ``(A) Board.--In order for a private, nonprofit 
                organization to be considered to be an eligible entity 
                for purposes of section 673(6), 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 programs, projects, and services 
                carried out or provided through the subgrant made under 
                section 679(a)(1) and all activities of the entity.
                    ``(B) Selection.--The members of the board referred 
                to in subparagraph (A) shall be selected by the 
                private, nonprofit organization.
                    ``(C) Composition of board.--The board shall be 
                composed so as to assure that--
                            ``(i) \1/3\ of the members of the board are 
                        elected public officials holding office on the 
                        date of selection, or their representatives 
                        (but if an elected public official chooses not 
                        to serve, such official may designate a 
                        representative to serve as the voting board 
                        member);
                            ``(ii)(I) not fewer than \1/3\ of the 
                        members 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 representative 
                        of low-income individuals and families and is 
                        also selected to represent a specific 
                        geographic area under subclause (I) resides in 
                        such area; and
                            ``(iii) the remainder of the members may be 
                        comprised of representatives from 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 include, or have direct 
                access to, individuals with expertise in financial 
                management, accounting, and law.
                    ``(E) Compliance with tax-exempt and other 
                requirements.--The board of a private, nonprofit 
                organization shall ensure that the board operates and 
                conducts activities under the subgrant made under 
                section 679(a)(1) in a manner that complies with--
                            ``(i) the requirements for maintaining tax-
                        exempt status under section 501(a) of the 
                        Internal Revenue Code of 1986 (26 U.S.C. 
                        501(a)) regarding the governance of charities 
                        under section 501(c)(3) of the Internal Revenue 
                        Code of 1986 (26 U.S.C. 501(c)(3)); and
                            ``(ii) applicable requirements of State 
                        nonprofit corporation law.
            ``(2) Public organizations.--
                    ``(A) Board.--In order for a local public 
                (governmental) entity to be considered to be an 
                eligible entity for purposes of section 673(6), the 
                entity shall ensure that the programs, projects, and 
                services carried out or provided through the subgrant 
                made under section 679(a)(1) are administered under the 
                supervision of a tripartite board described in 
                subparagraph (C) that fully participates in the 
                development, planning, implementation, oversight, and 
                evaluation of such programs, projects, and services.
                    ``(B) Selection.--The members of the board referred 
                to in subparagraph (A) shall be selected by the local 
                public entity.
                    ``(C) Composition of board.--The board shall be 
                composed so as to assure that--
                            ``(i) not more than \1/3\ of the members of 
                        the board are employees or officials, including 
                        elected officials, of the unit of government in 
                        which the organization is located;
                            ``(ii)(I) not fewer than \1/3\ of the 
                        members 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 representative 
                        of low-income individuals and families and is 
                        also selected to represent a specific 
                        geographic area under subclause (I) resides in 
                        such area; and
                            ``(iii) the remainder of the members may be 
                        comprised of representatives from business, 
                        industry, labor, religious, educational, 
                        charitable, or other significant private groups 
                        in the community.
                    ``(D) Expertise.--The organization shall ensure 
                that the members of the board include or have direct 
                access to individuals with expertise in financial 
                management, accounting, and law.
                    ``(E) Compliance with state requirements and 
                policy.--The board of a public organization shall 
                ensure that the board operates in a manner that 
                complies with State requirements for open meetings, 
                financial transparency, and State open records policy.
            ``(3) Safeguard.--Neither the Federal Government nor a 
        State or local government shall require a religious 
        organization to alter its form of internal governance, except 
        (for purposes of administration of the community services block 
        grant program) as provided in section 680(c).
    ``(d) Operations and Duties of the Board.--The duties of a board 
described in paragraph (1) or (2) of subsection (c) shall include--
            ``(1) in the case of a board for a private, nonprofit 
        organization that is an eligible entity, having legal and 
        financial responsibility for administering and overseeing the 
        eligible entity, including making proper use of Federal funds;
            ``(2) establishing terms for officers and adopting a code 
        of ethical conduct, including a conflict of interest policy for 
        board members;
            ``(3) participating in each comprehensive community needs 
        assessment, developing and adopting for the corresponding 
        eligible entity an agency-wide strategic plan, and preparing 
        the community action plan for the use of funds under this 
        subtitle;
            ``(4) approving the eligible entity's operating budget;
            ``(5) reviewing all major policies of the eligible entity, 
        including conducting (for private, nonprofit organizations that 
        are eligible entities) and participating in (for local public 
        entities that are eligible entities) annual performance reviews 
        of the eligible entity's chief executive officer (or individual 
        holding an equivalent position);
            ``(6) conducting assessments of the eligible entity's 
        progress in carrying out programmatic and fiscal provisions in 
        the community action plan, and in taking any corrective action; 
        and
            ``(7) adopting (for private, nonprofit organizations that 
        are eligible entities) and reviewing (for local public entities 
        that are eligible entities) personnel policies and procedures, 
        including policies and procedures for hiring, annual 
        evaluation, compensation, and termination, of the eligible 
        entity's chief executive officer (or individual holding a 
        similar position).

``SEC. 681. OFFICE OF COMMUNITY SERVICES.

    ``(a) Office.--
            ``(1) Establishment.--The Secretary shall establish an 
        Office of Community Services in the Department to carry out the 
        functions of this subtitle.
            ``(2) Director.--The Office shall be headed by a Director 
        (referred to in this section as the `Director').
    ``(b) Grants, Contracts, and Cooperative Agreements.--The 
Secretary, acting through the Director, shall carry out the functions 
of this subtitle through grants, contracts, or cooperative agreements.

``SEC. 682. TRAINING, TECHNICAL ASSISTANCE, AND RELATED ACTIVITIES.

    ``(a) Activities.--
            ``(1) In general.--The Secretary shall--
                    ``(A) use amounts reserved under section 691(c)(2) 
                for training, technical assistance, planning, 
                evaluation, and performance measurement, as described 
                in this section and in sections 684 and 686, to assist 
                States, eligible entities, and other community services 
                network organizations in--
                            ``(i) building and using evidence designed 
                        to reduce poverty conditions, including through 
                        development and dissemination of information 
                        about clearinghouses and other resources that 
                        identify relevant evidence-based initiatives, 
                        for use in connection with the Community Action 
                        Innovations Program established under paragraph 
                        (2);
                            ``(ii) carrying out professional 
                        development activities that expand the capacity 
                        of eligible entities;
                            ``(iii) carrying out performance 
                        measurement, reporting, and data collection 
                        activities related to programs, projects, and 
                        services carried out under this subtitle; and
                            ``(iv) correcting programmatic 
                        deficiencies, including such deficiencies of 
                        eligible entities; and
                    ``(B) distribute the amounts reserved under section 
                691(c)(2)(A) through grants, contracts, or cooperative 
                agreements with entities, organizations, and 
                associations described in subsection (b) for--
                            ``(i) professional development for key 
                        community services network organization 
                        personnel;
                            ``(ii) activities to improve community 
                        services network organization program, 
                        financial management, compliance, and 
                        governance practices (including practices 
                        related to performance management information 
                        systems);
                            ``(iii) activities that train community 
                        services network organizations and their staff 
                        and board members to effectively address the 
                        needs of low-income families and communities 
                        through place-based strategies that address 
                        local causes and conditions of poverty through 
                        coordinated investment and integrated service 
                        delivery; and
                            ``(iv) activities that train community 
                        services network organizations in building and 
                        using evidence designed to reduce poverty 
                        conditions and that support effective 
                        administration of funds under the Community 
                        Action Innovations Program established under 
                        paragraph (2).
            ``(2) Innovative and evidence-based projects to reduce 
        poverty.--
                    ``(A) In general.--The Secretary shall use amounts 
                reserved under section 691(c)(3) for a Community Action 
                Innovations Program to--
                            ``(i) award grants, contracts, or 
                        cooperative agreements to eligible entities, 
                        their associations, or consortia of such 
                        entities or associations, to facilitate 
                        innovation and use of evidence-based practice 
                        (as defined in section 673(7)) designed to 
                        reduce poverty conditions, including through 
                        whole family approaches that create 
                        opportunities for, and address the needs of, 
                        parents and children together; and
                            ``(ii) disseminate results for public use.
                    ``(B) Projects.--The Secretary shall award funds 
                from its Community Action Innovations Program for 
                projects to enable--
                            ``(i) replication and/or expansion of 
                        innovative practices with demonstrated evidence 
                        of effectiveness, with priority given to those 
                        with the strongest evidence base as determined 
                        through a broad review of available studies; 
                        and/or
                            ``(ii) testing of innovative practices to 
                        determine their effectiveness, with priority 
                        given to those incorporating rigorous, 
                        independent evaluation to further build the 
                        evidence base.
                    ``(C) Use of funds.--The funds reserved for use 
                under this paragraph may be used by grantees for 
                resources or activities necessary to replicate, expand, 
                or test innovative and evidence-based practices, 
                including costs of training and technical assistance, 
                evaluation, data collection, and technology.
                    ``(D) Expenses.--The funds reserved for use under 
                this paragraph may be used for reasonable expenses of 
                grantees, associated with administration of projects 
                and dissemination of their results.
                    ``(E) Awards and obligation.--The Secretary shall 
                award and obligate funds reserved for projects under 
                this paragraph during the first program year for which 
                the funds are appropriated. Grant funds awarded under 
                this paragraph shall remain available for expenditure 
                by the grantee for up to 36 months after the date of 
                award by the Secretary, unless a longer period of 
                availability is approved by the Secretary based on 
                extenuating circumstances and demonstrated evidence of 
                effectiveness.
                    ``(F) 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 for use under this paragraph may be deemed to 
                be non-Federal funds for purposes of the requirements 
                of such law.
    ``(b) Eligible Entities, Organizations, and Associations.--Eligible 
entities, organizations, and associations described in this subsection 
shall include eligible entities and other community services network 
organizations (and their partners, including institutions of higher 
education), with demonstrated expertise in providing training for 
individuals and organizations on methods of effectively addressing the 
needs of low-income families and communities.
    ``(c) Training and Technical Assistance Process.--The process for 
determining the training and technical assistance to be carried out 
under this section shall--
            ``(1) ensure that the needs of eligible entities and 
        programs relating to improving program quality (including 
        quality of financial management practices) are addressed to the 
        maximum extent feasible; and
            ``(2) incorporate mechanisms to ensure responsiveness to 
        local needs, including an ongoing procedure for obtaining input 
        from the national and State networks of eligible entities.

``SEC. 683. STATE MONITORING OF ELIGIBLE ENTITIES.

    ``In order to determine whether eligible entities receiving 
subgrants under this subtitle meet performance goals, administrative 
standards, financial management requirements, and other requirements 
under this subtitle, the State shall conduct the following reviews of 
eligible entities:
            ``(1) A full onsite review of each eligible entity at least 
        once during each 3-year period.
            ``(2) An onsite review of each newly designated eligible 
        entity immediately after the completion of the first year in 
        which such entity receives funds through the community services 
        block grant program under this subtitle.
            ``(3) Followup reviews, including onsite reviews scheduled 
        in a corrective action plan (including return visits), within a 
        calendar quarter for eligible entities with programs, projects, 
        or services that fail to meet the State's performance criteria, 
        standards, financial management requirements, and other 
        significant requirements established under this subtitle.
            ``(4) Other reviews as appropriate, including reviews of 
        eligible entities with programs, projects, and services that 
        have had other Federal, State, or local grants (other than 
        assistance provided under this subtitle) terminated for cause.

``SEC. 684. EVALUATIONS; CORRECTIVE ACTION; WITHHOLDING, REDUCTION, OR 
              ELIMINATION OF FUNDING.

    ``(a) Evaluations of States by the Secretary.--
            ``(1) In general.--The Secretary shall conduct, in not 
        fewer than \1/3\ of the States in each fiscal year, evaluations 
        (including investigations) of State compliance with this 
        subtitle, including requirements relating to the use of funds 
        received under this subtitle, and especially with respect to 
        compliance with the requirements of State plans submitted under 
        section 678(b) and the uniform administrative requirements, 
        cost principles, and audit requirements described in section 
        674(c) as applied to funds received under this subtitle, 
        including, but not limited to, advance payment of such funds to 
        eligible entities, consistent with the Uniform Guidance.
            ``(2) Report to states.--The Secretary shall submit to each 
        State evaluated, and make available to the public, a report 
        containing--
                    ``(A) the results of such evaluation; and
                    ``(B)(i) recommendations for improvements designed 
                to enhance the benefit and impact of the activities 
                carried out with such funds; and
                    ``(ii) in the event a serious deficiency is found 
                regarding a State's compliance with this subtitle, 
                including requirements relating to the use of funds 
                received under this subtitle, a proposed corrective 
                action plan.
            ``(3) State response.--Not later than 45 days after 
        receiving a report under paragraph (2)--
                    ``(A) a State that received recommendations under 
                paragraph (2)(B)(i) shall submit to the Secretary and 
                make available to the public a plan of action in 
                response to the recommendations; and
                    ``(B) a State that received a proposed corrective 
                action plan under paragraph (2)(B)(ii) shall agree to 
                implement the corrective action plan proposed by the 
                Secretary or propose to the Secretary and make 
                available to the public a different corrective action 
                plan, developed by the State in a timely manner that 
                the State will implement upon approval by the 
                Secretary.
            ``(4) Report to congress.--The Secretary shall submit the 
        results of the evaluations annually, as part of the report 
        submitted by the Secretary in accordance with section 
        686(b)(2).
            ``(5) Enforcement.--
                    ``(A) Reduction or elimination of funding.--If the 
                Secretary determines, in a final decision on the basis 
                of an evaluation conducted under this section, that a 
                State fails to meet the requirements of this 
                subsection, the Secretary may, after providing adequate 
                notice and an opportunity for a hearing, initiate 
                proceedings to reduce or eliminate the amount of 
                funding apportioned and allocated to the State as 
                described in section 675 or 676, as applicable (and, if 
                necessary, de-obligate such funding).
                    ``(B) Direct awards to other entities.--
                            ``(i) Reduction or elimination of state 
                        funding; lack of approved state plan.--If the 
                        Secretary reduces or eliminates funding to a 
                        State under subparagraph (A), the Secretary 
                        shall award funding directly, in the amount by 
                        which funding to the State was reduced or 
                        eliminated, as provided under clauses (ii) and 
                        (iii) below. If, for a particular fiscal year, 
                        a State plan is not approved by the Secretary 
                        in accordance with section 678(c), the 
                        Secretary may award funding directly, in the 
                        amount the State would have received had the 
                        plan been approved, as provided under clauses 
                        (ii) and (iii) below.
                            ``(ii) Direct funding to eligible 
                        entities.--In the event funding specified in 
                        section 679(a)(1) is reduced or eliminated due 
                        to the Secretary's reduction or elimination of 
                        funding under subparagraph (A) or if the 
                        Secretary chooses to award funding directly due 
                        to the lack of an approved State plan as 
                        authorized in clause (i) above, the Secretary 
                        shall award financial assistance in the amount 
                        of such reduced or eliminated funding, or in 
                        the amount the State would have received had a 
                        State plan been approved, directly (by grant or 
                        cooperative agreement) to affected eligible 
                        entities (provided that any such entity has not 
                        had its funding under this subtitle eliminated 
                        or its designation as an eligible entity 
                        terminated by the State in accordance with 
                        subsections (b) and (c) of section 684) to 
                        carry out the activities described in section 
                        679(c); in awarding such funding, the Secretary 
                        shall ensure that each such affected eligible 
                        entity receives the same proportionate share of 
                        funding under section 679(a)(1) that it 
                        received in the prior fiscal year.
                            ``(iii) Statewide funds.--In the event 
                        funding specified in section 679(b) is reduced 
                        or eliminated due to the Secretary's reduction 
                        or elimination of funding under subparagraph 
                        (A) or if the Secretary chooses to award 
                        funding directly due to the lack of an approved 
                        State plan as authorized in clause (i) above, 
                        the Secretary shall award amounts equal to the 
                        amounts of such reduced or eliminated funds, or 
                        to the amounts the State would have received 
                        had a State plan been approved, directly by 
                        grant or cooperative agreement to community 
                        services network organizations in the State 
                        (other than the State itself) for the purposes 
                        specified in section 679(b)(1).
                            ``(iv) Reduction.--In the case of direct 
                        funding as provided in this subparagraph (B), 
                        the Secretary shall reduce funding the State 
                        would otherwise have received under section 675 
                        or 676 (and, if necessary, de-obligate such 
                        funding) for the appropriate fiscal year by an 
                        amount equal to the financial assistance 
                        provided directly by the Secretary to such 
                        eligible entities and community services 
                        network organizations.
            ``(6) Training and technical assistance.--The Secretary, 
        through the Department's own employees or contractors (rather 
        than under grants, contracts, or cooperative agreements issued 
        under section 682), shall provide training and technical 
        assistance to States with respect to the development or 
        implementation of the States' corrective action plans.
    ``(b) Determination of Eligible Entity Failure To Comply.--
            ``(1) Corrective action by eligible entities.--If the State 
        determines, on the basis of a review pursuant to section 683 or 
        section 685, that there is a serious deficiency regarding an 
        eligible entity's compliance with this subtitle, the State 
        shall inform the entity of the serious deficiencies that shall 
        be corrected and provide technical assistance for the 
        corrective action.
            ``(2) Eligible entity corrective action plans.--An eligible 
        entity that is found to have a serious deficiency under 
        paragraph (1) shall develop, in a timely manner, a corrective 
        action plan that shall be subject to the approval of the State, 
        and that shall specify--
                    ``(A) the deficiencies to be corrected;
                    ``(B) the actions to be taken to correct such 
                deficiencies; and
                    ``(C) the timetable for accomplishment of the 
                corrective actions specified.
            ``(3) Final decision.--If the State determines, on the 
        basis of a final decision in a review conducted under section 
        683, that an eligible entity fails to comply with the terms of 
        a corrective action plan under paragraph (2) relating to 
        correction of a serious deficiency for the eligible entity, the 
        State may, after providing adequate notice and an opportunity 
        for a hearing, initiate proceedings to withhold, reduce, or 
        eliminate the funding provided under section 679(a)(1) to the 
        eligible entity (including, in the case of elimination of 
        funding, terminating the designation under this subtitle of the 
        eligible entity) unless the entity corrects the serious 
        deficiency.
    ``(c) Review.--A State's decision to withhold, reduce, or eliminate 
funding, or to terminate the designation of an eligible entity (or 
eligible entities, as applicable) may be reviewed by the Secretary. 
Upon request by a community services network organization, the 
Secretary shall review such a determination. The review shall be 
completed not later than 60 days after the Secretary receives from the 
State all necessary documentation relating to the determination.
    ``(d) Direct Assistance.--Whenever the Secretary determines that a 
State has violated the State plan described in section 678(b) 
(including, but not limited to, the assurance described in section 
678(b)(6)) and the State has withheld, reduced, or eliminated the 
funding provided under section 679(a) to any eligible entity or 
entities or terminated the eligible entity designation of any eligible 
entity or entities prior to the completion of the State proceedings 
described in section 678(b)(6) (including, where applicable, the 
proceedings required by subsection (b) of this section 684) and the 
Secretary's review as required by subsection (c) of this section 684, 
the Secretary may provide financial assistance under this subtitle to 
the affected eligible entity or entities directly until the violation 
is corrected by the State. In such a case, the Secretary may reduce 
funding the State would otherwise have received under section 675 or 
676 (and, if necessary, de-obligate such funding) for the appropriate 
fiscal year by an amount equal to the financial assistance provided 
directly by the Secretary to such eligible entity or entities.

``SEC. 685. STATE AND LOCAL FISCAL CONTROLS AND AUDITS.

    ``(a) Fiscal Controls, Procedures, Audits, and Inspections.--A 
State that receives funds under this subtitle shall--
            ``(1) establish fiscal control and fund accounting 
        procedures necessary to assure the proper disbursal of, and 
        accounting for, Federal funds paid to the State under this 
        subtitle, including procedures for monitoring the funds 
        provided under this subtitle;
            ``(2) in accordance with subsections (b) and (c), prepare, 
        not less than once each year, an audit of the expenditures of 
        the State of amounts received under this subtitle; and
            ``(3) make appropriate books, documents, papers, and 
        records available to the Secretary and the Comptroller General 
        of the United States, or any of their duly authorized 
        representatives, for examination, copying, or mechanical 
        reproduction on or off the premises of the appropriate entity 
        upon a reasonable request for the items.
    ``(b) Independent Entity.--Subject to subsection (c), each audit 
required by subsection (a)(2) shall be conducted by an entity 
independent of any agency administering activities or services under 
this subtitle and shall be conducted in accordance with generally 
accepted accounting principles.
    ``(c) Single Audit Requirements.--
            ``(1) In general.--Any audit under this subsection shall be 
        conducted in the manner and to the extent provided in chapter 
        75 of title 31, United States Code (commonly known as the 
        `Single Audit Act Amendments of 1984') except in the event a 
        serious financial deficiency is identified.
            ``(2) Serious financial deficiency.--In the event that such 
        a deficiency is identified, the Secretary shall order--
                    ``(A) an audit conducted as described in subsection 
                (a); or
                    ``(B) an audit of each of the accounts involved, in 
                accordance with subsections (b) and (d).
    ``(d) Submission of Copies.--Not later than 30 days after the 
completion of each such audit in a State, the chief executive officer 
of the State shall submit copies of such audit, at no charge, to any 
eligible entity that was the subject of the audit, to the legislature 
of the State, and to the Secretary.
    ``(e) Repayments.--If the Secretary, after review of the audit, 
finds that a State has not expended an amount of funds in accordance 
with this subtitle, the State shall immediately use an amount of State 
funds equal to the amount of improperly expended funds for the original 
purposes for which the grant funds were intended.
    ``(f) Response to Complaints.--The Secretary shall respond in an 
expeditious manner to complaints of a substantial or serious nature 
that a State has failed to use grant funds received under section 675 
or 676 or to carry out State activities under this subtitle in 
accordance with the provisions of this subtitle.
    ``(g) Investigations.--Whenever the Secretary determines that there 
is a pattern of complaints regarding failures described in subsection 
(f) or a complaint of a serious deficiency concerning any State, the 
Secretary shall conduct an investigation of the use of the funds 
received under this subtitle by such State in order to ensure 
compliance with the provisions of this subtitle.

``SEC. 686. ACCOUNTABILITY AND REPORTING REQUIREMENTS.

    ``(a) State Accountability and Reporting Requirements.--
            ``(1) Performance measurement.--
                    ``(A) In general.--Beginning with the first fiscal 
                year following the transition period described in 
                section 3 of the Community Services Block Grant 
                Modernization Act of 2021, each State that receives 
                funds under this subtitle shall participate, and shall 
                ensure that all eligible entities in the State 
                participate, in a results-oriented performance 
                measurement system that the Secretary is satisfied 
                meets the requirements of section 689(b)(1).
                    ``(B) Subcontractors.--The State may elect to have 
                subcontractors of the eligible entities under this 
                subtitle participate in the results-oriented 
                performance measurement system. If the State makes that 
                election, references in this section to eligible 
                entities shall be considered to include such 
                subcontractors.
                    ``(C) Eligible entity reports.--Eligible entities 
                shall provide the results measured by their performance 
                measurement system and such other reports as the State 
                may require.
            ``(2) Annual report.--Each State receiving funds under this 
        subtitle shall annually prepare, and submit to the Secretary by 
        March 31 of each year, a report on the performance of the State 
        and eligible entities in the State, including achievement with 
        respect to performance measurements that were used by community 
        service network organizations in the State for the prior year. 
        Each State shall also include in the report--
                    ``(A) an accounting of the expenditure of funds 
                received by the State through the community services 
                block grant program, including an accounting of funds 
                spent on administrative or indirect costs by the State 
                and the eligible entities and funds spent by the 
                eligible entities on local programs, projects, and 
                services;
                    ``(B) information on the number and characteristics 
                of participants served under this subtitle in the 
                State, based on data collected from the eligible 
                entities;
                    ``(C) a summary describing the training and 
                technical assistance offered by the State under 
                subparagraph (B) of section 679(b)(1) during the year 
                covered by the report;
                    ``(D) information on the total budget and 
                activities of the eligible entities receiving subgrants 
                from the State under this subtitle, including local and 
                private resources available for a purpose described in 
                section 672; and
                    ``(E) a report on the manner in which the State and 
                eligible entities and other recipients of funds under 
                this subtitle have implemented results-oriented 
                management practices based on their performance 
                measurement systems.
    ``(b) Reporting Requirements.--
            ``(1) Contents.--Not later than September 30 of each fiscal 
        year, the Secretary shall, directly or by grant or contract, 
        prepare a report including--
                    ``(A) the information included in the State annual 
                reports under subsection (a)(2) for the preceding 
                fiscal year;
                    ``(B) a report on the performance of the Department 
                in the preceding fiscal year regarding carrying out 
                critical roles and responsibilities under this 
                subtitle, including with regard to timeliness in 
                apportioning and allotting appropriated funds to 
                States, approvals or notifications to States concerning 
                State plans and plan revisions, monitoring of States 
                and implementation of State corrective action plans, 
                and implementation of the requirements of the uniform 
                administrative requirements, cost principles, and audit 
                requirements described in section 674(c) with respect 
                to funds appropriated and activities conducted under 
                this subtitle by the Department, the States, and other 
                grantees;
                    ``(C) a description of the training and technical 
                assistance activities funded by the Secretary under 
                section 682 and the results of those activities; and
                    ``(D) a report on the Community Action Innovations 
                Program authorized under section 682(a)(2), including a 
                description of training and technical assistance funded 
                by the Secretary, the rationale for projects that 
                received support, a description of funded activities 
                and their results, and a summary of ways in which the 
                Program has expanded use of evidence-based practice or 
                contributed to building the evidence base designed to 
                reduce poverty conditions.
            ``(2) Submission.--The Secretary shall submit to the 
        Committee on Education and Labor of the House of 
        Representatives and to the Committee on Health, Education, 
        Labor, and Pensions of the Senate the report described in 
        paragraph (1) and any recommendations the Secretary may have 
        with respect to such report.
            ``(3) Electronic data system for reports to states and 
        eligible entities.--The Secretary, through the Department's own 
        employees or contractors (rather than under grants, contracts, 
        or cooperative agreements issued under section 682), shall 
        provide technical assistance, including support for the 
        development and maintenance of an electronic data system for 
        the reports under this section, to the States and eligible 
        entities to enhance the quality and timeliness of reports 
        submitted under this subtitle. The system shall be coordinated 
        and consistent with the data systems established for other 
        programs of the Department that are managed by eligible 
        entities, including all programs of the Administration for 
        Children and Families or successor administrative units in 
        which the office is located.

``SEC. 687. LIMITATIONS ON USE OF FUNDS.

    ``(a) Construction of Facilities.--
            ``(1) Limitations.--Except as provided in paragraph (2) and 
        in section 690, grants or subgrants made under this subtitle 
        may not be used by the State, or by any other person with which 
        the State makes arrangements to carry out a purpose described 
        in section 672, for the purchase or improvement of land, or the 
        purchase, construction or permanent improvement of any building 
        or other facility.
            ``(2) Waiver.--The Secretary may waive the limitation 
        contained in paragraph (1) upon a State request for such a 
        waiver if the Secretary finds that--
                    ``(A) the request describes extraordinary 
                circumstances to justify the purchase or improvement of 
                land, or the purchase, construction, or permanent 
                improvement of any building or other facilities; and
                    ``(B) permitting the waiver will contribute to the 
                ability of the State and eligible entities to carry out 
                a purpose described in section 672 at substantially 
                reduced costs.
    ``(b) Political Activities.--
            ``(1) Treatment as a state or local agency.--For purposes 
        of chapter 15 of title 5, United States Code, any entity that 
        assumes responsibility for planning, developing, and 
        coordinating activities under this subtitle and receives 
        assistance under this subtitle shall be deemed to be a State or 
        local agency. For purposes of paragraphs (1) and (2) of section 
        1502(a) of such title, any entity receiving assistance under 
        this subtitle shall be deemed to be a State or local agency.
            ``(2) Prohibitions.--A program, project, or service 
        assisted under this subtitle, and any individual employed by, 
        or assigned to or in, such a program, project, or service 
        (during the hours in which the individual is working on behalf 
        of the program, project, or service) shall not engage in--
                    ``(A) any partisan or nonpartisan political 
                activity or any political activity associated with a 
                candidate, or contending faction or group, in an 
                election for public or party office; or
                    ``(B) any activity to provide voters or prospective 
                voters with transportation to the polls or similar 
                assistance in connection with any such election.
            ``(3) Registration.--None of the funds appropriated to 
        carry out this subtitle may be used to conduct voter 
        registration activities. Nothing in this subtitle prohibits 
        entities receiving assistance under this subtitle from making 
        its facilities available during hours of operation for use by 
        nonpartisan organizations to increase the number of eligible 
        citizens who register to vote in elections for Federal office.
    ``(c) Nondiscrimination.--
            ``(1) In general.--No person shall, on the basis of race, 
        color, national origin, or sex, be excluded from participation 
        in, be denied the benefits of, or be subjected to 
        discrimination under, any program, project, or service funded 
        in whole or in part with funds made available under this 
        subtitle. Any prohibition against discrimination on the basis 
        of age under the Age Discrimination Act of 1975 (42 U.S.C. 6101 
        et seq.) or with respect to an otherwise qualified individual 
        with a disability as provided in section 504 of the 
        Rehabilitation Act of 1973 (29 U.S.C. 794), or title II of the 
        Americans with Disabilities Act of 1990 (42 U.S.C. 12131 et 
        seq.), shall also apply to any such program, project, or 
        service.
            ``(2) Action of secretary.--Whenever the Secretary 
        determines that a State that has received a payment under this 
        subtitle has failed to comply with paragraph (1) or an 
        applicable regulation, the Secretary shall notify the chief 
        executive officer of the State and shall request that the 
        officer secure compliance. If within a reasonable period of 
        time, not to exceed 60 days, the chief executive officer fails 
        or refuses to secure compliance, the Secretary is authorized 
        to--
                    ``(A) refer the matter to the Attorney General with 
                a recommendation that an appropriate civil action be 
                instituted;
                    ``(B) exercise the powers and functions provided by 
                title VI of the Civil Rights Act of 1964 (42 U.S.C. 
                2000d et seq.), the Age Discrimination Act of 1975 (42 
                U.S.C. 6101 et seq.), section 504 of the Rehabilitation 
                Act of 1973 (29 U.S.C. 794), or title II of the 
                Americans with Disabilities Act of 1990 (42 U.S.C. 
                12131 et seq.), as may be applicable; or
                    ``(C) take such other action as may be provided by 
                law.
            ``(3) Action of attorney general.--When a matter is 
        referred to the Attorney General pursuant to paragraph (2), or 
        whenever the Attorney General has reason to believe that the 
        State is engaged in a pattern or practice of discrimination in 
        violation of the provisions of this subsection, the Attorney 
        General may bring a civil action in any appropriate United 
        States district court for such relief as may be appropriate, 
        including injunctive relief.

``SEC. 688. CHILD SUPPORT SERVICES AND REFERRALS.

    ``During each fiscal year for which an eligible entity receives a 
subgrant under section 679(a), such entity shall--
            ``(1) inform custodial parents in single-parent families 
        that participate in programs, projects, or services carried out 
        or provided under this subtitle about the availability of child 
        support services; and
            ``(2) refer eligible parents to the child support offices 
        of State and local governments.

``SEC. 689. REGULATIONS.

    ``(a) Regulations.--The Secretary shall promulgate regulations 
implementing this subtitle, by administrative hearing open to the 
public, including regulations regarding--
            ``(1) State plans and community action plans, including the 
        form and information required for State plans submitted to the 
        Secretary and community action plans submitted to States;
            ``(2) State monitoring of eligible entities; and
            ``(3) reports to the Secretary described in section 686.
    ``(b) Guidance.--
            ``(1) Performance measurement.--The Secretary shall issue 
        guidance regarding State and local performance measurement 
        systems. Guidance may include one or more model performance 
        measurement systems, facilitated by the Secretary, that States 
        and eligible entities may use to measure their performance in 
        carrying out the requirements of this subtitle and in achieving 
        the goals of their community action plans.
            ``(2) Comprehensive analysis of poverty conditions.--The 
        Secretary shall provide guidance (including models) for 
        comprehensive community needs assessments described in section 
        678(e)(1). The guidance shall include methods for preparing an 
        analysis of all poverty conditions affecting a community and of 
        local and regional assets for alleviating such conditions.

``SEC. 690. DISCRETIONARY COMMUNITY PROGRAMS.

    ``(a) Grants, Contracts, Arrangements, Loans, and Guarantees.--
            ``(1) In general.--The Secretary shall, from funds 
        appropriated under section 691(b), make grants, loans, or 
        guarantees to States and public agencies and private, nonprofit 
        organizations, or enter into contracts or jointly financed 
        cooperative arrangements with States and public agencies and 
        private, nonprofit organizations (and for-profit organizations, 
        to the extent specified in paragraph (2)(E)) for each of the 
        objectives described in paragraphs (2) through (4).
            ``(2) Community economic development.--
                    ``(A) Economic development activities.--The 
                Secretary shall make grants described in paragraph (1) 
                on a competitive basis to private, nonprofit 
                organizations that are community development 
                corporations to provide technical and financial 
                assistance for economic development activities designed 
                to address the economic needs of low-income individuals 
                and families by creating employment and business 
                development opportunities.
                    ``(B) Consultation.--The Secretary shall exercise 
                the authority provided under subparagraph (A) after 
                consultation with other relevant Federal officials.
                    ``(C) Governing boards.--For a community 
                development corporation to receive funds to carry out 
                this paragraph, the corporation shall be governed by a 
                board that shall--
                            ``(i) consist of residents of the community 
                        and business and civic leaders; and
                            ``(ii) have as a principal purpose 
                        planning, developing, or managing low-income 
                        housing or community development projects.
                    ``(D) Geographic distribution.--In making grants to 
                carry out this paragraph, the Secretary shall take into 
                consideration the geographic distribution of funding 
                among States and the relative proportion of funding 
                among rural and urban areas.
                    ``(E) Reservation.--Of the amounts made available 
                to carry out this paragraph, the Secretary may reserve 
                not more than 1 percent for each fiscal year to make 
                grants to private, nonprofit organizations or to enter 
                into contracts with private, nonprofit, or for-profit 
                organizations to provide technical assistance to aid 
                community development corporations in developing or 
                implementing activities funded to carry out this 
                paragraph and to evaluate activities funded to carry 
                out this paragraph.
            ``(3) Rural community development activities.--The 
        Secretary shall provide the assistance described in paragraph 
        (1) for rural community development activities, which shall 
        include providing--
                    ``(A) grants to private, nonprofit corporations to 
                enable the corporations to provide assistance 
                concerning home repair to rural low-income families and 
                concerning planning and developing low-income rural 
                rental housing units; and
                    ``(B) grants to multistate, regional, private, 
                nonprofit organizations to enable the organizations to 
                provide training and technical assistance to small, 
                rural communities concerning meeting their community 
                facility needs.
            ``(4) Broadband navigator projects.--
                    ``(A) Navigator project authority.--The Secretary 
                is authorized to provide assistance described in 
                paragraph (1) for broadband navigator projects 
                consistent with the purposes of this Act to address the 
                educational and economic needs of low-income 
                individuals and communities.
                    ``(B) Navigator grants.--The Secretary shall make 
                grants consistent with subparagraph (A) to community 
                action agencies (as defined in section 673(2)) to 
                enable them to provide assistance through trained 
                navigators to low-income individuals and communities to 
                help facilitate access to affordable high-speed 
                broadband service, internet-enabled devices, digital 
                literacy training, technical support and other services 
                to meet the broadband and digital needs of such 
                individuals and communities.
                    ``(C) Priority.--Priority in the awarding of such 
                grants under paragraph (4) shall be given to community 
                action agencies serving underserved areas with the most 
                significant unmet broadband and digital needs.
    ``(b) Evaluation.--The Secretary shall require all activities 
receiving assistance under this section to be evaluated for their 
effectiveness. Funding for such evaluations shall be provided as a 
stated percentage of the assistance or through a separate grant awarded 
by the Secretary specifically for the purpose of evaluation of a 
particular activity or group of activities.
    ``(c) Annual Report.--The Secretary shall compile an annual report 
containing a summary of the evaluations required under subsection (b) 
and a listing of all activities assisted under this section. The 
Secretary shall annually submit the report to the chairperson of the 
Committee on Education and Labor of the House of Representatives and 
the chairperson of the Committee on Health, Education, Labor, and 
Pensions of the Senate.

``SEC. 691. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this subtitle (not including section 690)--
            ``(1) $1,000,000,000 for each of fiscal years 2022 through 
        2026; and
            ``(2) such sums as may be necessary for fiscal years 2027 
        through 2031.
    ``(b) Discretionary Programs.--There are authorized to be 
appropriated to carry out section 690 such sums as may be necessary for 
fiscal years 2022 through 2031.
    ``(c) Reservations by the Secretary.--Of the amounts appropriated 
under subsection (a) for each fiscal year, the Secretary shall 
reserve--
            ``(1) \1/2\ of 1 percent for carrying out section 675 
        (relating to grants to territories);
            ``(2) 2 percent for activities authorized in section 
        682(a)(1), of which--
                    ``(A) not less than 50 percent of the amount 
                reserved by the Secretary under this paragraph shall be 
                awarded through grants, contracts, or cooperative 
                agreements to entities, organizations, and associations 
                described in section 682(b), for the purpose of 
                carrying out activities described in section 
                682(a)(1)(B); and
                    ``(B) the remainder of the amount reserved by the 
                Secretary under this paragraph may be awarded through 
                grants, contracts, or cooperative agreements to 
                entities, organizations, or cooperative agreements to 
                entities, organizations, or associations described in 
                section 682(b) or other entities with demonstrated 
                expertise in providing training for individuals and 
                organizations on methods of effectively addressing the 
                needs of low-income families and communities; and
            ``(3) 1 percent for the Community Action Innovations 
        Program authorized in section 682(a)(2).

``SEC. 692. REFERENCES.

    ``Any reference in any provision of law to the poverty line set 
forth in section 624 or 625 of the Economic Opportunity Act of 1964 
shall be construed to be a reference to the poverty line defined in 
section 673 of this subtitle. Any reference in any provision of law to 
the poverty line defined in section 673(2) of the Community Services 
Block Grant Act as in effect immediately before the effective date of 
this subtitle shall be construed to be a reference to the poverty line 
defined in section 673(9) of this subtitle. Except as otherwise 
provided, any reference in any provision of law to any community action 
agency designated under title II of the Economic Opportunity Act of 
1964 shall be construed to be a reference to an entity eligible to 
receive funds under the community services block grant program.''.

SEC. 3. TRANSITION PERIOD.

    (a) Transition Period.--The Secretary of Health and Human Services 
shall expeditiously announce a transition period for the implementation 
of any changes in regulations, procedures, and reporting requirements 
of the Community Services Block Grant Act (42 U.S.C. 9901 et seq.) as 
amended by this Act, from the regulations, procedures, and reporting 
requirements of the Community Services Block Grant Act (42 U.S.C. 9901 
et seq.) as in effect immediately before the date of enactment of this 
Act.
    (b) Uniform Administrative Requirements, Cost Principles, and Audit 
Requirements; Federal Training.--The transition period shall include--
            (1) a schedule for implementation of requirements relating 
        to adoption of the uniform administrative requirements, cost 
        principles, and audit requirements described in section 674(c) 
        of the Community Services Block Grant Act (42 U.S.C. 9901) as 
        amended by this Act; and
            (2) the availability of Federal training for States and 
        eligible entities regarding compliance with new requirements 
        under the Community Services Block Grant Act (42 U.S.C. 9901 et 
        seq.) as amended by this Act.
    (c) Timing.--The transition period described in this section--
            (1) may not extend later than the date that is 3 months 
        prior to the start of the second fiscal year after the date of 
        enactment of the Community Services Block Grant Modernization 
        Act of 2021; and
            (2) may require that certain regulations, procedures, and 
        reporting requirements be adopted before other regulations, 
        procedures, or reporting requirements.

SEC. 4. CONFORMING AMENDMENTS.

    Section 306(a)(6)(C)(ii) of the Older Americans Act of 1965 (42 
U.S.C. 3026(a)(6)(C)(ii)) is amended by inserting ``or subsequent 
years'' after ``fiscal year 1982'' and by striking ``section 676B of 
the Community Services Block Grant Act'' and inserting ``section 680(c) 
of the Community Services Block Grant Act''.
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