H.R. 4516 — Community Services Empowerment Amendments of 1992

 
HR 4516 IH
102d CONGRESS
2d Session
 H. R. 4516
To amend title VI of the Omnibus Budget Reconciliation Act of 1981 to
establish a community services empowerment program.
IN THE HOUSE OF REPRESENTATIVES
MARCH 19, 1992
Mr. MARTINEZ (for himself, Mr. WHEAT, and Mr. MOAKLEY) introduced the
following bill; which was referred to the Committee on Education and Labor
A BILL
To amend title VI of the Omnibus Budget Reconciliation Act of 1981 to
establish a community services empowerment program.
  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 Empowerment Amendments
  of 1992'.
SEC. 2. FINDINGS AND PURPOSE.
  (a) FINDINGS- Congress finds the following:
  (1) Low-income communities in urban and rural areas throughout the United
  States depend on community service programs to fight poverty and ameliorate
  the effects of poverty on people who live in these communities.
  (2) Present antipoverty programs funded by community service programs date
  back to 1964, when President Lyndon Johnson `declared war on poverty,'
  and Congress passed the Economic Opportunity Act of 1964.
  (3) Community service programs have helped millions of people from
  low-income communities acquire meaningful employment, adequate education,
  necessary emergency assistance, economic self-sufficiency, child care,
  weatherization, transportation, consumer counseling, and numerous other
  opportunities for self-advancement.
  (4) Community service programs provide special services for older
  individuals, migrant workers, and Native Americans.
  (5) Community service programs have strengthened the capability of low-income
  communities to plan and coordinate Federal, State, and other programs
  related to the elimination of poverty, so that these other programs respond
  to the local needs and conditions through the efforts of local officials,
  organizations, and interested and affected citizens.
  (6) Community service programs have stimulated a more concentrated
  utilization of all available local, State, private, and Federal resources
  to enable low-income families, and low income individuals of all ages
  in rural and urban areas to attain the skills, knowledge, motivation,
  and opportunities needed for them to become fully self-sufficient.
  (7) Development and implementation of community service programs serve
  the poor or low-income areas with the maximum feasible participation of
  residents of the areas and members of the groups served, so as to best
  stimulate and take full advantage of capabilities for self-advancement
  and ensure that such programs and projects are otherwise meaningful to
  and widely utilized by their intended beneficiaries.
  (8) Community service programs have broadened the resource base of
  programs directed at the elimination of poverty, to secure (in addition
  to the services and assistance of pubic officials, private religious,
  charitable, and neighborhood organizations, and individual citizens)
  a more active role of business, labor, and professional groups able to
  provide employment opportunities or otherwise influence the quality and
  quantity of services of concern to the poor.
  (9) Community service program funds provided under the Community Services
  Block Grant Act (42 U.S.C. 9901 et seq.) are used to leverage a significant
  amount of private funding which, when combined and coordinated with
  Federal and State program funds, results in effective, cost-efficient,
  and comprehensive local strategies to alleviate poverty.
  (10) Ninety-five percent of the funds provided under such Act are directly
  spent on antipoverty programs.
  (11) Local antipoverty programs funded under the Community Services Block
  Grant Act do not duplicate local social service programs, according to a
  1986 study by the General Accounting Office.
  (12) Despite their significant impact on the causes of poverty during the
  past 28 years, community services programs would receive no funding under
  the President's fiscal year 1993 budget recommendations to Congress.
  (b) PURPOSE- It is the purpose of this Act to establish a national
  corporation on community service empowerment to administer the community
  services empowerment partnership program established by this Act and to
  serve as a focal point for Federal efforts to promote community services
  empowerment.
SEC. 3. AMENDMENT TO TITLE VI OF THE OMNIBUS BUDGET RECONCILIATION ACT OF 1981.
  Title VI of the Omnibus Budget Reconciliation Act of 1981 is amended by
  inserting after subtitle B (relating to the community services block grant
  program) the following:
`Subtitle C--Community Services Empowerment
`CHAPTER 1--NATIONAL COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP CORPORATION
`SEC. 685. NATIONAL COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP CORPORATION.
  `(a) ESTABLISHMENT- There is established in the executive branch of the
  Federal Government the National Community Services Empowerment Partnership
  Corporation.
  `(b) BOARD OF DIRECTORS-
  `(1) APPOINTMENT- The Corporation shall be headed by a board of directors
  appointed by the President, by and with the advice and consent of the
  Senate. Members of the board shall be appointed from among individuals who
  have experience in community services empowerment policies and programs
  and shall be appointed as follows:
  `(A) One individual shall be appointed from among individuals who represent
  organizations that--
  `(i) were officially designated as community action agencies or community
  action programs under section 210 of the Economic Opportunity Act of 1964
  (42 U.S.C. 2790) for fiscal year 1981, and did not lose the designation
  as a result of failure to comply with such Act, or
  `(ii) came into existence during fiscal year 1982 as direct successors in
  interest to such community action agencies or community action programs,
and meet the requirements under section 675(c)(3) of the Community Services
Block Grant Act (42 U.S.C. 9904(c)(3)),
  `(B) One individual shall be appointed from among individuals who represent
  local governments.
  `(C) One individual shall be appointed from among individuals who represent
  State governments.
  `(D) Two individuals shall be appointed from among individuals who represent
  private philanthropic organizations.
  `(E) Two individuals from communities with a concentration or substantial
  number of low-income individuals.
  `(F) One individual shall be appointed from among individuals who have
  experience in finance and community development lending.
  `(G) Two individuals shall be appointed from among individuals who have
  experience in the operation of private business enterprises.
  `(H) Two individuals shall be appointed from among individuals who represent
  community development corporations.
  `(I) Two Federal officers who have responsibility for developing community
  services empowerment policy, ex officio.
  `(2) CHAIRPERSON- The board shall elect, for a 2-year term, a chairperson
  from among the members of the board.
  `(3) COMPENSATION- The members of the board shall serve without compensation
  but shall receive travel expenses, including a per diem allowance in lieu
  of subsistence, in accordance with sections 5702 and 5703 of title 5,
  United States Code.
  `(4) AUTHORITY TO ISSUE RULES- The board may issue rules to carry out this
  subtitle. The board shall issue rules--
  `(A) establishing criteria that shall be applied by community services
  empowerment corporations and emerging community services empowerment
  corporations for the purpose of selecting recipients of financial assistance
  provided under this subtitle by such corporations,
  `(B) specifying the terms and conditions that shall apply to loans and
  loan guarantees made under this subtitle by such corporations, and
  `(C) prohibiting conflicts of interest applicable to such corporations,
  and to the all officers and employees of such corporations.
  `(5) QUORUM- A majority of the members of the board shall constitute
  a quorum.
  `(6) OFFICERS AND EMPLOYEES- (A) The board shall appoint a chief executive
  officer.
  `(B) The board may employ such other officers and employees as the board
  considers necessary to carry out the functions of the Corporation.
  `(C) With the approval of the board, the chief executive officer may
  appoint and remove such employees of the Corporation and such officer
  considers necessary to carry out the functions of the Corporation.
  `(c) AUTHORITY TO RECEIVE GIFTS- The Corporation may receive gifts of
  cash. Such gifts shall be available to the Corporation only to carry out
  this subtitle and shall be in addition to funds appropriated to carry out
  this subtitle.
  `(d) AUTHORITY TO APPOINT A COMMUNITY SERVICES EMPOWERMENT ADVISORY
  COMMITTEE- The Corporation may appoint a Community Services Empowerment
  Advisory Committee to advise the Corporation with respect to carrying out
  this subtitle. Such committee shall be composed of--
  `(1) representatives of community services empowerment corporations, and
  `(2) individuals who have expertise in community services empowerment.
`SEC. 685A. INSPECTOR GENERAL OF THE CORPORATION.
 `(a) ESTABLISHMENT AND DUTIES- There is established in the Corporation an
 Office of the Inspector General. The Office shall be headed by the Inspector
 General of the Corporation who shall have the duties, responsibilities, and
 authorities specified in the Inspector General Act of 1978 (5 U.S.C. App.).
 `(b) REFERENCES- For purposes of subsection (a), references in the Inspector
 General Act of 1978 (5 U.S.C. App.) to the establishment involved, to the
 head of the establishment, and to an Inspector General shall be deemed to
 be references to the Corporation, the Board of Directors of the Corporation,
 and the Inspector General of the Corporation, respectively.
`CHAPTER 2--COMMUNITY SERVICES EMPOWERMENT PARTNERSHIP INVESTMENT FUNDS
`SEC. 686. GRANTS.
  `(a) GENERAL AUTHORITY- The Corporation may make grants on a competitive
  basis to eligible community services empowerment corporations and to emerging
  community services empowerment corporations, to establish, to maintain,
  or to expand revolving funds that are used to make or guarantee loans to,
  to make capital investments in, or to provide technical assistance and
  training to new or expanding locally-owned private business enterprises
  intended to provide business and employment opportunities for low-income
  individuals in urban neighborhoods and rural areas.
  `(b) AUTHORITY TO MAKE SPECIAL EMPHASIS GRANTS- Not less than 10 percent of
  the funds appropriated under section 689D(a) for any fiscal year shall be
  reserved by the Corporation to make grants to eligible community services
  empowerment corporations that agree to make loans and loan guarantees to,
  and capital investments in, locally-owned private business enterprises with
  fewer that 15 full-time employees (or the equivalent thereof) in communities
  with a persistently high rate of unemployment. Loans and capital investments
  made under this subsection to a particular locally-owned private business
  enterprise may not exceed $35,000 in the aggregate.
`SEC. 686A. ELIGIBILITY FOR GRANTS.
  `(a) ELIGIBILITY OF COMMUNITY SERVICES EMPOWERMENT CORPORATIONS- To
  be eligible to receive a grant under section 686, a community services
  empowerment corporation shall submit to the Corporation an application in
  such form, and containing such information, as the board of the Corporation
  may require by rule, including--
  `(1) a community services investment plan that identifies and describes
  the economic characteristics of the communities to be served through
  financial assistance provided under this chapter by the applicant, the
  types of locally-owned private business enterprises to be assisted, and
  the impact of such assistance on low-income individuals,
  `(2) in the case of a grant requested under section 686(a), an assurance
  that the applicant will obtain an amount of non-Federal funds that is not
  less than the amount of the grant requested and will expend such amount
  to carry out such plan,
  `(3) an assurance that the applicant will administer under this subtitle
  a revolving fund into which are deposited the requested grant, the funds
  required by paragraph (2), donated funds (if any), and amounts required
  by section 686D(c) to be paid into such fund,
  `(4) evidence of good working relationships with the organizations referred
  to in section 685(b)(1)(A),
  `(5) evidence of good working relationships with local and regional job
  training programs,
  `(6) evidence of good working relationships with local business and
  financial interests, as well as leaders in the community the applicant
  proposes to serve, and
  `(7) an assurance that the applicant will target job creation and
  job-preservation opportunities by providing financial assistance so that
  75 percent of such opportunities are for the benefit of--
  `(A) low-income individuals,
  `(B) individuals who are unemployed or underemployed,
  `(C) individuals who are participating or have participated in job training
  programs authorized by the Job Training Partnership Act or the Family
  Support Act of 1988, or
  `(D) individuals whose jobs are terminated, to enable such individuals to
  find subsequent employment without experiencing a period of unemployment.
  `(b) ELIGIBILITY OF EMERGING COMMUNITY SERVICES EMPOWERMENT CORPORATIONS-
  To be eligible to receive a grant under section 686(a), an emerging
  community services empowerment corporation shall submit to the Corporation
  an application in such form, and containing such information, as the board
  of the Corporation may require by rule, including--
  `(1) a community services investment plan that identifies and describes the
  economic characteristics of the communities to be served through financial
  assistance provided under this chapter, the types of locally owned private
  business enterprises to be assisted, and the impact of such assistance on
  low-income individuals, and
  `(2) an assurance that the applicant will administer under this subtitle a
  revolving fund into which are deposited the requested grant, donated funds
  (if any), and amounts required by section 686D(c) to be paid into such fund.
`SEC. 686B. SELECTION OF APPLICANTS TO RECEIVE GRANTS.
  `In selecting applicants to receive grants under this chapter, the
  Corporation shall ensure that--
  `(1) financial assistance provided under this chapter by such applicants
  is provided to locally owned private business enterprises located in
  communities in which there is a concentration or substantial number of
  low-income individuals,
  `(2) the applicant possesses the technical and management capability to
  administer a revolving fund under this chapter, and
  `(3) a representative cross section of applicants are approved, including
  community services empowerment corporations in large, small, urban, and
  rural communities and community services empowerment corporations that
  represent diverse populations.
`SEC. 686C. LIMITATIONS ON AMOUNT OF GRANTS MADE BY THE CORPORATION.
  `The aggregate amount of grants made under this chapter by the Corporation--
  `(1) to a particular community services empowerment corporation may not
  exceed $2,000,000, and
  `(2) to a particular emerging community services empowerment corporation
  may not exceed $500,000.
`SEC. 686D. LIMITATIONS ON USE OF REVOLVING FUNDS.
  `(a) LIMITATION ON CAPITAL INVESTMENTS- The amount of a capital investment
  made from a revolving fund administered under this chapter may not exceed
  50 percent of the ownership of the locally owned private business enterprise
  in which such investment is made.
  `(b) LIMITATION ON ADMINISTRATIVE COSTS, AND TECHNICAL ASSISTANCE AND
  TRAINING- Not more than 10 percent of the aggregate amount withdrawn from
  a revolving fund administered under this chapter may be expended by a
  community services empowerment corporation collectively for administrative
  costs incurred by such corporation, technical assistance, and training.
  `(c) LIMITATION ON LOAN REPAYMENTS AND PROCEEDS FROM CAPITAL INVESTMENTS-
  Funds received by a community services empowerment corporation as--
  `(1) a repayment of a loan, or
  `(2) proceeds from a capital investment,
made by such corporation from a revolving fund administered under this
chapter shall be deposited in such revolving fund.
`CHAPTER 3--CAPACITY ENHANCEMENT GRANTS
`SEC. 687. GRANTS.
  `The Corporation may make grants to emerging community services empowerment
  corporations to increase the capacity of such corporations to carry out
  community services empowerment projects.
`SEC. 687A. EXPENDITURE OF GRANTS.
  `Grants made under section 687 shall be expended--
  `(1) to evaluate the need for, and feasibility of operating, particular
  locally owned private business enterprises to provide business and employment
  opportunities for low-income individuals,
  `(2) to develop the capacity of emerging community services empowerment
  corporations to assist such enterprises to prepare business plans, and
  `(3) to develop the skills necessary for such corporations to raise funds
  to assist such enterprises.
`SEC. 687B. LIMITATION ON AMOUNT OF GRANTS.
  `The aggregate amount of grants made in a fiscal year under this chapter
  by the Corporation to a particular emerging community services empowerment
  corporation may not exceed $75,000.
`CHAPTER 4--TECHNICAL ASSISTANCE AND TRAINING; RESEARCH AND DEMONSTRATION
`SEC. 688. TECHNICAL ASSISTANCE AND TRAINING.
  `The Corporation may make grants to community services empowerment
  corporations (other than emerging community services empowerment
  corporations), and to nonprofit private organizations the Corporation
  determines to be qualified, to provide to emerging community services
  empowerment corporations technical assistance and training relating to
  the operation of locally owned private business enterprises.
`SEC. 688A. RESEARCH AND DEMONSTRATION.
  `The Corporation may make grants to community services empowerment
  corporations and to institutions of higher education to carry out research
  and demonstration projects that--
  `(1) identify current problems relating to the need for community services
  empowerment  in urban neighborhoods, and in rural areas, that have a
  concentration or substantial number of low-income individuals, including
  particular populations of such individuals; and
  `(2) identify methods to reduce such need.
`CHAPTER 5--GENERAL PROVISIONS
`SEC. 689. AUDITS.
  `(a) Annual Audit- The Corporation shall either audit community services
  empowerment corporations and recipients of financial assistance from such
  corporations, or require such corporations and such recipients to submit an
  audit to the Corporation, in each year in which such corporations administer
  and such recipients use such assistance received under this subtitle.
  `(b) REQUIREMENT APPLICABLE TO SUBMITTED AUDITS- Any audit submitted under
  subsection (a) to the Corporation shall be conducted by a certified public
  accountant in accordance with generally accepted auditing standards.
  `(c) Retention of Audits- Each audit prepared to comply with this section
  shall be retained by the Corporation for a period of not less than 5 years.
`SEC. 689A. REPORTS.
  `The Corporation shall submit annually to the President, the Committee on
  Education and Labor of the House of Representatives, and the Committee on
  Labor and Human Resources of the Senate a report containing--
  `(1) a description of the extent to which such assistance contributed to
  the self-sufficiency and community services empowerment of communities,
  and of the amount of non-Federal cash contributed in connection with
  providing such assistance,
  `(2) an assessment of the business and employment opportunities that
  resulted from providing financial and other assistance under this subtitle,
  `(3) a description of the locally owned private business enterprises,
  the technical assistance and training, and the research and demonstration
  projects assisted under this subtitle, including a description of the
  persons and communities that participated and the types of such enterprises
  so assisted,
  `(4) an itemized statement of the costs incurred by community services
  empowerment corporations in connection with carrying out this subtitle,
  `(5) an itemized statement identifying profits received by such corporations
  in connection with carrying out this subtitle,
  `(6) a description of the extent to which organizations that contributed
  cash under this subtitle to such corporations participated in the
  business enterprises, technical assistance and training, and research and
  demonstration projects assisted under this subtitle,
  `(7) a description of the efforts of the Corporation to provide technical
  assistance and training under this subtitle,
  `(8) a statement specifying the number of emerging community services
  empowerment corporations that received grants under section 686(b), and
  `(9) a summary of the results of the research and demonstration projects
  carried out under chapter 4.
`SEC. 689B. REPAYMENT OF FUNDS.
  `If the Corporation determines on the record, after an opportunity for
  a hearing, that a private corporation that administers a revolving fund
  under this subtitle--
  `(1) is not in substantial compliance with this subtitle and the rules
  issued by the board of the Corporation to carry out this subtitle, or
  `(2) ceases to be a services empowerment corporation,
then such private corporation shall terminate such fund, shall pay the
balance of such fund to the Corporation, and assign to the Corporation the
rights of such corporation to receive amounts payable to such fund.
`SEC. 689C. DEFINITIONS.
  `For purposes of this subtitle--
  `(1) the term `Corporation' means the Community Services Empowerment
  Partnership Corporation established by section 685(a),
  `(2) the term `community services empowerment' means community economic
  development that provides business and employment opportunities in
  communities with a concentration or substantial number of low-income
  individuals,
  `(3) the term `community services empowerment corporation' means a nonprofit
  private corporation--
  `(A) the board of which is composed of business, civic, and community
  leaders,
  `(B) the principal purposes of which include providing low-income housing
  and community services empowerment, and
  `(C) that has experience, and a record of achievement, in developing
  housing for low-income individuals or in carrying out community services
  empowerment projects, in communities with a concentration or substantial
  number of low-income individuals,
  `(4) the term `emerging community services empowerment corporation' means
  a community services empowerment corporation that has completed at least 1,
  but not more than 2, community services empowerment projects,
  `(5) the term `institution of higher education'  has the meaning given it
  in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)),
  `(6) the term `low-income individual' means an individual whose family
  income does not exceed the poverty line,
  `(7) the term `nonprofit private corporation' means a private corporation
  no part of the earnings of which inures to the benefit of any member,
  founder, contributor, or individual, and
  `(8) the term `poverty line' has the meaning given such term in section
  673(2) of the Community Services Block Grant Act and includes any adjustment
  required by such section.
`SEC. 689D. AUTHORIZATION OF APPROPRIATIONS.
  `(a) GRANTS TO COMMUNITY SERVICES EMPOWERMENT CORPORATIONS- There is
  authorized to be appropriated $150,000,000 in the aggregate for fiscal
  years 1993, 1994, and 1995 to make grants under section 686 to community
  services empowerment corporations.
  `(b) GRANTS TO EMERGING COMMUNITY SERVICES EMPOWERMENT CORPORATIONS-
  There is authorized to be appropriated $90,000,000 in the aggregate for
  fiscal years 1993, 1994, and 1995 to make grants under sections 686(a)
  and 687 to emerging community services empowerment corporations. Of the
  amount appropriated under this subsection--
  `(1) 80 percent shall be available to make grants under section 686(a), and
  `(2) 20 percent shall be available to make grants under section 687.
  `(c) GRANTS FOR TECHNICAL ASSISTANCE AND TRAINING, AND FOR RESEARCH AND
  DEMONSTRATION- There is authorized to be appropriated $10,000,000 in the
  aggregate for fiscal years 1993, 1994, and 1995 to carry out chapter 4.'.
SEC. 4. CONFORMING AMENDMENT.
  Section 5315 of title 5, United States Code, is amended by adding at the
  end the following:
  `Inspector General, National Services Empowerment Partnership Corporation.'.
Community Services Empowerment Amendments of 1992

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