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78 Stat. 532. 42 USC 2948.

79 Stat. 5 5 2. 42 USC 3121 note.

PUBLIC LAW 90-222-DEC. 23, 1967

[81 STAT.

be achieved and priorities among such objectives. I n formulating the plan, the Director shall consult with other Federal agencies for the purpose of minimizing duplication among similar activities or projects and determining whether the findings resulting from any research or pilot projects may be incorporated into one or more programs for which those agencies are responsible. As part of the annual report required by section 608, or in a separate annual report, the Director shall submit a description for each fiscal year of the current plan required by this section, of activities subject to the plan, and of the findings derived from those activities, together with a statement indicating the time and, to the extent feasible, the manner in which the benefits of those activities and findings are expected to be realized. "(c) Not more than 15 per centum of the sums appropriated or allocated in any fiscal year for this title shall be used for the purposes of this section. One-third of the sums so appropriated or allocated shall be available only for projects authorized under subsection (f) of this section. " (d) No pilot or demonstration project under this section shall be commenced in any city, county, or other major political subdivision, unless a plan setting forth such proposed pilot or demonstration project has been submitted to the appropriate community action agency, or, if there is no such agency, to the local governing officials of the political subdivision, and such plan has not been disapproved by the community action agency or governing body, as the case may be, within thirty days of such submission, or, if so disapproved, has been reconsidered by the Director and found by him to be fully consistent with the provisions and in furtherance of the purposes of this title. "(e) The Director shall develop and carry out pilot projects which (1) aid elderly persons to achieve greater self-sufficiency, (2) focus upon the problems of rural poverty, (3) are designed to develop new techniques and community-based efforts to prevent narcotics addiction or to rehabilitate narcotic addictsj or (4) are designed to encourage the participation of private organizations, other than nonprofit organizations, in programs under this title. "(f) The Director shall conduct, either directly or through grants or other arrangements, research and pilot projects designed to assure a more effective use of human and natural resources of rural America and to slow the migration from m r a l areas due to lack of economic opportunity, thereby reducing population pressures in urban centers. Such projects may be operated jointly or in cooperation with other federally assisted programs, particularly programs authorized under the Public Works and Economic Development Act of 1965, in the area to be served by the project. "EVALUATION

"SEC. 233. (a) The Director shall provide for the continuing evaluation of programs under this title, including their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanisms for the delivery of services and including, where appropriate, comparisons with proper control groups composed of persons who have not participated in such programs. He may, for this purpose, contract for independent evaluations of those programs or individual projects. H e may require community action agencies to provide for independent evaluations, and where appropriate, he may also require a community action agency to establish an independent group or committee to provide evaluation and advisory services on either a short-term or continuing basis. He shall consult with other Federal agencies, or where appropriate with State agencies, in order to provide wherever feasible for jointly sponsored objective evaluation studies on a National or State basis. He shall also arrange for obtain-

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ing the opinions of participants about the strengths and weaknesses of the programs. The reports of studies undertaken under this section, together with the comments of the Director and other agencies, if any, shall be public records, and the results shall be summarized in the 78 Stat. 5 3 2. report required by section 608. 42 USC 2948. " (b) The Director shall develop and publish standards for evaluation of program effectiveness in achieving the objectives of this title. Such standards shall be considered in deciding whether to renew or supplemental financial assistance provided by sections 221, 222, 230, and 231. Study "(c) The Director shall provide by contract for the conduct of an in- uation. and evaldependent study and evaluation of the action taken under sections 210 and 211 of this Act and the effects thereof, with particular reference to (1) the exercise of their authorities under the provisions of title II of this Act by States and political subdivisions, (2) the participation of residents of the areas and members of the groups served, public officials and others and (3) the administrative and program advantages and disadvantages, if any, encountered or foreseen in implementing such sections. H e shall transmit such study and evaluation to the Con- T r a n s m i t t a l to Congress. gress before April 1, 1969. " P A R T D — GENERAL AND TECHNICAL PROVISIONS ASSISTANT DIRECTORS FOR COMMUNITY

ACTION

"SEC. 240. The Director shall appoint two assistant directors for the purpose of assisting the Director in the administration of the provisions of this title. One such assistant director, to be known as the Assistant Director for Community Action in Rural Areas, shall be responsible for assuring that funds allotted for assistance to programs or projects designed to assist the rural poor are so expended. The other assistant director, to be known as the Assistant Director for Community Action in Urban Areas, shall be responsible for assuring that funds allotted for assistance to programs or projects designed to assist the urban poor are so expended. Each assistant director shall have such additional responsibilities consistent with the foregoing responsibilities as the Director may hereafter assign. RURAL AREAS

"SEC. 241. (a) I n exercising authority under this title, the Director shall take necessary steps to further the extension of benefits to residents of rural areas, consistent with the extent and severity of poverty among rural residents, and to encourage high levels of managerial and technical competence in programs undertaken in rural areas. These steps shall include, to the maximum extent practicable, (1) the development under section 222(a) of programs particularly responsive to special needs of rural areas; (2) the establishment, pursuant to section 232, of a program of research and pilot project activities specifically focused upon the problems of rural poverty; (3) the provision of technical assistance so as to afford a priority to agencies in rural communities and to aid those agencies, through such arrangements as may be appropriate, in securing assistance under Federal programs which are related to this title but which are not generally utilized in rural areas; and (4) the development of special or simplified procedures, forms, guidelines, model components, and model programs for use in rural areas. " (b) The Director shall establish criteria designed to achieve an equitable distribution of assistance under this title within the States between urban and rural areas. I n developing such criteria, he shall

A s s i s t a n t Directors, appointment.

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consider the relative number in the States or areas therein of: (1) lowincome families, particularly those with children; (2) unemployed persons; (3) persons receiving cash or other assistance on a needs basis from public agencies or private organizations; (4) school dropouts; (5) adults with less than an eighth-grade education; (6) persons rejected for military service; and (7) poor persons living in urban places compared to the number living in rural places as determined by the latest reports of the Bureau of the Census. "(c) Notwithstanding any other provision of this title, the Director is authorized to provide financial assistance in rural areas to public or private nonprofit agencies for any project for which assistance to community action agencies is authorized, if he determines that it is not feasible to establish a community action agency within a reasonable period of time. The assistance so granted shall be subject to such conditions as the Director deems appropriate to promote adherence to the purposes of this title and the early establishment of a community action agency in the area. " (d) The Director shall encourage the development of programs for the interchange of personnel, for the undertaking of common or related projects, and other methods of cooperation between urban and rural communities, with particular emphasis on fostering cooperation in situations where it may contribute to new employment opportunities, and between larger urban communities with concentrations of low-income persons and families and rural areas in which substantial numbers of those persons and families have recently resided. "SUBMISSION OF PLANS TO GOVERNORS

"SEC. 242. I n carrying out the provisions of this title, no contract, agreement, grant, loan, or other assistance shall be made with, or provided to, any State or local public agency or any private institution or organization for the purpose of carrying out any program, project, or other activity within a State unless a plan setting forth such proposed contract, agreement, grant, loan, or other assistance has been submitted to the Governor of the State, and such plan has not been disapproved by the Governor within thirty days of such submission, or, if so disapproved, has been reconsidered by the Director and found by him to be fully consistent with the provisions and in furtherance of the purposes of this title. This section shall not, however, apply to contracts, agreements, grants, loans, or other assistance to any institution of higher education in existence on the date of the approval of this Act. a FISCAL RESPONSIBILITY AND AUDIT

"SEC. 243. (a) No funds shall be released to any agency receiving financial assistance under this title until it has submitted to the Director a statement certifying that the assisted agency and its delegate agencies (or subcontractors for performance of any major portion of the assisted program) have established an accounting system with internal controls adequate to safeguard their assets, check the accuracy and reliability of the accounting data, promote operating efficiency and encourage compliance with prescribed management policies and such additional fiscal responsibility and accounting requirements as the Director may establish. The statement may be furnished by a certified public accountant, a duly licensed public accountant or, in the case of a public agency, the appropriate public financial officer who accepts responsibility for providing required financial services to that agency. "(b) Within three months after the effective date of a grant to or contract of assistance with an organization or agency, the Director shall make or cause to be made a preliminary audit survey to review

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and evaluate the adequacy of the accounting system and internal controls established thereunder to meet the standards set forth in the statement referred to in subsection (a). Promptly after the completion of the survey, the Director shall determine on the basis of findings and conclusions resulting from the survey whether the accounting systems and internal controls meet those standards and, if not, whether to suspend the grant or contract. I n the event of suspension, the assisted agency shall be given not more than six months within which to establish the necessary systems and controls, and, in the event of failure to do so within such time period, the assistance shall be terminated by the Director. " (c) A t least once annually the Director shall make or cause to be made an audit of each grant or contract of assistance under this title. Promptly after the completion of such audit, he shall determine on the basis of resulting findings and conclusions whether any of the costs of expenditures incurred shall be disallowed. I n the event of disallowance, the Director may seek recovery of the sums involved bj'^ appropriate means, including court action or a commensurate increase in the required non-Federal share of the costs of any grant or contract with the same agency or organization which is then in effect or which is entered into within twelve months after the date of disallowance. " (d) The Director shall establish such other requirements and take such actions as he may deem necessary and appropriate to carry out the provisions of this section and to insure fiscal responsibility and accountability, and the effective and efficient handling of funds in connection with programs assisted under this title. These requirements and actions shall include (1) necessary action to assure that the rate of expenditure of any agency receiving financial assistance does not exceed the rate contemplated under its approved program; and (2) appropriate requirements to promote the continuity and coordination of all projects or components of programs receiving financial assistance under this title, including provision for the periodic reprograming and supplementation of assistance previously provided.

^^^^^^ audits,

"SPECIAL LIMITATIONS

"SEC. 244. The following special limitations shall apply, as indicated, to programs under this title. " (1) Financial assistance under this title may include funds to provide a reasonable allowance for attendance at meetings of any community action agency governing board, neighborhood council or committee, as appropriate to assure and encourage the maximum feasible participation of members of groups and residents of areas served in accordance with the purposes of this title, and to provide reimbursement of actual expenses connected with those meetings; but those funds (or matching non-Federal funds) may not be used to pay allowances in the case of any individual who is a Federal, State, or local government employee, or an employee of a community action agency, or for payment of an allowance to any individual for attendance at more than two meetings a month. "(2) The Director shall issue necessary rules or regulations to ^ ' ^, 1,

-I

J

•

.

^

•.

assure that no employee engaged m carrying out community action program activities receiving financial assistance under this title is compensated from funds so provided at a rate in excess of $15,000 per annum, and that any amount paid to such an employee at a rate in excess of $15,000 per annum shall not be considered in determining whether the non-Federal contributions requirements of section 225(c) have been complied with; the Director may, however, provide in those rules or regulations for exceptions covering

compensation, limitation.

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Family planning services.

Financial assistance, limitation.

Waiver.

PUBLIC LAW 9a.222-DEC. 23, 1967

[81 STAT.

cases (particulary in large metropolitan areas) where, because of the need for specialized or professional skills or prevailing local salary levels, application of the foregoing restriction would greatly impair program effectiveness or otherwise be inconsistent with the purposes sought to be achieved. "(3) No officer or employee of the Office of Economic Opportunity shall serve as member of a board, council, or committee of any agency serving as grantee, contractor, or delegate agency in connection with a program receiving financial assistance under this title; but this shall not prohibit an officer or employee from serving on a board, council, or committee which does not have any authority or powers in connection with a program assisted under this title. "(4) In granting financial assistance for projects or activities in the field of family planning, the Director shall assure that family planning services, including the dissemination of family planning information and medical assistance and supplies, are made available to all low-income individuals who meet the criteria for eligibility for assistance under this title which have been established by the assisted agency and who desire such information, assistance, or supplies. The Director shall require, in connection with any such financial assistance, that— " (A) no individual will be provided with any information, medical supervision, or supplies which that individual indicates are inconsistent with his or her moral, philosophical, or religious beliefs; and " (B) no individual will be provided with any medical supervision or supplies unless he or she has voluntarily requested such medical supervision or supplies. The use of family planning services assisted under this title shall not be a prerequisite to the receipt of services from or participation in any other programs under this Act. "(5) No financial assistance shall be extended under this title to provide general aid to elementary or secondary education in any school or school system; but this shall not prohibit the provision of special, remedial, and o-her noncurricular educational assistance. "(6) I n extending assistance under this title the Director shall give special consideration to programs which make maximum use of existing schools, community centers, settlement houses, and other facilities during times they are not in use for their primary purpose. " (7) No financial assistance shall be extended under this title in any case in which the Director determines that the costs of developing and administering all of the programs assisted under this title carried on by or under the supervision of any community action agency exceed 15 per centum of the total costs, including non-Federal contributions to such costs, of such programs. The Director, after consultation with the Director of the Bureau of the Budget, shall establish by regulation, criteria for determining (i) the costs of developing and administering such programs, and (ii) the total costs of such programs. I n any case in which the Director determines that the cost of administering such programs does not exceed 15 per centum of such total costs but is, in his judgment, excessive, he shall forthwith require such community action agency to take such steps prescribed by him as will eliminate such excessive administrative cost, including the sharing by one or more such community action agencies of a common director and other administrative personnel. The Director may waive the

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limitation prescribed by this paragraph for specific periods of time not to exceed six months whenever he determines that such a waiver is necessary in order to carry out the purposes of this title. "DURATION OF PROGRAM

"SEC. 245. The Director shall carry out the programs provided for in this title during the fiscal year ending June 30, 1967, and the three succeeding fiscal years. For each such fiscal year only such sums may be appropriated as the Congress may authorize by law." AMENDMENTS TO TITLE in—CRURAL AREAS PROGRAMS

SEC. 105. (a) Title III of the Economic Opportunity Act of 1964 is 42 USC 2841amended by (1) inserting immediately under the title heading a new 2881. part heading to read "PART A—RURAL LOAN PROGRAM", and (2) striking out the heading immediately before section 302 and inserting in lieu thereof a new heading to read "LOANS TO FAMILIES". 42 USC 2841. (b) Section 301 of such Act is amended to read as follows: ii

STATEMENT OF PURPOSE

"SEC. 301. I t is the purpose of this part to meet some of the special needs of low-income rural families by establishing a program of loans to assist in raising and maintaining their income and living standards." (c) Section 302(a) of such Act is amended (1) by inserting the 8o^stat^\'4^54*' word "principal" after the word "aggregate", and (2) by inserting 42 USC 2851. md after "families" the following: ", and, in the case of the elderly, will contribute to the improvement of their living or housing conditions". (d) Section 606 of such Act is transferred from title VI thereof to 42 USC 2946. the end of part A of title III, is redesignated as section 306, and amended by striking out "titles III of this Act" in subsections (a) and (d) and inserting in lieu thereof "this part". (e) Part B of title III of such Act is amended to read as follows: " P A R T B—ASSISTANCE FOR MIGRANT, AND OTHER SEASONALLY EMPLOYED, FARMWORKERS AND THE I R FAMILIES "STATEMENT OF PURPOSE

"SEC. 311. The purpose of this part is to assist migrant and seasonal farmworkers and their families to improve their living conditions and develop skills necessary for a productive and self-sufficient life in an increasingly complex and technological society. uFINANCIAL ASSISTANCE

"SEC. 312. (a) The Director may provide financial assistance to assist State and local agencies, private nonprofit institutions and cooperatives in developing and carrying out programs to fulfill the purpose of this part. "(b) Programs assisted under this part may include projects or activities— "(1) to meet the immediate needs of migrant and seasonal farmworkers and their families, such as day care for children, education, health services, improved housing and sanitation (including the provision and maintenance of emergency and temporary housing and sanitation facilities), legal advice and representation, and consumer training and counseling;

709

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[81 STAT.

"(2) to promote increased community acceptance of migrant and seasonal farmworkers and their families; and "(3) to equip unskilled migrant and seasonal farmworkers and members of their families as appropriate through education and training to meet the changing demands in agricultural employment brought about by technological advancement and to take advantage of opportunities available to improve their well-being and self-sufficiency by gaining regular or permanent employment or by participating in available Government training programs. li

L I M I T A T I O N S O N ASSISTANCE

"SEC. 313. (a) Assistance shall not be extended under this part unless the Director determines that the applicant will maintain its prior level of effort in similar activities. " (b) The Director shall establish necessary procedures or requirements to assure that programs under this part are carried on in coordination with other programs or activities providing assistance to the persons and groups served. "TECHNICAL ASSISTANCE, TRAINING, AND EVALUATION

"SEC. 314. (a) The Director may provide directly or through grants, contracts, or other arrangements, such technical assistance or training of personnel as may be required to implement effectively the purposes of this title. " (b) The Director shall provide for necessary evaluation of projects under this title and may, through grants or contracts, secure independent evaluation for this purpose. The results of such evaluation shall be published and shall be summarized in the report required by section 608." AMENDMENTS TO TITLE IV—EMPLOYMENT AND INVESTMENT INCENTIVES 78 Stat. 526. 42 USC 2 9 0 1.

80 Stat. 1465. 42 USC 2902.

SEC. 106. (a) Section 401 of the Economic Opportunity Act of 1964 is amended by striking out "enterprises;" and inserting in lieu thereof "enterprises, with special attention to small business concerns (1) located in urban or rural areas with high proportions of unemployed or low-income individuals, or (2) owned by low-income individuals;". (b) Section 402(a) of such Act is amended by— (1) striking out "employment of the long-term unemployed" in the first sentence and inserting in lieu thereof "the preservation or establishment of small business concerns located in urban or rural areas with high proportions of unemployed or low-income individuals or owned by low-income individuals"; (2) striking out the period at the end of the next to last sentence and inserting, in lieu thereof, a colon; and (3) inserting immediately preceding the last sentence, "Pz-ovided, however, That any management training program so approved must be of sufficient scope and duration to provide reasonable opportunity for the individuals served to develop entrepreneurial and managerial self-sufficiency." (c) Section 402 of such Act is amended— (1) by inserting before the period at the end of subsection (a) • '^ the following: ", and shall seek to stimulate new private lending activities to such concerns through the use of the loan guaranties, participations in loans, and pooling arrangements authorized by this section"; (2) by striking out the first subsection (b);

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(3) by adding at the end of the second subsection (b) the following: "To insure an equitable distribution between urban and rural areas for loans between $3,500 and $25,000 made under this title, the Administrator is authorized to use the agencies and agreements and delegations developed under title III of the Act as he shall determine necessary."; and (4) adding at the end thereof the following new subsection: " (c) The Administrator shall provide for the continuing evaluation of programs under this section, including full information on the location, income characteristics, and types of businesses and individuals assisted, and on new private lending activity stimulated, and the results of such evaluation together with recommendations shall be included in the report required by section 608." (d) Title IV of such Act is amended by— (1) renumbering section 405 to read "408" and inserting in such section "and the Secretary of Commerce" immediately following the word "Administration"; (2) striking out section 404; and (3) inserting new sections 404, 405, 406, and 407 to read as follows: ((DISTRIBUTION

711

^2 USC:'948 '| 42 USC:1906.

OF FINANCIAL ASSISTANCE

"SEC. 404. The Administrator of the Small Business Administration shall take such steps as may be necessary to insure that, in any fiscal year, at least 50 per centum of the amounts loaned or guaranteed pursuant to this part are allotted to small business concerns located in urban areas identified by the Director, after consideration of any recommendations of the Administrator of the Small Business Administration, as having high concentrations of unemployed or low-income individuals or to small business concerns owned by low-income individuals. The Administrator of the Small Business Administration, after consideration of any recommendations of the Director, shall define the meaning of low income as it applies to owners of small business concerns eligible to be assisted under this part, and such definition need not correspond to the definition of low income as used elsewhere in this Act. " L I M I T A T I O N O N FINANCIAL ASSISTANCE

"SEC. 405. No financial assistance shall be extended pursuant to this title where the Administrator of the Small Business Administration determines that the assistance will be used in relocating establishments from one area to another if such relocation would result in an increase in unemployment in the area of original location. " T E C H N I C A L ASSISTANCE AND MANAGEMENT TRAINING

"SEC. 406. (a) The Administrator of the Small Business Administration is authorized to provide financial assistance to public or private organizations to pay all or part of the costs of projects designed to provide technical and management assistance to individuals or enterprises eligible for assistance under section 402, with special attention to small business concerns located in urban areas of high concentration of unemployed or low-income individuals or owned by low-income individuals. "(b) Financial assistance under this section may be provided for projects, including without limitation— "(1) planning and research, including feasibility studies and market research:

"*"'*• P- ^^o*

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Ante,

PUBLIC LAW 90.2a2-DEC. 23, 1967

p. 710.

42 USC 2^948

[81 STAT.

"(2) the identification and development of new business opportunities; "(3) the furnishing of centralized services with regard to public services and government programs, including programs authorized under section 402; "(4) the establishment and strengthening of business service agencies, including trade associations and cooperatives; "(5) the encouragement of the placement of subcontracts by major businesses with small business concerns located in urban areas of high concentration of unemployed or low-income individuals or owned by low-income individuals, including the provision of incentives and assistance to such major businesses so that they will aid in the training and upgrading of potential subcontractors or other small business concerns; and "(6) the furnishing of business counseling, management training, and legal and other related services, with special emphasis on the development of management training programs using the resources of the business community, including the development of management training opportunities in existing businesses, and with emphasis in all cases upon providing management training of sufficient scope and duration to develop entrepreneurial and managerial self-sufficiency on the part of the individuals served. "(c) The Administrator of the Small Business Administration shall give preference to projects which promote the ownership, participation m ownership, or management of small business concerns by residents of urban areas of high concentration of unemployed or lowincome individuals, and to projects which are planned and carried out with the participation of local businessmen. " (d) To the extent feasible, services under this section shall be provided in a location which is easily accessible to the individuals and small business concerns served. " (e) The Administrator of the Small Business Administration shall, in carrying out programs under this section, consult with and take into consideration the views of the Secretary of Commerce, with a view to coordinating activities and avoiding duplication of effort. " (f) The President may, if he determines that it is necessary to carry out the purposes of this part, transfer any of the functions under this section to the Secretary of Commerce. " (g) The Administrator of the Small Business Administration shall provide for an independent and continuing evaluation of programs under this section, including full information on and analysis of the character and impact of managerial assistance provided, the location, income characteristics and types of businesses and individuals assisted, and the extent to which private resources and skills have been involved in these programs. Such evaluation together with any recommendations as he deems advisable shall be included in the report required by section 608. ((G O V E R N M E N T

CONTRACTS

"SEC. 407. (a) The Administrator of the Small Business Administration shall take such steps as may be necessary and appropriate, in coordination and cooperation with ithe heads of other Federal departments and agencies, so that contracts, subcontracts, and deposits made by the Federal Government or in connection with programs aided with Federal funds are placed in such a way as to further the purposes of this title. " (b) The Administrator of the Small Business Administration shall provide for the continuing evaluation of programs under this

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section and the results of such evaluation together with recommendations shall be included in the report required by section 608."

DAY CARE P R O J E C T S

SEC. 107. (a) Title V of the Economic Opportunity Act of 1964 4° use 2921^-" is amended by adding the following new part at the end thereof: 2925. "PART B — D A Y CARE PROJECTS "STATEMENT OF PURPOSE

"SEC. 521. The purpose of this part is to provide day care for children from families which need such assistance to become or remain self-sufficient or otherwise to obtain objectives related to the purposes of this Act, with particular emphasis upon enabling the parents or relatives of such children to choose to undertake or to continue basic education, vocational training, or gainful employment. "FINANCIAL ASSISTANCE FOR DAY CARE PROJECTS

"SEC. 522. (a) The Director is authorized to provide financial assistance to appropriate public agencies and private organizations to pay not to exceed 90 per centum of the cost of planning, conducting, administering, and evaluating projects under which children from lowincome families or from urban and rural areas with large concentrations or proportions of low-income persons may receive day care. NonFederal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment and services. Such day care projects shall provide health, education, social, and such other supportive services as may be needed. Financial assistance under this section may be provided to employers, labor unions, or to joint employer-union organizations, for day care projects established at or in association with a place of employment or training where such projects are financed in major part through private funds. Project costs payable under this part may include costs of renovation and alteration of physical facilities. Financial assistance under this section may be provided in conjunction with or to supplement day care projects under the Social Security Act or other relevant statutes. " (b) The Director may require a family which is not a low-income family to make payment, in whole or m part, for the day care services provided under this program where the family's financial condition is, or becomes through employment or otherwise, such as to make such payment appropriate. "(c) The Director may provide, directly or through contracts or other arrangements, technical assistance and training necessary for the initiation or effective operation of programs under this part. " (d) The Director and the Secretary of Health, Education, and Welfare shall take all necessary steps to coordinate programs under their jurisdictions which provide day care, with a view to establishing, insofar as possible, a common set of program standards and regulations, and mechanisms for coordination at the State and local levels. I n approving applications for assistance under this part, the Director shall take into consideration (1) the extent to which applicants show evidence of coordination and cooperation between their projects and other day care programs in the areas which they will serve, and (2) the extent to which unemployed or low-income individuals are to be employed, including individuals receiving or eligible to receive assistance under the Social Security Act.

^^ ^*|**.^^0^

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42 USC 2948

PUBLIC LAW 90-222-DEC. 23, 1967

[81 STAT.

" (e) Each project to which payments are made hereunder shall provide for a thorough evaluation. This evaluation shall be conducted by such agency or independent public or private organization as the Director shall designate, with a view to determining, among other things, the extent to which the day care provided may have increased the employment of parents and relatives of the children served, the extent to which such day care may have reduced the costs of aid and services to such children, the extent to which such children have received health and educational benefits, and the extent to which the project has been coordinated with other day care activities in the area served. U p to 100 per centum of the costs of evaluation may be paid by the Director from funds appropriated for the purposes of carrying out this part, except that where such evaluation is carried on by the assisted agency itself, he may pay only 90 per centum of such costs. Such evaluations, together with a report on the program described in this part, shall be iHcluded iu the report required by section 608. "DURATION OF PROGRAMS

80 Stat. 1466.

"SEC. 523. The Director shall carry out the programs provided for in this part during the fiscal year ending June 30, 1968, and the two succeeding fiscal years." (b) The heading of title V of the Economic Opportunity Act of ] 9^4 jg amended to read as follows: " TITLE V—WORK E X P E R I E N C E, T R A I N I N G, AND D A Y CARE P R O G R A M S " (c) Title V of such Act is further amended by inserting after the headinjr thereof the following:: "PART A—^WORK EXPERIENCE AND TRAINING PROGRAMS"

,42 USC 29212925.

(d) Sections 501, 502, 503, 504, and 505 of such Act are amended by striking out "this title" wherever it appears therein and inserting in lieu thereof "this part". AMENDMENTS TO TITLE VI — ADMINISTRATION AND COORDINATION

42 USC 294^^' 78 Stat. 5 2 8. 42 USC 2942.

42 USC 294^3^*

SEC. 108. (a) Section 601(a) of the Economic Opportunity Act of ^^^* ^^ amended by striking out "four" in the third sentence and inserting in lieu thereof "five". (b) Section 602(b) of such Act is amended by inserting " (1) " after " (b) "; by inserting before "compensate" the following: "except that no individual may oe employed under the authority of this subsection for more than 100 days in any fiscal year; (2) "; and by striking out ", and" after "travel time" and inserting in lieu thereof "; and (3)". (^) Section 603(b) of such Act is amended to read as follows: "(b) Programs assisted under this Act shall not be carried on in a manner involving the use of program funds, the provision of services, or the employment or assignment of personnel in a manner supporting or resulting in the identification of such programs with (1) any partisan or nonpartisan political activity or any other political activity associated with a candidate, or contending faction or group, in an election for public or party office, (2) any activity to provide voters or prospective voters with transportation to the polls or similar assistance in connection with any such election, or (3) any voter registration activity. The Director, after consultation with the Civil Service Commission, shall issue rules and regulations to provide for the enforcement of this section, which shall include provisions for summary sus-

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PUBLIC LAW 90-222-DEC. 23, 1967

pension of assistance or other action necessary to permit enforcement on an emergency basis." (d) Section 604 of such Act is amended to read as follows:

715

H ^^^ ^^^^^

"APPEALS, NOTICE AND HEARING

"SEC. 604. The Director shall prescribe procedures to assure that— " (1) special notice of and an opportunity for a timely and expeditious appeal to the Director is provided for an agency or organization which would like to serve as a delegate agency under title I - B or II and whose application to the prime sponsor or community action agency has been wholly or substantially rejected or has not been acted upon within a period of time deemed reasonable by the Director; "(2) financial assistance.under titles I - B, II, and III - B shall not be suspended for failure to comply with applicable terms and conditions, except in emergency situations, nor shall an application for refunding under sections 123, 221, 222, or 312 be denied, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken; and "(3) financial assistance under titles I - B, II, and III - B shall not be terminated for failure to comply with applicable terms and conditions unless the recipient agency has been afforded reasonable notice and opportunity for a full and fair hearing." (e) Part A of title VI of such Act is amended by inserting, after '^^ use 2941. section 605, the following new section: li A N N O U N C E M E N T

O F RESEARCH OR DEMONSTRATION CONTRACTS

"SEC. 606. (a) The Director or the head of any other Federal agency administering a program under this Act shall make a public announcement concerning: "(1) The title, purpose, intended completion date, identity of the contractor, and proposed cost of any contract with a private or non-Federal public agency or organization for any demonstration or research project; and "(2) The results, findings, data, or recommendations made or reported as a result of such activities. " (b) The public announcements required by subsection (a) shall be made within thirty days of entering into such contracts and thereafter within thirty days of the receipt of such results. "(c) I t shall be the duty of the Comptroller General to assure that the reqi^irements of this section are met, and he shall at once report to the Congress concerning any failure to comply with these requirements." (f) Section 609 of such Act is amended to read as follows: a DEFINITIONS

"SEC. 609. As used in this Act— "(1) the term 'State' means a State, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, or the Virgin Islands, and for purposes of title I and title II the meaning of 'State' shall also include the Trust Territory of the Pacific Islands; except that when used in section 225 of this Act this term means only a State or the District of Columbia. The term 'United States' when used in a geographical sense includes

^2 USC 2 949.

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PUBLIC LAW 90-222-DEC. 23, 1967

66 Stat. 189, 188. 8 USC 1184, 1182. 79 Stat. 912. 8 USC 1153. 79 Stat. 978; 80 Stat. 1468. 42 USC 2950.

[81 STAT.

all those places named in the previous sentence, and all other places continental or insular, subject to the jurisdiction of the United States; "(2) the term 'financial assistance' when used in titles I, II, III - B, IV, and V - B includes assistance advanced by grant, agreement, or contract, but does not include the procurement of plant or equipment, or goods or services; "(3) the term "permanent resident of the United States' when used in titles I - A and I - B shall include any native and citizen of Cuba who arrived in the United States from Cuba as a nonimmigrant or as a parolee subsequent to January 1, 1959, under the provisions of section 214(a) or 212(d)(5), respectively, or any person admitted as a conditional entrant under section 203(a)(7), of the Immigration and Nationality Act; and "(4) the term 'Director' means the Director of the Office of Economic Opportunity." (g) Section 610 of such Act is amended to read as follows: a PROGRAMS FOR THE ELDERLY POOR

D u t i e s of Director.

78 42 80 42

Stat. 5 3 2. u s e 2948. Stat. 1470. u s e 2951.

78 Stat. 532; 80 Stat. 1470. 42 USC 2961.

"SEC. 610. I t is the intention of Congress that whenever feasible the special problems of the elderly poor shall be considered in the development, conduct, and administration of programs under this Act. The Director shall (1) carry out such investigations and studies, including consultations with appropriate agencies and organizations, as may be necessary to develop and carry out a plan for the participation of the elderly poor in programs under this Act, including programs providing employment opportunities, public service opportunities, education and other services and activities which assist the elderly poor to achieve self-sufficiency; (2) maintain a constant review of all programs under this Act to assure that the needs of the elderly poor are given adequate consideration; (3) initiate and maintain interagency liaison with all other appropriate Federal agencies to achieve a coordinated national approach to the needs of the elderly poor; and (4) determine and recommend to the President and the Congress such programs requiring additional authority and the necessary legislation to provide such authority. I n exercising his responsibilities under this section, the Director shall cooperate with the Commissioner on Aging. The Director shall describe the ways in which this section has been implemented in the annual report required by section 608." (h) Section 610-1 (a) of such Act is amended (1) by striking out "part A of title II " and inserting in lieu thereof "title II ", and (2) by inserting the words "a substantial number of the" immediately before the word "persons" the second and third time that word appears. (i) Section 611 of such Act is amended to read as follows: "LIMITATION ON BENEFITS FOR THOSE VOLTINTARILT POOR

42 USC 2962.

"SEC. 611. The Director shall take such action as may be necessary to assure that, in determining a person's eligibility for benefits under this Act on account of his poverty, such person will not be deemed to meet the poverty criteria if his lack of income results from his refusal, without good cause, to seek or accept employment commensurate with his health, age, education, and ability." (j) Section 612 of such Act is amended to read as follows:

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 81

STAT.]

PUBLIC LAW 90-^2-DEC. 23, 1967 ii JOINT

717

FUNDING

"SEC. 612. Pursuant to regulations prescribed by the President, where funds are advanced for a single project by more than one Federal agency to a community action agency or other agency assisted under this Act, any one Federal agency may be designated to act for all in administering the funds advanced. I n such cases, a single local share requirement may be established according to the proportion of funds advanced by each agency, and any such agency may waive any technical ^rant or contract requirement (as defined by such regulations) which is inconsistent with the similar requirements of the administering agency or which the administering agency does not impose." (k) Section 613 of such Act is amended to read as follows: a U M I T A T I O N W I T H RESPECT TO CERTAIN U N L A W F U L

H Ic 2963

ACTIVITIES

"SEC. 613. No individual employed or assigned by any community action agency or other agency assisted under this Act shall, pursuant to or during the performance of services rendered in connection with any program or activity conducted or assisted under this Act by such community action agency or such other agency, plan, initiate, participate in, or otherwise aid or assist in the conduct of any unlawful demonstration, rioting, or civil disturbance." (1) Section 616 of such Act is amended to read as follows: '• '

^9 Stat. 978; 80 Stat. 1 4 7 1. 42 USC 2966.

a,TRANSFER OF F U N D S

"SEC. 616. Notwithstanding any limitation on appropriations for any program or activity under this Act or any Act authorizing appropriations for such program or activity, not to exceed 10 per centum of the amount appropriated or allocated from any appropriation for the purpose of enabling the Director to carry out any such program or activity under the Act may be transferred and used by the Director for the purpose of carrying out any other such program or activity under the Act; but no such transfer shall result m increasing the amounts otherwise available for any program or activity by more than 10 per centum." (m) Title VI of such Act is amended by— (1) adding the following new section after section 620: ^^ Stat. 1472. u R E S P O N S I B I L I T Y FOR FOLLOW T H R O U G H

PROGRAMS

"SEC. 621. Pursuant to section 602(d), the Director shall delegate his 5oltar\'468*' functions under section 222(a)(2) to the Secretary of Health, Ediica- 42 USC 2942. tion, and Welfare, and such functions shall be carried out through the ^"'e.?• ^^s. Office of Education of the Department of Health, Education, and Welfare."; (2) striking out the heading "PART B—COORDINATION OF A N T I POVERTY PROGRAMS" and

(3) inserting at the end of such title a new part B to read as follows: " P A R T B—COORDINATION "STATEMENT OF PURPOSE

"SEC. 630. This part establishes an Economic Opportunity Council, provides for an information center, and prescribes certain duties and responsibilities. I t s purpose is to promote better coordination among all programs related to this Act, with a view to making those programs more effective in reaching and serving the poor, assisting State

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PUBLIC LAW 90-2fi2-DEC. 23, 1967

[81 STAT.

and local agencies to adapt diverse Federal programs to varying local problems and conditions, stimulating new and more imaginative ways of combining complementary Federal resources in the solution of specific problems, and generally improving cooperation and communication among all levels of government, agencies, and institutions in matters related to the purposes of this Act. a ECONOMIC OPPORTUNITY COUNCIL

Duties.

Executive Secretary.

Report to Congress.

"SEC. 631. (a) There is established, in the Executive Office of the President, the Economic Opportunity Council (hereinafter referred to as the 'Council'), which shall be composed of the Director and the heads of such Federal departments and agencies, such Presidential assistants and such other officials of the Federal Government as the President may from time to time designate. The President shall designate one of the members of the Council to serve as chairman. Each member shall designate an alternate to sit in his stead in the event of his unavoidable absence. " (b) I t shall be the responsibility of the Council to assist the President in— "(1) providing for the coordination of Federal programs and activities related to this Act; "(2) developing basic policies and setting priorities with respect to such programs and activities; "(3) resolving differences arising among Federal departments and agencies with respect to such programs and activities; and "(4) initiating and arranging for the carrying out of specific actions or projects designed to achieve the objectives of this Act. "(c) The President shall appoint an Executive Secretary of the Council. The Executive Secretary is authorized to appoint and fix the compensation of such personnel as may be necessary to assist him in the performance of his duties. Employees of other Federal departments and agencies may be detailed to the Council from time to time to provide temporary assistance. (d) To the extent appropriate, a report of the activities of the Council shall be included in the annual report of the Director to the President and to the Congress, or in a separate report to the Congress. "(e) From the sums authorized and appropriated to carry out the provisions of this title, the President shall reserve such amounts as may be necessary to carry out the purposes of this section. "RESPONSIBILITIES OF THE DIRECTOR

Ante, p. 703.

"SEC. 632. In addition to his other powers under this Act, and to assist the President in coordinating the antipoverty efforts of all Federal agencies, the Director shall— " (1) undertake special studies of specific coordination problems at the request of the President or the Council, or on his own initiative; " (2) carry on a continuing evaluation of all activities under this Act, and consult with interested agencies and groups, including State agencies described in section 231 of this Act and the National Advisory Council, with a view to identifying coordination problems that may warrant consideration by the Council or the President and, to the extent feasible or appropriate, initiate action for overcoming those problems, either through the Office of Economic Opportunity or in conjunction with other Federal, State, or local agencies; and "(3) prepare a five-year national poverty action plan showing '^^ ' estimates of Federal and other governmental expenditures, and.

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 81 STAT. ]

PUBLIC LAW 90-222-DEC. 23, 1967

where feasible, the contributions of the private sector, needed to eliminate poverty in this countrj within alternative periods of time. Such plan shall include estimates of the funds necessary to finance all relevant programs authorized by this and other Acts, and any new programs which may be necessary to eliminate poverty in this country, and it shall include recommendations for such new programs. The plan shall be presented to the Congress and updated on an annual basis. "COOPERATION OF FEDERAL AGENCIES

"SEC. 633. (a) Federal agencies administering programs related to this Act shall— " (1) cooperate with the Director and with the Council in carrying out their duties and responsibilities; and "(2) carry out their programs and exercise their functions so as to assist in carrying out the provisions and purposes of this Act, to the fullest extent permitted by other applicable law. " (b) The Council and the Director may call upon Federal agencies to supply statistical data, program reports, and other materials as they deem necessary to discharge their responsibilities under this Act. "(c) The President may direct that particular programs and functions, including the expenditure of funds, of Federal agencies shall be carried out, to the extent not inconsistent with other applicable law, in conjunction with or in support of programs authorized under this Act. "COMBINATIONS AMONG PROJECTS AND PROGRAMS

"SEC. 634. I n order to encourage efficiencies, close unnecessary service gaps, and generally promote more effective administration, the Director shall require, to the fullest extent feasible, that projects or programs assisted under this Act be carried on so as to supplement one another, or where appropriate other related programs or projects, and be included within or otherwise carried on in combination with community action programs. I n the case of other programs related to this Act, the heads of the Federal agencies responsible for those programs shall, to the extent permitted by law, similarly provide assistance for projects and activities in a manner which encourages combinations with other related projects and activities where appropriate, and with community action programs. The Economic Opportunity Council shall, in carrying out its responsibilities under this part, make a continuing review of the operation of this section with a view to (1) determining particular groups of programs which, because of their objectives, or similarities in target groups or areas, are especially appropriate for combined or closely coordinated operation at the State or local level, and making recommendations accordingly to the President or appropriate Federal officials; (2) evaluating Federal agency procedures for carrying out this section, and developing or recommending additional or common procedures, as appropriate; and (3) determining whether, and to what extent, consolidations of Federal programs may be justified and making recommendations respecting such consolidations to the Director and the President. "INFORMATION CENTER

"SEC. 635. (a) The Director shall establish and operate an information center for the purpose of insuring that maximum use is made of Federal programs related to this Act and that information concerning those programs and other relevant information is readily available to 85-622 0-68—48

719

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 720

'

PUBLIC LAW 90-222-DEC. 23, 1967

[81 STAT.

public officials and other interested persons. The Director shall collect, prepare, analyze, correlate, and distribute information as described above, either free of charge or by sale at cost (any funds so received to be deposited to the Director's account as an offset of that cost), and may make arrangements and pay for any printing and binding without regard to the provisions of any other law or regulations. I n connection with operation of the center, the Director may carry on research or studies concerning the improvement of information systems in support of the purposes of this Act, the adequacy of existing data, ways in which data generated on the State and local level may be incorporated into Federal information systems, and methods by which data may be made more readily available to State and local officials or used to further coordination objectives. "(b) The Director shall publish and maintain on a current basis, a catalog of Federal programs relating to individual and community improvement. He may also make grants, from funds appropriated to carry out title II of this Act, to States and communities to establish information service centers for the collection, correlation, and distribution of information required to further the purposes of this Act. "(c) I n order to assure that all appropriate officials are kept fully informed of programs related to this Act, and that maximum use is made of those programs, the Director shall establish procedures to assure prompt distribution to State and local agencies of all current information, including administrative rules, regulations, and guidelines, required by those agencies for the effective performance of their responsibilities. "pROHIBITIOlSr

"SEC. 636. I n order to assure that existing Federal agencies are used to the fullest extent possible in carrying out the purposes of this Act, no funds appropriated to carry out this Act shall be used to establish any new department or office when the intended function is being performed by an existing department or office. "SPECIAL RESPONSIBILITIES: TRAINING PROGRAMS

"SEC. 637. (a) I t shall be the responsibility of the Director, the Secretary of Labor, the Secretary of Health, Education, and Welfare, and the heads of all other departments and agencies concerned, acting through such procedures or mechanisms as the President may prescribe, to provide for, and take such steps as may be necessary and appropriate to implement, the effective coordination of all programs and activities within the executive branch of the Government relating to the training of individuals for the purpose of improving or restoring employability. "(b) The Secretary of Labor, pursuant to such agreements as may be necessary or appropriate (which may include arrangements for reimbursement) shall— " (1) be responsible for assuring that the Federal-State employment service provides and develops its capacity for providing maximum support for the programs described in subsection (a); and "(2) obtain from the Secretary of Commerce, the Secretary of Health, Education, and Welfare, the Director of the Office of Economic Opportunity, and the head of any other Federal agency administering a training program, such employment information as will facilitate the placement of individuals being trained.

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 81

STAT.]

PUBLIC LAW 90-222-DEC. 23, 1967 "DEFINITIONS

"SEC. 638. As used in this part, 'programs related to this xict' and 'coordination' shall include the programs and actions described in this section: "(1) 'Programs related to this Act' include programs under this Act and all Federal or federally assisted programs which have objectives which are, in whole or substantial part, complementary to the purposes of this Act, or which provide resources which may be used in combination with resources under this Act to assist in achieving any of the purposes of this Act. "(2) 'Coordination' includes, but is not limited to— " (A) actions to improve the common effectiveness of programs in reaching and serving the poor, such as actions: to extend services to new areas, provide them in a common place, or structure them so that they are more readily accepted or widely utilized; to eliminate procedures or requirements that may be inappropriate for or result in unnecessary hardship to disadvantaged persons with limited education or other special handicaps; to establish common eligibility standards among programs serving substantially similar groups or operating in the same areas; or to develop methods of operation or administration that will provide new employment incentives or opportunities for the poor; " (B) actions to promote better use at the State or local level of Federal assistance available under diverse programs, such as actions to establish procedures for cooperation among State or local agencies seeking assistance from different Federal sources with a view to eliminating unnecessary duplication and service gaps and promoting common or complementary priorities; or to modify or improve technical or administrative requirements imposed by different Federal agencies that may operate to increase unnecessarily the burdens of State or local agencies, minimize their opportunities for the imaginative use of Federal assistance, or discourage their cooperation with one 'another; " (C) actions to promote simplification and efficiencies through the joint or combined use of Federal resources, such as actions to develop new methods of processing requests for assistance or granting assistance that will enable Federal agencies more generally to use resources jointly in support of common objectives; to establish common priorities for purposes of program planning, research and demonstration activities; and to effect combinations among or redirect Federal programs or activities for the purpose of eliminating unnecessary duplication; " (D) actions to improve communication and general cooperation, such as actions to strengthen ties among regional offices of different Federal agencies and among such offices and other regional agencies or organizations; to develop and improve procedures by which Federal agencies may act together in promulgating or making available items of information, including information as to the availability and allocation of funds, which are closely related to one another for purposes of State or local planning and budgeting; or to develop procedures by which State and local agencies may be afforded new opportunities to participate in Federal policy decisions, including decisions on recommended legis-

721

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PUBLIC LAW 90-222-DEC. 23, 1967

[81 STAT.

lation, affecting their capacity to operate efficiently and effectively." AMENDMENT TO TITLE VH Public assist ance

78 Stat. 534. 42 USC 2981.

SEC. 109. Section 701(b) of the Economic Opportunity Act of 1964 is amended (1) by striking out "July 1, 1965" and inserting in lieu thereof "July 1, 1968", and (2) by adding at the end thereof the following: "With respect to any period after June 30, 1969, subsection (a) shall not apply." VOLUNTEER PROGRAMS

!o ^'^*'ooJ^ 4z use ^""1 et

seq.

SEC. 110. Title V m of the Economic Opportunity Act of 1964 is 111

1

i» Ti

amended to read as follows: "TITLE VIII—DOMESTIC VOLUNTEER SERVICE PROGRAMS "VOLUNTEERS I N SERVICE TO AMERICA "STATEMENT OF PURPOSE

"SEC. 801. This title provides for a program of full-time volunteer service, for programs of part-time or short-term community volunteer service, and for special volunteer programs, together with other powers and responsibilities designed to assist in the development and coordination of volunteer programs. I t s purpose is to strengthen and supplement efforts to eliminate poverty by encouraging and enabling persons from all walks of life and all age groups, includm^ elderly and retired Americans, to perform meaningful and constructive service as volunteers in part-time or short-term programs in their home or nearby communities, and as full-time volunteers serving in rural areas and urban communities, on Indian reservations, among migrant workers, in Job Corps centers, and in other agencies, institutions, and situations where the application of human talent and dedication may help the poor to overcome the handicaps of poverty and to secure and exploit opportunities for self-advancement. " P A R T A — F U L L - T I M E VOLUNTEER PROGRAMS "AUTHORITY TO ESTABLISH FULL-TIME PROGRAMS

"SEC. 810. (a) The Director may recruit, select, and train persons to serve in full-time volunteer programs, and upon request of Federal, State, or local agencies, or private nonprofit organizations, may assign such volunteers to work— "(1) in meeting the health, education, welfare, or related needs of Indians living on reservations, of migratory workers and their families, or of residents of the District of Columbia, the Common• wealth of Puerto Rico, Guam, American Samoa, the Virgin Islands, or the Trust Territory of the Pacific Islands; " (2) in the care and rehabilitation of the mentally ill or mentally retarded under treatment at nonprofit mental health or mental retardation facilities; and "(3) in connection with programs or activities authorized, supported, or of a character eligible for assistance under this Act. " (b) The assignment of volunteers under this section shall be on such terms and conditions (including restrictions on political activities

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STAT.]

PUBLIC LAW 90-2122-DEC. 23, 1967

723

that appropriately recognize the special status of volunteers living among the persons or groups served by programs to which they have been assigned) as the Director may determine, including work assignments in their own or nearby communities; but volunteers under this part shall not be assigned to duties or work in any State without the consent of the Governor. The assignment of such a volunteer in any State shall be terminated by the Director when so requested by the Governor of such State not later than thirty days or at a time thereafter agreed upon by the Governor and Director after such request has been made by the Governor to the Director. ii,TERMS OF SERVICE

"SEC. 811. (a) Volunteers under this part shall be required to make a full-time personal commitment to combating poverty. To the extent practicable, this shall include a commitment to live among and at the economic level of the people served, and to remain available for service without regard to regular working hours, at all times during their term of service, except for authorized periods of leave. " (b) Volunteers under this part shall be enrolled for one-year periods of service, excluding time devoted to training. The Director may, however, allow persons who are unable to make a full one-year commitment to enroll as volunteer associates for periods of service of not less than two months where he determines that this more limited service will effectively promote the purposes of this title. "(c) All volunteers under this part shall take and subscribe to an oath or affirmation in the form prescribed by section 106 of this Act, and the provisions of section 1001 of title 18, United States Code, shall be applicable with respect to that oath or affirmation.

^"'®' P- ''^'* " ^'^*- '"*^-

"SUPPORT OF FULL-TIME VOLUNTEERS

"SEC. 812. (a) The Director may provide a stipend to volunteers under this part while they are in training and on assignment, but the stipend shall not exceed $50 per month during the volunteer's first year of service. He may provide a stipend not to exceed $75 per month in the case of persons who have served for at least one year and who, in accordance with standards prescribed by him, have been designated volunteer leaders on the basis of experience and special skills. The Director may also provide volunteers such living, travel (including travel to and from the place of training), and leave allowances, and such housing, supplies, equipment, subsistence, clothing, health and dental care, or such other support, as he may deem necessary or appropriate for their needs. " (b) Stipends shall be payable only upon completion of a term of service; except that in extraordinary circumstances the Director may from time to time advance accrued stipend, or any portion thereof, to or on behalf of a volunteer. I n the event of the death of a volunteer during service, the amount of any unpaid stipend shall be paid in accordance with the provisions of section 5582 of title 5, United States Code. ^ . "(c) The Director may provide or arrange for educational and vocational counseling of volunteers and recent volunteers to encourage them to use the skills and experience which they have derived from their training and service in thie national interest, and particularly in combating poverty as members of the helping professions.

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PUBLIC LAW 90-222-DEC. 23, 1967

[81 STAT.

" P A R T B — A U X I L I A R Y AND SPECIAL VOLUNTEJ^R PROGRAMS "COMMUNITY SERVICE PROGRAMS

"SEC. 820. (a) The Director shall develop programs designed to expand opportunities for persons to participate in a direct and personal way, on a part-time basis or for shorter periods of service than are required for enrollment under section 810, and in their home or nearby communities, in volunteer activities contributing to the elimination of poverty. Pursuant to appropriate plans, agreements, or arrangements the Director may provide financial, technical, or other assistance needed to carry on projects that are undertaken in connection with these programs. These projects may include, without limitation, activities designed (1) to encourage greater numbers of persons to participate, as volunteers, in local programs and projects assisted under this Act, with particular emphasis upon programs designed to aid youth or promote child development; (2) to encourage persons with needed managerial, professional, or technical skills to contribute those skills to programs for the development or betterment of urban and rural neighborhoods or areas having especially lar^e concentrations or proportions of the poor, with particular emphasis upon helping residents of those neighborhoods or areas to develop the competence necessary to take advantage of public and private resources which would not otherwise be available or used for those programs; and (3) to assist existing national and local agencies relying upon or in need of volunteers to obtain volunteer services more readily, or to provide specialized short-term training, with particular emphasis on agencies serving the most seriously disadvantaged, operating in areas of the most concentrated poverty, or having similar critical needs. " (b) Persons serving as volunteers under this section shall receive no living allowance or stipend and only such other support or allowances as the Director determines, pursuant to regulations, are required because of unusual or special circumstances affecting the project. "(c) The services of any person, if otherwise allowable as a nonFederal contribution toward the cost of any program or project assisted under this or any other Federal Act, shall not be disallowed merely by reason of actions of the Director under this section in providing for or assisting in the recruitment, referral, or preservice training of such person. ((SPECIAL

VOLUNTEER PROGRAMS

"SEC. 821. The Director is authorized to conduct, or provide by grant or contract for, special volunteer programs designed to stimulate and initiate improved methods of providing volunteer services and to encourage wider volunteer participation, in furtherance of the purposes of this title. Not to exceed 10 per centum of the sums appropriated or allocated from any appropriation to carry out this title for any fiscal year may be used for programs under this section. a DEMONSTRATION PROJECTS TO H E L P YOUNG ADULT C R I M I N A L OFFENDERS

"SEC. 822. (a) The Director is authorized to conduct, or to make grants, contracts, or other arrangements for the conduct of demonstration projects in not more than four areas during the fiscal year ending June 30, 1968, and in not more than six areas during each of the two succeeding fiscal years, under which—

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 81

PUBLIC LAW 90-222-DEC. 23, 1967

STAT.]

725

"(1) volunteers under part A, and members of the Teacher Ante, p. 67 2. Corps furnished pursuant to this section, provide criminal offenders aged sixteen through twenty-five with intensive education, training, and counseling for at least a six-month period prior to their release from confinement and for at least a six-month period thereafter; "(2) not more than one hundred such volunteers are employed pursuant to this section during the fiscal year ending June 30, 1968, and not more than one hundred and fifty such volunteers are so employed during each of the two succeeding fiscal years; " (3) the Commissioner of Education furnishes, on a reimbursable basis, for the purpose of this section, members of the Teacher Corps who have been recruited and trained by one or more institutions of higher education; and " (4) not more than forty such members are furnished pursuant to this section during the fiscal year ending June 30, 1968, and not more than sixty such members are so furnished during each of the two succeeding fiscal years. " (b) Members of the Teacher Corps enrolled for purposes of this section, who are not experienced teachers, shall be compensated at the rate of $75 per week plus $15 per week for each dependent. Such members who are experienced teachers shall be compensated at a rate to be fixed by the Commissioner of Education. Assignment of members of the Teacher Corps pursuant to this section shall be without regard to the provisions of section 513(c) of the Higher Education Act of 1965.

^"'^' P- 8^'"PART ii

C—GENERAL

PROVISIONS

COORDINATION W I T H OTHER PROGRAMS

"SEC. 831. The Director shall take necessary steps to coordinate volunteer programs authorized under this title with one another, with community action programs, and with other related Federal, State, local, and national programs. These steps shall include, to the extent feasible, actions to promote service by volunteers or former volunteers in the full-time programs authorized under part A in providing necessary suppjort to programs under part B, and actions to encourage persons serving as part-time or short-term volunteers to make commitments under part A as regular or associate full-time volunteers. The Director shall also consult with the heads of other Federal, State, local, and national agencies responsible for programs related to the purpose of this Act with a view to encouraging greater use of volunteer services in those programs and establishing in connection with them systematic procedures for the recruitment, referral, or necessary preservice orientation or training of part-time volunteers serving pursuant to this part. uPARTICIPATION

OF OLDER

PERSONS

"SEC. 832. I n carrying out this title, the Director shall take necessary steps, including the development of special projects where appropriate, to encourage the fullest participation of older persons and older persons membership groups as volunteers and participant agencies in the various programs and activities authorized under this title and, because of the high proportion of older persons within the poverty group, shall encourage the development of a variety of volunteer services to older persons, including special projects, to assure that they are served in proportion to their need.

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PUBLIC LAW 90-222-DEC. 23, 1967 "APPLICATION

OF FEDERAL

[81 STAT.

LAW

me^^'ia'win^°^" "SEC. 833. (a) Except as provided in subsection (b), volunteers applicability. under this title shall not be deemed Federal employees and shall not be subject to the provisions of laws relating to Federal employment. " (b) Individuals who receive either a living allowance or a stipend under part A shall, with respect to such services or training, (1) be deemed, for the purposes of subchapter III of chaj^ter 73 of title 5 of 5°us*c**73"f^^^ United States Code, persons employed in the executive branch of 7327. " the Federal Government, and (2) be deemed Federal employees to the same extent as enrollees of the Job Corps under section 116(a)(1), (2), and (3) of this Act, except that for purposes of the computation described in 1 1 6 (a)(2)(B) the monthly pay of a volunteer shall be deemed to be that received under the entrance salary for GS-7 under section 5332 of title 5, United States Code. a SPECIAL L I M I T A T I O N S

"SEC. 834. (a) The Director shall prescribe regulations to assure that service under this title is limited to activities which would not otherwise be performed and which will not result in the displacement of employed workers or impair existing contracts for service. " (b) All support, including transportation provided to volunteers under this title, shall be furnished at the lowest possible cost consistent with the effective operations of volunteer programs. "(c) No agency or organization to which volunteers are assigned hereunder, or which operates or supervises any volunteer program hereunder shall request or receive any compensation for services of volunteers supervised by such agency or organization. " (d) No funds authorized to be appropriated herein shall be directly or indirectly utilized to finance labor or anti-labor organization or related activity. "(e) Persons serving as volunteers under this title shall provide such information concerning their qualifications, including their ability to perform their assigned tasks and their integrity, as the Director shall prescribe and shall be subject to such procedures, for selection and approval as the Director may require. The Director may fix such special procedures for the selection and approval of low-income residents of the area to be served by a program who wish to become volunteers as he determines will contribute to carrying out the purposes of this title. ((1) U R A T I O N O F PROGRAM "SEC. 835. The Director shall carry out the programs provided for in this title during the fiscal year ending June 30, 1967, and the three succeeding fiscal years. For each such fiscal year only such sums may be appropriated as the Congress may authorize by law." TECHNICAL AMENDMENTS

42 USC 27512756.

42 USC 2771. 3 Vsc'ios^^'

SEC. 111. (a) Sections 121, 122,123, 124, and 125 of the Economic Opportunity Act of 1964 (and all references to such sections) are redesignated as 141, 142, 143, 144, and 145, respectively. ^]j^ Section 141 of such Act (and all references to such section) is redesignated as 161. (^) Section 105 of title 3, United States Code, is amended by inserting after "Executive Secretary of the National Aeronautics and Space Council," the following: "of the Executive Secretary of the Economic Opportunity Council,".

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STAT.]

PUBLIC LAW 90-^22-DEC. 23, 1967

TITLE II — I N V E S T I G A T I O N A N D E V A L U A T I O N BY THE COMPTROLLER GENERAL INVESTIGATION

SEC. 201. The Comptroller General of the United States (hereinafter in this title referred to as the Comptroller General) is authorized and directed to make an investigation in sufficient depth of programs and activities financed in vs^hole or in part by funds authorized under section 2 of this Act, in order to determine— (1) the efficiency of the administration of such programs and activities by the Office of Economic Opportunity and by local public and private agencies carrying out such programs and activities* and (2) the extent to which such programs and activities achieve the objectives set forth in the relevant part or title of the Economic Opportunity Act of 1964 authorizing such programs or ]^ ^^^' ^°^^ activities. note. REPORTS

SEC. 202. The Comptroller General shall make such interim reports as he deems advisable and shall transmit his final report to the Congress not later than December 1, 1968. Such final report shall contain a detailed statement of his findings and conclusions together with such recommendations, including recommendations for additional legislation as he deems advisable. POWERS OF THE COMPTROLLER GENERAL

SEC. 203. (a) The Comptroller General or, on the authorization of the Comptroller General, any officer of the General Accounting Office, may, for the purpose of carrying out the provisions of this title, hold such hearings, take such testimony, and sit and act at such times and places as he deems advisable. Any officer designated by the Comptroller General may administer oaths or affirmations to witnesses appearing before the Comptroller General or such designated officer. (b) Each department, agency, and instrumentality of the executive branch of the Government, including independent agencies, is authorized and directed to furnish to the Comptroller General, upon request made by him, such information as he deems necessary to carry out his functions under this title. (c) The Comptroller General is authorized— (1) to appoint and fix the compensation of such staff personnel as he deems necessary without regard to the provisions of title 5, United States Code, governing appointments in the competitive service, and without regard to the provisions of chapter 51 and 5 u e 5101subchapter III of chapter 53 of such title relating to classification 5115, sS331-. and General Schedule pay rates, and ssas.' (2) to procure temporary and intermittent services to the same extent as is authorized by section 3109 of title 5, United States ^° ^'^*' ^'^^ Code, but at rates not to exceed $100 a day for individuals. (d) The Comptroller General is authorized to enter into contracts with Federal or State agencies, private firms, institutions, and individuals for the conduct of research or surveys, the preparation of reports, and other activities necessary to the discharge of his duties under this title.

727

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PUBLIC LAW 90-225-DEC. 26, 1967

[81 STAT.

AUTHORIZATION

SEC. 204. There are hereby authorized to be appropriated such sums as may be necessary to carry out the provisions of this title. may TITLE III—CRIMINAL PROVISIONS Penalties. 78 Stat. 5 0 8. 42 USC 2701 note.

SEC. 301. (a) Whoever, being an officer, director, agent, or employee of, or connected in any capacity with, any agency receiving financial assistance under the Economic Opportunity Act of 1964 embezzles, willfully misapplies, steals, or obtains by fraud any of the moneys, funds, assets, or property which are the subject of a grant or contract of assistance pursuant to the Economic Opportunity Act of 1964, shall be fined not more than $10,000 or imprisoned for not more than two years, or both; but if the amount so embezzled, misapplied, stolen, or obtained by fraud does not exceed $100, he shall be fined not more than $1,000 or imprisoned not more than one year, or both. (b) Whoever, by threat of procuring dismissal of any person from employment or of refusal to employ or refusal to renew a contract of employment in connection with a grant or contract of assistance under the Economic Opportunity Act of 1964 induces any person to give up any money or thing of any value to any person (including such grantee agency), shall be fined not more than $1,000 or imprisoned not more than one year, or both. TITLE IV—EFFECTIVE DATE

78 Stat. 516; 80 Stat. 1456. 42 USC 2782.

Ante, 693.

pp 691,

SEC. 401. The amendments made by this Act shall be in effect immediately upon its enactment, except as provided in this section. Until June 30, 1968, the provisions of section 202 of the Economic Opportunity Act of 1964 as in effect immediately prior to the enactment of this Act shall apply to community action agencies in existence and funded prior to the enactment of this Act, except that in any grant or funding agreement made with such an agency prior to June 30, 1968, adequate provision shall be made for transfer of fuiictions, obligations, records, authority, and funds to any community action agency designated pursuant to sections 210 or 211 of the Economic Opportunity Act of 1964 as amended by this Act: Provided, however, That nothing in this Act shall rec^uire the termination before February 1, 1969 or an existing community action agency or any program assisted under the Economic Opportunity Act of 1964 prior to the designation of, and provision of financial assistance to, a community action agency or other agency established under sections 210 and 211 of the Economic Opportunity Act as amended by this Act. Approved December 23, 1967, 10:25 a.m., Cam Ranh Bay, So. Viet Nam. Public Law 90-223

December 26, 1967 [H. R. 8715]

D.C. Alcoholic Beverage Control Act, amendment. 50 Stat. 803.

AN ACT To amend the District of Columlua Alcoholic Beverage Control Act to limit the amount of wines, spirits, and beer that may be brought into the District of Columbia.

Be it enacted by the SeTiate and House of Representatives of the United States of America in Congress assembled, That subsection (b) of section 39 of the District of Columbia Alcoholic Beverage Control Act (D.C. Code, sec. 25-137) are amended by striking out "one gallon at any one time" and inserting in lieu thereof "one quart in any one calendar month". Approved December 26, 1967.

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PUBLIC LAW 90-224-DEC. 26, 1967

729

Public Law 90-224 AN ACT

December 26, 1967

To authorize the extension of certain naval vessel loans now in existence and new loans, and for other purposes.

[H. R. 6167}

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, That, notwith- Loln^^^ension. standing section 7307 of-title 10, United States Code, or any other 7OA Stat. 452. law, the President may extend on such terms and under such conditions as he deems appropriate the loan of ships, previously authorized as indicated, as follows: (1) Argentina, three destroyers (Act of July 18, 1958 (72 Stat. 376)); (2) Brazil, two destroyers and two submarines (Act of July 18, 1958 (72 Stat. 3 7 6)); (3) Chile, two i8^7°8e^?878f" submarines and two destroyers (Act of July 18, 1958 (72 Stat. 376)); (4) Colombia, one destroyer (Act of July 18, 1958 (72 Stat. 376)); (5) Federal Republic of Germany, one destroyer (Act of August 5, 1953 (67 Stat. 363), as amended by Act of August 3, 1956 (70 Stat, so use app. 967)); (6) Greece, one submarine (Act of August 5, 1953 (67 Stat. 1878-1878d. 363), as amended by Act of August 3, 1956 (70 Stat. 967)), two destroyers (Act of October 4, 1961 (75 Stat. 815)); (7) Korea, two J^^^'^^^^^f^'' destroyer escorts (Act of August 5, 1953 (67 Stat. 363), as amended), one destroyer and one destroyer escort (Act of October 4, 1961 (75 —. Stat. 815)); (8) Portugal, two destroyer escorts (Act of August 5, 1953 (67 Stat. 363), as amended by Act of August 3, 1956 (70 Stat. 967)); (9) Spain, two destroyers (Act of August 5, 1953 (67 Stat. 363), as amended by Act of August 3, 1956 (70 Stat. 9 6 7)); (10) Peru, one destroyer (Act of July 18, 1958 (72 Stat. 376)). SEC. 2. Notwithstanding section 7307 of title 10, United States Code, KSel^'R^ublic or any other provision of law, the President may lend two destroyers of°c^hina.^^" to the Government of Korea and one destroyer to the Republic of China, in addition to any ships previously authorized to be loaned to these nations, with or without reimbursement and on such terms and under such conditions as the President may deem appropriate. All expenses involved in the activation, rehabilitation, and outfitting (including repairs, alterations, and logistic support) of ships transferred under this section shall be charged to funds programed for the recipient government as grant military assistance, or as reimbursable, under the provisions of the Foreign Assistance Act of 1961, as amended, or successor legislation. The authority of the President 22 USC' 2K 1 to lend naval vessels under this section shall terminate on December 31, note. 1969. SEC. 3. All new loans and loan extensions executed under this Act loa^f'^on-"' shall be for periods not exceeding five years, but the President may in d°uk^'''°"" ions. his discretion extend such loans for an additional period of not more than five years. Any agreement for a new loan or for the extension of a loan executed under this Act shall be made subject to the condition that the agreement may be terminated by the President if he finds that the armed forces of the borrowing country have engaged, at any time after the date of such agreement, in acts of warfare against any country which is a party to a mutual defense treaty ratified by the United States. Any agreement for a new loan or for the extension of a loan executed pursuant to this Act shall be subject to the condition that the agreement will be immediately terminated upon a finding made by the President that the country with which such agreement was made has seized any United States fishing vessel on account of its fishing activities in international waters, except that such condition shall not be applicable in any case governed by international agreement to which the United States is a party. All loans and loan extensions shall be made on the condition that they

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Notice to Congress.

PUBLIC LAW 90-225-DEC. 27, 1967

[81 STAT.

may be terminated at an earlier date if necessitated by the defense requirements of the United States. SEC. 4. No loan may be made or extended under this Act unless the Secretary of Defense, after consultation with the Joint Chiefs of Staff, determines that such loan or extension is in the best interest of the United States. The Secretary of Defense shall keep the Congress currently advised of all loans made or extended under this Act. SEC. 5. The President may promulgate such rules and regulations as he deems necessary to carry out the provisions of this Act. Approved December 26, 1967, 4:09 p.m.

Public Law 90-225 December 27, 1967 [H. R. 4765]

Taxes. Bank Holding Company distfibutions. 26 USC 1102. 12 USC 1841 note.

80 Stat. 236. 70 Stat. 139.

AN ACT To amend the Internal Revenue Code of 19.14 \A'ith respect to the income tax t r e a t m e n t of certain distributions pursuant to the Bank Holding Company Act of 1956, as amended, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress oAsembled^ That section 1102 of the Internal Revenue Code of 1954 (relating to special rules for income tax treatment of distributions pursuant to the Bank Holding Company Act of 1956) is amended by adding at the end thereof the following new subsection: "(e) CERTAIN B A N K HOLDING COMPANIES.—This part shall apply in respect of any company which becomes a bank holding company as a result of the enactment of the Act entitled 'An Act to amend the Bank Holding Company Act of 1956', approved July 1, 1966 (Public Law 89-485), with the following modifications: "(1) Subsections (a)(3) and (b)(3) of section 1101 shall not apply. "(2) Subsections (a)(1) and (2) and (b)(1) and (2) of section 1101 shall apply in respect of distributions to shareholders of the distributing bank holding corporation only if all distributions \a each class of shareholders which are made— " (A) after April 12, 1965, and " (B) on or before the date on which the Board of Governors of the Federal Reserve System makes its final certification under section 1101(e), are pro rata. For purposes of the precedin|^ sentence, any redemption of stock made in whole or in part with property other than money shall be treated as a distribution. "(3) In applying subsections (c) and (d) of section 1101 and ID,

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PUBLIC LAW 90-225-DEC. 27, 1967

STAT.]

731

subsection (b) of section 1103, the date 'April 12, 1965' shall be ^^ Stat. i44. substituted for the date 'May 15, 1955'. "(4) I n applying subsection (d)(3) of section 1101, the date of the enactment of this subsection shall be treated as being the date of the enactment of this part. "(5) In applying subsection (b)(2)(A) of section 1103, the reference to the Bank Holding Company Act of 1956 shall be treated as referring to such Act as amended by Public Law 89-485." The amendment made by this section shall apply with respect to distri- Effective date, butions made after the date of the enactment of this Act in taxable years ending after such date. SEC. 2. (a) Section 46(b) of the Internal Revenue Code of 1954 ^"vestment /

1,•

,

1 1

1

/.

!•

,.,.

credit carry.'

(relating to carryback and carryover oi unused investment credits) is backs, amended by striking out paragraph (3) (relating to effect of net oper- '^^ s*^** ^''^• ating loss carryback). (b) Section 6411(a) of such Code (relating to application for tenta- ^° ^*^*- ^•^^°tive carryback adjustment) is amended by inserting after "within a period of 12 months from the end of such taxable year" in the second sentence the following: "(or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, within a period of 12 months from the end of such subsequent taxable year)". (c) Section 6501(j) of such Code (relating to limitations on assess- '^^ Stat. 971. ment in the case of investment credit carrybacks) is amended by inserting before the period at the end thereof the following: ", or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, at any time before the expiration of the period within which a deficiency for such subsequent taxable year may be assessed". 76 Stat. 971. (d) Section 6511(d)(4)(A) of such Code (relating to special period of limitation on refunds with respect to investment credit carrybacks) is amended by inserting after "which results in such carryback" in the first sentence the following: "(or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, the period shall be that period which ends with the expiration of the 15th day of the 40th month, or 39th month, in the case of a corporation, following the end of such subsequent taxable year)". (e) Section 6601(e)(2) of such Code (relating to interest on underpayments, etc.) is amended by inserting before the period at the end thereof the following: ", or with respect to any portion of an investment credit carryback from a taxable year attributable to a net oper-

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Page:United States Statutes at Large Volume 81.djvu/766

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Effective date.

Operating loss carrybacks. 76 Stat. 889; 78 Stat. 47.

PUBLIC LAW 90-225-DEC. 27, 1967

[81 STAT.

ating loss carryback from a subsequent taxable year, such increase shall not affect the computation of interest under this section for the period ending with the last day of such subsequent taxable year". (f) Section 6611(f)(2) of such Code (relating to interest on overpayments) is amended by inserting before the period at the end thereof the following: ", or, with respect to any portion of an investment credit carryback from a taxable year attributable to a net operating loss carryback from a subsequent taxable year, such overpayment shall be deemed not to have been made prior to the close of such subsequent taxable year". (g) The amendments made by this section shall apply with respect to investment credit carrybacks attributable to net operating loss carrybacks from taxable years ending after July 31, 1967. SEC. 3. (a) Section 172(b) of the Internal Revenue Code of 1954 (relating to net operating loss carrybacks and carryovers) is amended— (1) by striking out "subparagraph (D) " in paragraph (1)(A) (i) and inserting in lieu thereof "subparagraphs (D) and (E) "; (2) by striking out "subparagraphs (C) and (D) " in paragraph (1)(B) and inserting in lieu thereof "subparagraphs (C), (D),and(E)"; (3) by adding at the end of paragraph (1) the following new subparagraph: " (E) I n the case of a taxpayer which is a domestic corporation qualifying under paragraph (3)(E), a net operating loss for any taxable year ending after December 31, 1966, and prior to January 1, 1969, shall be a net operating loss carryback to each of the 5 taxable years preceding the taxable year of such loss and shall be a net operating loss carryover to each of the 3 taxable years following the taxable year of such loss."; and (4) by adding at the end of paragraph (3) the following new subparagraphs: " (E) Paragraph (1)(E) shall apply only if— " (i) the amount of the taxpayer's net operating loss for the taxable year exceeds the sum of the taxable income (computed as provided in paragraph (2)) for each of the 3 preceding taxable years of the taxpayer, "(ii) the amount of the taxpayer's net operating loss for the taxable year, increased by the amount of the taxpayer's net operating loss for the preceding taxable year or decreased by the amount of the taxpayer's taxable income for such preceding year, exceeds 15 percent of the sum of the money and other property (in an amount

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