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 95 STAT. 494

PUBLIC LAW 97-35—AUG. 13, 1981 (2) operate or improve the operation of farms not larger than family sized, including but not limited to the purchase of feed, seed, fertilizer, livestock, poultry, and equipment; or (8) participate in cooperative associations, or finance nonagricultral enterprises which will enable such families to supplement their income, (b) The Secretary is authorized to provide financial assistance to local cooperative associations or local public and private nonprofit organizations or agencies in rural areas containing concentrations or substantial numbers of low-income persons for the purpose of defraying all or part of the costs of establishing and operating cooperative programs for farming, purchasing, marketing, processing, and to improve their income as producers and their purchasing power as consumers, and to provide such essentials as credit and health services. Costs which may be defrayed shall include— (1) administrative costs of staff and overhead; (2) costs of planning and developing new enterprises; (3) costs of acquiring technical assistance; and (4) initial capital where it is determined by the Secretary that the poverty of the families participating in the program and the social conditions of the rural area require such assistance. LIMITATION ON ASSISTANCE

42 USC 9811.

SEC. 622. No financial assistance shall be provided under this part unless the Secretary determines that— (1) any cooperative association receiving assistance has a minimum of fifteen active members, a majority of which are lowincome rural persons; (2) adequate technical assistance is made available and committed to the programs being supported; (3) such financial assistance will materially further the purposes of this part; and (4) the applicant is fulfilling or will fulfill a need for services, supplies, or facilities which is otherwise not being met.

PART 3—DEVELOPMENT LOANS TO COMMUNITY ECONOMIC DEVELOPMENT PROGRAMS DEVELOPMENT LOAN FUND

42 USC 9812.

Post, p. 511.

SEC. 623. (a) The Secretary is authorized to make or guarantee loans (either directly or in cooperation with banks or other organizations through agreements to participate on an immediate or deferred basis) to community development corporations, to families and local cooperatives and the designated supportive organizations of cooperatives eligible for financial assistance under this subchapter, to private nonprofit organizations receiving assistance under subtitle B of this title, or to public and private nonprofit organizations or agencies, for business facilities and community development projects, including community development credit unions, which the Secretary determines will carry out the purposes of this part. No loans, guarantees, or other financial assistance shall be provided under this section unless the Secretary determines that— (1) there is reasonable assurance of repayment of the loan; (2) the loan is not otherwise available on reasonable terms from private sources or other Federal, State, or local programs; and

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 495

(3) the amount of the loan, together with other funds available, is adequate to assure completion of the project or achievement of the purposes for which the loan is made. Loans made by the Secretary pursuant to this section shall bear interest at a rate not less than a rate determined by the Secretary of the Treasury taking into consideration the average market yield on outstanding Treasury obligations of comparable maturity, plus such additional charge, if any, toward covering other costs of the program as the Secretary of Health and Human Services may determine to be consistent with its purposes, except that, for the 5 years following the date in which funds are initially available to the borrower, the rate of interest shall be set at a rate considered appropriate by the Secretary in light of the particular needs of the borrower, which rate shall not be lower than 1 percent. All such loans shall be repayable within a period of not more than 30 years. Ob) The Secretary is authorized to adjust interest rates, grant moratoriums on repayment of principal and interest, collect or compromise any obligations held by the Secretary, and to take such other actions in respect to such loans as the Secretary shall determine to be necessary or appropriate, consistent with the purposes of this section. (c)(1) To carry out the lending and guaranty functions authorized under this part, there shall be established a Development Loan Fund consisting of two separate accounts, one of which shall be a revolving fund called the Rural Development Loan Fund and the other of which shall be a revolving fund called the Community Development Loan Fund. The capital of each such revolving fund shall remain available until expended. (2) The Rural Development Loan Fund shall consist of the remaining funds provided for in part A of title III of the Economic Opportunity Act of 1964, as in effect on September 19, 1972, and such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this part. The Secretary shall utilize the services of the Farmers Home Administration in administering such fund. (3) The Community Development Loan Fund shall consist of such amounts as may be deposited in such fund by the Secretary out of funds made available from appropriations for purposes of carrying out this subchapter. The Secretary may make deposits in the Community Development Loan Fund in any fiscal year in which the Secretary has made available for grants to community development corporations under this subchapter not less than $60,000,000 out of funds made available from appropriations for purposes of carrying out this subchapter.

Rural Development Loan Fund and Community Development Loan Fund^ Establishment.

42 USC 285L

ESTABLISHMENT OF MODEL COMMUNITY ECONOMIC DEVELOPMENT FINANCE CORPORATION

SEC. 624. To the extent he deems appropriate, the Secretary shall 42 USC 9813. utilize funds available under this part to prepare a plan of action for the establishment of a Model Community Economic Development Finance Corporation to provide a user-controlled independent and professionally operated long-term financing vehicle with the principal purpose of providing financial support for community economic development corporations, cooperatives, other affiliated and supportive agencies and organizations associated with community economic development corporations, and other entities eligible for assistance under this subchapter.

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Page:United States Statutes at Large Volume 95.djvu/522

 95 STAT. 496

PUBLIC LAW 97-35—AUG. 13, 1981 PART 4—SUPPORTIVE PROGRAMS AND ACTIVITIES TRAINING AND TECHNICAL ASSISTANCE

42 USC 9814.

SEC. 625. (a) The Secretary shall provide, directly or through grants, contracts, or other arrangements, such technical assistance and training of personnel as may be required to effectively implement the purposes of this subchapter. No financial assistance shall be provided to any public or private organization under this section unless the Secretary provides the beneficiaries of these services with opportunity to participate in the selection of and to review the quality and utility of the services furnished them by such organization. (b) Teclmical assistance to community development corporations and both urban and rural cooperatives may include planning, management, legal assistance or support, preparation of feasibility studies, product development, marketing, and the provision of stipends to encourage skilled professionals to engage in full-time activities under the direction of a community organization financially assisted under this subchapter. (c) Training for employees of community development corporations and for employees and members of urban and r u r ^ cooperatives shall include on-the-job training, classroom instruction, and scholarships to assist them in development, managerial, entrepreneurial, planning, and other technical and organizational skills which will contribute to the effectiveness of programs assisted under this subchapter. SMALL BUSINESS ADMINISTRATION AND DEPARTMENT OF COMMERCE PROGRAMS

SEC. 626. (a)(1) Funds granted under this subchapter which are invested directly or indirectly, in a small investment company, local development company, limited small business investment company, or small business investment company licensee under section 301(d) 15 USC 681. of the Small Business Investment Act of 1958 shall be included as "private paid-in capital and paid-in surplus", "combined paid-in capital and paid-in surplus", and "paid-in capital" for purposes of 15 USC 682, 683, sections 302,303, and 502, respectively, of the Small Business Invest696. ment Act of 1958. Regulations. (2) Not later than 90 days after the date of the enactment of this Act, the Administrator of the Small Business Administration, after consultation with the Secretary, shall promulgate regulations to ensure the availability to community development corporations of such programs as shall further the purposes of this subchapter, 15 USC 637. including programs under section 8(a) of the Small Business Act. (b)(l) Areas selected for assistance under this subchapter shall be deemed "redevelopment areas" within the meaning of section 401 of 42 USC 3161. the Public Works and Economic Development Act of 1965, shall qualify for assistance under the provisions of title I and title 11 of such 42 USC 3131, Act, and shall be deemed to have met the overall economic develop3141._ ment program requirements of section 202(b)(10) of such Act. 42 USC 3142. (2) Not later than 90 days after the date of the enactment of this Regulations. Act, the Secretary of Commerce shall prescribe regulations which will ensure that community development corporations and cooperatives shall qualify for assistance and shall be eligible to receive such assistance under all such programs of the Economic Development Administration as shall further the purposes of this subchapter. 42 USC 9815.

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 497

DEPARTMENT OP HOUSING AND URBAN DEVELOPMENT PROGRAMS

SEC. 627. The Secretary of Housing and Urban Development, after consultation with the ^ r e t a r y, shall take all necessary steps to assist community development corporations and local cooperative associations to qualify for and receive (1) such assistance in connection with technical assistance, counseling to tenants and homeowners, and loans to sponsors of low-income and moderate-income housing under section 106 of the Housing and Urban Development Act of 1968, as amended by section 811 of the Housing and Community Development Act of 1974; (2) such land for housing and business location and expansion under title I of the Housing and Community Development Act of 1974; and (3) such funds for comprehensive planning under section 701 of the Housing Act of 1954, as amended by section 401 of the Housing and Community Development Act of 1974, as shall further the purposes of this subchapter.

42 USC 9816.

12 uSc i70ix. 42iJSC530i. 40 USC 461.

DEPARTMENT OF AGRICULTURE AND FARMERS HOME ADMINISTRATION PROGRAMS

SEC. 628. The Secretary of Agriculture or, where appropriate, the Administrator of the Farmers Home Administration, after consultation with the Secretary of Health and Human Services, shall take all necessary steps to ensure that community development corporations and local cooperative associations shall qualify for and shall receive— (1) such assistance in connection with housing development under the Housing Act of 1949, as amended; (2) such assistance in connection with housing, business, industrial, and community development under the Consolidated Farmers Home Administration Act of 1961 and the Rural Development Act of 1972; and (3) such further assistance under all such programs of the United States Dep£u*tment of Agriculture; as shall further the purposes of this subchapter.

42 USC 9817.

42 USC 1441 ^* ^ use 1921 note, 7 USC 1921 note.

COORDINATION AND ELIGIBILITY

SEC. 629. (a) The Secretary shall take all necessary and appropriate 42 USC 98i8. steps to encourage Federal departments and agencies and State and local governments to make grants, provide technical assistance, enter into contracts, and generally support and cooperate with community development corporations and local cooperative associations. (b) Eligibility for assistance under other Federal programs shall not be denied to any applicant on the ground that it is a community development corporation or £my other entity assisted under th& subchapter. EVALUATION AND RESEARCH

SEC. 630. (a) Each program for which grants are made under this 42TJSC^gI5. subchapter shall provide for a thorough evaluation of the effectiveness of the program in achieving its purposes, which evaluation shall be conducted by such public or private organizations as the Secretary in consultation with existing grantees familiar with programs carried out under the Community Services Block Grant Act may designate. Post, p. 511. and all or part of the costs of evaluation may be paid from funds appropriated to carry out this part. In evaluating the performance pf any community development corporation funded under part 1, the criteria for evaluation shall be based upon such program objectives.

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 95 STAT. 498

PUBLIC LAW 97-35—AUG. 13, 1981 goals, and priorities as are consistent with the purposes of this subchapter and were set forth by such community development corporation in its proposal for fun(Ung as approved and agreed upon by or as subsequently modified from time to time by mutual agreement between the Secretary and such community development corporation. (b) The Secretary shall conduct, either directly or through grants or other arrangements, research and demonstration projects designed to suggest new programs and policies to achieve the purposes of this subchapter in such ways as to provide opportunities for employment, ownership, and a better quality of life for low-income residents. PLANNING GRANTS

42 USC 9820.

SEC. 631. In order to facilitate the purposes of this subchapter, the Secretary is authorized to provide financial assistance to any public or private nonprofit agency or organization for planning of community economic development programs and cooperative programs under this subchapter. NONDISCRIMINATION PROVISIONS

42 USC 9821.

SEC. 632. (a) The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs, (b) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence 42 USC 2000d-i. in accordance with section 602 of the Civil Rights Act of 1964. Section 42 USC 2000d-2. 603 of such Act shall apply with respect to any action taken by the Secretary to enforce such sentence. This section shall not be construed as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connection with, any program, project, or activity receiving assistance under this subchapter. AVAILABILITY OP CERTAIN APPROPRIATED FUNDS

42 USC 9822. 42 USC 2981.

SEC. 633. Funds appropriated to the Rural Development Loan Fund under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall be deposited in the Rural Development Loan Fund established under section 623(c)(1) and shall continue to be available to carry out the purposes of such fund. Funds appropriated to the Community Development Credit Union Revolving Loan Fund under title VII of the Economic Opportunity Act of 1964 (as in effect on the day before the date of the enactment of this Act), and interest accumulated in such fund, shall continue to be available to carry out the purposes of such fund.

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 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 499

Subchapter B—Head Start Programs

Head start Act.

SHORT TITLE

SEC. 635. This subchapter may be cited as the "Head Start Act". 42 USC 980i note. STATEMENT OF PURPOSE AND POLICY

SEC. 636. (a) In recognition of the role which Project Head Start has 42 USC 9831. played in the effective delivery of comprehensive health, educational, nutritional, social, and other services to economically disadvantaged children and their families, it is the jpurpose of this subchapter to extend the authority for the appropriation of funds for such program. (b) In carrying out the provisions of this subchapter, the Secretary of Health and Human Services shall continue the administrative arrangement responsible for meeting the needs of migrant and Indian children and shall assure that appropriate funding is provided to meet such needs. DEFINrnONS

SEC. 637. For purposes of this subchapter: 42 USC 9832. (1) The term "Secretary" means the Secretary of Health and Human Services. (2) The term "State" means a State, the Commonwealth of Puerto Rico, the District of Columbia, Guam, American Samoa, the Virgin Islands, the Trust Territory of the Pacific Islands, and the Northern Mariana Islands. (3) The term "financial assistance" includes assistance provided by grant, agreement, or contract, and payments may be made in installments and in advance or by way of reimbursement with necessary adjustments on account of overpayments or underpa}mients. FINANCIAL ASSISTANCE FOR HEAD START PROGRAMS

SEC. 638. The Secretary may, upon application by an agency which 42 USC 9833. is eligible for designation as a Head Start agency pursuant to section 641, provide financial assistance to such agency for the planning, conduct, administration, and evaluation of a Head Start program focused primarily upon children from low-income families who have not reached the age of compulsory school attendance which (1) will provide such comprehensive health, nutritional, educational, social, and other services as will aid the children to attain their full potential; and (2) will provide for direct participation of the parents of such children in the development, conduct, and overall program direction at the local level. AUTHORIZATION OF APPROPRIATIONS

SEC. 639. There is authorized to be appropriated for carrying out 42 USC 9834. the provisions of this subchapter $950,000,000 for fiscal year 1982, $1,007,000,000 for fiscal year 1983, and $1,058,357,000 for fiscal year 1984. ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

SEC. 640. (a)(1) Of the sums appropriated pursuant to section 639 for 42 USC 9835. any fiscal year beginning after September 30, 1981, the Secretary shall allot such sums in accordance with paragraphs (2) and (3).

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 95 STAT. 500

PUBLIC LAW 97-35~-AUG. 13, 1981 (2) The Secretary shall reserve 13 percent of the amount appropriated for each fiscal year for use in accordance with the following order of priorities— (A) Indian and migrant Head Start programs and services for handicapped children, except that— (i) there shall be made available for use by Indian and migrant Head Start programs, on a nationwide basis, no less funds for fiscal year 1982 and each subsequent fiscal year than were obligated for use by Indian and migrant Head Start programs for fiscal year 1981; and (ii) cost-of-living adjustments shall be made with respect to such Indian and migrant Head Stsirt programs for fiscal year 1982 and each subsequent fiscal year, and such adjustments shall, at the minimum, reflect changes in the Consumer Price Index published by the Bureau of Labor Statistics of the Department of Labor; (B) payments to Guam, American Samoa, the Trust Territory of the Pacific Islands, the Northern Mariana Islands, and the Virgin Islands according to their respective needs, except that such amount shall not exceed one-half of 1 percent of the sums appropriated for any fiscsil year; (C) training and technical assistance activities which are sufficient to meet the needs associated with program expansion and to foster program and management improvement activities; and (D) discretionary payments made by the Secretary. (3) The Secretary shall allot the remaining 87 percent of the amounts appropriated in each fiscal year among the States, in accordance with latest satisfactory data so that— (A) each State receives an amount which is equal to the amount the State received for fiscal year 1981; and (B)(i) 33 V percent of any amount available after all allotments a have been made under clause (A) for such fiscal year shall be distributed on the basis of the relative number of children from birth through 18 years of age, on whose behalf payments are made under the program of aid to families with dependent children under a State plan approved under part A of title IV of the Social Security Act in each State as compared to all States; and (ii) 66% percent of such amount shall be distributed on the basis of the relative number of children from birth through 5 years of age living with families with incomes below the poverty line in each State as compared to all States. (4) For purposes of this subsection, the term "State" does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, or the Trust Territory of the Pacific Islands. (b) Financial assistance extended under this subchapter for a Head Start program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Feder£d contributions may be in cash or in kind, fairly evaluated, including plant, equipment, or services. The Secretary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this subchapter.

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 PUBLIC LAW 97-35—AUG. 13, 1981 (c) No programs shall be approved for assistance under this subchapter unless the Secretary is satisfied that the services to be provided under such program will be in addition to, and not in substitution for, comparable services previously provided without Federal assistance. The requirement imposed by the preceding sentence shall be subject to such regulations as the Secretary may prescribe. (d) The Secretary shall establish policies and procedures designed to assure that for fiscal year 1982 and thereafter no less than 10 ercent of the total number of enrollment opportunities in Head tart programs in each State shall be available for handicapped children (as defined in paragraph (1) of section 602 of the Education of the Handicapped Act) and that services shall be provided to meet their special needs. The Secretary shall report to the Congress at least annually on the status of handicapped children in Head Start programs, including the number of children being served, their handicapping conditions, and the services being provided such children. (e) The Secretary shall adopt appropriate administrative measures to assure that the benefits of this subchapter will be distributed equitably between residents of rural and urban areas.

95 STAT. 501

g

20 USC 3192. Report to Congress.

DESIGNATION OF HEAD START AGENCIES

SEC. 641. (a) The Secretary is authorized to designate as a Head 42 USC 9836. Start agency any local public or private nonprofit agency which (1) has the power and authority to carry out the purposes of this subchapter and perform the functions set forth in section 642 within a community; and (2) is determined by the Secretary to be capable of planning, conducting, administering, and evaluating, either directly or by other arrangements, a Head Start program. (b) For purposes of this subchapter, a community may be a city, "eommunity.' county, or multicity or multicounty unit within a State, an Indian reservation, or a neighborhood or other area (irrespective of boundaries or political subdivisions) which provides a suitable organizational base and possesses the commonality of interest needed to operate a Head Start program. (c) In the administration of the provisions of this section, the Secretary shall give priority in the designation of Head Start agencies to any local public or private nonprofit agency which is receiving funds under any Head Start program on the date of the enactment of this Act, except that— (1) the Secretary shall, before giving such priority, determine that the agency involved meets program and fiscal requirements established by the Secretary; and (2) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, then the Secretary shall give priority in the designation of Head Start agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made. The provisions of clause (2) shall apply only to agencies actually operating Head Start programs. (d) The Secretary shall require that the practice of significantly involving parents and area residents affected by the program in selection of Head Start agencies be continued.

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 95 STAT. 502

PUBLIC LAW 97-35—AUG. 13, 1981 POWERS AND FUNCTIONS OF HEAD START AGENCIES

42 USC 9837.

SEC. 642. (a) In order to be designated as a Head Start agency under this subchapter, an agency must have authority under its charter or applicable law to receive and administer funds under this subchapter, funds and contributions from private or local public sources which may be used in support of a Head Start program, and funds under any Federal or State assistance program pursuant to which a public or private nonprofit agency (as the case may be) organized in accordance with this subchapter, could act as grantee, contractor, or sponsor of projects appropriate for inclusion in a Head Start program. Such an agency must also be empowered to transfer funds so received, and to delegate powers to other agencies, subject to the powers of its governing board and its overall program responsibilities. The power to transfer funds and delegate powers must include the power to make transfers and delegations covering component projects in all cases where this will contribute to efficiency and effectiveness or otherwise further program objectives. (b) In order to be so designated, a Head Start agency must also (1) establish effective procedures by which parents and area residents concerned will be enabled to directly participate in decisions that influence the character of programs affecting their interests; (2) provide for their regular participation in the implementation of such programs; (3) provide technical and other support needed to enable parents and area residents to secure on their own behalf available assistance from public and private sources; and (4) establish procedures to seek reimbursement, to the extent feasible, from other agencies for services for which any such other agency is responsible, which are provided to a Head Start participant by the Head Start agency. (c) The head of each Head Start agency shall coordinate with other programs serving the children in the Head Start agency to carry out the provisions of this subsection. SUBMISSION OF PLANS TO GOVERNORS

42 USC 9838.

SEC. 643. In carrying out the provisions of this subchapter, no contract, agreement, grant, or other assistance shall be liiade for the purpose of carrying out a Head Start program within a State unless a plan setting forth such proposed contract, agreement, grant, or other assistance has been submitted to the Governor of the State, and such plan has not been disapproved by the Governor within 30 days of such submission, or, if so disapproved, has been reconsidered by the Secretary and found by the Secretary to be fully consistent with the provisions and in furtherance of the purposes of this subchapter. Funds to cover the costs of the proposed contract, agreement, grant, or other assistance shall be obligated from the appropriation which is current at the time the plan is submitted to the Governor. 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 enactment of this Act. ADMINISTRATIVE REQUIREMENTS AND STANDARDS

42 USC 9839.

SEC. 644. (a) Each Head Start agency shall observe standards of organization, management, and administration which will assure, so far as reasonably possible, that all program activities are conducted in a manner consistent with the purposes of this subchapter and the

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95 STAT. 503

objective of providing assistance effectively, efficiently, and free of any taint of partisan political bias or personal or family favoritism. Each such agency shall establish or adopt rules to carry out this section, which shall include rules to assure full staff accountability in matters governed by law, regulations, or agency policy. Each agency shall also provide for reasonable public access to information, including public hearings at the request of appropriate community groups and reasonable public access to books and records of the agency or other agencies engaged in program activities or operations involving the use of authority or funds for which it is responsible. Each such agency shall adopt for itself and other agencies using funds or exercising authority for which it is responsible, rules designed to (1) establish specific standards governing salaries, salary increases, travel and per diem allowances, and other employee benefits; (2) assure that only persons capable of discharging their duties with competence and integrity are employed and that employees are promoted or advanced under impartisd procedures calculated to improve agency performance and effectiveness; (3) guard against personal or financial conflicts of interest; and (4) define employee duties in an appropriate manner which will in any case preclude employees from participating, in connection with the performance of their duties, in any form of picketing, protest, or other direct action which is in violation of law. (b) No financial assistance shall be extended under this subchapter in any case in which the Secretary determines that the costs of developing and administering a program assisted under this subchapter exceed 15 percent of the total costs, including non-Federal contributions to such costs, of such program. The Secretary shall establish by regulation, criteria for determining (1) the costs of developing and administering such program; and (2) the total costs of such program. In any case in which the Secretary determines that the cost of administering such program does not exceed 15 percent of such total costs but is, in the judgment of the Secretary, excessive, the Secretary shall forthwith require the recipient of such financial assistance to take such steps prescribed by the Secretary as will eliminate such excessive administrative cost, including the sharing by one or more Head Start agencies of a common director and other administrative personnel. The Secretary may waive the limitation prescribed by this subsection for specific periods of time not to exceed 12 months whenever the Secretary determines that such a waiver is necessary in order to carry out the purposes of this subchapter. (c) The Secretary shall prescribe rules or regulations to supplement Regulations subsection (a), which shall be binding on all agencies carrying on Head Start program activities with financial assistance under this subchapter. The Secretary may, where appropriate, establish special or simplified requirements for smaller agencies or agencies operating in rural areas. Policies and procedures shall be established to ensure that indirect costs attributable to the common or joint use of facilities and services by programs assisted under this subchapter and other programs shall be fairly allocated among the various programs which utilize such facilities and services, (d) At least 30 days prior to their effective date, all rules, regula- Publication in tions, guidelines, instructions, and application forms shall be pub- Federal lished in the Federal Register and shall be sent to each grantee with Register. the notification that each such grantee has the right to submit comments pertaining thereto to the Secretary prior to the final adoption thereof. 89-194 0—82

34:QL3

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 95 STAT. 504

PUBLIC LAW 97-35—AUG. 13, 1981 PARTICIPATION IN HEAD START PROGRAMS

42 USC 9840.

42 USC 254c. 42 USC 254e.

SEC. 645. (a)(1) The Secretary shall by regulation prescribe eligibility for the participation of persons in Head Start programs assisted under this subchapter. Except as provided in paragraph (2), such criteria may provide (A) that children from low-income families shall be eligible for participation in programs assisted under this subchapter if their families' incomes are below the poverty line, or if their families are eligible or, in the absence of child care, would potentially be eligible for public assistance; and (B) pursuant to such regulations as the Secretary shall prescribe, that programs assisted under this subchapter may include, to a reasonable extent, participation of children in the area served who would benefit from such programs but whose families do not meet the low-income criteria prescribed pursuant to clause (A). (2) Whenever a Head Start program is operated in a community with a population of 1,000 or less individuals and— (A) there is no other preschool program in the community; (B) the community is located in a medically underserved area, as designated by the Secretary pursuant to section 330(b)(3) of the Public Health Service Act and is located in a health manpower shortage area, as designated by the Secretary pursuant to section 332(a)(1) of such Act; (C) the community is in a location which, by reason of remoteness, does not permit reasonable access to the types of services described in clauses (A) and (B); and (D) not less than 50 percent of the families to be served in the community are eligible under the eligibility criteria established by the Secretary under paragraph (1); the Head Start program in each such locality shall establish the criteria for eligibility, except that no child residing in such community whose family is eligible under such eligibility criteria shall, by virtue of such project's eligibility criteria, be denied an opportunity to participate in such program. (b) The Secretary shall not prescribe any fee schedule or otherwise provide for the charging of any fees for participation in Head Start programs, unless such fees are authorized by legislation hereafter enacted. Nothing in this subsection shall be construed to prevent the families of children who participate in Head Start programs and who are willing and able to pay the full cost of such participation from doing so. APPEALS, NOTICE, AND HEARING

42 USC 9841.

SEC. 646. The Secretary shall prescribe procedures to assure that— (1) special notice of and an opportunity for a timely and expeditious appeal to the Secretary will be provided for an agency or organization which desires to serve as a delegate agency under this subchapter and whose application to the Head Start agency has been wholly or substantially rejected or has not been acted upon within a period of time deemed reasonable by the Secretary, in accordance with regulations which the Secretary shall prescribe; (2) financial assistance under this subchapter shall not be suspended, except in emergency situations, 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 this subchapter shall not be terminated, an application for refunding shall not be denied, and

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 PUBLIC LAW 97-36—AUG. 13, 1981

95 STAT. 605

a suspension of financial assistance shall not be continued for longer than 30 days, unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing. RECORDS AND AUDITS

SEC. 647. (a) Each recipient of financial assistance under this 42 USC 9842. subchapter shall keep such records as the Secretary shall prescribe, including records which fully disclose the amount and disposition by such recipient of the proceeds of such financial-assistance, the total cost of the project or undertaking in connection with which such financial assistance is given or used, the amount of that portion of the cost of the project or undertaking supplied by other sources, and such other records as will facilitate an effective audit. (b) The Secretary and the Comptroller General of the United States, or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of the recipients that are pertinent to the financial assistance received under this subchapter. TECHNICAL ASSISTANCE AND TRAINING

SEC. 648. The Secretary may provide, directly or through grants or 42 USC 9843. other arrangements (1) technical assistance to communities in developing, conducting, and administering programs under this subchapter; and (2) training for specialized or other personnel needed in connection with Head Start programs. R E S E A R C H, DEMONSTRATION, AND PILOT PROJECTS

SEC. 649. (a) The Secretary may provide financial assistance Grants and through grants or contracts for research, demonstration, or pilot 42"TVCP*^Q44 projects conducted by public or private agencies which are designed to test or Eissist in the development of new approaches or methods that will aid in overcoming special problems or otherwise in furthering the purposes of this subchapter. (b) The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot projects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives. ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECTS CONTRACTS

SEC. 650. (a) The Secretary shall make a public announcement 42 USC 9845. concerning— (1) the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this subchapter; 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)(1) shall be made within 80 days of making such grants or contracts, and the public announcements required by subsection (a)(2) shall be made within 90 days of the receipt of such results.

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 95 STAT. 506

Report to congressional committees.

PUBLIC LAW 97-35—AUG. 13, 1981 (c) The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States. (d) The Secretary shall publish summaries of the results of activities carried out pursuant to this subchapter not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries. EVALUATION

Grants and contracts. 42 USC 9846.

42 USC 2701 note.

Report to congressional committees.

SEC. 651. (a) The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanisms for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project operation. (b) The Secretary shall operate the programs and projects covered by this subchapter in accordance with Head Start performance standards. Any revisions in such standards shall result in standards which are no less comprehensive than those in effect on the date of the enactment of the Economic Opportunity Amendments of 1978. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this subchapter. (c)(1) In carrying out evaluations under this subchapter, the Secretary shall establish working relationships with the faculties of colleges or universities located in the area in which any such evaluation is being conducted, unless there is no such college or university willing and able to participate in the evaluation. For purposes of the preceding sentence, for any single evaluation, areas in which such working relationships are established may not be larger than 3 contiguous States. (2) In carrying out evaluations under this subchapter, the Secretary may require Head Start agencies to provide for independent evsduations. (d) In carrying out evaluations under this subchapter, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects. (e) The Secretary shall publish the results of evaluative research and summaries of evaluations of program and project impact and effectiveness not later than 90 days after the completion thereof. The Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries. (f) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this subchapter shall become the property of the United States. POVERTY UNE

42 USC 9847.

SEC. 652. (a) The Secretary shall revise annually (or at any shorter interval the Secretary deems feasible and desirable) a poverty line

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95 STAT. 507

which, except as provided in section 645, shall be used as a criterion of eligibility for participation in Head Start programs. (b) The revision required by subsection (a) shall be accomplished by multiplying the official poverty line (as defined by the Office of Management and Budget) by the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the revision is made. (c) Revisions required by subsection (a) shall be made and issued not more than 30 days after the date on which the necessary Consumer Price Index data become available. COMPARABILITY OF WAGES

SEC. 653. The Secretary shall take such action as may be necessary 42 USC 9848. to assure that persons employed in carrying out programs financed under this subchapter shall not receive compensation at a rate which is (1) in excess of the average rate of compensation paid in the area where the program is carried out to a substantial number of the persons providing substantially comparable services, or in excess of the average rate of compensation paid to a substantial number of the persons providing substantially comparable services in the area of the person's immediately preceding employment, whichever is higher; or (2) less than the minimum wage rate prescribed in section 6(a)(1) of the Fair Labor Standards Act of 1938. 29 USC 206. NONDISCRIMINATION PROVISIONS

SEC. 654. (a) The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract with respect thereto specifically provides that no person with responsibilities in the operation thereof will discriminate with respect to any such program, project, or activity because of race, creed, color, national origin, sex, political affiliation, or beliefs. (b) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any program or activity receiving assistance under this subchapter. The Secretary shall enforce the provisions of the preceding sentence in accordance with section 602 of the Civil Rights Act of 1964. Section 603 of such Act shall apply with respect to any action taken by the Secretary to enforce such sentence. This section shall not be construed as affecting any other legal remedy that a person may have if such person is excluded from participation in, denied the benefits of, subjected to discrimination under, or denied employment in connection with, any program, project, or activity receiving assistance under this subchapter. (c) The Secretary shall not provide financial assistance for any program, project, or activity under this subchapter unless the grant or contract relating to the financial assistance specifically provides that no person with responsibilities in the operation of the program, project, or activity will discriminate against any individual because of a handicapping condition in violation of section 504 of the Rehabilitation Act of 1973.

42 USC 9849.

42 USC 2000d-i, 2000d-2.

29 USC 794.

LIMITATION WITH RESPECT TO CERTAIN UNLAWFUL ACTIVITIES

SEC. 655. No individual employed or assigned by any Head Start 42 USC 9850. agency or other agency assisted under this subchapter shall, pursu-

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 95 STAT. 508

PUBLIC LAW 97-35—AUG. 13, 1981 ant to or during the performance of services rendered in connection with any program or activity conducted or assisted under this subchapter by such Head Start 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. POLITICAL ACTIVITIES

42 USC 9851. 5 USC 1501 et
 * ^95 USC 1502.

SEC. 656. (a) For purposes of chapter 15 of title 5, United States Code, any agency which assumes responsibility for planning, developing, and coordinating Head Start programs and receives assistance under this subchapter shall be deemed to be a State or local agency. For purposes of clauses (1) and (2) of section 1502(a) of such title, any agency receiving assistance under this subchapter shall be deemed to be a State or local agency. O> Programs assisted under this subchapter shall not be carried on i) 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 identSication of such programs with (1) any partisan or nonpartiseui 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 Secretary, after consultation with the Office of Personnel Management, shall issue rules and regulations to provide for the enforcement of this section, which shall include provisions for summary suspension of assistance or other action necessary to permit enforcement on an emergency basis. ADVANCE FUNDING

42 USC 9852.

SEC. 657. For the purpose of affording adequate notice of funding available under this subchapter, appropriations for carrying out this subchapter are authorized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are available for obligation.

Follow Through

Subchapter C—Follow Through Programs

Act. SHORT TITLE

42 USC 9801 note.

SEC. 661. This subchapter may be cited as the "Follow Through Act". FINANCIAL ASSISTANCE FOR FOLLOW THROUGH PROGRAMS

42 USC 9861.

SEC. 662. (a) The Secretary of Education (hereinafter in this subchapter referred to as the "Secretary") is authorized to provide financial assistance in the form of grants to local educational agencies, combinations of such agencies, and, as provided in subsection (b), any other public or appropriate nonprofit private agencies, organizations, and institutions for the purpose of carrying out Follow Through programs focused primarily on children from low-mcome families in kindergarten and primary grades, including such children enrolled in private nonprofit elementary schools, who were previously enrolled in Head Start or similar programs. Other children in kindergarten and primary grades, including such other children enrolled in private nonprofit elementary schools, who were previously enrolled in preschool programs of a compensatory nature which received

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95 STAT. 509

Federal financial assistance may participate in such Follow Through programs. (b) Whenever the Secretary determines— (1) that a local educational agency receiving assistance under subsection (a) is unable or unwilling to include in a Follow Through program children enrolled in nonprofit private schools who would otherwise be eligible to participate therein; or (2) that it is otherwise necessary in order to accomplish the purposes of this section; the Secretary may provide financial assistance for the purpose of carrying out a Follow Through program to any other public or appropriate nonprofit private agency, organization, or institution. (c) Programs to be assisted under this section shall provide such comprehensive educational, health, nutritional, social, and other services as will aid in the continued development of children described in subsection (a) to their full potential. Such projects shall provide for the direct participation of the parents of such children in the development, conduct, and overall direction of the program at the local level. If the Secretary determines that participation in the project of children who are not from low-income families will serve to carry out the purposes of this section, the Secretary may provide for the inclusion of such children from non-low-income families, but only to the extent that their participation will not dilute the effectiveness of the services designed for children described in subsection (a). AUTHORIZATION OP APPROPRIATIONS

SEC. 668. (a)(1) There is authorized to be appropriated for carrying 42 USC 9862. out the purposes of this subchapter $44,300,000 for fiscal year 1982, $22,150,000 for fiscal year 1983, and $14,767,000 for fiscal year 1984. (2) Funds appropriated under this section for fiscal years 1982 and 1983 shall remedn available for obligation and expenditure during the fiscal year succeeding the fiscal year for which they are appropriated. (b) Financial assistance extended under this subchapter for a Follow Through program shall not exceed 80 percent of the approved costs of the assisted program or activities, except that the Secretary may approve assistance in excess of such percentage if the Secretary determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this subchapter. Non-Federal contributions may be in cash or in kind, fairly evaluated, including plant, equipment, or services. The Secretary shall not require non-Federal contributions in excess of 20 percent of the approved costs of programs or activities assisted under this subchapter. (c) No project shall be approved for assistance under this subchapter unless the Secretary is satisfied that the services to be provided under such project will be in addition to, and not in substitution for, services previously provided without Federal assistance. The requirement imposed by the preceding sentence shall be subject to such regulations as the Secretary may adopt. RESEARCH, DEMONSTRATION, AND PILOT PROJECTS

SEC. 664. (a) The Secretary may provide financial assistance 42 USC 9863. through grants or contracts for research, demonstration, or pilot projects conducted by public and private agencies which are designed to test or assist in the development of new approaches or methods

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 95 STAT. 510

PUBLIC LAW 97-35—AUG. 13, 1981 that will aid in overcoming special problems or in otherwise furthering the purposes of this subchapter. 0)) The Secretary shall establish an overall plan to govern the approval of research, demonstration, or pilot prmects and the use of all research authority under this subchapter. Such plan shall set forth specific objectives to be achieved and priorities among such objectives. ANNOUNCEMENT OF RESEARCH, DEMONSTRATION, AND PILOT PROJECT CONTRACTS

42 USC 9864.

Summaries, submittal to congressional committees.

SEC. 665. (a) The Secretary shall make a public announcement concerning— (1) the title, purpose, intended completion date, identity of the grantee or contractor, and proposed cost of any grant or contract with a private or non-Federal public agency or organization for any research, demonstration, or pilot project under this subchapter; 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)(1) shall be made not later than 30 days after making such grants or contracts, and the public announcements required by subsection (a)(2) shall be made not later than 90 days after the receipt of such results. (c) The Secretary shall take necessary action to assure that all studies, proposals, and data produced or developed with Federal funds employed under this subchapter shall become the property of the United States. (d) The Secretary shall publish summaries of the results of activities carried out pursuant to this subchapter not later than 90 days after the completion thereof The Secretary shall submit to the appropriate committees of the Congress copies of all such summaries. EVALUATION

42 USC 9865.

Submittal to congressional committees.

SEC. 666. (a) The Secretary shall provide, directly or through grants or contracts, for the continuing evaluation of programs under this subchapter, including evaluations that measure and evaluate the impact of programs authorized by this subchapter, in order to determine their effectiveness in achieving stated goals, their impact on related programs, and their structure and mechanism for delivery of services, including, where appropriate, comparisons with appropriate control groups composed of persons who have not participated in such programs. Evaluations shall be conducted by persons not directly involved in the administration of the program or project. (b) The Secretary shall develop and publish general standards for evaluation of program and project effectiveness in achieving the objectives of this subchapter. The extent to which such standards have been met shall be considered in deciding whether to renew or supplement financial assistance authorized under this subchapter. (c) In carrying out evaluations under this subchapter, the Secretary shall, whenever feasible, arrange to obtain the specific views of persons participating in and served by programs and projects assisted under this subchapter about such programs and projects. (d) The Secretary shall publish the results of evaluative research and summaries of evaluations of program and project impact and effectiveness not later than 90 days after the completion thereof The

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95 STAT. 511

Secretary shall submit to the appropriate committees of the Congress copies of all such research studies and evaluation summaries. (e) The Secretary shall take the necessary action to assure that all studies, evaluations, proposals, and data produced or developed with assistance under this section become the property of the United States. TECHNICAL ASSISTANCE AND TRAINING

SEC. 667. The Secretary may provide, directly or through grants or 42 USC 9866. other appropriate arrangements (1) technical assistance to Follow Througn programs in developing, conducting, and administering programs under this subchapter; and (2) training for specialized or other personnel which is nei^ed in connection with Follow Through programs. SPECIAL CONDITIONS

SEC. 668. (a) Recipients of financial assistance under this sub- 42 USC 9867. chapter shall provide maximum employment opportunities for residents of the area to be served, and to parents of children who are participating in projects assisted under this subchapter. (b) Fmancial assistance under this subchapter shall not be suspended for failure to comply with applicable terms and conditions, except in emergency situations, nor shall an application for refunding be denied, unless the recipient agency has been given reasonable notice and opportunity to show cause why such action should not be taken. (c) Fmancial assistance under tnis subchapter shall not be terminated for failure to comply with applicable terms and conditions unless the recipient has been afforded reasonable notice and opportunity for a full and fair hearing. APPLICABILITY OF PROVISIONS OF SUBCHAPTER B

SEC. 669. The provisions of sections 637 (other than section 637(1)), 42 Use 9868. 653, 654, 655, 656, and 657 shall apply to the administration of tMs subchapter. REPEALER

SEC. 670. Effective October 1, 1984, the provisions of this subchapter Ante, p. 508. are repealed. ^^FJf^K ^

note, 9801 note.

Subtitle B—Community Services Block Grant Program ^JJJj^^'^^fock Grant Act. SHORT TITLE

SEC. 671. This subtitle may be cited as the "Community Services 42 USC 990i Block Grant Act". COMMUNITY SERVICES GRANTS AUTHORIZED
 * ^ote.

SEC. 672. (a) The Secretary is authorized to make grants in 42 USC 9901. accordance with the provisions of this subtitle, to States to ameliorate the causes of poverty in communities within the State. (b) There is authorized to be appropriated $389,375,000 for the fiscal year 1982 and for each of the 4 succeeding fiscal years to carry out the provisions of this subtitle. DEFINITIONS

SEC. 673. For purposes of this subtitle:

42 USC 9902.

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 95 STAT. 512

42 USC 2790.

PUBLIC LAW 97-35--AUG. 13, 1981 (1) The term "eligible entity" means any organization which was officially designated as a community action agency or a conmiunity action program under the provisions of section 210 of the Economic Opportunity Act of 1964 forfiscalyear 1981, unless such community action agency or a conmiunity action program lost its designation under section 210 of such Act as a result of a failure to comply with the provisions of such Act. (2) The term "poverty line" means the official poverty line established by the Director of the Office of Management and Budget. The Secretary shall revise the poverty line annually (or at any shorter interval the Secretary deems feasible and desirable) which shall be used as a criterion of eligibility in community service block grant programs. The required revision shall be accomplished by multiplying the official poverty line by the percentage change in the Consumer Price Index during the annual or other interval immediately preceding the time at which the revision is made. (3) The term "Secretary" means the Secretary of Health and Human Services. (4) The term "State" means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Virgin Islands, American Samoa, the Commonwealth of the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. STATE ALLOCATIONS

42 USC 9903.

42 USC 2808.

SEC. 674. (a)(1) The Secretary shallfi*omthe amount appropriated under section 672 for each fiscal year which remains after— (A) the Secretary makes the apportionment required in subsection (b)(D; and (B) the Secretary determines the amount necessary for the purposes of section 681(b); allot to each State an amount which bears the same ratio to such remaining amount as the amount received by the State for fiscal year 1981 under section 221 of the Economic Opportunity Act of 1964 bore to the total amount received by all States for fiscal year 1981 under such part, except that no State shall receive less than one quarter of 1 percent of the amount appropriated under section 672 for such fiscal year. (2) For purposes of this subsection, the term "State" does not include Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (b)(1) The Secretary shall apportion one-half of 1 percent of the amount appropriated under section 672 for each fiscal year on the basis of need among Guam, American Samoa, the Virgin Islands, the Northern Mariana Islands, and the Trust Territory of the Pacific Islands. (2) Each jurisdiction to which paragraph (1) applies may receive grants under this subtitle upon an application submitted to the Secretary containing provisions which describe the programs for which assistance is sought under this subtitle, and which are consistent with the requirements of section 675. (c)(1) If, with respect to any State, the Secretary— (A) receives a request from the governing body of an Indian tribe or tribal organization within the State that assistance under this subtitle be made directly to such tribe or organization; and

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95 STAT. 513

(B) determines that the members of such tribe or tribal organization would be better served by means of grants made directly to provide benefits under this subtitle; the Secretary shall reserve from amounts which would otherwise be allotted to such State under this subtitle for the fiscal year the amount determined under paragraph (2). (2) The Secretary shall reserve for the purpose of paragraph (1) from sums that would otherwise be allotted to such State not less than 100 percent of an amount which bears the same ratio to the State's allotment for the fiscal year involved as the population of all eligible Indians for whom a determination under this paragraph has been made bears to the population of all individuals eugible for assistance under this subtitle in such State. (3) The sums reserved by the Secretary on the basis of a determination under this subsection shall be granted to the Indian tribe or tribal organization serving the individuals for whom such a determination has been made. (4) In order for an Indian tribe or tribal organization to be eligible for an awsurd for a fiscal year under this subsection, it shall submit to the Secretary a plan for such fiscal year which meets such criteria as the Secretary may prescribe by r^iuation. (5) The terms Indian tribe and "tribal organization" mean those "Indian tribe," tribes, bands, or other organized groups of Indians recognized in the ^ wfon " State in which they reside or considered by the Secretary of the ^^ Interior to be an Indian tribe or an Indian organization for any purpose. APPLICATIONS AND REQUIREMENTS

SEC. 675. (a) Each State desiring to receive an allotment for a fiscal 42 USC 9904. year under this subtitle shall submit an application to the Secretary. Each such application shall be in such form as the Secretary shall require. Each such application shall contain assurances by the chief executive ofQcer of the State that the State will comply with subsection (b) and will meet the conditions enumerated in subsection (c). (b) After the expiration of the first fiscal year in which a State received funds under this subtitle, no funds shall be allotted to such State for any fiscal year under this subtitle unless the legislature of the State conducts public hearings on the proposed use and distribution of funds to be provided under this subtitle for such fiscal year. (c) As part of the annual application required by subsection (a]!, the chief executive officer of each State shall certify that the State agrees to— (1) use the funds available under this subtitle— (A) to provide a range of services and activities having a measurable and potentially major impact on causes of poverty in the community or those areas of the community where poverty is a particularly acute problem; (B) to provide activities designed to assist low-income participants including the elderly poor— (i) to secure and retain meaningful employment; (ii) to attain an adequate education; (iii) to make better use of available income; (iv) to obtain and maintain adequate housing and a suitable living environment; (v) to obtain emergency assistance through loans or grants to meet immediate and urgent individual and family needs, including the need for health services,

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 95 STAT. 514

PUBLIC LAW 97-35—AUG. 13, 1981 nutritious food, housing, and employment-related assistance; (vi) to remove obstacles and solve problems which block the achievement of self-sufficiency; (vii) to achieve greater participation in the affairs of the community; and (viii) to make more effective use of other programs related to the purposes of this subtitle; (C) to provide on an emergency basis for the provision of such supplies and services, nutritious foodstuffs, and related services, as may be necessary to counteract conditions of starvation and malnutrition among the poor; (D) to coordinate and establish linkages between governmental and other social services programs to assure the effective delivery of such services to low-income individuals; and (E) to encourage the use of entities in the private sector of the community in efforts to ameliorate poverty in the community; (2)(A)(i) use, for fiscal year 1982 only, not less than 90 percent of the funds allotted to the State under section 674 to make grants to use for the purposes described in clause (1) to eligible entities (as defined in section 673(1)) or to organizations serving seasonal or migrant farmworkers; and (ii) use, for fiscal year 1983 and for each subsequent fiscal year, not less than 90 percent of the funds allotted to the State under section 674 to make grants to political subdivisions of the State for the political subdivisions to use for the purposes described in clause (1) directly or to nonprofit private community organizations which have a board which meets the requirements of clause (3), or to migrant and seasonal farm worker organizations; and (B) provide assurances that the State will not expend more than 5 percent of its allotment under section 674 for administrative expenses at the State level; (3) provide assurances that, in the case of a community action agency or nonprofit private organization, each board will be constituted so as to assure that (A) one-third of the members of the board are elected public officials, currently holding office, or their representatives, except that if the number of elected officials reasonably available and willing to serve is less than one-third of the membership of the board, membership on the board of appointive public officials may be counted in meeting such one-third requirement; (B) at least one-third of the members are persons chosen in accordance with democratic selection procedures adequate to assure that they are representative of the poor in the area served; and (C) the remainder of the members are officials or members of business, industry, labor, religious, welfare, education, or other msgor groups and interests in the community; (4) give special consideration in the designation of local community action agencies under this subtitle to any community action agency which is receiving funds under any Federal antipoverty program on the date of the enactment of this Act, except that (A) the State shall, before giving such special consideration, determine that the agency involved meets program and fiscal requirements established by the State; and (B) if there is no such agency because of any change in the assistance furnished to programs for economically disadvantaged persons, the State

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 PUBLIC LAW 97-35—AUG. 13, 1981 shall give special consideration in the designation of community action agencies to any successor agency which is operated in substantially the same manner as the predecessor agency which did receive funds in the fiscal year preceding the fiscal year for which the determination is made; (5) provide assurances that the State may transfer funds, but not to exceed 5 percent of its allotment under section 674, for the provisions set forth in this subtitle to services under the Older Americans Act of 1965, the Head Start program under subchapter B of chapter 8 of subtitle A of this title, or the energy crisis intervention program under title XXVI of this Act (relating to low-mcome home energy assistance); (6) prohibit any political activities in accordance with subsection (e); (7) prohibit any activities to provide voters and prospective voters with transportation to the polls or provide similar assistance in connection with an election or any voter registration activity; (8) provide for coordination between antipoverty programs in each community, where appropriate, with emergency energy crisis intervention programs under title XXVI of this Act (relating to low-income home energy assistance) conducted in such community; (9) provide that fiscal control and fund accounting procedures will be established as may be necessary to assure the proper disbursal of and accounting for Federal funds paid to the State under this subtitle, including procedures for monitoring the assistance provided under this subtitle, and provide that at legist every year each State shall prepare, in accordance with subsection (f), an audit of its expenditures of amounts received under this subtitle and amounts transferred to carry out the purposes of this subtitle; and (10) permit and cooperate with Federal investigations undertaken in accordance with section 679. The Secretary may not prescribe the manner in which the States will comply with the provisions of this subsection. (d)(1) In addition to the requirements of subsection (c), the chief executive officer of each State shall prepare and furnish to the Secretary a plan which contains provisions describing how the State will carry out the assurances contained in subsection (c). The chief executive officer of each State may revise any plan prepared under this paragraph and shall furnish the revised plan to the Secretary. (2) Each plan prepared under paragraph (1) shall be made available for public inspection within the State in such a mgmner as will facilitate review of, and comment on, the plan. (e) For purposes of chapter 15 of title 5, United States Code, any nonprofit private organization receiving assistance under this subtitie which has responsibility for planning, developing, and coordinating community antipoverty programs shall be deemed to be a State or local agency. For purposes of clauses (1) and (2) of section 1502(a) of such title, any such organization receiving assistance under this subtitle shall l>ie deemed to be a State or local agency. (f) Each audit required by subsection (c)(9) shall be conducted by an entity independent of any agency administering activities or services carried out under this subtitle and shall be conducted in accordance with genereilly accepted accounting principles. Within 30 days after the completion of each audit, the chief executive officer of the State

95 STAT. 515

42 USC 300i ^o^of'^QQ^'

5 USC i50i et
 * ^9-

5 USC 1502.

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 95 STAT. 516

PUBLIC LAW 97-35—AUG. 13, 1981 shall submit a copy of such audit to the legislature of the State and to the Secretary. (g) The State shall repay to the United States amounts found not to have been expended in accordance with this subtitle or the Secretary may offset such amounts against any other amount to which the State is or may become entitled under this subtitle. (h) The Comptroller General of the United States shall, from time to time, evaluate the expenditures by States of grants under this subtitle in order to assure that expenditures are consistent with the provisions of this subtitle and to determine the effectiveness of the State in accomplishing the purposes of this subtitle. ADMINISTRATION

Office of Community Services. Establishment. 42 USC 9905.

SEC. 676. (a) There is established in the Department of Health and Human Services an Office of Community Services. The Office shall be headed by a Director. (b) The Secretary shall carry out his functions under this subtitle through the Office of Community Services established in subsection (a). NONDISCRIMINATION PROVISIONS

42 USC 9906.

42 USC 6101 note. 29 USC 794.

42 USC 2000d.

SEC. 677. (a) No person shall on the ground of race, color, national origin, or sex be excluded from participation in, be denied the benefits of, or be subjected to discrimination under, any program or activity funded in whole or in part with funds made available under this subtitle. Any prohibition against discrimination on the basis of age under the Age Discrimination Act of 1975 or with respect to an otherwise qualified handicapped individual as provided in section 504 of the Rehabilitation Act of 1973 shall also apply to any such program or activity. O> Whenever the Secretary determines that a State that has t) received a payment under this subtitle has failed to comply with subsection (a) or an applicable regulation, he shall notify the chief executive officer of the State and shall request him to secure compliance. If within a reasonable period of time, not to exceed 60 days, the chief executive officer fails or refuses to secure compliance, the Secretary is authorized to (1) refer the matter to the Attorney General with a recommendation that an appropriate civil action be instituted; (2) exercise the powers and functions provided by title VI of the Civil Rights Act of 1964, the Age Discrimination Act of 1975, or section 504 of the Rehabilitation Act of 1973, as may be applicable; or (3) take such other action as may be provided by law. (c) When a matter is referred to the Attorney General pursuant to subsection (b), or whenever he has reason to believe that the State is engaged in a pattern or practice in violation of the provisions of this section, the Attorney General may bring a civil action in any appropriate United States district court for such relief as may be appropriate, including injunctive relief. PAYMENTS TO STATES

42 USC 9907.

SEC. 678. (a) From its allotment under section 674, the Secretary shall make payments to each State in accordance with section 203 of the Intergovernmental Cooperation Act of 1968 (42 U.S.C. 4213), for use under this subtitle.

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95 STAT. 517

(b) Pa5maents to a State from its allotment for any fiscal year shall be expended by the State in such fiscal year or in the succeeding fiscal year. WITHHOLDING

SEC. 679. (a)(1) The Secretary shall, after adequate notice and an Notice and opportunity for a hearing conducted within the affected State, hearing.9908. withhold funds from any State which does not utilize its allotment 42 USC substantially in accordance with the provisions of this subtitle and the assurances such State provided under section 675. (2) The Secretary shall respond in an expeditious and speedy manner to complaints of a substantial or serious nature that a State has failed to use funds in accordcmce with the provisions of this subtitle or the assurances provided by the State under section 675. For purposes of this paragraph, a violation of any one of the assurances contained in section 675(c) that constitutes a disregard of that assurance shall be considered a serious complaint. (b)(1) The Secretary shall conduct in several States in each fiscal investigations. year investigations of the use of funds received by the States under this subtitle in order to evaluate compliance with the provisions of this subtitle. (2) Whenever the Secretary determines that there is a pattern of complaints from any State in any fiscal year, he shall conduct an investigation of the use of funds received under this subtitle by such State in order to ensure compliance with the provisions of this subtitle. (3) The Comptroller General of the United States may conduct an investigation of the use of funds received under this subtitle by a State in order to ensure compliance with the provisions of this subtitle. (c) Pursuant to an investigation conducted under subsection (b), a State shall make appropriate books, documents, papers, and records available to the Secretary or the Comptroller General of the United States, or any of their duly authorized representatives, for examination, copying, or mechanical reproduction on or off the premises of the appropriate entity upon a reasonable request therefor. (d) In conducting any investigation under subsection (b), the Secretary may not request any information not readily available to such State or require that any information be compiled, collected, or transmitted in any new form not already available. LIMITATION ON USE OF GRANTS FOR CONSTRUCTION

SEC. 680. (a) Except as provided in subsection (b), grants made 42 USC 9909. under this subtitle (other than amounts made available under section 681(b)) may not be used by the State, or by any other person with which the State makes arrangements to carry out the purposes of this subtitle, for the purchase or improvement of land, or the purchase, construction, or permanent improvement (other than low-cost residential weatherization or other energy-related home repairs) of any building or other facility. (b) The Secretary may waive the limitation contained in subsection (a) upon the State's request for such a waiver if he finds that the request describes extraordinary circumstances to justify the purchase of land or the construction of facilities (or the making of permanent improvements) and that permitting the waiver will contribute to the State's ability to carry out the purposes of this subtitle.

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Page:United States Statutes at Large Volume 95.djvu/544

 95 STAT. 518

PUBLIC LAW 97-35—AUG. 13, 1981 DISCRETIONARY AUTHORITY OF SECRETARY

42 USC 9910.

Ante, p. 489.

SEC. 681. (a) The Secretary is authorized, either directly or through grants, loans, or ^arantees to States and public and other organizations and agencies, or contracts or jointly financed cooperative arrangements with States and public and other organizations and agencies, to provide for— (1) training related to the purposes of this subtitle; and (2) ongoing activities of national or regional significance related to the purposes of this subtitle, including special emphasis programs for— (A) special programs of assistance to private, locally initiated communit3r development programs which sponsor enterprises providing employment and business development opportunities for low-income residents of the area; (B) Rural Development Loan Fund revolving loans and guarantees under subchapter A of chapter 8 of subtitle A of this title; (C) community development credit union programs administered under subchapter A of chapter 8 of subtitle A of this title;

(D) technical assistance and training programs in rural housing and community facilities development; (E) assistance for migrants and seasonal farmworkers; and (F) national or regional programs designed to provide recreational activities for low-income youth. (b) Of the amounts appropriated under section 672(b) for any fiscal year, not more than 9 percent of such amounts shall be available to the Secretary for purposes of carr3ang out this section and subchapter A of chapter 8 of subtitle A of this title. TRANSITION PROVISIONS

42 USC 9911.

SEC. 682. (a)(1) The purpose of this section is to permit, for fiscal year 1982 only, States to choose to operate programs under the block grant established by this subtitle or to have the Secretary operate programs under the provisions of law repealed by section 683(a). (2) The Secretary shall carry out the provisions of this section through the Office of Community Services established in section 676(a). (b)(1) Notwithstanding the provisions of section 683(a) or any other provision of law, a State may, for fiscal year 1982 only, make a determination that the State chooses not to operate programs under the block grant established by this subtitle. If the State makes such a determination, the State's allotment under section 674 shall be used within the State by the Secretary to carry out programs (in accordance with paragraph (4)) under the provisions of law in effect on September 30, 1981, but repealed by section 683(a). (2) The provisions of paragraph (1) apply to the provisions of law referred to in such paragraph, regardless of whether there is a specific termination provision or other provision of law repealing or otherwise terminating any program subject to this Act. (3) Each State which, pursuant to paragraph (1), determines to have the Secretary operate programs under the provisions of law in effect on September 30, 1981, but repealed by section 683(a), shall give notice to the Secretary of such determination. Such notice shall be submitted to the Secretary prior to the beginning of the first quarter of fiscal year 1982 and at least 30 days before the beginning of any

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Page:United States Statutes at Large Volume 95.djvu/545

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 519

other quarter during such fiscal year. For purposes of this section, the quarters for fiscal year 1982 shall commence on October 1, January 1, April 1, and July 1 of fiscal year 1982. (4) In any case in which the Secretary carries out programs under paragraph (1), the Secretary shall provide for the carrying out of such programs by making grants for such purpose to eligible entities (as defined in section 673(1)). (c) The Secretary shall provide such assistemce to the States as the States may require in order to carry out the provisions of this section. (d) The Secretary may reserve not more than 5 percent of any State's allotment for administration of such State's programs under the block grant established by this subtitle, if such State has made a determination that the State chooses not to operate programs under the block grant established by this subtitle, and the Secretary is carrying out such State's programs under the provisions of law in effect on September 30, 1981. (e) Upon the enactment of this Act, the Director of the Office of Management and Budget is authorized to provide for termination of the affairs of the Community Services Administration. He shall provide for the transfer or other disposition of personnel, assets, liabilities, grants, contracts, property, records, and unexpended balances of appropriations, authorizations, allocations, and other funds held, used, arising from, available to, or to be made available in connection with implementation of the authorities terminated by section 683(a) as necessary to effectuate the purposes of this subtitle. REPEALER; REAUTHORIZATION PROVISIONS; TECHNICAL AND CONFORMING PROVISIONS

SEC. 683. (a) Effective October 1, 1981, the Economic Opportunity 42 USC 9912. Act of 1964, other than titles VIII and X of such Act, is repealed. Repeal. (b) There is authorized to be appropriated such sums as may be 42 USC 2701. necessary for each of the fiscal years 1982, 1983, and 1984, to carry out title VIII of the Economic Opportunity Act of 1964. 42 USC 2991. (c)(1) Any reference in any provision of law to the poverty line set forth in section 624 of the Economic Opportunity Act of 1964 shall be 42 USC 297ic. construed to be a reference to the poverty line defined in section 673(2) of this Act. (2) Any reference in any provision of law to any community action agency designated under title II of the Economic Opportunity Act of 1964 shall be construed to be a reference to private nonprofit community organizations eligible to receive funds under this subtitle. (3) No action or other proceeding commenced by or against any officer in the official capacity of such individual as an officer of any agency administering the Act repealed by subsection (a) of this section shall abate by reason of the enactment of this Act.

TITLE VII—EMPLOYMENT PROGRAMS COMPREHENSIVE EMPLOYMENT AND TRAINING ACT

SEC. 701. (a) Section 112 of the Comprehensive Employment and Training Act is amended to read as follows: " AUTHORIZATION O F APPROPRIATIONS

"SEC. 112. (a) There are authorized to be appropriated for fiscal year 1982 for the purpose of carrying out this Act—

-194 O—82

35:QL3

29 USC 822.

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Page:United States Statutes at Large Volume 95.djvu/546

 95 STAT. 520

PUBLIC LAW 97-35—AUG. 13, 1981

29 USC 841, 846, 852 29 USC 871,891.

"(1) $1,430,775,000 for carrying out parts A, B, and C of title 11; "(2) $219,015,000 for carrying out titles III and V, of which not jj^^j.^ ^j^g^^ ^3 million may be transferred to the National Occupational Information Coordinating Committee established pursuant to section 161(b) of the Vocational Education Act of 1963 for purposes described in section 315 of this Act; "(3) $576,200,000 for carrying out part A of title IV; "(4) $628,263,000 for carrying out part B of title IV; "(5) $766,100,000 for carrying out part C of title IV; "(6) $274,700,000 for carrying out title VII; and "(7) $75,462,000 for the expenses of the Department of Labor in administering this Act. "(b)(1) For the purpose of affording adequate notice of funding available under this Act, appropriations under this Act are authorized to be included in an appropriation Act for the fiscal year preceding the fiscal year for which they are first available for obligation. "(2) In order to effect a transition to the advance funding method of timing appropriation action, the provisions of this subsection shall apply notwithstanding that its initial application will result in the enactment in the same year (whether in the same appropriation Act or otherwise) of two separate appropriations, one for the then current fiscal year and one for the succeeding fiscal year.". (b) The matter preceding clause (i) of section 202(a)(2)(A) of the Act is amended by striking out "Eighty-five percent" and inserting in lieu thereof "Eighty-six and one-half percent". (c) Section 202 of the Comprehensive Employment and Training Act is amended by adding the following subsection at the end thereof: "(h) Notwithstanding the provisions of subsections (b), (c), (d), and (e) of this section, not more than 10 y2 percent of the amounts available for this title shall be available for the purposes specified in such subsections. The Governor of each State may in his own discretion determine the amount of funds to be used for each of the functions specified in such subsections but not to exceed the amounts

29 USC 893. 29 USC 923. 29 USC 942. 29 USC 981.

29 USC 842.

29 USC 909. 29 USC 912.

(d)(1) Section '433(a)(l) of the Comprehensive Employment and Training Act is amended by striking out "75" and inserting in lieu thereof ^85". (2) Section 436(a)(2) of such Act is amended by striking out ", but services to youth under that title shall not be reduced because of the availability of financial assistance under this subpart". (e)(1) Title IV of the Comprehensive Employment and Training Act is amended by inserting after section 402 the following new section: "TRANSFERABILITY OF FUNDS

29 USC 892a. 29 USC 893. 29 USC 942.

29 USC 899. 29 USC 818.

"SEC. 403. (a) Twenty p r c e n t of the funds available to a prime sponsor in fiscal year 1982 to carry out part A of this title may, at the prime sponsor's discretion, be used in accordance with the provisions of part C and 20 percent of the funds available to a prime sponsor in fiscal year 1982 to carry out part C of this title may, at the prime sponsor's discretion, be used in accordance with the provisions of part A. "(b) Funds available to a prime sponsor under subpart 2 of part A of this title may, at the prime sponsor's discretion, be used in accordance with the provisions of subpart 3 of part A of this title. Any funds allocated under subpart 2 of part A of this title which are reallocated by the Secretary pursuant to section 108 may, in the Secretary's

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Page:United States Statutes at Large Volume 95.djvu/547

 PUBLIC LAW 97-35—AUG. 13, 1981

95 STAT. 521

discretion, be allocated for use in accordance with the provisions of subpart 3 of part A of this title.". 29 USC 907. (2) The table of contents of such Act is amended by inserting after the item pertaining to section 402 the following new item: "403. Transferability of funds.".

(f) Section 702 of the Comprehensive Employment and Training Act 29 USC 982. is amended— (1) by striking out "Eighty-five" in subsection (b)(1) and inserting in lieu thereof "Ninety-five"; and (2) by striking out paragraph (2) and inserting in lieu thereof the following: "(2) Funds available to prime sponsors under this title may be used to promote coordination with economic development activities supported by Federal, State, or local funds. Funds used for such coordinated activities shall not be taken into account in the computation of cost per participant or cost per placement for purposes of program evaluation.". (g) If, during the second session of the 97th Congress, neither the 29 USC 822 note. House of Representatives nor the Senate have passed legislation replacing or amending the Comprehensive Emplo3mient and Training Act by September 10, 1982, the provisions of section 112 of that Act (relating to authorization of appropriations) applicable to fiscal ^f^te, p. 519. 1982 shall be applicable tofiscal1983. THE WAGNER-PEYSER ACT

SEC. 702. Section 5(b) of the Act of June 6, 1933 (commonly known as the Wagner-Peyser Act), is amended by inserting before the period 29 USC 49d. at the end thereof a comma and the following: %ut not to exceed $677,800,000 in the fiscal year beginning October 1, 1981. For purposes of this subsection, the term 'proper and efficient administration of its public employment offices' shall mean only such functions as are necessary to carry out the provisions of this Act and shall not include functions authorized or required under the Internal Revenue Code of 1954, the Immigration and Nationality Act, or chapter 41 of 26 USC l et seq.; title 38, United States Code.". 8 USC uoi et

TITLE VIII—SCHOOL LUNCH AND CHILD NUTRITION PROGRAMS

38 USC 2001 et seq.

CHANGES IN REIMBURSEMENT FOR SCHOOL LUNCHES AND BREAKFASTS

SEC. 801. (a) Section 4 of the National School Lunch Act is 42 USC 1753. amended— (1) by inserting "(a)" after "SEC. 4."; (2) in subsection (a) (as so designated), by striking out the second sentence; and (3) by adding at the end thereof the following new subsection: "(b)(l) The Secretary shall make food assistance payments to each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, m a total amount equal to the product obtained by multiplying— "(A) the number of lunches (consisting of a combination of foods which meet the minimum nutritional requirements prescribed by the Secretsiry under section 9(a) of this Act) served

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Page:United States Statutes at Large Volume 95.djvu/548

 95 STAT. 522

42 USC 1759a.

Ante, p. 521.

^"/Post, p. 528.

42 USC 1773.

PUBLIC LAW 97-35—AUG. 13, 1981 during such fiscal year in schools in such State which participate in the school lunch program under this Act under agreements with such State educational agency; by "(B) the national average lunch payment prescribed in paragraph (2) of this subsection. "(2) The national average lunch payment for each lunch served shall be 10.5 cents (as adjusted pursuant to section 11(a) of this Act) except that for each lunch served in school food authorities in which 60 percent or more of the lunches served in the school lunch program during the second preceding school year were served free or at a reduced-price, the national average lunch payment shall be 2 cents more.". (b) Section 11(a) of the National School Lunch Act is amended— (1) by inserting "(1)" after "SEC. 11. (a)"; (2) in the third sentence, by striking out "(1)" and inserting in lieu thereof "(A)" and by striking out "(2)" and inserting in lieu thereof "(B)"; and (8) by striking out the fifth sentence and all that follows through the end of the subsection and inserting in lieu thereof the following: "(2) The special-assistance factor prescribed by the Secretary for free lunches shall be 98.75 cents and the special-assistance factor for reduced-price lunches shall be 40 cents less than the specialassistance factor for free lunches. "(3)(A) The Secretary shall prescribe on July 1, 1982, and on each subsequent July 1, an annual adjustment in the following: "(i) The national average payment rates for lunches (as established Under section 4 of this Act). "(ii) The special assistance factor for lunches (as established under paragraph (2) of this subsection). "(iii) The national average payment rates for breakfasts (as established under section 4(b) of the Child Nutrition Act of 1966). "(iv) The national average payment rates for supplements (as established under section 17(c) of this Act). "(B) The annual adjustment under this paragraph shall reflect changes in the cost of operating meal programs under this Act and the Child Nutrition Act of 1966, as indicated by the change in the series for food away from home of the Consumer Price Index for all Urban Consumers, published by the Bureau of Labor Statistics of the Department of Labor. Each annual adjustment shall reflect the changes in the series for food away from home for the most recent 12-month period for which such data are available. The adjustments made under this paragraph shall be computed to the nearest onefourth cent.". (c)(1) Section 4(b)(1) of the Child Nutrition Act of 1966 is amended to read as follows: "(b)(l)(A) The Secretary shall make breakfast assistance payments to each State educational agency each fiscal year, at such times as the Secretary may determine, from the sums appropriated for such purpose, in an amount equal to the product obtained by multiplying— "(i) the number of breakfasts served during such fiscal year to children in schools in such States which participate in the school breakfast program under agreements with such State educational Eigency; by "(ii) the national average breakfast payment for free breakfasts, for reduced-price breakfasts, or for breakfasts served to

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