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        PRIOR PRINTER'S NOS. 1619, 1709               PRINTER'S NO. 1919

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1392 Session of 1989


        INTRODUCED BY WAMBACH, OLIVER, McCALL, O'DONNELL, LAUGHLIN,
           MELIO, ANGSTADT, DININNI, MAINE, MARSICO, TIGUE, PRESTON,
           ROEBUCK, D. W. SNYDER, EVANS, WILLIAMS, PICCOLA, JAMES,
           DONATUCCI, NOYE, THOMAS, RYBAK, BISHOP, TRICH, FREEMAN,
           RITTER, PRESSMANN, MOWERY, NAILOR, CAWLEY, JAROLIN, BELARDI,
           STISH, CORRIGAN, KOSINSKI, ROBINSON, KASUNIC, MILLER AND
           ALLEN, MAY 2, 1989

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 5, 1989

                                     AN ACT

     1  Amending the act of July 10, 1986 (P.L.1263, No.116), entitled
     2     "An act providing for a community services block grant
     3     program; and further providing for powers and duties of the
     4     Department of Community Affairs," further providing for
     5     community action agencies and the board, for funding
     6     eligibility for block grants, for apportionment of
     7     appropriations, and for monitoring and remedies for block
     8     grant contracts; and extending the sunset provision.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  Sections 2, 4, 5(c), 6(a), 7, 9 and 11 of the act  <--
    12  of July 10, 1986 (P.L.1263, No.116), known as the Community
    13  Services Act, are amended to read:
    14  Section 2.  Declaration of policy.
    15     The General Assembly finds and declares as follows:
    16         (1)  It is the intention of the General Assembly as a
    17     matter of public policy to affirm the commitment of the
    18     Commonwealth to ameliorating the causes and effect of poverty

     1     by:
     2             (i)  Providing a range of services and activities
     3         having a measurable and potentially major impact on the
     4         causes of poverty in the community and establishing
     5         grants for organizations providing services to migrant
     6         and seasonal farmworkers.
     7             (ii)  Encouraging and supporting a holistic approach
     8         designed to move low-income families and individuals
     9         towards self sufficiency.
    10             [(ii)] (iii)  Providing activities designed to assist
    11         low-income participants in obtaining employment,
    12         education, housing, emergency assistance, transportation
    13         and other necessities.
    14             [(iii)] (iv)  Providing, on an emergency basis, for
    15         the provision of such supplies and services, nutritious
    16         foodstuffs and related services as may be necessary to
    17         counteract conditions of starvation and malnutrition
    18         among the poor.
    19             [(iv)] (v)  Coordinating and establishing linkages
    20         between governmental and other social service programs to
    21         assure the effective delivery of services to low-income
    22         individuals.
    23             [(v)] (vi)  Encouraging the use of entities in the
    24         private sector in efforts to ameliorate poverty in the
    25         community.
    26         (2)  It is also the intention of the General Assembly to
    27     stimulate a better focusing of human and financial resources
    28     on the goal of eliminating poverty by providing for the
    29     continuity of programs which presently exist throughout this
    30     Commonwealth for this stated purpose.
    19890H1392B1919                  - 2 -

     1         (3)  By so doing, it is the intention of the General
     2     Assembly to set forth the policies which shall govern the
     3     administration of the community services block grant or
     4     subsequent funding mechanisms established for similar
     5     purposes. This block grant was created by the Omnibus Budget
     6     Reconciliation Act of 1981 (Public Law 97-35, 95 Stat. 357)
     7     and follows the provisions defined in that act.
     8  Section 4.  Eligibility for community services block grant funds
     9                 and designation of community action agencies.
    10     (a)  Community action agency receives block grants.--Each
    11  county and first and second class city within this Commonwealth
    12  to receive funds under this act shall have a community action
    13  agency designated to receive community services block grant
    14  funds. These community action agencies may be an arm of the
    15  designating unit of government or [nonprofit private community
    16  organization] other eligible entity, constituted so that one-
    17  third of the members of the board of directors are elected
    18  public officials currently holding offices or their
    19  representatives, except that, if the number of elected officials
    20  reasonably available and willing to serve is less than one-third
    21  of the board membership, membership on the board of appointive
    22  officials may be counted in meeting such one-third requirement;
    23  at least one-third are persons chosen in accordance with
    24  democratic selection procedures adequate to assure that they are
    25  representative of the poor in the area served; and the remainder
    26  of the members are officials or members of business, industry,
    27  labor, religious, welfare, education or other major groups and
    28  interests in the community.
    29     (b)  Present agencies included for eligibility.--This
    30  designation includes all present community action agencies and
    19890H1392B1919                  - 3 -

     1  other eligible entities established under the Omnibus Budget
     2  Reconciliation Act of 1981 (Public Law 97-35, 95 Stat. 357). In
     3  counties and first and second class cities where there is no
     4  community action agency, the department shall provide services
     5  through another eligible agency which shall receive community
     6  service block grant funds specifically for this purpose.
     7  Section 5.  Community action agencies and board.                  <--
     8     * * *
     9     (c)  Prohibition of activities.--[No community action agency
    10  or limited purpose agency receiving funds pursuant to this act
    11  may engage in organized political activity, including, but not
    12  limited to, endorsement of candidates for public office,
    13  political fundraising or provide similar assistance in
    14  connection with an election; nor shall funds received pursuant
    15  to this act be expended for providing transportation of voters
    16  to the polls on a nonpartisan basis, any nonpartisan voter
    17  registration activity or lobbying efforts at the local, State or
    18  Federal level.] No community action agency or limited purpose
    19  agency may use community service block grant funds for political
    20  activities or activities to provide voters and prospective
    21  voters with transportation to the polls or provide similar
    22  assistance in connection with an election or any voter
    23  registration activity.
    24  Section 6.  Financial assistance for community services block
    25                 grant program.
    26     (a)  Apportionment of appropriations.--To help meet the
    27  department's objective of establishing community action agencies
    28  to provide services to all counties within this Commonwealth,
    29  the sum appropriated under the community services block grant
    30  shall be distributed as follows:
    19890H1392B1919                  - 4 -

     1         (1)  No greater than 5% shall be allotted to the
     2     department for the administration of program operations.
     3         (2)  No less than 5% may be allotted, at the discretion
     4     of the secretary, for a range of activities, including the
     5     funding of community food and nutrition programs in a manner
     6     consistent with this act.
     7         (3)  Of the remaining 90%, no greater than 5% may be
     8     alloted to establish community action agencies in those areas
     9     currently unserved; no less than 85% shall be reserved for
    10     existing community action agencies and other eligible
    11     entities as defined in section 3.
    12         (4)  A formula basis shall be established for the
    13     distribution of funds reserved for community action agencies.
    14     The formula shall include consideration of the number of
    15     persons below the poverty level and the number of persons
    16     unemployed, as determined annually by the United States
    17     Department of Labor, and shall include a minimum funding
    18     level of community services block grant funds for existing
    19     community action agencies meeting the requirements of the
    20     Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
    21     95 Stat. 357) and a Statewide migrant and seasonal
    22     farmworkers' organization approved by the secretary.
    23         (5)  A minimum funding level of only community service
    24     block grant funds shall be set at $150,000.
    25         (6)  [In the event Federal funds are insufficient to meet
    26     the minimum funding levels,] As established by the formula
    27     under this section, the determination of annual funding
    28     levels shall be made by the secretary based on input from the
    29     local agencies and the Community Services Block Grant
    30     Advisory Task Force.
    19890H1392B1919                  - 5 -

     1         (7)  (I)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS      <--
     2         SECTION, IF THE TOTAL AMOUNT OF FEDERAL AND STATE FUNDS
     3         AVAILABLE FOR DISTRIBUTION TO COMMUNITY ACTION AGENCIES
     4         FOR THE FISCAL YEAR BEGINNING JULY 1, 1989, AND
     5         THEREAFTER, IS THE SAME OR GREATER THAN THE TOTAL AMOUNT
     6         OF FEDERAL AND STATE FUNDS AVAILABLE FOR DISTRIBUTION
     7         DURING THE 1988-1989 FISCAL YEAR, NO COMMUNITY ACTION
     8         AGENCY SHALL RECEIVE AN ALLOCATION THAT IS LESS THAN THE
     9         AMOUNT IT RECEIVED DURING THE 1988-1989 FISCAL YEAR.
    10             (II)  NOTWITHSTANDING ANY OTHER PROVISION OF THIS
    11         SECTION, IF THE TOTAL AMOUNT OF FEDERAL AND STATE FUNDS
    12         AVAILABLE FOR DISTRIBUTION TO COMMUNITY ACTION AGENCIES
    13         FOR THE FISCAL YEAR BEGINNING JULY 1, 1989, AND
    14         THEREAFTER, IS LESS THAN THE TOTAL AMOUNT OF FEDERAL AND
    15         STATE FUNDS AVAILABLE FOR DISTRIBUTION DURING THE 1988-
    16         1989 FISCAL YEAR, EACH COMMUNITY ACTION AGENCY SHALL
    17         RECEIVE THE SAME PERCENTAGE REDUCTION IN ITS ALLOCATION.
    18     * * *
    19  Section 7.  Monitoring of community action agency.
    20     (a)  Monitoring procedures.--It shall be the policy of the
    21  department to monitor the community action agencies to assure
    22  compliance with all contractual obligations and to assess the
    23  effectiveness of local agencies in meeting the objectives of
    24  this act as outlined in section 2 and to assess the impact of
    25  Statewide priorities on local services. Monitoring procedures
    26  shall be established annually by the department and published as
    27  part of the State plan.
    28     (b)  Onsite visits.--If determined to be necessary by the
    29  department, the department may conduct an agency onsite visit.
    30  The department may conduct an onsite visit to clarify
    19890H1392B1919                  - 6 -

     1  discrepancies that may result from monitoring procedures, review
     2  agency records regarding programs funded pursuant to this act,
     3  interview agency personnel and board members and interview
     4  agency constituents and other local human services agencies.
     5     (c)  Preparation of report.--The department shall prepare a
     6  report, using the findings of the monitoring procedures and
     7  onsite visits, if conducted, which identifies agency strengths
     8  and weaknesses and any required remedial actions. A copy of the
     9  report shall be forwarded by [certified] mail to the community
    10  action agency. The agency may request a conference with the
    11  department to discuss the report.
    12  Section 9.  Remedies.
    13     (a)  Notice of discrepancy or violation.--If a discrepancy or
    14  violation of this act is discovered through monitoring and
    15  auditing activities of the department, the department shall
    16  notify the community action agency of the discrepancy or
    17  violation immediately by certified mail.
    18     (b)  Agency response.--The agency shall respond to the
    19  department's notice of discrepancy or violation within two weeks
    20  of receipt of said notice by written correspondence to, or by
    21  requesting a meeting with, the department to negotiate or
    22  clarify facts.
    23     (c)  Agency noncompliance.--If the community action agency is
    24  found to have been in noncompliance with the provisions of this
    25  act, the department shall have the power to do any of the
    26  following:
    27         (1)  [Demand that the community action agency comply with
    28     this act.] Require appropriate corrective measures and
    29     provide technical assistance to assist in implementing them.
    30         (2)  Place the community action agency on probation until
    19890H1392B1919                  - 7 -

     1     the agency complies with this act.
     2     (d)  Agency violation.--Notwithstanding subsection (b), if
     3  the department determines that a violation has occurred with
     4  willful disregard for this act, the department may do any of the
     5  following:
     6         (1)  Suspend the [operation of the community action
     7     agency] community service block grant contract for a
     8     designated period of time. The agency must then rectify the
     9     violation and reestablish itself as competent as determined
    10     by the department to carry out those responsibilities
    11     enumerated in this statute for a community action agency.
    12         (2)  Close out the [operation of the community action
    13     agency] community service block grant contract through the
    14     process of defunding, in accordance with Federal law and
    15     regulations. If closeout is approved by the secretary, a
    16     minimum of 30 days' notice shall be given to the agency. The
    17     department shall oversee agency equipment inventory transfer
    18     to other agencies.
    19     (e)  Right of appeal.--The community action agency shall, at
    20  all times, retain the right to appeal any departmental
    21  adjudications concerning this program as otherwise provided by
    22  law.
    23  Section 11.  Expiration.
    24     This act shall expire [in three years] December 31, 1992
    25  unless extended by statute.
    26     Section 2.  This act shall take effect immediately.



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