THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY HESS, DALEY, FLECK, LONGIETTI, BAKER, DENLINGER, GINGRICH, HELM, HENNESSEY, HORNAMAN, M. K. KELLER, KOTIK, MAJOR, MICOZZIE, MILLER, MURT, SAINATO, SCHMOTZER, STERN AND SWANGER, JUNE 22, 2012

REFERRED TO COMMITTEE ON COMMERCE, JUNE 22, 2012  

AN ACT

Reenacting and amending the act of May 16, 2002 (P.L.315,

No.46), entitled "An act providing for a community services

block grant program; and further providing for powers and

duties of the Department of Community and Economic

Development," extending the expiration of the act; and making

editorial changes.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  The title and sections 1 and 2 of the act of May

16, 2002 (P.L.315, No.46), known as the Community Services Block

Grant Act, are reenacted to read:

AN ACT

Providing for a community services block grant program; and

further providing for powers and duties of the Department of

Community and Economic Development.

Section 1.  Short title.

This act shall be known and may be cited as the Community

Services Block Grant Act.

Section 2.  Declaration of policy.

The General Assembly finds and declares as follows:

(1)  It is the intention of the General Assembly as a

matter of public policy to affirm the commitment of the

Commonwealth to ameliorating the causes and effect of poverty

by:

(i)  Providing a range of services and activities

having a measurable and potentially major impact on the

causes of poverty in the community and establishing

grants for organizations providing services to migrant

and seasonal farmworkers.

(ii)  Encouraging and supporting a holistic approach

designed to move low-income families and individuals

towards self-sufficiency.

(iii)  Providing activities designed to assist low-

income participants in obtaining employment, education,

housing, emergency assistance, transportation and other

necessities.

(iv)  Providing, 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.

(v)  Coordinating and establishing linkages between

governmental and other social service programs to assure

the effective delivery of services to low-income

individuals.

(vi)  Encouraging the use of entities in the private

sector in efforts to ameliorate poverty in the community.

(2)  It is also the intention of the General Assembly to

stimulate a better focusing of human and financial resources

on the goal of eliminating poverty by providing for the

continuity of programs which presently exist throughout this

Commonwealth for this stated purpose.

(3)  By so doing, it is the intention of the General

Assembly to set forth the policies which shall govern the

administration of the community services block grant or

subsequent funding mechanisms established for similar

purposes. This block grant was created by the Omnibus Budget

Reconciliation Act of 1981 and follows the provisions defined

in that act.

(4)  The General Assembly also finds that the Federal

funds available to finance activities under this act shall be

used for the following purposes:

(i)  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.

(ii)  To provide activities designed to assist low-

income participants, including the elderly poor:

(A)  to secure and retain meaningful employment;

(B)  to attain an adequate education;

(C)  to make better use of available income;

(D)  to obtain and maintain adequate housing and

a suitable living environment;

(E)  to obtain emergency assistance through loans

or grants to meet immediate and urgent individual and

family needs, including the need for health services,

nutritious food, housing and employment-related

assistance;

(F)  to remove obstacles and solve problems which

block the achievement of self-sufficiency;

(G)  to achieve greater participation in the

affairs of the community; and

(H)  to make more effective use of other programs

related to the purposes of this act.

(iii)  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.

(iv)  To coordinate and establish linkages between

governmental and other social services programs to assure

the effective delivery of such services to low-income

individuals.

(v)  To encourage the use of entities in the private

sector of the community in efforts to ameliorate poverty

in the community.

Section 2.  Section 3 of the act is reenacted and amended to

read:

Section 3.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Case management."  A series of coordinated activities to

determine, with the income-eligible individuals, what services

are needed and to coordinate their timely provision within the

agency and through other resources in the community.

"Community action agency."  Any organization which was

officially designated by county commissioners or mayors as such

under the Omnibus Budget Reconciliation Act of 1981 (Public Law

97-35, 95 Stat. 357) or established pursuant to this act, whose

structure and functions are further defined in sections 4 and 5.

"Community food and nutrition program."  A program whereby

grants are made to State and local hunger prevention

organizations for activities which address the food and

nutrition needs of low-income populations, especially high risk

children, as outlined in section 681A(a) of the Community

Services Block Grant Act (Public Law 97-35, [42 U.S.C. §

9910A(a)] 98 Stat. 2886).

"Community services block grant."  A program authorized by

the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,

95 Stat. 357) which follows the provision defined in Title XVII,

Subtitle C, Chapter 2 (95 Stat. 762), which is intended to be

used by the Commonwealth for programs to ameliorate the causes

and effects of poverty.

"Community Services Block Grant Advisory Task Force."  An

advisory panel established by the department pursuant to the

Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95

Stat. 357) to:

(1)  coordinate and establish linkages between

governmental and other social services programs as

established by this act to assure the effective delivery of

such services to low-income individuals; and

(2)  encourage the use of entities in the private sector

of the community to ameliorate poverty.

"Department."  The Department of Community and Economic

Development of the Commonwealth or the designated agency

responsible for the administration of community service block

grant funds.

"Eligible entity."  Any agency or organization designated in

the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,

95 Stat. 357) as an eligible recipient of community services

block grant funds, including a limited purpose agency and a

Statewide migrant and seasonal farmworkers' organization.

"Limited purpose agency."  An agency that was funded under

Title II of the Economic Opportunity Act of 1964 (Public Law

88-452, 78 Stat. 508) for a limited functional or geographical

purpose and recognized as a community action program under the

Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95

Stat. 357).

"Omnibus Budget Reconciliation Act of 1981."  The Omnibus

Budget Reconciliation Act of 1981 (Public Law 97-35, [42 U.S.C.

§ 9901 et seq.] 95 Stat. 357).

"Secretary."  The Secretary of Community and Economic

Development of the Commonwealth or the designated individual

responsible for the administration of community service block

grant funds.

Section 3.  Sections 4 and 5 of the act are reenacted to

read:

Section 4.  Eligibility for community services block grant funds

and designation of community action agencies.

(a)  Community action agency receives block grants.--Each

county and first and second class city within this Commonwealth

to receive funds under this act shall have a community action

agency designated to receive community services block grant

funds. These community action agencies may be an arm of the

designating unit of government or other eligible entity,

constituted so that one-third of the members of the board of

directors are elected public officials currently holding offices

or their representatives, except that, if the number of elected

officials reasonably available and willing to serve is less than

one-third of the board membership, membership on the board of

appointive officials may be counted in meeting such one-third

requirement; at least one-third are persons chosen in accordance

with departmentally approved democratic selection procedures

adequate to assure that they are representative of the poor in

the area served; and the remainder of the members are officials

or members of business, industry, labor, religious, welfare,

education or other major groups and interests in the community.

(b)  Present agencies included for eligibility.--This

designation includes all present community action agencies and

other eligible entities established under the Omnibus Budget

Reconciliation Act of 1981. In counties and first and second

class cities where there is no community action agency, the

department shall provide services through another eligible

agency which shall receive community service block grant funds

specifically for this purpose.

Section 5.  Community action agencies and board.

(a)  Powers of agency.--Each community action agency

designated and created pursuant to the criteria set forth in

section 4 shall:

(1)  Develop and implement programs and projects designed

in accordance with Federal regulations established under the

Omnibus Budget Reconciliation Act of 1981 to serve the poor

or low-income areas with maximum feasible participation of

residents of the areas and members of the groups served, so

as to best stimulate and take full advantage of capabilities

for self-advancement and assure that those programs and

projects are otherwise meaningful to and widely utilized by

their intended beneficiaries. Participation in any community

service block grant program is limited to persons whose

income in relation to family size does not exceed 125% of the

official poverty line established by the Federal Office of

Management and Budget.

(2)  Be a continuing and effective mechanism for securing

broad community involvement in the programs assisted under

this act.

(3)  Provide effective coordination of existing community

action programs with other Federal and State funds provided

within the jurisdictional area targeted to the low-income

population to avoid duplication of efforts within the area.

(b)  Functions of agency.--In exercising its powers and

carrying out its overall responsibility for a community action

program, a community action agency shall have, subject to the

purposes of this act, at least the following functions:

(1)  Planning systematically for and evaluating the

programs, including actions to develop information as to the

problems and causes of poverty in the community; determining

how much and how effectively assistance is being provided to

deal with those problems and causes; and establishing

priorities among projects, activities and areas as needed for

the best and most efficient use of resources.

(2)  Encouraging agencies engaged in activities related

to the community action program to plan for, secure and

administer assistance available under this act or from other

sources on a common or cooperative basis; providing planning

or technical assistance to those agencies; and generally, in

cooperation with community agencies and officials,

undertaking actions to improve existing efforts to attack

poverty, such as improving day-to-day communication, closing

service gaps, focusing resources on the most needy and

providing additional opportunities to low-income individuals

for regular employment and affordable housing or

participation in the programs or activities for which those

community agencies and officials are responsible.

(3)  Initiating and sponsoring projects responsive to

needs of the poor which are not otherwise being met, with

particular emphasis on providing central or common services

that can be drawn upon by a variety of related programs;

developing new approaches or new types of services that can

be incorporated into other programs; and filling gaps pending

the expansion or modification of those programs.

(4)  Establishing effective procedures by which the poor

and area residents concerned will be enabled to influence the

character of programs affecting their interests and providing

technical and other support needed to enable the poor and

neighborhood groups to secure on their own behalf available

assistance from public and private sources.

(5)  Joining with and encouraging business, labor and

other private groups and organizations to undertake, together

with public officials and agencies, activities in support of

the community action program which will result in the

additional use of private resources and capabilities, with a

view to such things as developing new employment

opportunities, stimulating investment that will have a

measurable impact in reducing poverty among residents of

areas of concentrated poverty and providing methods by which

residents of those areas can work with private groups, firms

and institutions in seeking solutions to problems of common

concern.

(6)  Utilizing a comprehensive case-management approach

to the provision of services provided to eligible low-income

individuals as defined in section 3.

(c)  Prohibition of activities.--No community action agency

or limited purpose agency receiving funds pursuant to this act

may engage in organized political activity, including, but not

limited to, endorsement of candidates for public office,

political fundraising or provide similar assistance in

connection with an election, nor shall funds received pursuant

to this act be expended for providing transportation of voters

or prospective voters to the polls on a nonpartisan basis, for

providing any nonpartisan voter registration activity or

lobbying efforts at the local, State or Federal level.

Section 4.  Section 6 of the act is reenacted and amended to

read:

Section 6.  Financial assistance for community services block

grant program.

(a)  Apportionment of appropriations.--To help meet the

department's objective of establishing community action agencies

to provide services to all counties within this Commonwealth,

the sum appropriated under the community services block grant

shall be distributed as follows:

(1)  No greater than 5% shall be allotted to the

department for the administration of program operations.

(2)  No less than 5% may be allotted, at the discretion

of the secretary, for a range of activities, including the

funding of community food and nutrition programs in a manner

consistent with this act.

(3)  Of the remaining 90%, no greater than 5% may be

alloted to establish community action agencies in those areas

currently unserved; no less than 85% shall be reserved for

existing community action agencies and other eligible

entities as defined in section 3.

(4)  A formula basis shall be established for the

distribution of funds reserved for community action agencies.

The formula shall include consideration of the number of

persons below the poverty level and the number of persons

unemployed, as determined annually by the United States

Department of Labor, and shall include a minimum funding

level of community services block grant funds for existing

community action agencies meeting the requirements of the

Omnibus Budget Reconciliation Act of 1981 and a Statewide

migrant and seasonal farmworkers' organization approved by

the secretary.

(5)  A minimum funding level of only community service

block grant funds shall be set at $150,000 or a pro rata

amount if insufficient funds are available to provide the

minimum amount.

(6)  As established by the formula under this section,

the determination of annual funding levels shall be made by

the secretary based on input from the local agencies and the

Community Services Block Grant Advisory Task Force.

(a.1)  Reduction or termination of funding.--

(1)  Any community action agency or migrant and seasonal

farmworker organization which received funding in the

previous fiscal year under this act will not have its present

or future funding terminated under this act or reduced below

the proportional share of funding it received in the previous

fiscal year unless, after notice and opportunity for hearing

on the record, the Commonwealth determines that cause existed

for such termination or such reduction, subject, however, to

review under section 678C(b) of the Omnibus Budget

Reconciliation Act of 1981 (42 U.S.C. § 9916(b)).

(2)  For purposes of making a determination with respect

to a funding reduction, the term "cause" includes:

(i)  a Statewide redistribution of funds under this

act to respond to:

(A)  the results of the most recently available

census or other appropriate data;

(B)  the establishment of a new eligible entity;

(C)  severe economic dislocation; and

(ii)  the failure of an eligible entity to comply

with the terms of its agreement to provide services under

this act.

(b)  Grant prerequisite.--The secretary shall require, as a

condition of assistance, that each community action agency or

other eligible agency designated for funding adopt a systematic

approach for achieving the functions stated in section 5(b) and

for utilizing the funds provided under this act. Such an

approach shall encompass a planning and implementation process

which seeks to identify the problems and causes of poverty in

the community, seeks to mobilize and coordinate relevant public

and private resources, establishes program priorities, links

program components with one another and with other relevant

programs and provides for evaluation.

(c)  Program priorities.--The secretary may establish

Statewide priorities for the offering of specific services or

type of services. In establishing these priorities, the

secretary shall consider the recommendations of the Community

Services Block Grant Advisory Task Force.

(d)  Determination of local services.--To promote local

responsibility and initiatives, decisions regarding which of the

qualified services shall be provided shall be established

through a local planning process administered by the local

agency. The plan should be based on the recommendations of the

local board of directors and the public at large and the

Statewide priorities established by the secretary. Each local

agency shall submit its plan to the department for review to

ensure eligibility of proposed services under the provision of

Federal law and regulations and consistency to the extent

possible with the Statewide priorities.

Section 5.  Section 7 of the act is reenacted to read:

Section 7.  Monitoring of community action agency.

(a)  Monitoring procedures.--It shall be the policy of the

department to monitor the community action agencies to assure

compliance with all contractual obligations and to assess the

effectiveness of local agencies in meeting the objectives of

this act as outlined in section 2 and to assess the impact of

Statewide priorities on local services. Monitoring procedures

shall be established annually by the department and published as

part of the State plan.

(b)  Onsite visits.--If determined to be necessary by the

department, the department may conduct an agency onsite visit.

The department may conduct an onsite visit to clarify

discrepancies that may result from monitoring procedures, review

agency records regarding programs funded pursuant to this act,

interview agency personnel and board members and interview

agency constituents and other local human services agencies.

(c)  Preparation of report.--The department shall prepare a

report using the findings of the monitoring procedures and

onsite visits, if conducted, which identifies agency strengths

and weaknesses and any required remedial actions. A copy of the

report shall be forwarded by mail to the community action

agency. The agency may request a conference with the department

to discuss the report.

Section 6.  Section 8 of the act is reenacted and amended to

read:

Section 8.  Fiscal control and fund accounting.

Under the provisions of the Omnibus Budget Reconciliation Act

of 1981, the department shall:

(1)  Provide that fiscal control and fund accounting

procedures be established as may be necessary to assure the

proper disbursement of and accounting for Federal funds paid

to the Commonwealth. This includes procedures which may be

necessary for monitoring the assistance provided to community

action agencies and other eligible agencies under the

provisions of that act.

(2)  Provide that at least once a year the department

shall prepare an audit of its expenditures of amounts

received and transferred to carry out the purposes of this

section. If the auditing and monitoring procedures result in

any audit exceptions or disallowed costs on the part of any

local agency, the local agency shall reimburse the department

for said audit exceptions and disallowed costs from non-State

and non-Federal funds.

(3)  Permit and cooperate with Federal investigations

undertaken pursuant to section [678D] 678C of the Omnibus

Budget Reconciliation Act of 1981 ([Public Law 97-35,] 42

U.S.C. § 9916).

Section 7.  Sections 9, 10, 11 and 12 of the act are

reenacted to read:

Section 9.  Remedies.

(a)  Notice of discrepancy or violation.--If a discrepancy or

violation of this act is discovered through monitoring and

auditing activities of the department, the department shall

notify the community action agency of the discrepancy or

violation immediately by certified mail.

(b)  Agency response.--The agency shall respond to the

department's notice of discrepancy or violation within two weeks

of receipt of said notice by written correspondence to or by

requesting a meeting with the department to negotiate or clarify

facts.

(c)  Agency noncompliance.--If the community action agency is

found to have been in noncompliance with the provisions of this

act, the department shall have the power to do any of the

following:

(1)  Require appropriate corrective measures and provide

technical assistance to assist in implementing them.

(2)  Place the community action agency on probation until

the agency complies with this act.

(d)  Agency violation.--Notwithstanding subsection (b), if

the department determines that a violation has occurred with

willful disregard for this act, the department may do any of the

following:

(1)  Suspend the community service block grant contract

for a designated period of time. The agency must then rectify

the violation and reestablish itself as competent as

determined by the department to carry out those

responsibilities enumerated in this statute for a community

action agency.

(2)  Close out the community service block grant contract

through the process of defunding, in accordance with Federal

law and regulations. If closeout is approved by the

secretary, a minimum of 30 days' notice shall be given to the

agency. The department shall oversee agency equipment

inventory transfer to other agencies.

(e)  Right of appeal.--The community action agency shall, at

all times, retain the right to appeal any departmental

adjudications concerning this program as otherwise provided by

law.

Section 10.  Waivers.

If a determination is made by the Department of Health and

Human Services that any provisions of this act are in violation

of Federal law or regulations and would jeopardize Federal

funding, the secretary, with the approval of the Governor, may

suspend those sections or portions thereof whose enforcement

constitutes said violations.

Section 11.  Construction.

This act shall be construed as a continuation of the act of

July 10, 1986 (P.L.1263, No.116), known as the Community

Services Act.

Section 12.  Retroactivity.

This act shall be retroactive to January 1, 2002.

Section 8.  Section 13 of the act, amended November 16, 2005

(P.L.381, No.70), is reenacted and amended to read:

Section 13.  Expiration.

This act shall expire December 31, [2011] 2016.

Section 9.  Section 14 of the act is reenacted to read:

Section 14.  Effective date.

This act shall take effect immediately.

Section 10.  This act shall apply retroactively to December

31, 2011.

Section 11.  This act shall take effect immediately.