1Reenacting and amending the act of May 16, 2002 (P.L.315,
2No.46), entitled "An act providing for a community services
3block grant program; and further providing for powers and
4duties of the Department of Community and Economic
5Development," extending the expiration of the act; <-further 
6providing for financial assistance for community services 
7block grant program; and making editorial changes.

8The General Assembly of the Commonwealth of Pennsylvania
9hereby enacts as follows:

10Section 1. The title and sections 1 and 2 of the act of May
1116, 2002 (P.L.315, No.46), known as the Community Services Block
12Grant Act, are reenacted to read:

13AN ACT

14Providing for a community services block grant program; and
15further providing for powers and duties of the Department of
16Community and Economic Development.

17Section 1. Short title.

18This act shall be known and may be cited as the Community
19Services Block Grant Act.

1Section 2. Declaration of policy.

2The General Assembly finds and declares as follows:

3(1) It is the intention of the General Assembly as a
4matter of public policy to affirm the commitment of the
5Commonwealth to ameliorating the causes and effect of poverty
6by:

7(i) Providing a range of services and activities
8having a measurable and potentially major impact on the
9causes of poverty in the community and establishing
10grants for organizations providing services to migrant
11and seasonal farmworkers.

12(ii) Encouraging and supporting a holistic approach
13designed to move low-income families and individuals
14towards self-sufficiency.

15(iii) Providing activities designed to assist low-
16income participants in obtaining employment, education,
17housing, emergency assistance, transportation and other
18necessities.

19(iv) Providing, on an emergency basis, for the
20provision of such supplies and services, nutritious
21foodstuffs and related services as may be necessary to
22counteract conditions of starvation and malnutrition
23among the poor.

24(v) Coordinating and establishing linkages between
25governmental and other social service programs to assure
26the effective delivery of services to low-income
27individuals.

28(vi) Encouraging the use of entities in the private
29sector in efforts to ameliorate poverty in the community.

30(2) It is also the intention of the General Assembly to

1stimulate a better focusing of human and financial resources
2on the goal of eliminating poverty by providing for the
3continuity of programs which presently exist throughout this
4Commonwealth for this stated purpose.

5(3) By so doing, it is the intention of the General
6Assembly to set forth the policies which shall govern the
7administration of the community services block grant or
8subsequent funding mechanisms established for similar
9purposes. This block grant was created by the Omnibus Budget
10Reconciliation Act of 1981 and follows the provisions defined
11in that act.

12(4) The General Assembly also finds that the Federal
13funds available to finance activities under this act shall be
14used for the following purposes:

15(i) To provide a range of services and activities
16having a measurable and potentially major impact on
17causes of poverty in the community or those areas of the
18community where poverty is a particularly acute problem.

19(ii) To provide activities designed to assist low-
20income participants, including the elderly poor:

21(A) to secure and retain meaningful employment;

22(B) to attain an adequate education;

23(C) to make better use of available income;

24(D) to obtain and maintain adequate housing and
25a suitable living environment;

26(E) to obtain emergency assistance through loans
27or grants to meet immediate and urgent individual and
28family needs, including the need for health services,
29nutritious food, housing and employment-related
30assistance;

1(F) to remove obstacles and solve problems which
2block the achievement of self-sufficiency;

3(G) to achieve greater participation in the
4affairs of the community; and

5(H) to make more effective use of other programs
6related to the purposes of this act.

7(iii) To provide on an emergency basis for the
8provision of such supplies and services, nutritious
9foodstuffs and related services as may be necessary to
10counteract conditions of starvation and malnutrition
11among the poor.

12(iv) To coordinate and establish linkages between
13governmental and other social services programs to assure
14the effective delivery of such services to low-income
15individuals.

16(v) To encourage the use of entities in the private
17sector of the community in efforts to ameliorate poverty
18in the community.

19Section 2. Section 3 of the act is reenacted and amended to
20read:

21Section 3. Definitions.

22The following words and phrases when used in this act shall
23have the meanings given to them in this section unless the
24context clearly indicates otherwise:

25"Case management." A series of coordinated activities to
26determine, with the income-eligible individuals, what services
27are needed and to coordinate their timely provision within the
28agency and through other resources in the community.

29"Community action agency." Any organization which was
30officially designated by county commissioners or mayors as such

1under the Omnibus Budget Reconciliation Act of 1981 (Public Law
297-35, 95 Stat. 357) or established pursuant to this act, whose
3structure and functions are further defined in sections 4 and 5.

4"Community food and nutrition program." A program whereby
5grants are made to State and local hunger prevention
6organizations for activities which address the food and
7nutrition needs of low-income populations, especially high risk
8children, as outlined in section 681A(a) of the Community
9Services Block Grant Act (Public Law 97-35, [42 U.S.C. §
109910A(a)] 98 Stat. 2886).

11"Community services block grant." A program authorized by
12the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
1395 Stat. 357) which follows the provision defined in Title XVII,
14Subtitle C, Chapter 2 (95 Stat. 762), which is intended to be
15used by the Commonwealth for programs to ameliorate the causes
16and effects of poverty.

17"Community Services Block Grant Advisory Task Force." An
18advisory panel established by the department pursuant to the
19Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95
20Stat. 357) to:

21(1) coordinate and establish linkages between
22governmental and other social services programs as
23established by this act to assure the effective delivery of
24such services to low-income individuals; and

25(2) encourage the use of entities in the private sector
26of the community to ameliorate poverty.

27"Department." The Department of Community and Economic
28Development of the Commonwealth or the designated agency
29responsible for the administration of community service block
30grant funds.

1"Eligible entity." Any agency or organization designated in
2the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
395 Stat. 357) as an eligible recipient of community services
4block grant funds, including a limited purpose agency and a
5Statewide migrant and seasonal farmworkers' organization.

6"Limited purpose agency." An agency that was funded under
7Title II of the Economic Opportunity Act of 1964 (Public Law 88-
8452, 78 Stat. 508) for a limited functional or geographical
9purpose and recognized as a community action program under the
10Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95 
11Stat. 357).

12"Omnibus Budget Reconciliation Act of 1981." The Omnibus
13Budget Reconciliation Act of 1981 (Public Law 97-35, [42 U.S.C.
14§ 9901 et seq.] 95 Stat. 357).

15"Secretary." The Secretary of Community and Economic
16Development of the Commonwealth or the designated individual
17responsible for the administration of community service block
18grant funds.

19Section 3. Sections 4 and 5 of the act are reenacted to
20read:

21Section 4. Eligibility for community services block grant funds
22and designation of community action agencies.

23(a) Community action agency receives block grants.--Each
24county and first and second class city within this Commonwealth
25to receive funds under this act shall have a community action
26agency designated to receive community services block grant
27funds. These community action agencies may be an arm of the
28designating unit of government or other eligible entity,
29constituted so that one-third of the members of the board of
30directors are elected public officials currently holding offices

1or their representatives, except that, if the number of elected
2officials reasonably available and willing to serve is less than
3one-third of the board membership, membership on the board of
4appointive officials may be counted in meeting such one-third
5requirement; at least one-third are persons chosen in accordance
6with departmentally approved democratic selection procedures
7adequate to assure that they are representative of the poor in
8the area served; and the remainder of the members are officials
9or members of business, industry, labor, religious, welfare,
10education or other major groups and interests in the community.

11(b) Present agencies included for eligibility.--This
12designation includes all present community action agencies and
13other eligible entities established under the Omnibus Budget
14Reconciliation Act of 1981. In counties and first and second
15class cities where there is no community action agency, the
16department shall provide services through another eligible
17agency which shall receive community service block grant funds
18specifically for this purpose.

19Section 5. Community action agencies and board.

20(a) Powers of agency.--Each community action agency
21designated and created pursuant to the criteria set forth in
22section 4 shall:

23(1) Develop and implement programs and projects designed
24in accordance with Federal regulations established under the
25Omnibus Budget Reconciliation Act of 1981 to serve the poor
26or low-income areas with maximum feasible participation of
27residents of the areas and members of the groups served, so
28as to best stimulate and take full advantage of capabilities
29for self-advancement and assure that those programs and
30projects are otherwise meaningful to and widely utilized by

1their intended beneficiaries. Participation in any community
2service block grant program is limited to persons whose
3income in relation to family size does not exceed 125% of the
4official poverty line established by the Federal Office of
5Management and Budget.

6(2) Be a continuing and effective mechanism for securing
7broad community involvement in the programs assisted under
8this act.

9(3) Provide effective coordination of existing community
10action programs with other Federal and State funds provided
11within the jurisdictional area targeted to the low-income
12population to avoid duplication of efforts within the area.

13(b) Functions of agency.--In exercising its powers and
14carrying out its overall responsibility for a community action
15program, a community action agency shall have, subject to the
16purposes of this act, at least the following functions:

17(1) Planning systematically for and evaluating the
18programs, including actions to develop information as to the
19problems and causes of poverty in the community; determining
20how much and how effectively assistance is being provided to
21deal with those problems and causes; and establishing
22priorities among projects, activities and areas as needed for
23the best and most efficient use of resources.

24(2) Encouraging agencies engaged in activities related
25to the community action program to plan for, secure and
26administer assistance available under this act or from other
27sources on a common or cooperative basis; providing planning
28or technical assistance to those agencies; and generally, in
29cooperation with community agencies and officials,
30undertaking actions to improve existing efforts to attack

1poverty, such as improving day-to-day communication, closing
2service gaps, focusing resources on the most needy and
3providing additional opportunities to low-income individuals
4for regular employment and affordable housing or
5participation in the programs or activities for which those
6community agencies and officials are responsible.

7(3) Initiating and sponsoring projects responsive to
8needs of the poor which are not otherwise being met, with
9particular emphasis on providing central or common services
10that can be drawn upon by a variety of related programs;
11developing new approaches or new types of services that can
12be incorporated into other programs; and filling gaps pending
13the expansion or modification of those programs.

14(4) Establishing effective procedures by which the poor
15and area residents concerned will be enabled to influence the
16character of programs affecting their interests and providing
17technical and other support needed to enable the poor and
18neighborhood groups to secure on their own behalf available
19assistance from public and private sources.

20(5) Joining with and encouraging business, labor and
21other private groups and organizations to undertake, together
22with public officials and agencies, activities in support of
23the community action program which will result in the
24additional use of private resources and capabilities, with a
25view to such things as developing new employment
26opportunities, stimulating investment that will have a
27measurable impact in reducing poverty among residents of
28areas of concentrated poverty and providing methods by which
29residents of those areas can work with private groups, firms
30and institutions in seeking solutions to problems of common

1concern.

2(6) Utilizing a comprehensive case-management approach
3to the provision of services provided to eligible low-income
4individuals as defined in section 3.

5(c) Prohibition of activities.--No community action agency
6or limited purpose agency receiving funds pursuant to this act
7may engage in organized political activity, including, but not
8limited to, endorsement of candidates for public office,
9political fundraising or provide similar assistance in
10connection with an election, nor shall funds received pursuant
11to this act be expended for providing transportation of voters
12or prospective voters to the polls on a nonpartisan basis, for
13providing any nonpartisan voter registration activity or
14lobbying efforts at the local, State or Federal level.

15Section 4. Section 6 of the act is reenacted and amended to
16read:

17Section 6. Financial assistance for community services block
18grant program.

19(a) Apportionment of appropriations.--To help meet the
20department's objective of establishing community action agencies
21to provide services to all counties within this Commonwealth,
22the sum appropriated under the community services block grant
23shall be distributed as follows:

24(1) No greater than 5% shall be allotted to the
25department for the administration of program operations.

26(2) No less than 5% may be allotted, at the discretion
27of the secretary, for a range of activities, including the
28funding of community food and nutrition programs in a manner
29consistent with this act.

30(3) Of the remaining 90%, no greater than 5% may be

1alloted to establish community action agencies in those areas
2currently unserved; no less than 85% shall be reserved for
3existing community action agencies and other eligible
4entities as defined in section 3.

5(4) A formula basis shall be established for the
6distribution of funds reserved for community action agencies.
7The formula shall include consideration of the number of
8persons below the poverty level and the number of persons
9unemployed, as determined annually by the United States
10Department of Labor, and shall include a minimum funding
11level of community services block grant funds for existing
12community action agencies meeting the requirements of the
13Omnibus Budget Reconciliation Act of 1981 and a Statewide
14migrant and seasonal farmworkers' organization approved by
15the secretary.

16(5) A minimum funding level of only community service
17block grant funds shall be set at [$150,000 or a pro rata
18amount if insufficient funds are available to provide the
19minimum amount.] an amount equal to 1.06% of the annual 
20community service block grant allocation awarded to the 
21Commonwealth following the distribution of administrative and 
22discretionary funds by the department. Each community action 
23agency shall receive no less than $250,000 in any year. If 
24insufficient funds are available to meet that amount, funds 
25shall be distributed on a pro rata basis.

26(6) As established by the formula under this section,
27the determination of annual funding levels shall be made by
28the secretary based on input from the local agencies and the
29Community Services Block Grant Advisory Task Force.

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

1(1) Any community action agency or migrant and seasonal
2farmworker organization which received funding in the
3previous fiscal year under this act will not have its present
4or future funding terminated under this act or reduced below
5the proportional share of funding it received in the previous
6fiscal year unless, after notice and opportunity for hearing
7on the record, the Commonwealth determines that cause existed
8for such termination or such reduction, subject, however, to
9review under section 678C(b) of the Omnibus Budget
10Reconciliation Act of 1981 (42 U.S.C. § 9916(b)).

11(2) For purposes of making a determination with respect
12to a funding reduction, the term "cause" includes:

13(i) a Statewide redistribution of funds under this
14act to respond to:

15(A) the results of the most recently available
16census or other appropriate data;

17(B) the establishment of a new eligible entity;

18(C) severe economic dislocation; and

19(ii) the failure of an eligible entity to comply
20with the terms of its agreement to provide services under
21this act.

22(b) Grant prerequisite.--The secretary shall require, as a
23condition of assistance, that each community action agency or
24other eligible agency designated for funding adopt a systematic
25approach for achieving the functions stated in section 5(b) and
26for utilizing the funds provided under this act. Such an
27approach shall encompass a planning and implementation process
28which seeks to identify the problems and causes of poverty in
29the community, seeks to mobilize and coordinate relevant public
30and private resources, establishes program priorities, links

1program components with one another and with other relevant
2programs and provides for evaluation.

3(c) Program priorities.--The secretary may establish
4Statewide priorities for the offering of specific services or
5type of services. In establishing these priorities, the
6secretary shall consider the recommendations of the Community
7Services Block Grant Advisory Task Force.

8(d) Determination of local services.--To promote local
9responsibility and initiatives, decisions regarding which of the
10qualified services shall be provided shall be established
11through a local planning process administered by the local
12agency. The plan should be based on the recommendations of the
13local board of directors and the public at large and the
14Statewide priorities established by the secretary. Each local
15agency shall submit its plan to the department for review to
16ensure eligibility of proposed services under the provision of
17Federal law and regulations and consistency to the extent
18possible with the Statewide priorities.

19Section 5. Section 7 of the act is reenacted to read:

20Section 7. Monitoring of community action agency.

21(a) Monitoring procedures.--It shall be the policy of the
22department to monitor the community action agencies to assure
23compliance with all contractual obligations and to assess the
24effectiveness of local agencies in meeting the objectives of
25this act as outlined in section 2 and to assess the impact of
26Statewide priorities on local services. Monitoring procedures
27shall be established annually by the department and published as
28part of the State plan.

29(b) Onsite visits.--If determined to be necessary by the
30department, the department may conduct an agency onsite visit.

1The department may conduct an onsite visit to clarify
2discrepancies that may result from monitoring procedures, review
3agency records regarding programs funded pursuant to this act,
4interview agency personnel and board members and interview
5agency constituents and other local human services agencies.

6(c) Preparation of report.--The department shall prepare a
7report using the findings of the monitoring procedures and
8onsite visits, if conducted, which identifies agency strengths
9and weaknesses and any required remedial actions. A copy of the
10report shall be forwarded by mail to the community action
11agency. The agency may request a conference with the department
12to discuss the report.

13Section 6. Section 8 of the act is reenacted and amended to
14read:

15Section 8. Fiscal control and fund accounting.

16Under the provisions of the Omnibus Budget Reconciliation Act
17of 1981, the department shall:

18(1) Provide that fiscal control and fund accounting
19procedures be established as may be necessary to assure the
20proper disbursement of and accounting for Federal funds paid
21to the Commonwealth. This includes procedures which may be
22necessary for monitoring the assistance provided to community
23action agencies and other eligible agencies under the
24provisions of that act.

25(2) Provide that at least once a year the department
26shall prepare an audit of its expenditures of amounts
27received and transferred to carry out the purposes of this
28section. If the auditing and monitoring procedures result in
29any audit exceptions or disallowed costs on the part of any
30local agency, the local agency shall reimburse the department

1for said audit exceptions and disallowed costs from non-State
2and non-Federal funds.

3(3) Permit and cooperate with Federal investigations
4undertaken pursuant to section [678D] 678C of the Omnibus
5Budget Reconciliation Act of 1981 ([Public Law 97-35,] 42
6U.S.C. § 9916).

7Section 7. Sections 9, 10, 11 and 12 of the act are
8reenacted to read:

9Section 9. Remedies.

10(a) Notice of discrepancy or violation.--If a discrepancy or
11violation of this act is discovered through monitoring and
12auditing activities of the department, the department shall
13notify the community action agency of the discrepancy or
14violation immediately by certified mail.

15(b) Agency response.--The agency shall respond to the
16department's notice of discrepancy or violation within two weeks
17of receipt of said notice by written correspondence to or by
18requesting a meeting with the department to negotiate or clarify
19facts.

20(c) Agency noncompliance.--If the community action agency is
21found to have been in noncompliance with the provisions of this
22act, the department shall have the power to do any of the
23following:

24(1) Require appropriate corrective measures and provide
25technical assistance to assist in implementing them.

26(2) Place the community action agency on probation until
27the agency complies with this act.

28(d) Agency violation.--Notwithstanding subsection (b), if
29the department determines that a violation has occurred with
30willful disregard for this act, the department may do any of the

1following:

2(1) Suspend the community service block grant contract
3for a designated period of time. The agency must then rectify
4the violation and reestablish itself as competent as
5determined by the department to carry out those
6responsibilities enumerated in this statute for a community
7action agency.

8(2) Close out the community service block grant contract
9through the process of defunding, in accordance with Federal
10law and regulations. If closeout is approved by the
11secretary, a minimum of 30 days' notice shall be given to the
12agency. The department shall oversee agency equipment
13inventory transfer to other agencies.

14(e) Right of appeal.--The community action agency shall, at
15all times, retain the right to appeal any departmental
16adjudications concerning this program as otherwise provided by
17law.

18Section 10. Waivers.

19If a determination is made by the Department of Health and
20Human Services that any provisions of this act are in violation
21of Federal law or regulations and would jeopardize Federal
22funding, the secretary, with the approval of the Governor, may
23suspend those sections or portions thereof whose enforcement
24constitutes said violations.

25Section 11. Construction.

26This act shall be construed as a continuation of the act of
27July 10, 1986 (P.L.1263, No.116), known as the Community
28Services Act.

29Section 12. Retroactivity.

30This act shall be retroactive to January 1, 2002.

1Section 8. Section 13 of the act, amended November 16, 2005
2(P.L.381, No.70), is reenacted and amended to read:

3Section 13. Expiration.

4This act shall expire December 31, [2011] 2017.

5Section 9. Section 14 of the act is reenacted to read:

6Section 14. Effective date.

7This act shall take effect immediately.

8Section 10. This act shall apply retroactively to December
931, 2011.

10Section 11. This act shall take effect immediately.