<-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.

<-8Amending the act of April 9, 1929 (P.L.343, No.176), entitled, 
9as amended, "An act relating to the finances of the State 
10government; providing for the settlement, assessment, 
11collection, and lien of taxes, bonus, and all other accounts 
12due the Commonwealth, the collection and recovery of fees and 
13other money or property due or belonging to the Commonwealth, 
14or any agency thereof, including escheated property and the 
15proceeds of its sale, the custody and disbursement or other 
16disposition of funds and securities belonging to or in the 
17possession of the Commonwealth, and the settlement of claims 
18against the Commonwealth, the resettlement of accounts and 
19appeals to the courts, refunds of moneys erroneously paid to 
20the Commonwealth, auditing the accounts of the Commonwealth 
21and all agencies thereof, of all public officers collecting 
22moneys payable to the Commonwealth, or any agency thereof, 
23and all receipts of appropriations from the Commonwealth, 
24authorizing the Commonwealth to issue tax anticipation notes 
25to defray current expenses, implementing the provisions of 
26section 7(a) of Article VIII of the Constitution of 
27Pennsylvania authorizing and restricting the incurring of 
28certain debt and imposing penalties; affecting every 
29department, board, commission, and officer of the State 
30government, every political subdivision of the State, and 
31certain officers of such subdivisions, every person,
 

1association, and corporation required to pay, assess, or 
2collect taxes, or to make returns or reports under the laws 
3imposing taxes for State purposes, or to pay license fees or 
4other moneys to the Commonwealth, or any agency thereof, 
5every State depository and every debtor or creditor of the 
6Commonwealth," in general budget implementation, providing 
7for community block grants.

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.

20Section 2. Declaration of policy.

21The General Assembly finds and declares as follows:

22(1) It is the intention of the General Assembly as a
23matter of public policy to affirm the commitment of the
24Commonwealth to ameliorating the causes and effect of poverty
25by:

26(i) Providing a range of services and activities
27having a measurable and potentially major impact on the
28causes of poverty in the community and establishing
29grants for organizations providing services to migrant
30and seasonal farmworkers.

31(ii) Encouraging and supporting a holistic approach
32designed to move low-income families and individuals
33towards self-sufficiency.

1(iii) Providing activities designed to assist low-
2income participants in obtaining employment, education,
3housing, emergency assistance, transportation and other
4necessities.

5(iv) Providing, on an emergency basis, for the
6provision of such supplies and services, nutritious
7foodstuffs and related services as may be necessary to
8counteract conditions of starvation and malnutrition
9among the poor.

10(v) Coordinating and establishing linkages between
11governmental and other social service programs to assure
12the effective delivery of services to low-income
13individuals.

14(vi) Encouraging the use of entities in the private
15sector in efforts to ameliorate poverty in the community.

16(2) It is also the intention of the General Assembly to
17stimulate a better focusing of human and financial resources
18on the goal of eliminating poverty by providing for the
19continuity of programs which presently exist throughout this
20Commonwealth for this stated purpose.

21(3) By so doing, it is the intention of the General
22Assembly to set forth the policies which shall govern the
23administration of the community services block grant or
24subsequent funding mechanisms established for similar
25purposes. This block grant was created by the Omnibus Budget
26Reconciliation Act of 1981 and follows the provisions defined
27in that act.

28(4) The General Assembly also finds that the Federal
29funds available to finance activities under this act shall be
30used for the following purposes:

1(i) To provide a range of services and activities
2having a measurable and potentially major impact on
3causes of poverty in the community or those areas of the
4community where poverty is a particularly acute problem.

5(ii) To provide activities designed to assist low-
6income participants, including the elderly poor:

7(A) to secure and retain meaningful employment;

8(B) to attain an adequate education;

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

10(D) to obtain and maintain adequate housing and
11a suitable living environment;

12(E) to obtain emergency assistance through loans
13or grants to meet immediate and urgent individual and
14family needs, including the need for health services,
15nutritious food, housing and employment-related
16assistance;

17(F) to remove obstacles and solve problems which
18block the achievement of self-sufficiency;

19(G) to achieve greater participation in the
20affairs of the community; and

21(H) to make more effective use of other programs
22related to the purposes of this act.

23(iii) To provide on an emergency basis for the
24provision of such supplies and services, nutritious
25foodstuffs and related services as may be necessary to
26counteract conditions of starvation and malnutrition
27among the poor.

28(iv) To coordinate and establish linkages between
29governmental and other social services programs to assure
30the effective delivery of such services to low-income

1individuals.

2(v) To encourage the use of entities in the private
3sector of the community in efforts to ameliorate poverty
4in the community.

5Section 2. Section 3 of the act is reenacted and amended to
6read:

7Section 3. Definitions.

8The following words and phrases when used in this act shall
9have the meanings given to them in this section unless the
10context clearly indicates otherwise:

11"Case management." A series of coordinated activities to
12determine, with the income-eligible individuals, what services
13are needed and to coordinate their timely provision within the
14agency and through other resources in the community.

15"Community action agency." Any organization which was
16officially designated by county commissioners or mayors as such
17under the Omnibus Budget Reconciliation Act of 1981 (Public Law
1897-35, 95 Stat. 357) or established pursuant to this act, whose
19structure and functions are further defined in sections 4 and 5.

20"Community food and nutrition program." A program whereby
21grants are made to State and local hunger prevention
22organizations for activities which address the food and
23nutrition needs of low-income populations, especially high risk
24children, as outlined in section 681A(a) of the Community
25Services Block Grant Act (Public Law 97-35, [42 U.S.C. §
269910A(a)] 98 Stat. 2886).

27"Community services block grant." A program authorized by
28the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
2995 Stat. 357) which follows the provision defined in Title XVII,
30Subtitle C, Chapter 2 (95 Stat. 762), which is intended to be

1used by the Commonwealth for programs to ameliorate the causes
2and effects of poverty.

3"Community Services Block Grant Advisory Task Force." An
4advisory panel established by the department pursuant to the
5Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95
6Stat. 357) to:

7(1) coordinate and establish linkages between
8governmental and other social services programs as
9established by this act to assure the effective delivery of
10such services to low-income individuals; and

11(2) encourage the use of entities in the private sector
12of the community to ameliorate poverty.

13"Department." The Department of Community and Economic
14Development of the Commonwealth or the designated agency
15responsible for the administration of community service block
16grant funds.

17"Eligible entity." Any agency or organization designated in
18the Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35,
1995 Stat. 357) as an eligible recipient of community services
20block grant funds, including a limited purpose agency and a
21Statewide migrant and seasonal farmworkers' organization.

22"Limited purpose agency." An agency that was funded under
23Title II of the Economic Opportunity Act of 1964 (Public Law 88-
24452, 78 Stat. 508) for a limited functional or geographical
25purpose and recognized as a community action program under the
26Omnibus Budget Reconciliation Act of 1981 (Public Law 97-35, 95
27Stat. 357).

28"Omnibus Budget Reconciliation Act of 1981." The Omnibus
29Budget Reconciliation Act of 1981 (Public Law 97-35, [42 U.S.C.
30§ 9901 et seq.] 95 Stat. 357).

1"Secretary." The Secretary of Community and Economic
2Development of the Commonwealth or the designated individual
3responsible for the administration of community service block
4grant funds.

5Section 3. Sections 4 and 5 of the act are reenacted to
6read:

7Section 4. Eligibility for community services block grant funds
8and designation of community action agencies.

9(a) Community action agency receives block grants.--Each
10county and first and second class city within this Commonwealth
11to receive funds under this act shall have a community action
12agency designated to receive community services block grant
13funds. These community action agencies may be an arm of the
14designating unit of government or other eligible entity,
15constituted so that one-third of the members of the board of
16directors are elected public officials currently holding offices
17or their representatives, except that, if the number of elected
18officials reasonably available and willing to serve is less than
19one-third of the board membership, membership on the board of
20appointive officials may be counted in meeting such one-third
21requirement; at least one-third are persons chosen in accordance
22with departmentally approved democratic selection procedures
23adequate to assure that they are representative of the poor in
24the area served; and the remainder of the members are officials
25or members of business, industry, labor, religious, welfare,
26education or other major groups and interests in the community.

27(b) Present agencies included for eligibility.--This
28designation includes all present community action agencies and
29other eligible entities established under the Omnibus Budget
30Reconciliation Act of 1981. In counties and first and second

1class cities where there is no community action agency, the
2department shall provide services through another eligible
3agency which shall receive community service block grant funds
4specifically for this purpose.

5Section 5. Community action agencies and board.

6(a) Powers of agency.--Each community action agency
7designated and created pursuant to the criteria set forth in
8section 4 shall:

9(1) Develop and implement programs and projects designed
10in accordance with Federal regulations established under the
11Omnibus Budget Reconciliation Act of 1981 to serve the poor
12or low-income areas with maximum feasible participation of
13residents of the areas and members of the groups served, so
14as to best stimulate and take full advantage of capabilities
15for self-advancement and assure that those programs and
16projects are otherwise meaningful to and widely utilized by
17their intended beneficiaries. Participation in any community
18service block grant program is limited to persons whose
19income in relation to family size does not exceed 125% of the
20official poverty line established by the Federal Office of
21Management and Budget.

22(2) Be a continuing and effective mechanism for securing
23broad community involvement in the programs assisted under
24this act.

25(3) Provide effective coordination of existing community
26action programs with other Federal and State funds provided
27within the jurisdictional area targeted to the low-income
28population to avoid duplication of efforts within the area.

29(b) Functions of agency.--In exercising its powers and
30carrying out its overall responsibility for a community action

1program, a community action agency shall have, subject to the
2purposes of this act, at least the following functions:

3(1) Planning systematically for and evaluating the
4programs, including actions to develop information as to the
5problems and causes of poverty in the community; determining
6how much and how effectively assistance is being provided to
7deal with those problems and causes; and establishing
8priorities among projects, activities and areas as needed for
9the best and most efficient use of resources.

10(2) Encouraging agencies engaged in activities related
11to the community action program to plan for, secure and
12administer assistance available under this act or from other
13sources on a common or cooperative basis; providing planning
14or technical assistance to those agencies; and generally, in
15cooperation with community agencies and officials,
16undertaking actions to improve existing efforts to attack
17poverty, such as improving day-to-day communication, closing
18service gaps, focusing resources on the most needy and
19providing additional opportunities to low-income individuals
20for regular employment and affordable housing or
21participation in the programs or activities for which those
22community agencies and officials are responsible.

23(3) Initiating and sponsoring projects responsive to
24needs of the poor which are not otherwise being met, with
25particular emphasis on providing central or common services
26that can be drawn upon by a variety of related programs;
27developing new approaches or new types of services that can
28be incorporated into other programs; and filling gaps pending
29the expansion or modification of those programs.

30(4) Establishing effective procedures by which the poor

1and area residents concerned will be enabled to influence the
2character of programs affecting their interests and providing
3technical and other support needed to enable the poor and
4neighborhood groups to secure on their own behalf available
5assistance from public and private sources.

6(5) Joining with and encouraging business, labor and
7other private groups and organizations to undertake, together
8with public officials and agencies, activities in support of
9the community action program which will result in the
10additional use of private resources and capabilities, with a
11view to such things as developing new employment
12opportunities, stimulating investment that will have a
13measurable impact in reducing poverty among residents of
14areas of concentrated poverty and providing methods by which
15residents of those areas can work with private groups, firms
16and institutions in seeking solutions to problems of common
17concern.

18(6) Utilizing a comprehensive case-management approach
19to the provision of services provided to eligible low-income
20individuals as defined in section 3.

21(c) Prohibition of activities.--No community action agency
22or limited purpose agency receiving funds pursuant to this act
23may engage in organized political activity, including, but not
24limited to, endorsement of candidates for public office,
25political fundraising or provide similar assistance in
26connection with an election, nor shall funds received pursuant
27to this act be expended for providing transportation of voters
28or prospective voters to the polls on a nonpartisan basis, for
29providing any nonpartisan voter registration activity or
30lobbying efforts at the local, State or Federal level.

1Section 4. Section 6 of the act is reenacted and amended to
2read:

3Section 6. Financial assistance for community services block
4grant program.

5(a) Apportionment of appropriations.--To help meet the
6department's objective of establishing community action agencies
7to provide services to all counties within this Commonwealth,
8the sum appropriated under the community services block grant
9shall be distributed as follows:

10(1) No greater than 5% shall be allotted to the
11department for the administration of program operations.

12(2) No less than 5% may be allotted, at the discretion
13of the secretary, for a range of activities, including the
14funding of community food and nutrition programs in a manner
15consistent with this act.

16(3) Of the remaining 90%, no greater than 5% may be
17alloted to establish community action agencies in those areas
18currently unserved; no less than 85% shall be reserved for
19existing community action agencies and other eligible
20entities as defined in section 3.

21(4) A formula basis shall be established for the
22distribution of funds reserved for community action agencies.
23The formula shall include consideration of the number of
24persons below the poverty level and the number of persons
25unemployed, as determined annually by the United States
26Department of Labor, and shall include a minimum funding
27level of community services block grant funds for existing
28community action agencies meeting the requirements of the
29Omnibus Budget Reconciliation Act of 1981 and a Statewide
30migrant and seasonal farmworkers' organization approved by

1the secretary.

2(5) A minimum funding level of only community service
3block grant funds shall be set at [$150,000 or a pro rata
4amount if insufficient funds are available to provide the
5minimum amount.] an amount equal to 1.06% of the annual
6community service block grant allocation awarded to the
7Commonwealth following the distribution of administrative and
8discretionary funds by the department. Each community action
9agency shall receive no less than $250,000 in any year. If
10insufficient funds are available to meet that amount, funds
11shall be distributed on a pro rata basis.

12(6) As established by the formula under this section,
13the determination of annual funding levels shall be made by
14the secretary based on input from the local agencies and the
15Community Services Block Grant Advisory Task Force.

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

17(1) Any community action agency or migrant and seasonal
18farmworker organization which received funding in the
19previous fiscal year under this act will not have its present
20or future funding terminated under this act or reduced below
21the proportional share of funding it received in the previous
22fiscal year unless, after notice and opportunity for hearing
23on the record, the Commonwealth determines that cause existed
24for such termination or such reduction, subject, however, to
25review under section 678C(b) of the Omnibus Budget
26Reconciliation Act of 1981 (42 U.S.C. § 9916(b)).

27(2) For purposes of making a determination with respect
28to a funding reduction, the term "cause" includes:

29(i) a Statewide redistribution of funds under this
30act to respond to:

1(A) the results of the most recently available
2census or other appropriate data;

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

4(C) severe economic dislocation; and

5(ii) the failure of an eligible entity to comply
6with the terms of its agreement to provide services under
7this act.

8(b) Grant prerequisite.--The secretary shall require, as a
9condition of assistance, that each community action agency or
10other eligible agency designated for funding adopt a systematic
11approach for achieving the functions stated in section 5(b) and
12for utilizing the funds provided under this act. Such an
13approach shall encompass a planning and implementation process
14which seeks to identify the problems and causes of poverty in
15the community, seeks to mobilize and coordinate relevant public
16and private resources, establishes program priorities, links
17program components with one another and with other relevant
18programs and provides for evaluation.

19(c) Program priorities.--The secretary may establish
20Statewide priorities for the offering of specific services or
21type of services. In establishing these priorities, the
22secretary shall consider the recommendations of the Community
23Services Block Grant Advisory Task Force.

24(d) Determination of local services.--To promote local
25responsibility and initiatives, decisions regarding which of the
26qualified services shall be provided shall be established
27through a local planning process administered by the local
28agency. The plan should be based on the recommendations of the
29local board of directors and the public at large and the
30Statewide priorities established by the secretary. Each local

1agency shall submit its plan to the department for review to
2ensure eligibility of proposed services under the provision of
3Federal law and regulations and consistency to the extent
4possible with the Statewide priorities.

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

6Section 7. Monitoring of community action agency.

7(a) Monitoring procedures.--It shall be the policy of the
8department to monitor the community action agencies to assure
9compliance with all contractual obligations and to assess the
10effectiveness of local agencies in meeting the objectives of
11this act as outlined in section 2 and to assess the impact of
12Statewide priorities on local services. Monitoring procedures
13shall be established annually by the department and published as
14part of the State plan.

15(b) Onsite visits.--If determined to be necessary by the
16department, the department may conduct an agency onsite visit.
17The department may conduct an onsite visit to clarify
18discrepancies that may result from monitoring procedures, review
19agency records regarding programs funded pursuant to this act,
20interview agency personnel and board members and interview
21agency constituents and other local human services agencies.

22(c) Preparation of report.--The department shall prepare a
23report using the findings of the monitoring procedures and
24onsite visits, if conducted, which identifies agency strengths
25and weaknesses and any required remedial actions. A copy of the
26report shall be forwarded by mail to the community action
27agency. The agency may request a conference with the department
28to discuss the report.

29Section 6. Section 8 of the act is reenacted and amended to
30read:

1Section 8. Fiscal control and fund accounting.

2Under the provisions of the Omnibus Budget Reconciliation Act
3of 1981, the department shall:

4(1) Provide that fiscal control and fund accounting
5procedures be established as may be necessary to assure the
6proper disbursement of and accounting for Federal funds paid
7to the Commonwealth. This includes procedures which may be
8necessary for monitoring the assistance provided to community
9action agencies and other eligible agencies under the
10provisions of that act.

11(2) Provide that at least once a year the department
12shall prepare an audit of its expenditures of amounts
13received and transferred to carry out the purposes of this
14section. If the auditing and monitoring procedures result in
15any audit exceptions or disallowed costs on the part of any
16local agency, the local agency shall reimburse the department
17for said audit exceptions and disallowed costs from non-State
18and non-Federal funds.

19(3) Permit and cooperate with Federal investigations
20undertaken pursuant to section [678D] 678C of the Omnibus
21Budget Reconciliation Act of 1981 ([Public Law 97-35,] 42
22U.S.C. § 9916).

23Section 7. Sections 9, 10, 11 and 12 of the act are
24reenacted to read:

25Section 9. Remedies.

26(a) Notice of discrepancy or violation.--If a discrepancy or
27violation of this act is discovered through monitoring and
28auditing activities of the department, the department shall
29notify the community action agency of the discrepancy or
30violation immediately by certified mail.

1(b) Agency response.--The agency shall respond to the
2department's notice of discrepancy or violation within two weeks
3of receipt of said notice by written correspondence to or by
4requesting a meeting with the department to negotiate or clarify
5facts.

6(c) Agency noncompliance.--If the community action agency is
7found to have been in noncompliance with the provisions of this
8act, the department shall have the power to do any of the
9following:

10(1) Require appropriate corrective measures and provide
11technical assistance to assist in implementing them.

12(2) Place the community action agency on probation until
13the agency complies with this act.

14(d) Agency violation.--Notwithstanding subsection (b), if
15the department determines that a violation has occurred with
16willful disregard for this act, the department may do any of the
17following:

18(1) Suspend the community service block grant contract
19for a designated period of time. The agency must then rectify
20the violation and reestablish itself as competent as
21determined by the department to carry out those
22responsibilities enumerated in this statute for a community
23action agency.

24(2) Close out the community service block grant contract
25through the process of defunding, in accordance with Federal
26law and regulations. If closeout is approved by the
27secretary, a minimum of 30 days' notice shall be given to the
28agency. The department shall oversee agency equipment
29inventory transfer to other agencies.

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

1all times, retain the right to appeal any departmental
2adjudications concerning this program as otherwise provided by
3law.

4Section 10. Waivers.

5If a determination is made by the Department of Health and
6Human Services that any provisions of this act are in violation
7of Federal law or regulations and would jeopardize Federal
8funding, the secretary, with the approval of the Governor, may
9suspend those sections or portions thereof whose enforcement
10constitutes said violations.

11Section 11. Construction.

12This act shall be construed as a continuation of the act of
13July 10, 1986 (P.L.1263, No.116), known as the Community
14Services Act.

15Section 12. Retroactivity.

16This act shall be retroactive to January 1, 2002.

17Section 8. Section 13 of the act, amended November 16, 2005
18(P.L.381, No.70), is reenacted and amended to read:

19Section 13. Expiration.

20This act shall expire December 31, [2011] 2017.

21Section 9. Section 14 of the act is reenacted to read:

22Section 14. Effective date.

23This act shall take effect immediately.

24Section 10. This act shall apply retroactively to December
2531, 2011.

26Section 11. This act shall take effect immediately.

<-27Section 1. The act of April 9, 1929 (P.L.343, No.176), known 
28as The Fiscal Code, is amended by adding a section to read:

29Section 1704-E. Community block grants.

30(a) Eligibility.--From money appropriated to the department,

1up to $3,000,000 may be used to provide community services block
2grants in accordance with this section.

3(b) Community action agency.--

4(1) A county community action agency may be designated
5to receive community services block grant money. One-third of
6the members of the board of directors of the community action
7agency must be elected public officials currently holding
8offices or their representatives. The remainder of the
9members must represent business, industry, labor, religious,
10welfare, education or other groups and interests in the
11community.

12(2) The community action agency has the following
13functions:

14(i) Develop and implement programs and projects
15designed to serve poor or low-income areas in accordance
16with the Omnibus Budget Reconciliation Act of 1981
17(Public Law 97-35, 95 Stat. 357). Participation in a
18community service block grant program is limited to
19individuals whose income in relation to family size does
20not exceed 125% of the official poverty line established
21by the Federal Office of Management and Budget.

22(ii) Plan and evaluate programs relating to the
23problems and causes of poverty in the community.

24(iii) Cooperate with other programs.

25(iv) Initiate projects responsive to needs of low-
26income individuals which are not otherwise being met.

27(v) Establish procedures to include the low-income
28area residents in the development of projects.

29(vi) Utilize a case-management approach to provide
30services to eligible low-income individuals.

1(3) The community action agency may not engage in
2organized political activity.

3(c) Formula.--A formula shall be established for the
4distribution of money for community action agencies. The formula
5shall include consideration of the number of individuals below
6the official poverty line defined by the office of Management
7and Budget and the number of individuals unemployed.

8(d) Grant requirements.--

9(1) Each community action agency shall adopt a
10systematic approach for utilizing grants under this section
11to identify the problems and causes of poverty in the
12community.

13(2) To promote local qualified services established
14through a local planning process administered by the
15community action agency. The plan shall be based on the
16recommendations of the community action agency's board of
17directors and the public at large. Each community action
18agency shall submit its plan to the department for review.

19(e) Monitoring procedures.--The department shall monitor the
20community action agencies to assure compliance with all
21contractual obligations and to assess the effectiveness of
22community action agencies.

23(f) Definitions.--As used in this section, the following
24words and phrases shall have the meanings given to them in this
25subsection unless the context clearly indicates otherwise:

26"Community action agency." An organization that was:

27(1) officially designated by county commissioners or
28mayors as such under the Omnibus Budget Reconciliation Act of
291981 (Public Law 97-35, 95 Stat. 357); or

30(2) established under this section.

1"Community services block grant." A program authorized by
2the Omnibus Budget Reconciliation Act of 1981 which:

3(1) follows the provision defined in Title XVII,
4Subtitle C, Chapter 2 (95 Stat. 762) of the Omnibus Budget
5Reconciliation Act of 1981; and

6(2) is intended to be used by the Commonwealth for
7programs to ameliorate the causes and effects of poverty.

8"Department." The Department of Community and Economic
9Development of the Commonwealth.

10Section 2. This act shall take effect immediately.