[Pages S747-S749]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

By Mr. GLENN (for himself, Mr. Thompson, Mr. Levin, Mr.
Lieberman, and Mr. Akaka):
S. 1642. A bill to improve the effectiveness and performance of
Federal financial assistance programs, simplify Federal financial
assistance application and reporting requirements, and improve the
delivery of services to the public; to the Committee on Governmental
Affairs.

the federal financial assistance management improvement act

Mr. GLENN. Mr. President, I rise today to introduce the Federal
Financial Assistance Management Improvement Act of 1998--legislation
designed to improve the efficiency and effectiveness of Federal
financial assistance and grant-in-aid programs.
According to the Advisory Commission on Intergovernmental Relations,
there are over 600 different Federal grant programs to state and local
governments and other service providers. Not only is that a large
number of programs in the aggregate, we also have an abundance of
separate grant programs even in areas where only one general purpose is
being served. For example, in the budget subfunction of social services
alone, there are over 80 different Federal grant programs. In
elementary and secondary education, there are a similar number of
Federal programs.
Almost all of these different grant programs serve worthy goals and
purposes. However, they inevitably carry with them separate redtape,
regulations, and procedures that frustrate those at the state, local
and nonprofit level who must coordinate the services and carry out the
responsibilities in all these separate programs. Furthermore, in many
of these grant programs, ``getting out the money'' is the primary
emphasis. Administrative performance and efficiency are a secondary
emphasis, or in some cases not emphasized at all, so we have little
understanding at any level of government how well the

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programs are actually working. Part of this problem stems from the fact
that the money passes through 3 sometimes 4 different sets of hands
before it reaches its intended beneficiaries. So it's hard to know
where responsibility lies when it comes to making sure that the money
is spent efficiently, properly and in a way to maximize the goals and
objectives of the underlying program.
We've been working for several years in the Governmental Affairs
Committee on ways to cut Federal redtape while improving performance.
We tried to reduce Federal burdens with enactment of the Paperwork
Reduction Act and Unfunded Mandates Reform Act, while strengthening the
effectiveness of Federal programs with the Government Performance
Results Act.
This bill builds on those initiatives. It requires that Federal
agencies develop plans that, among other things: establish uniform
applications for related grant programs; develop common rules for
Federal requirements that cut across multiple grant programs; and,
emphasize use of electronic reporting via the Internet. Agencies would
have 18 months to develop their plans, with OMB overseeing their
development. They would work closely with state and local governments
and the nonprofit community in the setting of performance measures to
achieve the bill's goals. The bill sunsets in 5 years following a
review by the National Academy of Public Administration.
Americans want government services to work better. But they also want
government to live within its means, to balance its books. In other
words, they want more cost-effective government, and that's at all
levels. I believe this bill helps lead us in that direction. I'm
pleased that Chairman Thompson, along with Senators Levin, Lieberman,
and Akaka, have joined me cosponsoring the bill and I look forward to
considering it in the Governmental Affairs Committee.
Mr. President, I ask unanimous consent that the text of the bill be
printed in the Record.
There being no objection, the bill was ordered to be printed in the
Record, as follows:

S. 1642

Be it enacted by the Senate and House of Representatives
of the United States of America in Congress assembled,

SECTION 1. TITLE.

This Act may be cited as the ``Federal Financial Assistance
Management Improvement Act of 1998''.

SEC. 2. FINDINGS.

Congress finds that--
(1) there are over 600 different Federal financial
assistance programs to implement domestic policy;
(2) while the assistance described in paragraph (1) has
been directed at critical problems, some Federal
administrative requirements may be duplicative, burdensome or
conflicting, thus impeding cost-effective delivery of
services at the local level;
(3) State, local, and tribal governments and private,
nonprofit organizations are dealing with increasingly complex
problems that require the delivery and coordination of many
kinds of services; and
(4) streamlining and simplification of Federal financial
assistance administrative procedures and reporting
requirements will improve the delivery of services to the
public.

SEC. 3. PURPOSES.

The purposes of this Act are to--
(1) improve the effectiveness and performance of Federal
financial assistance programs;
(2) simplify Federal financial assistance application and
reporting requirements;
(3) improve the delivery of services to the public; and
(4) facilitate greater coordination among those responsible
for delivering such services.

SEC. 4. DEFINITIONS.

In this Act:
(1) Common rule.--The term ``common rule'' means a
government-wide uniform rule for any generally applicable
requirement established to achieve national policy objectives
that applies to multiple Federal financial assistance
programs across Federal agencies.
(2) Director.--The term ``Director'' means the Director of
the Office of Management and Budget.
(3) Federal agency.--The term ``Federal agency'' means any
agency as defined under section 551(1) of title 5, United
States Code.
(4) Federal financial assistance program.--The term
``Federal financial assistance program'' means a domestic
assistance program (as defined under section 6101(4) of title
31, United States Code) under which financial assistance is
available, directly or indirectly, to a State, local, or
tribal government or a qualified organization to carry out
activities consistent with national policy goals.
(5) Local government.--The term ``local government''
means--
(A) a political subdivision of a State that is a unit of
general local government (as defined under section 6501(10)
of title 31, United States Code);
(B) any combination of political subdivisions described in
subparagraph (A); or
(C) a local educational agency as defined under section
14101(18) of the Elementary and Secondary Education Act of
1965 (20 U.S.C. 8801(18)).
(6) Qualified organization.--The term ``qualified
organization'' means a private, nonprofit organization
described in section 501(c)(3) of the Internal Revenue Code
of 1986 that is exempt from taxation under section 501(a) of
the Internal Revenue Code of 1986.
(7) State.--The term ``State'' means each of the 50 States,
the District of Columbia, Puerto Rico, American Samoa, Guam,
and the Virgin Islands.
(8) Tribal government.--The term ``tribal government''
means the governing entity of an Indian tribe, as that term
is defined in the Indian Self Determination and Education
Assistance Act (25 U.S.C. 450b).

SEC. 5. DUTIES OF THE DIRECTOR.

(a) In General.--The Director, in consultation with agency
heads, shall direct, coordinate, and assist Federal agencies
in establishing--
(1) a uniform application, or set of uniform applications,
to be used by an applicant to apply for assistance from
multiple Federal financial assistance programs that serve
similar purposes and are administered by different Federal
agencies;
(2) ways to streamline and simplify Federal financial
assistance administrative procedures and reporting
requirements for grantees;
(3) a uniform system wherein an applicant may apply for,
manage, and report on the use of, funding from multiple
Federal financial assistance programs across different
Federal agencies;
(4) a process for applicants to electronically apply for,
and report on the use of, funds from Federal financial
assistance programs;
(5) use of common rules for multiple Federal financial
assistance programs across different Federal agencies;
(6) improved interagency and intergovernmental coordination
of information collection and sharing of data pertaining to
Federal financial assistance programs, including the
development of a release form to be used by grantees to
facilitate the sharing of information across multiple Federal
financial assistance programs;
(7) a process to strengthen the information resources
management capacity of State, local, and tribal governments
and qualified organizations pertaining to the administration
of Federal financial assistance programs; and
(8) specific annual goals and objectives to further the
purposes of this Act.
(b) Actions Consistent With Statutory Requirements.--The
actions taken by the Director under subsection (a) shall be
consistent with statutory requirements relating to any
applicable Federal financial assistance program.
(c) Lead Agency and Working Groups.--The Director may
designate a lead agency to assist the Director in carrying
out the responsibilities under this section. The Director may
use interagency working groups to assist in carrying out such
responsibilities.
(d) Review of Plans and Reports.--
(1) In general.--The Director shall--
(A) review agency plans and reports developed under section
6 for adequacy;
(B) monitor the annual performance of each agency toward
achieving the goals and objectives stated in the agency plan;
and
(C) ensure that each agency plan does not diminish
standards to measure performance and accountability of
financial assistance programs.
(2) Report.--Not later than 3 years after the date of
enactment of this Act, the Director shall report to Congress
on implementation of this section. Such a report may be
included as part of any of the general management reports
required under law.
(e) Exemptions.--
(1) In general.--The Director may exempt any Federal agency
from the requirements of this Act if the Director determines
that the agency does not have a significant number of Federal
financial assistance programs.
(2) Agencies exempted.--Not later than November 1 of each
fiscal year, the Director shall submit to the Committee on
Governmental Affairs of the Senate and the Committee on
Government Reform and Oversight of the House of
Representatives--
(A) a list of each agency exempted under this subsection in
the preceding fiscal year; and
(B) an explanation for each such exemption.
(f) Guidance.--Not later than 120 days after the date of
enactment of this Act, the Director shall issue guidance to
Federal agencies on implementation of the requirements of
this Act. Such guidance shall include a statement on the
common rules that the Director intends to review and
standardize under this Act.

SEC. 6. DUTIES OF FEDERAL AGENCIES.

(a) In General.--Not later than 18 months after the date of
enactment of this Act, each Federal agency shall develop and
implement a plan that--
(1) streamlines and simplifies the application,
administrative, and reporting procedures for each financial
assistance program administered by the agency;

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(2) demonstrates active participation in the interagency
process required the applicable provisions of section 5(a);
(3) demonstrates agency use, or plans for use, of the
uniform application (or set of applications) and system
developed under section 5(a) (1) and (3);
(4) designates a lead agency official for carrying out the
responsibilities of the agency under this Act;
(5) allows applicants to electronically apply for, and
report on the use of, funds from the Federal financial
assistance program administered by the agency;
(6) strengthens the information resources management
capacity of State, local and tribal governments and qualified
organizations pertaining to the administration of the
financial assistance program administered by the agency; and
(7) in cooperation with State, local, and tribal
governments and qualified organizations, establishes specific
annual goals and objectives to further the purposes of this
Act and measure annual performance in achieving those goals
and objectives.
(b) Plan Consistent With Statutory Requirements.--Each plan
developed and implemented under this section shall be
consistent with statutory requirements relating to any
applicable Federal financial assistance program.
(c) Comment and Consultation on Agency Plans.--
(1) Comment.--Each Federal agency shall publish the plan
developed under subsection (a) in the Federal Register and
shall receive public comment on the plan through the Federal
Register and other means (including electronic means). To the
maximum extent practicable, each Federal agency shall hold
public hearings or related public forums on the plan.
(2) Consultation.--The lead official designated under
subsection (a)(4) shall consult regularly with
representatives of State, local and tribal governments and
qualified organizations during development of the plan.
Consultation with representatives of State, local, and tribal
governments shall be in accordance with section 204 of the
Unfunded Mandates Reform Act of 1995 (2 U.S.C. 1534).
(d) Submission of Plan.--Each Federal agency shall submit
the plan developed under subsection (a) to the Director and
Congress and report annually thereafter on the implementation
of the plan and performance of the agency in meeting the
goals and objectives specified under subsection (a)(7). Such
a report may be included as part of any of the general
management reports required under law.

SEC. 7. EVALUATION.

(a) In General.--The Director (or the lead agency
designated under section 5(c)) shall contract with the
National Academy of Public Administration to evaluate the
effectiveness of this Act. Not later than 4 years after the
date of enactment of this Act the evaluation shall be
submitted to the lead agency, the Director, and Congress.
(b) Contents.--The evaluation under subsection (a) shall--
(1) assess the effectiveness of this Act in meeting the
purposes of this Act and make specific recommendations to
further the implementation of this Act;
(2) evaluate actual performance of each agency in achieving
the goals and objectives stated in agency plans; and
(3) assess the level of coordination and cooperation among
the Director, Federal agencies, State, local, and tribal
governments, and qualified organizations in implementing this
Act.

SEC. 8. EFFECTIVE DATE AND SUNSET.

This Act shall take effect on the date of enactment of this
Act and shall cease to be effective on and after 5 years
after such date of enactment.
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