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[[Page 1485]]

     FEDERAL FINANCIAL ASSISTANCE MANAGEMENT IMPROVEMENT ACT OF 1999

[[Page 113 STAT. 1486]]

Public Law 106-107
106th Congress

                                 An Act


 
   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. <<NOTE: Nov. 20, 1999 -  [S. 468]>> 

    Be it enacted by the Senate and House of Representatives of the 
United <<NOTE: Federal Financial Assistance Management Improvement Act 
of 1999. 31 USC 6101 note. 31 USC 6101 note.>>  States of America in 
Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Financial Assistance 
Management Improvement Act of 1999''.

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) the Nation's State, local, and tribal governments and 
        private, nonprofit organizations are dealing with increasingly 
        complex problems which 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. <<NOTE: 31 USC 6101 note.>> 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. <<NOTE: 31 USC 6101 note.>> DEFINITIONS.

    In this Act:
            (1) Director.--The term ``Director'' means the Director of 
        the Office of Management and Budget.
            (2) Federal agency.--The term ``Federal agency'' means any 
        agency as defined under section 551(1) of title 5, United States 
        Code.

[[Page 113 STAT. 1487]]

            (3) Federal financial assistance.--The term ``Federal 
        financial assistance'' has the same meaning as defined in 
        section 7501(a)(5) of title 31, United States Code, under which 
        Federal financial assistance is provided, directly or 
        indirectly, to a non-Federal entity.
            (4) Local government.--The term ``local government'' means a 
        political subdivision of a State that is a unit of general local 
        government (as defined under section 7501(a)(11) of title 31, 
        United States Code).
            (5) Non-federal entity.--The term ``non-Federal entity'' 
        means a State, local government, or nonprofit organization.
            (6) Nonprofit organization.--The term ``nonprofit 
        organization'' means any corporation, trust, association, 
        cooperative, or other organization that--
                    (A) is operated primarily for scientific, 
                educational, service, charitable, or similar purposes in 
                the public interest;
                    (B) is not organized primarily for profit; and
                    (C) uses net proceeds to maintain, improve, or 
                expand the operations of the organization.
            (7) State.--The term ``State'' means any State of the United 
        States, the District of Columbia, the Commonwealth of Puerto 
        Rico, the Virgin Islands, Guam, American Samoa, the Commonwealth 
        of the Northern Mariana Islands, and the Trust Territory of the 
        Pacific Islands, and any instrumentality thereof, any multi-
        State, regional, or interstate entity which has governmental 
        functions, and any Indian Tribal Government.
            (8) Tribal government.--The term ``tribal government'' means 
        an Indian tribe, as that term is defined in section 7501(a)(9) 
        of title 31, United States Code.
            (9) Uniform administrative rule.--The term ``uniform 
        administrative rule'' means a Governmentwide uniform rule for 
        any generally applicable requirement established to achieve 
        national policy objectives that applies to multiple Federal 
        financial assistance programs across Federal agencies.

SEC. 5. <<NOTE: 31 USC 6101 note. Deadline.>> DUTIES OF FEDERAL 
            AGENCIES.

    (a) In General.--Except as provided under subsection (b), not later 
than 18 months after the date of the 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 Federal financial 
        assistance programs administered by the agency;
            (2) demonstrates active participation in the interagency 
        process under section 6(a)(2);
            (3) demonstrates appropriate agency use, or plans for use, 
        of the common application and reporting system developed under 
        section 6(a)(1);
            (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) ensures recipients of Federal financial assistance 
        provide timely, complete, and high quality information in 
        response to Federal reporting requirements; and

[[Page 113 STAT. 1488]]

            (7) in cooperation with recipients of Federal financial 
        assistance, establishes specific annual goals and objectives to 
        further the purposes of this Act and measure annual performance 
        in achieving those goals and objectives, which may be done as 
        part of the agency's annual planning responsibilities under the 
        Government Performance and Results Act of 1993 (Public Law 103-
        62; 107 Stat. 285).

    (b) Extension.--If a Federal agency is unable to comply with 
subsection (a), the Director may extend for up to 12 months the period 
for the agency to develop and implement a plan in accordance with 
subsection (a).
    (c) Comment and Consultation on Agency Plans.--
            (1) Comment.--Each <<NOTE: Federal Register, publication.>>  
        agency shall publish the plan developed under subsection (a) in 
        the Federal Register and shall receive public comment of the 
        plan through the Federal Register and other means (including 
        electronic means). To the maximum extent practicable, each 
        Federal agency shall hold public forums on the plan.
            (2) Consultation.--The lead official designated under 
        subsection (a)(4) shall consult with representatives of non-
        Federal entities during development and implementation 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 report may be included as part of any of the 
general management reports required under law.

SEC. 6. <<NOTE: 31 USC 6101 note.>> DUTIES OF THE DIRECTOR.

    (a) In General.--The Director, in consultation with agency heads and 
representatives of non-Federal entities, shall direct, coordinate, and 
assist Federal agencies in establishing--
            (1) a common application and reporting system, including--
                    (A) a common application or set of common 
                applications, wherein a non-Federal entity can apply for 
                Federal financial assistance from multiple Federal 
                financial assistance programs that serve similar 
                purposes and are administered by different Federal 
                agencies;
                    (B) a common system, including electronic processes, 
                wherein a non-Federal entity can apply for, manage, and 
                report on the use of funding from multiple Federal 
                financial assistance programs that serve similar 
                purposes and are administered by different Federal 
                agencies; and
                    (C) uniform administrative rules for Federal 
                financial assistance programs across different Federal 
                agencies; and
            (2) an interagency process for addressing--
                    (A) ways to streamline and simplify Federal 
                financial assistance administrative procedures and 
                reporting requirements for non-Federal entities;
                    (B) improved interagency and intergovernmental 
                coordination of information collection and sharing of 
                data pertaining to Federal financial assistance 
                programs,

[[Page 113 STAT. 1489]]

                including appropriate information sharing consistent 
                with section 552a of title 5, United States Code; and
                    (C) improvements in the timeliness, completeness, 
                and quality of information received by Federal agencies 
                from recipients of Federal financial assistance.

    (b) 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.
    (c) Review of Plans and Reports.--Upon the request of the Director, 
agencies shall submit to the Director, for the Director's review, 
information and other reporting regarding agency implementation of this 
Act.
    (d) Exemptions.--The Director may exempt any Federal agency or 
Federal financial assistance program from the requirements of this Act 
if the Director determines that the Federal agency does not have a 
significant number of Federal financial assistance programs. The 
Director shall maintain a list of exempted <<NOTE: Records.>>  agencies 
which shall be available to the public through the Office of Management 
and Budget's Internet site.

    (e) Report on <<NOTE: Deadline.>> Recommended Changes in Law.--Not 
later than 18 months after the date of the enactment of this Act, the 
Director shall submit to Congress a report containing recommendations 
for changes in law to improve the effectiveness, performance, and 
coordination of Federal financial assistance programs.

    (f) Deadline.--All actions required under this section shall be 
carried out not later than 18 months after the date of the enactment of 
this Act.

SEC. 7. <<NOTE: 31 USC 6101 note.>> EVALUATION.

    (a) In General.--The General Accounting Office shall evaluate the 
effectiveness of this Act. <<NOTE: Deadline.>> Not later than 6 years 
after the date of the enactment of this Act, the evaluation shall be 
submitted to the lead agency, the Director, and Congress. The evaluation 
shall be performed with input from State, local, and tribal governments, 
and nonprofit organizations.

    (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 among the Director, 
        Federal agencies, State, local, and tribal governments, and 
        nonprofit organizations in implementing this Act.

SEC. 8. <<NOTE: 31 USC 6101 note.>> COLLECTION OF INFORMATION.

    Nothing in this Act shall be construed to prevent the Director or 
any Federal agency from gathering, or to exempt any recipient of Federal 
financial assistance from providing, information that is required for 
review of the financial integrity or quality of services of an activity 
assisted by a Federal financial assistance program.

SEC. 9. <<NOTE: 31 USC 6101 note.>> JUDICIAL REVIEW.

    There shall be no judicial review of compliance or noncompliance 
with any of the provisions of this Act. No provision of this

[[Page 113 STAT. 1490]]

Act shall be construed to create any right or benefit, substantive or 
procedural, enforceable by any administrative or judicial action.

SEC. 10. <<NOTE: 31 USC 6101 note.>> STATUTORY REQUIREMENTS.

    Nothing in this Act shall be construed as a means to deviate from 
the statutory requirements relating to applicable Federal financial 
assistance programs.

SEC. 11. <<NOTE: 31 USC 6101 note.>> EFFECTIVE DATE AND SUNSET.

    This Act shall take effect on the date of the enactment of this Act 
and shall cease to be effective 8 years after such date of enactment.

    Approved November 20, 1999.

LEGISLATIVE HISTORY--S. 468 (H.R. 409):
---------------------------------------------------------------------------

SENATE REPORTS: No. 106-103 (Comm. on Governmental Affairs).
CONGRESSIONAL RECORD, Vol. 145 (1999):
            July 15, considered and passed Senate.
            Nov. 2, considered and passed House, amended.
            Nov. 4, Senate concurred in House amendment.
WEEKLY COMPILATION OF PRESIDENTIAL DOCUMENTS, Vol. 35 (1999):
            Nov. 20, Presidential statement.

                                  <all>

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