the objective of providing assistance effectively, efficiently and free of any taint of partisan political bias or personal or family favoritism. Each community action agency shall establish or adopt rules to carry out this section, which shall include rules to assure full staff accountability in matters governed by law, regulations, or agency policy. Each community action agency shall also provide for reasonable public access to information, including but not limited to public hearings at the request of appropriate community groups and reasonable public access to books and records of the agency or other agencies engaged in program activities or operations involving the use of authority or funds for which it is responsible. And each community action agency shall adopt for itself and other agencies using funds or exercising authority for which it is responsible rules designed to establish specific standards governing salaries, salary increases, travel and per diem allowances, and other employee benefits; to assure that only persons capable of discharging their duties with competence and integrity are employed and that employees are promoted or advanced under impartial procedures calculated to improve agency performance and effectiveness; to guard against personal or financial conflicts of interests; and to define employee duties of advocacy on behalf of the poor in an appropriate manner which will in any case preclude employees from participating, in connection with the performance of their duties, in any form of picketing, protest, or other direct action which is in violation of law.

"(b) The Director shall prescribe rules or regulations to supplement subsection (a), which shall include regulations governing matters relating to partisan political activities and elections referred to in section 603(b) of this Act, and which shall be binding on all agencies carrying on community action program activities with financial assistance under this title. He may, where appropriate, establish special or simplified requirements for smaller agencies or agencies operating in rural areas. These special requirements shall not, however, affect the applicability of rules governing conflicts of interest, use of position or authority for partisan political purposes or participation in direct action, regardless of customary practices or rules among agencies in the community. The Director shall consult with the heads of other Federal agencies responsible for programs providing assistance to activities which may be included in community action programs for the purpose of securing maximum consistency between rules or regulations prescribed or followed by those agencies and those prescribed under this section.

"EVALUATION OF COMMUNITY ACTION AGENCIES AND PROGRAMS

"SEC. 215. (a) In determining whether, in which amount, and on what conditions, to extend financial assistance to a new community action program, the Director shall consider evidence of the extent of poverty in the community and the probable capacity of the agency to undertake an efficient and effective program in full conformity to the purposes of this title. In renewing or supplementing that financial assistance, he shall consider the progress made in carrying on such a program, consistent with needs and with due allowance for the special problems of rural and smaller communities, and the efficiency with which the agency has discharged its specific functions and duties to this end. The Director shall prescribe standards for evaluation of overall effectiveness and specific agency operations in accordance with this subsection. In developing those standards he shall consider, but not be limited to, the use of criteria covering: the number and incomes of persons or families served and seeking to be served and the length of their participation; the extent to which those persons and families have been aided in establishing specific goals and have in fact attained those goals; the extent to which resources have been committed which are over and above the contributions required by this title; the degree to which full use has been made of sources of financial assistance other than this title; the degree to which agencies, groups, and organizations, including the poor and area representatives, have actively participated in the formulation and implementation of the program in question; the extent and effectiveness of follow through arrangements among agencies operating different components and related agencies in the community; and the extent to which activities or approaches initiated as part of the program have been incorporated in other ongoing programs in the community.

"(b) In addition to evaluations undertaken directly by him or by community action agencies, the Director may provide for, or require community action agencies to provide for, independent evaluations. Where appropriate, he may also require a community action agency to establish an independent group or committee to provide evaluation and advisory services on either a short-term or continuing basis.

"PART B-FINANCIAL ASSISTANCE TO COMMUNITY ACTION PROGRAMS AND RELATED ACTIVITIES

"DEVELOPMENT OF COMMUNITY ACTION PROGRAMS

"SEC. 220. The Director may provide financial assistance to community action agencies to assist them in developing community action programs in accordance with this title. He may also provide financial assistance to other public or private nonprofit agencies to aid them in planning for the establishment of a community action agency or participation in a community action program, including assistance to local governments in connection with planning activities and organizational changes to support or improve the effectiveness of such pro

grams.

"GENERAL PROVISIONS FOR FINANCIAL ASSISTANCE TO COMMUNITY ACTION

PROGRAMS

"SEC. 221. (a) In order to aid in the implementation of community action programs, the Director may provide general financial assistance to those programs in accordance with the provisions of this section. This assistance may be used, as approved by the Director, by community action agencies in order to enable them to carry out their planning, coordination, evaluation, and overall administration responsibilities as described in Part A of this title. It may also be used for the development and operation of approved program components which are necessary for a fully effective program and for which assistance is not available, as needed, from other sources. These component projects may involve, without limitation, activities providing services, together with necessary related facilities, designed to assist families and indivduals to secure and retain meaningful employment; to make better use of available income in connection with efforts for self-advancement; to attain basic educational skills needed for employment, family self-help, or successful participation in school; to better secure, use, and maintain housing required for a suitable living environment; to undertake family planning consistent with personal and family goals, religious and moral convictions; and to make more frequent and effective use of programs available to help in overcoming specific problems. Components providing these or other services may be focused upon the needs of specific low-income groups, such as the very young, youth, the elderly, the unemployed, and persons receiving public assistance, but shall wherever feasible be structured so as to foster family participation and progress.

"(b) The Director may provide financial assistance to a public or private nonprofit agency other than a community action agency for activities of the kind described in subsection (a) where he determines, after receiving and considering comments of the community action agency, if any, that there is good cause for the granting of such assistance and that such action would be in furtherance of the policies applicable to this title.

"(c) The Director shall prescribe necessary rules or regulations governing applications for assistance under this section to assure that every reasonable effort is made by each applicant to secure the views of local public officials and agencies in the community having a direct or substantial interest in the application and to resolve all issues of cooperation and possible duplication prior to its submission.

"SPECIAL PROGRAMS AND ASSISTANCE

"SEC. 222. (a) In order to stimulate actions to meet or deal with particularly critical needs or problems of the poor which are common to a number of communities, the Director may develop and carry on special programs under this section. This authority shall be used only where the Director determines that the objectives sought could not be effectively achieved through the use of authorities under sections 220 and 221, including assistance to components or

projects based on models developed and promulgated by him. It shall also be used only with respect to programs which (1) involve activities which can be incorporated into or be closely coordinated with community action programs, (2) involve significant new combinations of resources or new and innovative approaches, and (3) are structured in a way that will, within the limits of the type of assistance or activities contemplated, most fully and effectively promote the purposes of this title. Subject to such conditions as may be appropriate to assure effective and efficient administration, the Director may provide financial assistance to public or private nonprofit agencies to carry on local projects initiated under such special programs; but he shall do so in a manner that will encourage, wherever feasible, the inclusion of the assisted projects in community action programs, with a view to minimizing possible duplication and promoting efficiencies in the use of common facilities and services, better assisting persons or families having a variety of needs, and otherwise securing from the funds committed the greatest possible impact in promoting family and individual self-sufficiency. Programs under this section shall include those described in the following paragraphs:

"(1) A program to be known as 'Project Headstart' focused upon children who have not reached the age of compulsory school attendance which will provide such comprehensive health, nutritional, educational, social, and other services, as the Director finds will aid the children to attain their full potential, together with appropriate activities to encourage the paricipation of parents of such children and permit the effective use of parent services. "(2) A 'legal services program' to provide legal advice and legal representation to persons when they are unable to afford the services of a private attorney, together with legal research and information, as appropriate to mobilize the assistance of lawyers or legal institutions, or combinations thereof, in furtherance of the cause of justice among persons living in poverty. Projects involving legal advice and representation shall be carried on in a way that assures maintenance of a lawyer-client relationship consistent with the best standards of the legal profession. The Director shall establish procedures to assure that the principal local bar associations in the area to be served by any proposed project for legal advice and representation are afforded an adequate opportunity to submit comments and recommendations on the proposal before it is approved or funded.

"(3) A 'comprehensive health services program' to aid in developing and carrying out comprehensive health services projects focused upon the needs of urban and rural areas having high concentrations of poverty and a marked inadequacy of health services for the poor. These projects shall be designed—

"(A) to make possible, with maximum feasible use of existing agencies and resources the provision of comprehensive health services, including but not limited to preventive medical, diagnostic, treatment, rehabilitation, mental health, dental, and follow-up services, together with necessary related facilities and services; and

"(B) to assure that these services are made readily accessible to the residents of such areas, are furnished in a manner most responsive to their needs and with their participation and wherever possible are combined with, or included within, arrangements for providing employment, education, social, or other assistance needed by the families and individuals served.

Funds for financial assistance under this paragraph shall be allotted according to need, and capacity of applicants to make rapid and effective use of that assistance, and may be used, as necessary to pay the full costs of projects. Before approving any project, the Director shall consult with appropriate Federal, State, and local health agencies and take such steps as may be required to assure that the program will be carried on under competent professional supervision and that existing agencies providing related services are furnished all assistance needed to permit them to plan for participation in the program and for the necessary continuation of those related services. "(4) A program to be known as 'Upward Bound' designed to generate skills and motivation necessary for success in education beyond high school among young people from low-income backgrounds and inadequate secondary school preparation. Projects must include arrangements to assure cooperation among one or more institutions of higher education and one or more secondary schools. They must include a curriculum designed to develop the critical

thinking, effective expression and attitudes toward learning needed for postsecondary education success, necessary health services and such recreational and cultural and group activities as the Director determines may be appropriate.

"(b) In developing programs under subsection (a), the Director shall give priority to programs involving services or activities whose effectiveness has been tested in one or more community action programs, or in connection with other Federal, State, or local programs, public or private. The Director shall also cooperate with Federal and State agencies with a view to developing, pursuant to subsection (a), programs which will supplement or improve programs for which those agencies are responsible. Where appropriate, he shall provide for the operation of programs under subsection (a) by other Federal or State agencies, pursuant to delegations of authority or suitable agreements.

"(c) Programs under subsection (a) may include essential training, research, and technical assistance directly related to program development and implementation, and funds allocated for this purpose may be allotted and used in the manner otherwise provided under this title with respect to training, research, and technical assistance activities.

"(d) The Director shall provide for the continuing evaluation of the effectiveness of all programs under this section, including their impact in terms of the needs or problems at which they are directed, and their relationship to and effect upon related programs. For this purpose, he shall consult with other Federal agencies, or where appropriate with State agencies, in order to provide wherever feasible for jointly sponsored objective evaluation studies on a National or State basis. The reports of such studies, together with the comments of the Director and other agencies, if any, thereon, shall be public records and shall be reflected in the annual report of the Director.

"ALLOTMENT OF FUNDS; LIMITATIONS ON ASSISTANCE

"SEC. 223. (a) Of the sums which are appropriated or allocated for assistance in the development and implementation of community action programs pursuant to sections 220 and 221, and for special program projects referred to in section 222(a), and which are not subject to any other provision governing allotment or distribution, the Director shall allot not more than 2 per centum among Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands, according to their respective needs. He shall also reserve not more than 20 per centum of those sums for allotment in accordance with such criteria and procedures as he may prescribe. The remainder shall be allotted among the States, in accordance with the latest available data, so that equal proportions are distributed on the basis of (1) the relative number of public assistance recipients in each State as compared to all States, (2) the average number of unemployed persons in each State as compared to all States, and (3) the relative number of related children living with families with incomes of less than $1,000 in each State as compared to all States. That part of any State's allotment which the Director determines will not be needed may be reallotted, at such dates during the fiscal year as the Director may fix, in proportion to the original allotments, but with appropriate adjustments to assure that any amount so made available to any State in excess of its needs is similarly reallotted among the other States.

"(b) The Director may provide for the separate allotment of funds for any special program referred to in section 222 (a). This allotment may be made in accordance with the criteria prescribed in subsection (a), or it may be made in accordance with other criteria which he determines will assure an equitable distribution of funds reflecting the relative incidence in each State of the needs or problems at which the program is directed, except that in no event may more than 12% per centum of the funds for any one program be used in any one State. "(c) Unless otherwise provided in this part, financial assistance extended to a community action agency or other agency pursuant to sections 220, 221, and 222 (a), for the period ending June 30, 1967, shall not exceed 90 per centum of the approved cost of the assisted programs or activities, and thereafter shall not exceed 80 per centum of such costs. The Director may, however, approve assistance in excess of such percentages if he determines, in accordance with regulations establishing objective criteria, that such action is required in furtherance of the purposes of this title. Non-Federal contributions may be in cash or in kind, fairly evaluated, including but not limited to plant, equipment, or services.

"(d) No program shall be approved for assistance under sections 220, 221, and 222(a) unless the Director satisfies himself (1) that the services to be provided under such program will be in addition to, and not in substitution for, services previously provided without Federal assistance, and (2) that funds or other resources devoted to programs designed to meet the needs of the poor within the community will not be diminished in order to provide any contributions required under subsection (c) or otherwise qualify for assistance under this part. The requirement imposed by the preceding sentence shall be subject to such regulations as the Director may adopt and promulgate establishing objective criteria for determinations covering situations where a strict application of that requirement would result in unnecessary hardship or otherwise be inconsistent with the purposes sought to be achieved.

"PART C-SUPPLEMENTAL PROGRAMS AND ACTIVITIES

"TECHNICAL ASSISTANCE AND TRAINING

"SEC. 230. The Director may provide, directly or through grants or other arrangements, (1) technical assistance to communities in developing, conducting. and administering programs under this title, and (2) training for specialized or other personnel which is needed in connection with those programs or which otherwise pertains to the purposes of this title. Upon request of an agency receiving financial assistance under this title, the Director may make special assignments of personnel to the agency to assist and advise it in the performance of functions related to the assisted activity; but no such special assignment shall be for a period of more than two years in the case of any agency.

"STATE AGENCY ASSISTANCE

"SEC. 231. (a) The Director may provide financial assistance to State agencies designated in accordance with State law, to enable those agencies

"(1) to provide technical assistance to communities and local agencies in developing and carrying out programs under this title ;

"(2) to assist in coordinating State activities related to this title; "(3) to advise and assist the Director in developing procedures and programs to promote the participation of States and State agencies in programs under this title; and

"(4) to advise and assist the Director, the Economic Opportunity Council established by section 631 of the Act, and the heads of other Federal agencies, in identifying problems posed by Federal statutory or administrative requirements that operate to impede State level coordination of programs related to this title, and in developing methods or recommendations for overcoming those problems.

"(b) In any grants or contracts with State agencies, the Director shall give preference to programs or activities which are administered or coordinated by the agencies designated pursuant to subsection (a), or which have been developed and will be carried on with the assistance of those agencies.

"RESEARCH AND PILOT PROGRAMS

"SEC. 232. (a) The Director may contract or provide financial assistance for pilot or demonstration projects conducted by public or private agencies which are designed to test or assist in the development of new approaches or methods that will aid in overcoming special problems or otherwise in furthering the purposes of this title. He may also contract or provide financial assistance for research pertaining to the purposes of this title.

"(b) The Director shall establish an overall plan to govern the approval of pilot or demonstration projects and the use of all research authority under this title. The plan shall set forth specific objectives to be achieved and priorities among such objectives. In formulating the plan, the Director shall consult with other Federal agencies for the purpose of minimizing duplication among similar activities or projects and determining whether the findings resulting from any research or pilot projects may be incorporated into one or more programs for which those agencies are responsible. As part of the annual report required by section 608, or in a separate annual report, the Director shall submit a description for each fiscal year of the current plan required by this section, of activities