children under 18 years of age living in families with incomes of less than $1,000 in all the States.

(c) The portion of any State's allotment under subsection (a) for a fiscal year which the Director determines will not be required for such fiscal year for carrying out this part shall be available for reallotment from time to time, on such dates during such year as the Director may fix, to other States in proportion to their original allotments for such year, but with such proportionate amount for any of such other States being reduced to the extent it exceeds the sum which the Director estimates such State needs and will be able to use for such year for carrying out this part; and the total of such reductions shall be similarly reallotted among the States whose proportionate amounts are not so reduced. Any amount reallotted to a State under this subsection during a year shall be deemed part of its allotment under subsection (a) for such year.

(d) For the purposes of this section, the term "State" does not include Puerto Rico, Guam, American Samoa, the Trust Territory of the Pacific Islands, and the Virgin Islands.

FINANCIAL ASSISTANCE FOR DEVELOPMENT OF COMMUNITY ACTION PROGRAMS

SEC. 204. The Director is authorized to make grants to, or to contract with, appropriate public or private nonprofit agencies, or combinations thereof, to pay part or all of the costs of development of community action programs.

FINANCIAL ASSISTANCE FOR CONDUCT AND ADMINISTRATION OF COMMUNITY ACTION PROGRAMS

SEC. 205. (a) The Director is authorized to make grants to, or to contract with, public or private nonprofit agencies, or combinations thereof, to pay part or all of the costs of community action programs which have been approved by him pursuant to this part, including the cost of carrying out programs which are components of a community action program and which are designed to achieve the purposes of this part. Such component programs shall be focused upon the needs of low-income individuals and families and shall provide expanded and improved services, assistance, and other activities, and facilities necessary in connection therewith. Such programs shall be conducted in those fields which fall within the purposes of this part including, but not limited to,1 employment, job training and counseling, health, vocational rehabilitation, housing, home management, welfare, and special remedial and other noncurricular educational assistance for the benefit of low-income individuals and families. The 2 Director shall require that where an agency pays an employee engaged in carrying out a community action program at a rate in excess of $15,000 per annum, payment of such excess shall not be made from Federal funds; and any amount paid such an employee in excess of $15,000 per annum shall not be considered in determining whether section 208(a) has been complied with.

(b) No grant or contract authorized under this part may provide

1 The phrase, “, but not limited to," was added by sec. 12 of the Economic Opportunity Amendments of 1965, 79 Stat. 974. 2 This sentence added by sec. 205 of the Economic Opportunity Amendments of 1966, 80 Stat. 1458.

for general aid to elementary or secondary education in any school or school system.

(c) In determining whether to extend assistance under this section the Director shall consider among other relevant factors the incidence of poverty within the community and within the areas or groups to be affected by the specific program or programs, and the extent to which the applicant is in a position to utilize efficiently and expeditiously the assistance for which application is made. In determining the incidence of poverty the Director shall consider information available with respect to such factors as: the concentration of low-income families, particularly those with children; the extent of persistent unemployment and underemployment; the number and proportion of persons receiving cash or other assistance on a needs basis from public agencies or private organizations; the number of migrant or transient low-income families; school dropout rates, military service rejection rates, and other evidences of low educational attainment; the incidence of disease, disability, and infant mortality; housing conditions; adequacy of community facilities and services; and the incidence of crime and juvenile delinquency.

(d) 1 The Director is authorized to make grants under this section for special programs (1) which involve activities directed to the needs of those chronically unemployed poor who have poor employment prospects and are unable, because of age or otherwise, to secure appropriate employment or training assistance under other programs, (2) which, in addition to other services provided, will enable such persons to participate in projects for the betterment or beautification of the community or area served by the program, including without limitation activities which will contribute to the management, conservation, or development of natural resources, recreational areas, Federal, State, and local government parks, highways, and other lands, and (3) which are conducted in accordance with standards adequate to assure that the program is in the public interest and otherwise consistent with policies applicable under this Act for the protection of employed workers and the maintenance of basic rates of pay and other suitable conditions of employment.

(e) 2 The Director is authorized to make grants or enter into agreements with any State or local agency or private organization to pay all or part of the costs of adult work training and employment programs for unemployed or low-income persons involving activities designed to improve the physical, social, economic or cultural condition of the community or area served in fields including, but not limited to, health, education, welfare, neighborhood redevelopment, and public safety. Such programs shall (1) assist in developing entry level employment opportunities, (2) provide maximum prospects for advancement and continued employment without Federal assistance, and (3) be combined with necessary educational, training, counseling, and transportation assistance, and such other supportive services as may be needed. Such work experience shall be combined, where

1 Subsection (d) added by sec. 13 of the Economic Opportunity Amendments of 1965, 79 Stat. 974975, which also redesignated former subsection (d) as subsection (e) (now subsection (f), see note 2, infra). 2 Subsection (e) was added by sec. 206 of the Economic Opportunity Amendments of 1966, 80 Stat. 1458, which also redesignated former subsection (e) (see note 1, supra) as subsection (f).

needed, with educational and training assistance, including basic literacy and occupational training. Such program shall be conducted in a manner consistent with policies applicable under this Act for the protection of employed workers and the maintenance of basic rates of pay and other suitable conditions of employment.

(f) 1 In extending assistance under this section the Director shall give special consideration to programs which give promise of effecting a permanent increase in the capacity of individuals, groups, and communities to deal with their problems without further assistance 2 and to programs which make the maximum utilization of existing schools, community centers, settlement houses, and other facilities during times they are not in use for their primary purpose.

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(g) The Director shall carry out this part in such a manner as to insure that funds available for carrying out this part (other than those available for carrying out subsections (d) and (e) of this section, and sections 206(b), 211-1(a), 211-1(b), 211-2 and 211-3) at least 5 per centum will be used for carrying out independently funded community action programs (other than programs described in subsections (d) and (e) of this section, and sections 206(b), 211-1(a), 211-1(b), 211–2 and 211-3) which are carried on in communities in which there is being carried on concurrently a community action program for which an overall community action agency assumes responsibility for planning, developing, and coordinating communitywide antipoverty programs and provides for the involvement and participation of public and private nonprofit agencies. In addition the Director may use an additional 5 per centum of such funds for carrying out such programs. For purposes of this subsection, a program will be deemed to be independently funded if the grantee is one that develops, and is funded to operate only, programs which are of limited scope and which does not have broad comprehensive community representation on its policymaking board, whether or not the grantee sponsors one or several component programs.

(h) The Director shall make grants to, or contracts with, independently funded public and private nonprofit agencies and organizations in predominantly rural areas in accordance with sections 210 and 617, where the Director determines it is not feasible, within a reasonable period of time, to establish community action agencies.

(i) 5 If projects are of a regional nature and can be more efficiently operated on this basis, the Director may make grants to, or contract with, independently funded, public and private nonprofit agencies and organizations for the conduct and administration of such projects.

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(j) No officer or employee of the Office of Economic Opportunity shall be an executive officer or a member of the board of directors of any organization (other than a religious organization) with which the Director has entered into a contract under this section to carry out a community action program or a component program thereof.

1 See note 2, page 20.

2 The words beginning with "and to programs" added to redesignated subsection (f) by sec. 207 of the Economic Opportunity Amendments of 1966, 80 Stat. 1458.

This subsection and following subsections (h), (i), and (j) added by sec. 208 of the Economic Opportunity Amendments of 1966, 80 Stat. 1459.

4 See note 3, supra.

5 See note 3, supra.

6 See note 3, supra.

(k) 1 No funds shall be released to any public or private nonprofit agency, or combination thereof, under this section unless the grantee organization has submitted to the Director either

(1) a statement from the appropriate public financial officer of the community or of the public agency which will maintain the accounts of the grantee, stating that such officer accepts responsibility for providing financial services adequate to insure the establishment and maintenance of an accounting system by such agency and its delegate agencies, with internal controls adequate to safeguard the assets of such agencies, check the accuracy and reliability of accounting data, promote operational efficiency and encourage adherence to prescribed management policies; or

(2) an opinion from a Certified Public Accountant or a duly licensed public accountant stating that the grantee has established such an accounting system.

(1) 2 (1) The Director shall make or cause to be made a preliminary audit survey within 3 months after the effective date of a grant or contract with any public or private nonprofit agency, or combination thereof, under this section to review and evaluate the adequacy of the grantee organization's and its delegate agencies' accounting systems and internal controls.

(2) Within 30 days of the completion of such survey, the Director shall determine on the basis of the findings and conclusions resulting from such survey whether the accounting systems of the grantee organization and its delegate agencies meet the standards set forth in subsections (k) (1) and (k) (2). If he shall determine that the standards have not been met, he shall immediately notify the grantee organization of his determination and he shall consider whether suspension of further payment of Federal funds under the subject grant is warranted.

(3) In the event of suspension of any grant funds pursuant to subsection (1)(2), the affected agency shall be given not more than six months from the date of notice of suspension in which to establish, with the advice of Office of Economic Opportunity auditors, the procedures prescribed in subsection (k). A new audit shall be performed within this period and if, by the end of this period, the Director is still unable to determine that the accounting system meets the required standards he shall terminate the contract or grant.

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(m) The Director shall establish such rules and regulations as may be required to insure that public or private nonprofit agencies, or combinations thereof, maintain the standards of accounting set forth in sections 205 (k) (1) and (2) during the period of any grant or contract under this section.

(n) In extending assistance under this section the Director is authorized to make grants for the payment of a reasonable allowance per meeting for attendance at community action agency board meetings or neighborhood community action council or committee meetings and for the reimbursement of other necessary expenses of attend

1 This subsection and following subsections (1) and (m) added by sec. 209 of the Economic Opportunity Amendments of 1966, 80 Stat. 1459-1460.

2 See note 1, supra.

See note 1, supra.

4 This subsection added by sec. 210 of the Economic Opportunity Amendments of 1966, 80 Stat. 1460.

ance at such meetings to members of such boards, councils, or committees who are residents of the areas and members of the groups served in order to insure and encourage their maximum feasible participation in the development, conduct, and administration of community action programs: Provided, however, That no such payments shall be made for attendance at more than two meetings in a month, or to any person who is an employee of the United States Government, of a community action agency, or of a State or local governmental agency.

(0) 1 (1) In making grants for programs in the field of family planning the Director shall assure that family planning services, including the dissemination of family planning information and medical assistance and supplies, are made available to all individuals who meet the criteria for eligibility for assistance under this part which have been established by the community action agency and who desire such information, assistance, or supplies.

(2) No such grant shall be approved unless it contains and is supported by reasonable assurances that in carrying out any program assisted by any such grant, the applicant will establish and follow procedures designed to insure that

(A) no individual will be provided with any information, medical supervision or supplies which such individual states to be inconsistent with his or her moral, philosophical, or religious beliefs; and

(B) no individual will be provided with any medical supervision or supplies unless such individual has voluntarily requested such medical supervision or supplies.

(3) The use of family planning services provided by the applicant under such grant shall not be a prerequisite to the receipt of services from or participation in any other programs under this Act.

TECHNICAL ASSISTANCE, TRAINING, AND EMERGENCY LOANS

SEC. 206. (a) The Director is authorized to provide, either directly or through grants or other arrangements, (1) technical assistance to communities in developing, conducting, and administering community action programs, and (2) training for specialized or other personnel needed to develop, conduct, or administer such programs or to provide services or other assistance in connection with such programs or otherwise pertaining to the purposes of this part. The Director may, upon request of a grantee under this section, or sections 204, 205, or 209(b), make special assignments of personnel to the grantee to assist and advise in the performance of functions related to the purposes of this part, except that in no event shall more than one hundred persons be employed for, or at any one time regularly engaged in, such assignments, nor shall any such special assignment be for a period of more than two years in the case of any grantee.

(b) The Director shall also formulate and carry out a program for

1 This subsection added by sec. 211 of the Economic Opportunity Amendments of 1966, 80 Stat. 14601461.

2 Sec. 206 amended to read as set forth in the text by sec. 212 of the Economic Opportunity Amendments of 1966, 80 Stat. 1461. Prior to this amendment, sec. 206 read as follows:

"The Director is authorized to provide, either directly or through grants or other arrangements, (1) technical assistance to communities in developing, conducting, and administering community action programs, and (2) training for specialized personnel needed to develop, conduct, or administer such programs or to provide services or other assistance thereunder."