November 21, 1974
Page 36922
JOINT FUNDING SIMPLIFICATION ACT OF 1974
Mr. ROBERT C. BYRD. Mr. President, I ask the Chair to lay before the Senate a message from the House of Representatives on S. 2299.
The PRESIDING OFFICER (Mr. CLARK) laid before the Senate the amendment of the House of Representatives to the bill (S. 2299) to provide authority to expedite procedures for consideration and approval of projects drawing upon more than one Federal assistance program, to simplify requirements for operation of those projects, and for other purposes as follows:
Strike out all after the enacting clause, and insert: That this Act may be cited as the "Joint Funding Simplification Act of 1974".
PURPOSE
SEC. 2. The purpose of this Act is to enable State and local governments and private, nonprofit organizations to use Federal assistance more effectively and efficiently, and to adapt that assistance more readily to their particular needs through the wider use of projects drawing upon resources available from more than one Federal agency, program, or appropriation. It is the further purpose of this Act to encourage Federal-State arrangements under which local government and private, nonprofit organizations may more effectively and efficiently combine State and Federal resources in support of projects of common interest to the governments and organizations concerned.
BASIC RESPONSIBILITIES OF THE PRESIDENT AND HEADS OF FEDERAL AGENCIES
SEC. 3. (a) The President shall promulgate such regulations as may be necessary or appropriate to assure that this Act is applied by all Federal agencies in a consistent manner and in accordance with its purposes. He may, for this purpose, require that Federal agencies adopt or prescribe procedures that will assure that applicants for assistance to projects funded pursuant to the provisions of this Act make appropriate efforts (1) to secure the views and recommendations of non-Federal agencies that may be significantly affected by such projects, and (2) to resolve questions of common interest to those agencies prior to submission of any application.
(b) Subject to such regulations as the President may prescribe, and to other applicable law, the heads of Federal agencies, by internal agency order or interagency agreement, may take the following actions:
(1) Identification of related programs likely to be particularly suitable or appropriate for providing joint support for specific kinds of projects thereunder.
(2) Development and promulgation of guidelines, model or illustrative projects, joint or common application forms, and other material or guidance to assist in the planning and development of projects drawing support from different programs.
(3) Review of administratively established program requirements in order to determine which of those requirements may impede joint support of projects thereunder and the extent to which such requirements may be modified, making such modifications where appropriate.
(4) Establishment of common technical or administrative rules with respect to related programs to assist in the joint use of funds in the support of specific projects or classes of projects under such programs.
(5) Creation of joint or common application processing and project supervision procedures or mechanisms including procedures for designating lead agencies to assume responsibilities for processing applications on behalf of several agencies and for designation of managing agencies to assume responsibilities for project supervision on behalf of several agencies.
(c) The head of each Federal agency shall be responsible for taking actions, to the maximum extent permitted under applicable law, that will further the purpose of this Act with respect to Federal assistance programs administered by his agency. Each Federal agency head shall also consult and cooperate with the heads of other Federal agencies in order similarly to promote the purposes of this Act with respect to Federal assistance programs of different agencies that may be used jointly in support of projects undertaken by State or local governments, or private, nonprofit organizations.
APPLICATION PROCESSING
SEC. 4. Actions taken by Federal agency heads pursuant to this Act that relate to the processing of applications or requests for assistance under two or more Federal programs in support of any project shall be designed to assure, so far as reasonably possible, that (1) all required reviews and approvals are handled expeditiously; (2) full account is taken of any special considerations of timing that are made known by the applicant that would affect the feasibility of a jointly funded project; (3) the applicant is required to deal with a minimum number of Federal representatives, acting separately or as a common board or panel; (4) the applicant is promptly informed of decisions with respect to an application and of any special problems or impediments that may affect the feasibility of Federal provision of assistance on a point basis; and (5) the applicant is not required by representatives of any one Federal agency or program to obtain information or assurances concerning the requirements or actions of another Federal agency that could more appropriately be secured through direct communication among the Federal agencies involved.
SPECIAL AUTHORITIES – BASIC CONDITIONS
SEC. 5. Where appropriate to further the purposes of this Act, and subject to the conditions prescribed in this section, heads of Federal agencies may use the authorities described in sections 6, 7, and 8 (relating to the establishment of uniform technical or administrative requirements, delegation of powers and responsibilities, and establishment of joint managerial funds) with respect to projects assisted under more than one Federal assistance program. These authorities shall be exercised only pursuant to regulations prescribed by the President. Those regulations shall include criteria or procedures to assure that the authorities are limited in use to problems that cannot be adequately dealt with through other actions pursuant to this Act or other applicable law, that they are applied only as necessary to promote expeditious processing of applications or effective and efficient administration of projects, and that they are applied in a manner consistent with the protection of the Federal interest and with program purposes and statutory requirements.
ESTABLISHMENT OF UNIFORM TECHNICAL OR ADMINISTRATIVE REQUIREMENTS
SEC. 6. (a) In order to provide for projects that would otherwise be subject to varying or conflicting technical or administrative rules and procedures not required by law, the heads of Federal agencies may adopt uniform provisions with respect to–
(1) inconsistent or conflicting requirements relating to financial administration of such projects, including accounting, reporting and auditing, and maintaining separate bank accounts, but only to the extent consistent with the requirements of section 8;
(2) inconsistent or conflicting requirements relating to the timing of Federal payments for such projects where a single or combined schedule is to be established for the project as a whole;
(3) inconsistent or conflicting requirements that assistance be extended in the form of a grant rather than a contract, or a contract rather than a grant; and
(4) inconsistent or conflicting requirements relating to accountability for, or the disposition of, records, property, or structures acquired or constructed with Federal assistance where common rules are established for the project as a whole.
(b) In order to permit processing of applications in accordance with the purposes of this Act, Federal agency heads may provide for review of proposals for projects by a single panel, board, or Committee in lieu of review by separate panels, boards, or Committees except when such review is specifically required by law.
(c) In promoting the more effective and efficient use of Federal assistance resources, Federal agency heads may waive requirements that a single or specific public agency be utilized or designated to receive, supervise, or otherwise administer a part of the Federal assistance drawn upon by any jointly funded project to the extent that administration by another public agency is determined to be fully consistent with applicable State or local law and with the objectives of the Federal assistance program involved. This authority may be exercised only (1) upon request of the head of a unit of general government, with respect to agencies that he certifies to be under his jurisdiction, or (2) with the agreement of the several State or local public agencies concerned.
DELEGATION Or POWERS
SEC. 7. With the approval of the President, agency heads may delegate to other Federal agencies powers and functions relating to the supervision or administration of Federal assistance, or otherwise arrange for other agencies to perform such activities, with respect to projects or classes of projects funded under the terms of this Act. Delegations under this section shall be made only on such conditions as may be appropriate to assure that the powers and functions delegated are exercised in full conformity with applicable statutory provisions and policies, and shall not relieve agency heads of responsibility for the proper and efficient management of projects funded by their agencies.
FUNDING ARRANGEMENTS AND PROCEDURES
SEC. 8. (a) In order to provide for the more effective administration of funds drawn from more than one Federal program or appropriation in support of projects under this Act, there may be established joint management funds with respect to such projects. There shall be transferred to the joint management fund from each affected program or appropriation, from time to time, its proportionate share of amounts needed for payment to the grantee. Any unexpended amounts shall be returned to the joint management fund by the grantee at the completion of the project.
(b) Any account in a joint management fund shall be subject to such agreements, not inconsistent with this section and other applicable law, as may be entered into by the Federal agencies concerned with respect to the discharge of the responsibilities of those agencies and shall assure the availability of necessary information to those agencies and to the Congress. These agreements shall also provide that the agency administering a joint management fund shall be responsible and accountable by program and appropriation for the amounts provided for the purposes of
each account established in the fund; and shall include procedures for determining, from time to time, whether amounts in the account are in excess of the amounts required, and for returning that excess to the participating Federal agencies according to the applicable appropriations, subject to fiscal year limitations. Excess amounts applicable to expired appropriations will be lapsed from that fund.
(c) For each project financed through an account in a joint management fund established pursuant to this section, the recipients of moneys drawn from the fund shall keep such records as the head of the Federal agency responsible for administering the fund will prescribe. Such records shall, as a minimum, fully disclose the amount and disposition by such recipient of Federal assistance received under each program and appropriation, the total cost of the project in connection with which such Federal assistance was given or used, the amount of that portion of the cost of the project supplied by other sources, and such other records as will facilitate an effective audit.
(d) The head of the Federal agency responsible for administering such joint management fund and the Comptroller General of the United States or any of their duly authorized representatives, shall have access for the purpose of audit and examination to any books, documents, papers, and records of such recipients that are pertinent to the moneys received from such fund.
(e) in the case of any project covered in a joint management fund, a single non-Federal share may be established according to the Federal share ratios applicable to the several Federal assistance programs involved and the proportion of funds transferred to the project account from each of those programs.
AUXILIARY PROVISIONS
SEC. 9. Appropriations available to any Federal assistance program for technical assistance or the training of personnel may be made available for the provision of technical assistance and training in connection with projects proposed or approved for joint funding involving that program and any other Federal assistance program.
FEDERAL-STATE ASSISTANCE AND AGREEMENTS
SEC. 10. Subject to such regulations as the President may prescribe, Federal agencies may enter into agreements with States as appropriate to extend the benefits of this Act to projects involving assistance from one or more Federal agencies and one or more State agencies. These agreements may include arrangements for the processing of requests for, or the administration of, assistance to such projects on a joint basis.
REPORTING
SEC. 11. At least one year prior to the expiration of this Act, the President shall submit a comprehensive report to the Congress on actions taken under this Act, and make recommendations for its continuation, modification, or termination. The report shall provide a detailed evaluation of the functioning of this Act, including information regarding the benefits and costs of jointly funded projects accruing to the participating State and local governments and private, nonprofit organizations, and to the Federal Government.
DEFINITIONS
SEC. 12. As used in this Act–
(1) the term "Federal assistance prommeans programs that provide assistance through grant or contractual arrangements, but does not include assistance in the form of revenue sharing, loans, loan guarantees, or insurance;
(2) the term "applicant" means any State or local government or private, nonprofit organization acting separately or together m seeking assistance with respect to a single project;
(3) the term "project" means any undertaking, whether of a temporary or continuing nature that includes components proposed or approved for assistance under more than one Federal program, or one or more Federal and one or more State programs, if each of those components contributes materially to the accomplishment of a single purpose or, closely related purposes;
(4) the term "Federal agency" means any agency, department, corporation, independent establishment, or other entity of the executive branch of the Government of the United States;
('5) the term "State" means any of the several States of the United States, the District of Columbia, the Commonwealth of Puerto Biro, any territory or possession of the United States, or any agency or instrumentality of a State, and any tribe as defined in section 3(c) of the Indian Financing Act (88 Stat. 77);
(8) the term "local government" means a local unit of government including a city, county, parish, town, township, village, school district, Council Of governments, or other agency or instrumentality of a local unit of government.
EFFECTIVE DATE AND EXPIRATION
SEC. 13. This Act shall become, effective sixty days following the date of enactment, and shall expire five years following the date upon which it becomes effective; except that the expiration of this Act shall not affect the status of any project approved prior to the date of such expiration,
Mr. MUSKIE. Mr. President, earlier this week the House passed S. 2299, the Joint Funding Simplification Act, a bill designed to streamline certain Federal assistance to State and local governments and to adapt that assistance more readily to the needs of the recipients. A similar version of S. 2299 passed the Senate last year.
The passage of this legislation has gone largely unnoticed. Its provisions are relatively technical, and not very controversial.
Nevertheless, joint funding is an important concept whose enactment should be noted. Not only does it offer the prospect of a more efficient and effective Federal grant system, it also promises to be a substantial aid in the battle against inflation.
At the State and local conference on inflation held this fall as a preliminary to the economic summit, it became clear to all participating that inflation is going to have a severe impact on State and local governments in the near future.
At this conference, we heard convincing testimony that prices paid for goods and services by State and local governments have risen faster than the general price level. We learned that local revenue sources are hard pressed to keep up with rapidly escalating costs. And we learned
that a principal concern of State and local officials was the inflationary demands placed on their budgets by redtape, bureaucratic delays, and excessive administrative requirements of Federal grant programs.
Repeatedly, participating State and local officials urged Congress and the administration to redouble their efforts to reform and streamline the Federal grant system, as an important way to fight inflation. As part of this reform effort, the conference urged passage of joint funding simplification.
I am pleased that the Congress has responded so rapidly to this sensible request.
Joint funding simplification is relevant to the fight against inflation in two major ways.
First, it will help State and local governments meet their interrelated needs with one comprehensive plan for receiving grants from several Federal agencies, through one Federal funding source. It will thereby insure assistance geared more to the needs of recipients, rather than to the demands of Washington.
And second, joint funding will reduce substantially the amount of redtape and bureaucratic inconvenience now synonymous with Federal aid. This simplification will be accomplished by:
First, standardizing administrative requirements for different programs;
Second, synchronizing receipt of Federal funds with the grantee's own planning and funding cycle;
Third, substituting a single agency audit for present separate audits where more than one agency is involved in a particular grant; and
Fourth, permitting State and local governments to report to one Federal center rather than several, as now required for different agencies.
The joint funding legislation passed by the House this week is basically the same as that passed by the Senate, with two exceptions. Whereas the Senate bill would have established a permanent authorization for joint funding, the House bill provides for a 5-year authorization only.
And whereas the Senate bill authorized the establishment of joint management funds to be administered as if from a single appropriation, the House bill requires that separate fund sources be maintained by each Federal agency participating in jointly funded projects.
These changes enacted by the House do not deviate from the fundamental purpose of the legislation. Therefore, as the sponsor of the Senate bill and as chairman of the Intergovernmental Relations Subcommittee which first considered S. 2299, I am prepared to accept the House version of the legislation.
The reforms embodied in S. 2299 can go a long way toward reducing the time, man-hours, and money that State and local governments now spend in their efforts to secure Federal aid. To be sure, more remains to be done, and I intend to offer additional grant reform proposals in the 94th Congress. In the meantime, the Joint Funding Simplification Act is a useful step in our efforts to reform and rationalize Federal aid.
Mr. ROBERT C. BYRD. Mr. President, by request, I move that the Senate concur in the House amendment.
The motion was agreed to.