3 "(b) For each eligible area, the Secretary shall recog

4 nize a public or private nonprofit organization which shall

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serve as the prime sponsor to receive funds under section 405

6 (except as otherwise provided in section 405 (c)). A prime

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sponsor recognized under the provisions of section 122 of the 8 Economic Opportunity Act of 1964 shall be deemed to be the 9 prime sponsor for its eligible area for the purposes of this 10 title.

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"FINANCIAL ASSISTANCE

"SEC. 405. (a) The Secretary is authorized to provide 13 financial assistance to prime sponsors having a community 14 employment plan approved by him pursuant to section 409 15 and an application approved by him pursuant to section 16 406, and to State agencies having a State plan approved 17 by him pursuant to section 410 for the planning, conduct, 18 administration and evaluation of community service employ

19 ment programs.

20 "(b) Financial assistance under this section shall in21 clude, but not be limited to, programs and activities de22 signed

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"(1) to provide jobs immediately to unemployed or low-income persons who are otherwise unable to obtain satisfactory employment;

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"(2) to provide placement services and resources

for such persons completing manpower training and anti

poverty programs assisted by Federal funds, particularly programs under title II of this Act and under the Economic Opportunity Act of 1964;

"(3) to assure that persons employed in a community service employment program are provided opportunity for further education, training and necessary supportive services, including pretraining services, rehabilitative and preventive services for narcotic and alcoholic addicts, basic maintenance, transportation, health, family, day care, counseling, placement and other services, as may be necessary for them to participate in such program and to be prepared to gain regular competitive employment in the future;

"(4) to promote the establishment of local service companies and the use of service development organiza

tions to encourage the establishment of such companies. 19 For purposes of providing education, training, and supportive 20 services set forth in paragraph (3) of this subsection, funds 21 appropriated under this title may be used to carry out such 22 service programs under other titles of this Act and under 23 other provisions of Federal law, by reimbursement to other 24 Federal departments and agencies where appropriate, if the 25 Secretary determines that such use of funds is the most effec

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1 tive method of providing such services. Financial assistance 2 under this section may include loans for the purchase of 3 supplies and equipment necessary to carry out community 4 service employment programs.

5 "(c) The Secretary or the State agency may provide 6 financial assistance to a public agency or private organization 7 other than a prime sponsor to carry out one or more com8 munity service employment programs or components thereof 9 whenever the Secretary or such agency determines, after 10 soliciting and considering comments of the prime sponsor, if 11 any, that such assistance would enhance program effective12 ness or acceptance on the part of persons served and would 13 serve the purposes of this part.

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"APPLICATIONS

"SEC. 406. The Secretary may provide financial assist16 ance under this title only upon application by a State agency, 17 pursuant to an approved State plan, a prime sponsor, pur18 suant to an approved community employment plan, or an19 other eligible applicant which contains assurances satisfactory 20 to the Secretary that the applicant will—–

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"(1) establish adequate administrative controls over

programs to be assisted under this title;

"(2) establish effective and efficient personnel poli

cies designed to serve the purposes of this title;

“(3) establish procedures for proper accounting of

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Federal funds, necessary reporting, and evaluation of

such programis;

"(4) carry out such other requirements and condi

tions as are set forth in this title.

"LOCAL SERVICE COMPANIES

"SEC. 407. (a) Whenever practicable, the Secretary 7 and the State agencies shall encourage and give preference 8 to applications under which community service employment 9 programs are to be carried out on a contractual basis by 10 local service companies. Such contracts may provide for 11 financial incentives to be paid to such local service companies 12 for satisfactory and superior performance of such programs. "(b) In der to promote the establishment and development of local service companies on a self-sustaining basis, 15 the Secretary is authorized, under the authority contained in 16 section 405, to provide financial assistance to public agencies 17 or private organizations to act as service development orga18 nizations. Such financial assistance may be provided for the 19 costs of programs operated by service development organiza20 tions to assist in the establishment and maintenance of local 21 service companies, including but not limited to the follow

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"(1) planning and research, including feasibility

studies and market research;

"(2) legal and technical assistance, business coun

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seling, management and training assistance, assistance in

obtaining contracts or subcontracts from public or private

sources, and other related services, including the provision of business services on a centralized basis; and

"(3) financial assistance, including the provision of startup capital and assistance in securing performance

or other bonds needed by the company or its employees.

A service development organization may, pursuant to regulations issued by the Secretary, be permitted to take a

minority equity interest in a local service company and to

deal with such a company on a franchise or other profitmaking basis.

"(c) In developing local service companies and service development organizations, the Secretary and the State agencies may make use of services available from other Federal agencies and from private organizations, including appropriate private technical assistance organizations, in a contractual or other suitable basis.

"PUBLIC SAFETY PROGRAMS

"SEC. 408. (a) The Secretary shall encourage the development of, and is authorized to, provide financial as

sistance under section 405 for community service employ

ment programs in the field of public safety. Such programs

may include the development of employment and training opportunities for community service officers and other sup