; or (B) a public organization that is an eligible entity determines that the area it serves can be more effectively served if it becomes a private, nonprofit organization that is a public charity. (3) Plans A State may establish requirements for merger, combination, or privatization plans and for a determination that the merged, combined, or privatized entity, or entities, will be capable of conducting a program consistent with the comprehensive needs assessments for the areas served. (c) Tripartite boards (1) Private, nonprofit organizations (A) Board In order for a private, nonprofit organization to be considered to be an eligible entity for purposes of section 673(6), the entity shall be governed by a tripartite board of directors described in subparagraph (C) that fully participates in the development, planning, implementation, oversight, and evaluation of the program, project, or service carried out or provided through the subgrant made under section 679(a)(1)(B) and all activities of the entity. (B) Selection The members of the board referred to in subparagraph (A) shall be selected by the private, nonprofit organization. (C) Composition of board The board shall be composed so as to assure that— (i) 1/3 of the members of the board are elected public officials holding office on the date of selection, or their representatives (but if an elected public official chooses not to serve, such official may designate a representative to serve as the voting board member); (ii) (I) not fewer than 1/3 of the members are persons chosen in accordance with democratic selection procedures adequate to assure that the members referred to in this clause are representative of low-income individuals and families in the service area; and (II) each member who is a representative of low-income individuals and families and is also selected to represent a specific geographic area under subclause (I) resides in such area