; (iii) in subparagraph (H)(ii), by inserting who shall be directly employed by the center after approves the selection of a director for the center ; (iv) in subparagraph (L), by striking and at the end; (v) in subparagraph (M), by striking the period and inserting ; and ; and (vi) by inserting after subparagraph (M), the following: (N) the center has written policies and procedures in place to ensure the appropriate use of Federal funds in compliance with applicable Federal statutes, regulations, and the terms and conditions of the Federal award. ; and (C) by striking paragraph (4); (10) in subsection (l), by adding at the end the following: Funds expended to carry out activities under this subsection and operational support activities under subsection (m) shall not exceed 3 percent of the amount appropriated for this section for the fiscal year involved. ; (11) in subsection (q)(4), by adding at the end the following: A waiver provided by the Secretary under this paragraph may not remain in effect for more than 1 year and may not be extended after such period. An entity may not receive more than one waiver under this paragraph in consecutive years. ; (12) in subsection (r)(3)— (A) by striking appropriate committees of Congress a report concerning the distribution of funds under this section and inserting the following: “Committee on Health, Education, Labor, and Pensions of the Senate, and the Committee on Energy and Commerce of the House of Representatives, a report including, at a minimum— (A) the distribution of funds for carrying out this section ; (B) by striking populations. Such report shall include an assessment and inserting the following: “populations; (B) an assessment ; (C) by striking and the rationale for any substantial changes in the distribution of funds. and inserting a semicolon; and (D) by adding at the end the following: (C) the distribution of awards and funding for new or expanded services in each of rural areas and urban areas