```

[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2570 Reported in House (RH)]

                                                 Union Calendar No. 263

104th CONGRESS

  2d Session

                               H. R. 2570

                          [Report No. 104-539]

_______________________________________________________________________

                                 A BILL

 To amend the Older Americans Act of 1965 to authorize appropriations 
   for fiscal years 1997, 1998, 1999, 2000, and 2001, and for other 
                               purposes.

_______________________________________________________________________

                             April 25, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed

                                                 Union Calendar No. 263
104th CONGRESS
  2d Session
                                H. R. 2570

                          [Report No. 104-539]

 To amend the Older Americans Act of 1965 to authorize appropriations 
   for fiscal years 1997, 1998, 1999, 2000, and 2001, and for other 
                               purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            November 1, 1995

 Mr. Cunningham (for himself, Mr. Goodling, Mr. Gunderson, Mr. Castle, 
   Mr. Sam Johnson of Texas, Mr. Greenwood, Mr. Riggs, Mr. Weldon of 
   Florida, Mr. Souder, Mr. McIntosh, Mr. Ballenger, and Mr. Graham) 
 introduced the following bill; which was referred to the Committee on 
                 Economic and Educational Opportunities

                             April 25, 1996

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           November 1, 1995]

_______________________________________________________________________

                                 A BILL

 
 To amend the Older Americans Act of 1965 to authorize appropriations 
   for fiscal years 1997, 1998, 1999, 2000, and 2001, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Older Americans Amendments of 
1996''.

SEC. 2. TABLE OF CONTENTS.

    The table of contents of the Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.
Sec. 3. Amendment to the Older Americans Act of 1965.
Sec. 4. Conforming amendments.
Sec. 5. Fiscal year references for fiscal year 1997.
Sec. 6. Issuance of rules.
Sec. 7. Enforcement authority.
Sec. 8. Transfers; savings provisions.
Sec. 9. Effective dates.

SEC. 3. AMENDMENT TO THE OLDER AMERICANS ACT OF 1965.

    The Older Americans Act of 1965 (42 U.S.C. 3001 et seq.) is amended 
to read as follows:

``SECTION 1. SHORT TITLE.

    ``This Act may be cited as the `Older Americans Act of 1996'.

``SEC. 2. TABLE OF CONTENTS.

    ``The table of contents of this Act is as follows:

        ``Sec. 1. Short title.
        ``Sec. 2. Table of contents.

                     ``TITLE I--GENERAL PROVISIONS

            ``Subtitle A--Statement of Purpose; Definitions

        ``Sec. 101. Purpose.
        ``Sec. 102. Definitions.

                      ``Subtitle B--Administration

        ``Sec. 111. Establishment of Administration on Aging.
        ``Sec. 112. Duties of Assistant Secretary.
        ``Sec. 113. Federal agency consultation.
        ``Sec. 114. Powers of the Assistant Secretary.
        ``Sec. 115. Evaluations.
        ``Sec. 116. Reports.
        ``Sec. 117. Reduction of paperwork.
        ``Sec. 118. Surplus property eligibility.
        ``Sec. 119. Benefit treatment under other laws.
        ``Sec. 120. Authorization of appropriations.

        ``TITLE II--GRANTS FOR NATIVE AMERICAN PROGRAMS ON AGING

        ``Sec. 201. Grants for services to Native Americans.
        ``Sec. 202. Applications for grants.
        ``Sec. 203. Distribution of funds among tribal organizations, 
                            Alaska Native organizations, and 
                            organizations serving Native Hawaiians.
        ``Sec. 204. Surplus educational facilities.
        ``Sec. 205. Administration.
        ``Sec. 206. Payments.
        ``Sec. 207. Authorization of appropriations.

     ``TITLE III--GRANTS FOR STATE AND COMMUNITY PROGRAMS ON AGING

               ``Subtitle A--Grants for Programs on Aging

                    ``Chapter 1--General Provisions

        ``Sec. 301. Technical assistance and cooperation.
        ``Sec. 302. Allotments; Federal share.
        ``Sec. 303. Eligibility of States; organization.
        ``Sec. 304. State plans.
        ``Sec. 305. Area plans.
        ``Sec. 306. Planning, coordination, evaluation, and 
                            administration of State plans.
        ``Sec. 307. Payments.

    ``Chapter 2--Supportive Services and Multipurpose Senior Centers

        ``Sec. 321. Program authorized.

                    ``Chapter 3--Nutrition Services

        ``Sec. 331. Program authorized.
        ``Sec. 332. Additional requirements.

     ``Chapter 4--Community Service Employment for Older Americans

        ``Sec. 351. Short title.
        ``Sec. 352. Older American Community Service Employment 
                            Program.
        ``Sec. 353. Participants not Federal employees.
        ``Sec. 354. Treatment of employment assistance for purposes of 
                            Federal housing and food stamp programs.

             ``Subtitle B--Authorization of Appropriations

        ``Sec. 381. Authorization of appropriations.
        ``Sec. 382. Additional funds available for nutrition services.

          ``TITLE IV--NATIONAL SENIOR VOLUNTEER SERVICE CORPS

        ``Sec. 401. Statement of purposes.

           ``Subtitle A--Retired and Senior Volunteer Program

        ``Sec. 411. Grants and contracts for volunteer service 
                            projects.

                ``Subtitle B--Foster Grandparent Program

        ``Sec. 421. Grants and contracts for volunteer service 
                            projects.

            ``Subtitle C--Senior Companion Volunteer Program

        ``Sec. 431. Grants and contracts for volunteer service 
                            projects.

                    ``Subtitle D--General Provisions

        ``Sec. 441. Promotion of National Senior Volunteer Service 
                            Corps.
        ``Sec. 442. Payments.
        ``Sec. 443. Use of locally generated contributions in National 
                            Senior Volunteer Service Corps.
        ``Sec. 444. Adjustments to Federal financial assistance; 
                            reports.
        ``Sec. 445. Multiyear grants or contracts.

             ``Subtitle E--Administration and Coordination

        ``Sec. 461. Administrative structure.
        ``Sec. 462. Political activities.
        ``Sec. 463. Special limitations.
        ``Sec. 464. Coordination with other programs.
        ``Sec. 465. Notice and hearing procedures for suspension and 
                            termination of financial assistance.
        ``Sec. 466. Distribution of benefits between rural and urban 
                            areas.
        ``Sec. 467. Volunteers not Federal employees.
        ``Sec. 468. Evaluation.
        ``Sec. 469. Eligibility for other benefits.
        ``Sec. 470. Legal expenses.

             ``Subtitle F--Authorization of Appropriations

        ``Sec. 491. Authorization of appropriations for programs.

                     ``TITLE I--GENERAL PROVISIONS

            ``Subtitle A--Statement of Purpose; Definitions

``SEC. 101. PURPOSE.

    ``It is the purpose of this Act to encourage and assist State 
agencies, area agencies on aging, and tribal organizations to 
concentrate resources in order to develop greater capacity and foster 
the development and implementation of comprehensive and coordinated 
systems to serve older individuals by entering into cooperative 
arrangements in each State for the planning and provision of supportive 
services, nutrition services, multipurpose senior centers, community 
service employment, and volunteer services, in order to--
            ``(1) secure and maintain maximum independence and dignity 
        in a home environment for older individuals capable of self 
        care with appropriate supportive services,
            ``(2) remove individual and social barriers to economic and 
        personal independence for older individuals,
            ``(3) provide a continuum of care for vulnerable older 
        individuals,
            ``(4) secure the opportunity for older individuals to 
        receive managed in-home and community-based long-term care 
        services,
            ``(5) ensure that older individuals will be protected 
        against abuse, neglect, and exploitation,
            ``(6) promote employment opportunities and community 
        service, and
            ``(7) empower older individuals to contribute to their 
        communities through volunteer services that enhance the lives 
        of the volunteers and those whom they serve.

``SEC. 102. DEFINITIONS.

    ``For the purposes of this Act:
            ``(1) Abuse.--The term `abuse' means (except when such term 
        is used in the phrase `drug and alcohol abuse') the willful--
                    ``(A) infliction of injury, unreasonable 
                confinement, intimidation, or cruel punishment with 
                resulting physical harm, pain, or mental anguish, or
                    ``(B) deprivation by a person, including a 
                caregiver, of goods or services that are necessary to 
                avoid physical harm, mental anguish, or mental illness.
            ``(2) Administration.--The term `Administration' means the 
        Administration on Aging.
            ``(3) Adult child with a disability.--The term `adult child 
        with a disability' means a child who--
                    ``(A) is 18 years of age or older,
                    ``(B) is financially dependent on an older 
                individual who is a parent of the child, and
                    ``(C) has a disability.
            ``(4) Alaska native.--The term `Alaska Native' means an 
        Alaska Native who is a member of an Alaska Native organization.
            ``(5) Alaska native organization.--The term `Alaska Native 
        organization' means an Alaska Native village, or an Alaskan 
        Native regional or village corporation, as defined in or 
        established pursuant to the Alaska Native Claims Settlement Act 
        (Public Law 92-203; 85 Stat. 688), that is recognized as 
        eligible for the special programs and services provided by the 
        United States to Alaska Natives because of their status as 
        Alaska Natives.
            ``(6) Area agency on aging.--The term `area agency on 
        aging' means an area agency on aging designated under section 
        303(a)(2)(A) or a State agency performing the functions of an 
        area agency on aging under section 303(a)(1)(E).
            ``(7) Assistant secretary.--The term `Assistant Secretary' 
        means the Assistant Secretary for Aging.
            ``(8) Assistive technology.--The term `assistive 
        technology' means technology, engineering methodologies, or 
        scientific principles appropriate to meet the needs of, and 
        address the barriers confronted by, older individuals with 
        functional limitations.
            ``(9) Board and care facility.--The term `board and care 
        facility' means an institution regulated by a State pursuant to 
        section 1616(e) of the Social Security Act (42 U.S.C. 
        1382e(e)).
            ``(10) Caregiver.--The term `caregiver' means an individual 
        who has the responsibility for the care of an older individual, 
        either voluntarily, by contract, by receipt of payment for 
        care, or as a result of the operation of law.
            ``(11) Caretaker.--The term `caretaker' means a family 
        member or other individual who provides (on behalf of such 
        individual or of a public or private agency, organization, or 
        institution) uncompensated care to an older individual who 
        needs supportive services.
            ``(12) Case management service.--The term `case management 
        service'--
                    ``(A) means a service provided to an older 
                individual, at the direction of the older individual or 
                a family member of the individual--
                            ``(i) by an individual who is trained or 
                        experienced in the case management skills that 
                        are required to deliver the services and 
                        coordination described in subparagraph (B), and
                            ``(ii) to assess the needs, and to arrange, 
                        coordinate, and monitor an optimum package of 
                        services to meet the needs, of the older 
                        individual, and
                    ``(B) includes services and coordination such as--
                            ``(i) comprehensive assessment of the older 
                        individual (including the physical, 
                        psychological, and social needs of the 
                        individual),
                            ``(ii) development and implementation of a 
                        service plan with the older individual to 
                        mobilize the formal and informal resources and 
                        services identified in the assessment to meet 
                        the needs of the older individual, including 
                        coordination of the resources and services--
                                    ``(I) with any other plans that 
                                exist for various formal services, such 
                                as hospital discharge plans, and
                                    ``(II) with the information and 
                                assistance services provided under this 
                                Act,
                            ``(iii) coordination and monitoring of 
                        formal and informal service delivery, including 
                        coordination and monitoring to ensure that 
                        services specified in the plan are being 
                        provided,
                            ``(iv) periodic reassessment and revision 
                        of the status of the older individual with--
                                    ``(I) the older individual, or
                                    ``(II) if necessary, a primary 
                                caregiver or family member of the older 
                                individual, and
                            ``(v) in accordance with the wishes of the 
                        older individual, advocacy on behalf of the 
                        older individual for needed services or 
                        resources.
            ``(13) Child.--Except when it appears as part of the term 
        `adult child with a disability', the term `child' means--
                    ``(A) except for purposes of title IV, an 
                individual who is less than 18 years of age, and
                    ``(B) for purposes of title IV, an individual who 
                is less than 21 years of age.
            ``(14) Client assessment.--The term `client assessment' 
        includes providing information relating to assistive 
        technology.
            ``(15) Community services.--The term `community services' 
        means--
                    ``(A) social, health, welfare, and educational 
                services (particularly literacy tutoring),
                    ``(B) legal and other counseling services and 
                assistance, including tax counseling and assistance and 
                financial counseling,
                    ``(C) library, recreational, and other similar 
                services,
                    ``(D) conservation, maintenance, or restoration of 
                natural resources,
                    ``(E) community betterment or beautification,
                    ``(F) antipollution and environmental quality 
                efforts,
                    ``(G) weatherization activities,
                    ``(H) economic development, and
                    ``(I) such other services essential and necessary 
                to the community as the Secretary, by regulation, may 
                require.
            ``(16) Comprehensive and coordinated system.--The term 
        `comprehensive and coordinated system' means a system for 
        providing all necessary supportive services, including 
        nutrition services, in a manner designed to--
                    ``(A) facilitate accessibility to, and utilization 
                of, all supportive services and nutrition services 
                provided within the geographic area served by such 
                system by any public or private agency or organization,
                    ``(B) develop and make the most efficient use of 
                supportive services and nutrition services in meeting 
                the needs of older individuals,
                    ``(C) use available resources efficiently and with 
                a minimum of duplication, and
                    ``(D) encourage and assist public and private 
                entities that have unrealized potential for meeting the 
                service needs of older individuals to assist the older 
                individuals on a voluntary basis.
            ``(17) Disability.--The term `disability' means (except 
        when such term is used in the phrase `severe disability', 
        `developmental disabilities', `physical and mental 
        disabilities', or `physical disabilities') a disability 
        attributable to mental or physical impairment, or a combination 
        of mental and physical impairments, that results in substantial 
        functional limitations in 1 or more of the following areas of 
        major life activity: (A) self-care, (B) receptive and 
        expressive language, (C) learning, (D) mobility, (E) self-
        direction, (F) capacity for independent living, (G) economic 
        self-sufficiency, (H) cognitive functioning, and (I) emotional 
        adjustment.
            ``(18) Elder abuse.--The term `elder abuse' means abuse of 
        an older individual.
            ``(19) Elder abuse, neglect, and exploitation.--The term 
        `elder abuse, neglect, and exploitation' means abuse, neglect, 
        and exploitation, of an older individual.
            ``(20) Election.--When referring to an election for Federal 
        office, the term `election' has the meaning given such term by 
        section 301(1) of the Federal Election Campaign Act of 1971 
        (Public Law 92-225).
            ``(21) Exploitation.--The term `exploitation' means the 
        illegal or improper act or process of an individual, including 
        a caregiver, using the resources of an older individual for 
        monetary or personal benefit, profit, or gain.
            ``(22) Federal office.--The term `Federal office' has the 
        meaning given such term in section 301(3) of the Federal 
        Election Campaign Act of 1971 (Public Law 92-225).
            ``(23) Focal point.--The term `focal point' means an entity 
        that maximizes the collocation and coordination of services for 
        older individuals.
            ``(24) Frail.--The term `frail' means, with respect to an 
        older individual in a State, that the older individual is 
        determined to be functionally impaired because the individual--
                    ``(A)(i) is unable to perform at least two 
                activities of daily living without substantial human 
                assistance, including verbal reminding, physical 
                cueing, or supervision, or
                    ``(ii) at the option of the State, is unable to 
                perform at least three such activities without such 
                assistance, or
                    ``(B) due to a cognitive or other mental 
                impairment, requires substantial supervision because 
                the individual behaves in a manner that poses a serious 
                health or safety hazard to the individual or to another 
                individual.
            ``(25) Greatest economic need.--The term `greatest economic 
        need' means the need resulting from an income level at or below 
        the poverty line.
            ``(26) Greatest social need.--The term `greatest social 
        need' means the need caused by noneconomic factors that 
        include--
                    ``(A) physical and mental disabilities,
                    ``(B) language barriers, and
                    ``(C) cultural, social, or geographical isolation 
                caused by racial or ethnic status, that--
                            ``(i) restricts the ability of an 
                        individual to perform normal daily tasks, or
                            ``(ii) threatens the capacity of the 
                        individual to live independently.
            ``(27) In-home services.--The term `in-home services' 
        includes--
            ``(A) homemaker and home health aides,
            ``(B) visiting and telephone reassurance,
            ``(C) chore maintenance,
            ``(D) in-home respite care for families, and adult day care 
        as a respite service for families,
            ``(E) minor modification of homes that is necessary to 
        facilitate the ability of older individuals to remain at home 
        and that is not available under other programs, except that not 
        more than $150 per client may be expended under this part for 
        such modification,
            ``(F) personal care services, and
            ``(G) other in-home services as defined--
                    ``(i) by the State agency in the State plan 
                submitted in accordance with section 304, and
                    ``(ii) by the area agency on aging in the area plan 
                submitted in accordance with section 305.
            ``(28) Indian.--The term `Indian' means an Indian who is a 
        member of an Indian tribe.
            ``(29) Indian tribe.--The term `Indian tribe' means any 
        tribe, band, nation, or other organized group or community of 
        Indians that is--
                    ``(A) recognized as eligible for the special 
                programs and services provided by the United States to 
                Indians because of their status as Indians, or
                    ``(B) located on, or in proximity to, a Federal or 
                State reservation or rancheria,
        except that subparagraph (B) shall not apply for purposes of 
        title II.
            ``(30) Information and assistance service.--The term 
        `information and assistance service' means a service for older 
        individuals that--
                    ``(A) provides the individuals with current 
                information on opportunities and services available to 
                the individuals within their communities, including 
                information relating to assistive technology,
                    ``(B) assesses the problems and capacities of the 
                individuals,
                    ``(C) links the individuals to the opportunities 
                and services that are available,
                    ``(D) to the maximum extent practicable, ensures 
                that the individuals receive the services needed by the 
                individuals, and are aware of the opportunities 
                available to the individuals, by establishing adequate 
                followup procedures, and
                    ``(E) serves the entire community of older 
                individuals, particularly--
                            ``(i) older individuals with greatest 
                        social need, and
                            ``(ii) older individuals with greatest 
                        economic need.
            ``(31) Information and referral.--The term `information and 
        referral' includes information relating to assistive 
        technology.
            ``(32) Legal assistance.--The term `legal assistance'--
                    ``(A) means legal advice and representation 
                provided by an attorney to older individuals with 
                economic or social needs, and
                    ``(B) includes--
                            ``(i) to the extent feasible, counseling or 
                        other appropriate assistance by a paralegal or 
                        law student under the direct supervision of an 
                        attorney, and
                            ``(ii) counseling or representation by a 
                        nonlawyer where permitted by law.
            ``(33) Long-term care facility.--The term `long-term care 
        facility' means--
                    ``(A) any skilled nursing facility, as defined in 
                section 1819(a) of the Social Security Act (42 U.S.C. 
                1395i-3(a)),
                    ``(B) any nursing facility, as defined in section 
                1919(a) of the Social Security Act (42 U.S.C. 
                1396r(a)),
                    ``(C) for purposes of section 304(a)(8), a board 
                and care facility, or
                    ``(D) any other adult care home similar to a 
                facility or institution described in subparagraph (A), 
                (B), or (C).
            ``(34) Low-income.--The term `low-income' means--
                    ``(A) for purposes of chapter 4 of subtitle A of 
                title III, income that is not more than 125 percent of 
                the poverty line, and
                    ``(B) for purposes of title IV--
                            ``(i) income that is not more than 125 
                        percent of the poverty line, or
                            ``(ii) income that is not more than 100 
                        percent of such poverty line, as so adjusted 
                        and determined after taking into consideration 
                        existing poverty guidelines as appropriate to 
                        local situations.
            ``(35) Multipurpose senior center.--The term `multipurpose 
        senior center' means a community facility for the organization 
        and provision of a broad spectrum of services, which shall 
        include provision of health (including mental health), social, 
        nutritional, and educational services and the provision of 
        facilities for recreational activities for older individuals.
            ``(36) Native american.--The term `Native American' means--
                    ``(A) an Indian,
                    ``(B) an Alaska Native, or
                    ``(C) a Native Hawaiian.
            ``(37) Native hawaiian.--The term `Native Hawaiian' means 
        any individual any of whose ancestors were natives of the area 
        that consists of the Hawaiian Islands prior to 1778,
            ``(38) Neglect.--The term `neglect' means--
                    ``(A) the failure to provide for oneself the goods 
                or services that are necessary to avoid physical harm, 
                mental anguish, or mental illness, or
                    ``(B) the failure of a caregiver to provide the 
                goods or services.
            ``(39) Nonprofit.--The term `nonprofit' as applied to any 
        agency, institution, or organization means an agency, 
        institution, or organization that is, or is owned and operated 
        by, one or more corporations or associations no part of the net 
        earnings of which inures, or may lawfully inure, to the benefit 
        of any private shareholder or individual.
            ``(40) Older individual.--The term `older individual' 
        means--
                    ``(A) except for purposes of chapter 4 of subtitle 
                A of title III, and title IV, an individual who is 60 
                years of age or older, and
                    ``(B) for purposes of chapter 4 of subtitle A of 
                title III, and title IV, an individual who is 55 years 
                of age or older.
            ``(41) Physical harm.--The term `physical harm' means 
        bodily injury, impairment, or disease.
            ``(42) Planning and service area.--The term `planning and 
        service area' means an area designated by a State agency under 
        section 303(a)(1)(E), including a single planning and service 
        area described in section 303(b)(1)(E).
            ``(43) Poverty line.--The term `poverty line' means the 
        official poverty line (as defined by the Office of Management 
        and Budget, and adjusted by the Secretary in accordance with 
        section 673(2) of the Community Services Block Grant Act (42 
        U.S.C. 9902(2)).
            ``(44) Representative payee.--The term `representative 
        payee' means a person who is appointed by a governmental entity 
        to receive, on behalf of an older individual who is unable to 
        manage funds by reason of a physical or mental incapacity, any 
        funds owed to such individual by such entity.
            ``(45) Secretary.--The term `Secretary' means the Secretary 
        of Health and Human Services.
            ``(46) Severe disability.--The term `severe disability' 
        means a severe, chronic disability attributable to mental or 
        physical impairment, or a combination of mental and physical 
        impairments, that--
                    ``(A) is likely to continue indefinitely, and
                    ``(B) results in substantial functional limitation 
                in 3 or more of the major life activities specified in 
                subparagraphs (A) through (G) of paragraph (17).
            ``(47) State.--The term `State' means any of the several 
        States, the District of Columbia, the Virgin Islands of the 
        United States, the Commonwealth of Puerto Rico, Guam, American 
        Samoa, or the Commonwealth of the Northern Mariana Islands.
            ``(48) State agency.--The term `State agency' means the 
        agency designated under section 303(a)(1).
            ``(49) Supportive service.--The term `supportive service' 
        means a service described in section 321(a).
            ``(50) Tribal organization.--The term `tribal organization' 
        means--
                    ``(A) except for purposes of title II and chapter 4 
                of subtitle A of title III,
                            ``(i) the recognized governing body of an 
                        Indian tribe, or
                            ``(ii) the legally established organization 
                        of Indians that is controlled, sanctioned, or 
                        chartered by the governing body of an Indian 
                        tribe,
                    ``(B) for purposes of title II--
                            ``(i) an entity described in clause (i) or 
                        (ii) of subparagraph (A), or
                            ``(ii) a legally established organization 
                        of Indians that is democratically elected by 
                        the adult members of the Indian community to be 
                        served by such organization and that includes 
                        the maximum participation of Indians in all 
                        phases of its activities, and
                    ``(C) for purposes of chapter 4 of subtitle A of 
                title III, a public or nonprofit private organization 
                that is primarily controlled by, and comprised of, 
                Indians or Indian tribes.
            ``(51) Unit of general purpose local government.--The term 
        `unit of general purpose local government' means--
                    ``(A) a political subdivision of the State whose 
                authority is general and not limited to only one 
                function or combination of related functions, or
                    ``(B) a tribal organization.

                      ``Subtitle B--Administration

``SEC. 111. ESTABLISHMENT OF ADMINISTRATION ON AGING.

    ``(a) Establishment.--There is established in the Office of the 
Secretary, an Administration on Aging which shall be headed by an 
Assistant Secretary for Aging. This Act shall be administered through 
the Administration and under the supervision of the Secretary.
    ``(b) Assistant Secretary.--The Assistant Secretary shall be 
appointed by the President by and with the advice and consent of the 
Senate.
    ``(c) Designation Relating to Administration of Programs Affecting 
Native Americans.--The Assistant Secretary--
            ``(1) may establish an Office on Native Americans within 
        the Administration; and
            ``(2) shall designate an individual in the Administration 
        who has expertise with respect to programs and services 
        affecting Native Americans, who shall be responsible, under the 
        supervision of the Assistant Secretary, for the administration 
        of title II and for coordination of other programs, projects, 
        and activities carried out under this Act that affect Native 
        Americans.
    ``(d) Designation Relating to the Administration of State Long-Term 
Care Ombudsman Programs.--The Assistant Secretary shall designate an 
individual in the Administration who shall be responsible, under the 
supervision of the Assistant Secretary, for the Federal administrative 
activities relating to State long-term care ombudsman programs.
    ``(e) Designation Relating to the Administration of Nutrition 
Services.--The Assistant Secretary shall designate an individual in the 
Administration who shall be responsible, under the supervision of the 
Assistant Secretary, for the administration of chapter 3 of subtitle A 
of title III. Such individual shall--
            ``(1) have expertise in nutrition and dietary services and 
        planning, and
            ``(2)(A) be a registered dietitian,
            ``(B) be a credentialed nutrition professional, or
            ``(C) have education and training that is substantially 
        equivalent to the education and training for a registered 
        dietitian or a credentialed nutrition professional.
    ``(f) Designation Relating to the Administration of Volunteer 
Service Programs.--The Assistant Secretary shall designate an 
individual in the Administration who has experience and expertise in 
administering volunteer programs for older individuals and who shall be 
responsible, under the supervision of the Assistant Secretary, for the 
administration of title IV.

``SEC. 112. DUTIES OF ASSISTANT SECRETARY.

    ``The duties of the Assistant Secretary are as follows:
            ``(1) Advocacy.--To serve as the effective and visible 
        advocate for older individuals, within the Department of Health 
        and Human Services and with other departments, agencies, and 
        instrumentalities of the Federal Government by maintaining 
        active review of and commenting on responsibilities of all 
        Federal policies affecting older individuals.
            ``(2) Information.--To collect and disseminate information 
        related to problems of older individuals and aging.
            ``(3) Assistance to secretary.--To directly assist the 
        Secretary in all matters pertaining to problems of older 
        individuals and aging.
            ``(4) Administration.--To administer the grants provided 
        and contracts made under this Act.
            ``(5) Technical assistance.--To provide technical 
        assistance and consultation to States, and political 
        subdivisions of States, with respect to programs for older 
        individuals and aging.
            ``(6) Educational materials.--To prepare, publish, and 
        disseminate educational materials dealing with the welfare of 
        older individuals.
            ``(7) Statistics.--To gather statistics in the field of 
        aging that other Federal agencies are not collecting, and to 
        take whatever action is necessary to achieve coordination of 
        activities carried out or assisted by all departments, 
        agencies, and instrumentalities of the Federal Government with 
        respect to the collection, preparation, and dissemination of 
        information relevant to older individuals.
            ``(8) Planning.--To coordinate, and to assist in, the 
        planning and development by public (including Federal, State, 
        and local agencies) and private organizations of programs for 
        older individuals to facilitate the establishment of a 
        nationwide network of comprehensive, coordinated services and 
        opportunities for older individuals.
            ``(9) Statistical data regarding assisted activities.--To 
        collect for each fiscal year, for fiscal years beginning after 
        September 30, 1996, directly or by contract, statistical data 
        regarding programs, projects, and activities carried out with 
        funds provided under this Act, including--
                    ``(A) with respect to each type of service or 
                activity provided with such funds--
                            ``(i) the aggregate amount of such funds 
                        expended to provide such service or activity,
                            ``(ii) the number of individuals who 
                        received such service or activity, and
                            ``(iii) the number of units of such service 
                        or activity provided,
                    ``(B) the number of multipurpose senior centers 
                that received such funds.
            ``(10) Uniform data collection procedures.--To design and 
        implement, for purposes of compliance with paragraph (9), 
        uniform data collection procedures for use by State agencies, 
        including--
                    ``(A) uniform definitions and nomenclature,
                    ``(B) standardized data collection procedures,
                    ``(C) procedures for collecting information on gaps 
                in services needed by older individuals, as identified 
                by service providers in assisting clients through the 
                provision of the supportive services, and
                    ``(D) procedures for the assessment of the unmet 
                need for services under this Act.
            ``(11) Research.--To develop and arrange for research in 
        the field of aging, based on consultations with individuals and 
        organizations knowledgeable in the field of aging.
            ``(12) Information on community resources.--To establish 
        and operate, directly or by grant or contract, nationwide a 
        toll-free telephone line by which individuals may obtain 
        information and assistance to locate community resources that 
        may be available to older individuals and their caregivers.

``SEC. 113. FEDERAL AGENCY CONSULTATION.

    ``The Assistant Secretary, in carrying out the purpose and 
provisions of this Act, shall coordinate, advise, consult with, and 
cooperate with the head of each department, agency, or instrumentality 
of the Federal Government proposing or administering programs or 
services substantially related to the purpose of this Act, with respect 
to such programs or services. The head of each department, agency, or 
instrumentality of the Federal Government proposing to establish or 
modify any program or service substantially related to the purpose of 
this Act shall consult with and coordinate with the Assistant 
Secretary.

``SEC. 114. POWERS OF THE ASSISTANT SECRETARY.

    ``(a) Powers.--In carrying out this Act, the Assistant Secretary 
may--
            ``(1) provide consultative services and technical 
        assistance to public or nonprofit private agencies and 
        organizations,
            ``(2) provide short-term training and technical 
        instruction,
            ``(3) conduct research and demonstrations, and
            ``(4) collect, prepare, publish, and disseminate special 
        educational or informational materials, including reports on 
        programs, projects, and activities for which funds are provided 
        under this Act.
    ``(b) Authority To Make Grants.--From funds appropriated under 
section 120(a)(3), the Assistant Secretary may make grants to public or 
nonprofit private agencies, organizations, and institutions, and to 
tribal organizations, and may enter into contracts with agencies, 
organizations, institutions, and individuals for activities--
            ``(1) to expand the Nation's knowledge and understanding of 
        older individuals and the aging process,
            ``(2) to design, to test, and to promote utilization of 
        innovative ideas and best practices in programs and services 
        for older individuals,
            ``(3) to help meet the needs for trained personnel in the 
        field of aging, and
            ``(4) to increase the awareness of citizens of all ages of 
        the need to assume personal responsibility for their own aging 
        through--
                    ``(A) education and training to develop an 
                adequately trained workforce to work with and on behalf 
                of older individuals,
                    ``(B) research and policy analysis to improve 
                access to and delivery of services for older 
                individuals,
                    ``(C) development of methods and practices to 
                improve quality and effectiveness of such services,
                    ``(D) demonstration of new approaches to design, 
                delivery, and coordination of services and activities 
                for older individuals,
                    ``(E) technical assistance in planning, 
                development, implementation, evaluation, and 
                improvement of programs, projects, and activities under 
                this Act, and
                    ``(F) dissemination of information on issues 
                related to aging, their impact on individuals and 
                society, and relating to services and activities 
                benefiting older individuals.

``SEC. 115. EVALUATIONS.

    ``(a) Duty of Secretary.--The Secretary may measure and evaluate 
the impact and effectiveness of all programs, projects, and activities 
carried out with funds provided under this Act. Evaluations shall be 
conducted by persons not immediately involved in the administration of 
the programs, projects, and activities evaluated.
    ``(b) Sources of Evaluation Information.--In carrying out 
evaluations under subsection (a), the Secretary shall--
            ``(1) to the maximum extent practicable, arrange to obtain 
        the opinions of participants in the programs, projects, and 
        activities being evaluated, and
            ``(2) consult with organizations concerned with the welfare 
        of older individuals.

``SEC. 116. REPORTS.

    ``Not later than 120 days after the end of each fiscal year 
beginning after September 30, 1996, the Assistant Secretary shall 
prepare and submit to the President and to the Congress a complete 
report on the programs, projects, and activities carried out under this 
Act in such fiscal year. Such report shall include--
            ``(1) statistical data reflecting services and activities 
        provided under this Act to older individuals during the fiscal 
        year for which such report is submitted,
            ``(2) statistical data collected under section 112(9), and
            ``(3) statistical data, and an analysis of information, 
        regarding the effectiveness of the State agency and area 
        agencies on aging in targeting services to older individuals 
        with greatest economic need and older individuals with greatest 
        social need.

``SEC. 117. REDUCTION OF PAPERWORK.

    ``In order to reduce unnecessary, duplicative, or disruptive 
demands for information, the Assistant Secretary, in consultation with 
State agencies and other appropriate agencies and organizations, shall 
continually review and evaluate all requests by the Administration for 
information under this Act and shall take such action as may be 
necessary to reduce the paperwork required under this Act. The 
Assistant Secretary shall request only such information as the 
Assistant Secretary deems essential to carry out the purpose and 
provisions of this Act and, in gathering such information, shall make 
use of uniform service definitions to the extent that such definitions 
are available.

``SEC. 118. SURPLUS PROPERTY ELIGIBILITY.

    ``Any State or local government agency, and any nonprofit 
organization or institution, that receives funds appropriated for 
programs for older individuals under this Act, under title IV or title 
XX of the Social Security Act, under title VIII or X of Public Law 88-
452 (commonly known as the Economic Opportunity Act of 1964) or the 
Community Services Block Grant Act, shall be deemed to be eligible to 
receive for such programs, property that is declared surplus to the 
needs of the Federal Government in accordance with laws applicable to 
surplus property.

``SEC. 119. BENEFIT TREATMENT UNDER OTHER LAWS.

    ``No benefit (excluding wages, stipends, and cash allowances that 
are not reimbursements) received under a program, project, or activity 
carried out under this Act shall be treated under any Federal, State, 
or local law as income or resources of an eligible individual 
participating in such program, project, or activity.

``SEC. 120. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--(1) For the expenses (including salaries) of the 
Administration on Aging to carry out this Act (other than section 
114(b) and title IV), there are authorized to be appropriated 
$17,069,000 for fiscal year 1997 and such sums as may be necessary for 
fiscal years 1998, 1999, 2000, and 2001.
    ``(2) Of the amount appropriated under paragraph (1) for each 
fiscal year, not more than $1,000,000 shall be available to carry out 
section 112(12).
    ``(3) There are authorized to be appropriated to carry out section 
114(b) $26,500,000 for fiscal year 1997 and such sums as may be 
necessary for fiscal years 1998, 1999, 2000, and 2001.
    ``(b) Title IV.--For the expenses (including salaries) of the 
Administration on Aging to carry out title IV, there are authorized to 
be appropriated $24,000,000 for fiscal year 1997 and such sums as may 
be necessary for fiscal years 1998, 1999, 2000, and 2001.

        ``TITLE II--GRANTS FOR NATIVE AMERICAN PROGRAMS ON AGING

``SEC. 201. GRANTS FOR SERVICES TO NATIVE AMERICANS.

    ``(a) Authority To Make Grants.--The Assistant Secretary may make 
grants to eligible organizations to pay all of the costs for delivery 
of supportive services and nutrition services for older individuals who 
are Native Americans.
    ``(b) Eligibility of Organizations.--An organization is eligible to 
receive a grant under this title only if the organization is--
            ``(1) a tribal organization that--
                    ``(A) represents at least 50 older individuals, and
                    ``(B) demonstrates the ability to deliver 
                supportive services and nutritional services,
            ``(2) an Alaska Native organization that--
                    ``(A) represents at least 50 older individuals, and
                    ``(B) demonstrates the ability to deliver 
                supportive services and nutritional services, or
            ``(3) a public or nonprofit private organization that--
                    ``(A) will serve at least 50 older individuals who 
                are Native Hawaiians, and
                    ``(B) demonstrates the ability to deliver 
                supportive services and nutrition services.

``SEC. 202. APPLICATIONS FOR GRANTS.

    ``(a) Requirement.--A grant may not be made under this title unless 
an eligible organization submits an application to the Assistant 
Secretary that meets such criteria as the Assistant Secretary may 
establish by rule. Each such application shall--
            ``(1) provide that such organization shall evaluate the 
        need for supportive and nutrition services among older 
        individuals who are--
                    ``(A) Indians represented by the such organization 
                if such organization is a tribal organization,
                    ``(B) Alaska Natives represented by such 
                organization if such organization is an Alaska Native 
                organization, or
                    ``(C) Native Hawaiians to be served by such 
                organization,
            ``(2) provide for the use of such methods of administration 
        as are necessary for the proper and efficient administration of 
        the project to be carried out with such grant,
            ``(3) provide an assurance that such organization will make 
        such reports in such form and containing such information, as 
        the Assistant Secretary may reasonably require, and comply with 
        such requirements as the Assistant Secretary may impose to 
        ensure the correctness of such reports,
            ``(4) provide for periodic evaluation of the project to be 
        carried out with such grant,
            ``(5) establish objectives toward which such project will 
        be directed, identify obstacles to the attainment of such 
        objectives, and indicate the manner in which such organization 
        proposes to overcome such obstacles,
            ``(6) provide for establishing and maintaining information 
        and assistance services to ensure that older individuals who 
        are served by such project will have reasonably convenient 
        access to the services and activities provided by such project,
            ``(7) provide that a preference for older individuals who 
        are Native Americans for full- or part-time staff positions 
        will be given whenever feasible,
            ``(8) provide an assurance that, either directly or by way 
        of grant or contract with appropriate entities, nutrition 
        services will be delivered to older individuals who are--
                    ``(A) Indians represented by the such organization 
                if such organization is a tribal organization,
                    ``(B) Alaska Natives represented by such 
                organization if such organization is an Alaska Native 
                organization, or
                    ``(C) Native Hawaiians to be served by such 
                organization,
        and will substantially comply with chapter 2 of subtitle A of 
        title III, except that in any case in which the need of such 
        individuals for nutritional services is already met from other 
        sources, such organization may expend for supportive services 
        the funds otherwise required to be expended under this 
        paragraph,
            ``(9) provide that any legal services or ombudsman services 
        made available to older individuals who are--
                    ``(A) Indians represented by the such organization 
                if such organization is a tribal organization,
                    ``(B) Alaska Natives represented by such 
                organization if such organization is an Alaska Native 
                organization, or
                    ``(C) Native Hawaiians to be served by such 
                organization,
        will be in substantial compliance with the provisions of 
        subtitle A of title III relating to the furnishing of similar 
        services,
            ``(10) contain satisfactory assurances that fiscal control 
        and fund accounting procedures will be adopted as may be 
        necessary to ensure proper disbursement of, and accounting for, 
        Federal funds paid under this title to such organization, 
        including any funds paid by such organization to a recipient of 
        a grant or contract,
            ``(11) contain assurances that such organization will 
        coordinate services provided under this title with services 
        provided under subtitle A of title III in the same geographical 
        area, and
            ``(12) if the organization elects to solicit voluntary 
        contributions from older individuals, provide that such 
        organization will ensure that such contributions will be--
                    ``(A) based on the ability of the older individuals 
                to make such contributions, and
                    ``(B) used to increase, or to expand access to, 
                services provided under this title.
    ``(b) Population Statistics.--For the purpose of any application 
submitted under this subsection (a), an eligible organization may 
develop its own population statistics, with a certification from the 
Bureau of Indian Affairs, in order to establish eligibility to receive 
a grant under this title.
    ``(c) Approval of Application.--The Assistant Secretary shall 
approve any application that complies with subsection (a).
    ``(d) Application Not Approved.--Whenever the Assistant Secretary 
determines not to approve an application submitted under subsection (a) 
the Assistant Secretary shall--
            ``(1) state objections in writing to the organization 
        within 60 days after such determination,
            ``(2) provide, to the extent practicable, technical 
        assistance to the organization to overcome such stated 
        objections, and
            ``(3) provide the organization with a hearing, under such 
        rules as the Assistant Secretary may issue.
    ``(e) Period Funded.--Whenever the Assistant Secretary approves an 
application of a organization under subsection (a), a grant shall be 
made for a period of not less than 12 months.

``SEC. 203. DISTRIBUTION OF FUNDS AMONG TRIBAL ORGANIZATIONS, ALASKA 
              NATIVE ORGANIZATIONS, AND ORGANIZATIONS SERVING NATIVE 
              HAWAIIANS.

    ``(a) Maintenance of 1991 Amounts.--Subject to the availability of 
appropriations to carry out this title, the amount of the grant (if 
any) made under this title to a tribal organization, an Alaska Native 
organization, or an organization serving Native Hawaiians for fiscal 
year 1997 and for each subsequent fiscal year shall be not less than 
the amount of the grant made under title VI of the Older Americans Act 
of 1965 to the tribal organization, the Alaska Native organization, or 
the organization serving Native Hawaiians for fiscal year 1991.
    ``(b) Use of Additional Amounts Appropriated.--If the amount 
appropriated to carry out this title in a fiscal year subsequent to 
fiscal year 1996 exceeds the amount appropriated to carry out title VI 
of the Older Americans Act of 1965 in fiscal year 1991, then the amount 
of the grant (if any) made under this title to a tribal organization, 
an Alaska Native organization, or an organization serving Native 
Hawaiians for such subsequent fiscal year shall be--
            ``(1) increased by such amount as the Assistant Secretary 
        considers to be appropriate, in addition to the amount of any 
        increase required by subsection (a), so that the grant equals 
or more closely approaches the amount of the grant made under title VI 
of the Older Americans Act of 1965 to the tribal organization or the 
Alaska Native organization for fiscal year 1980, or to the organization 
serving Native Hawaiians for fiscal year 1995, or
            ``(2) an amount the Assistant Secretary considers to be 
        sufficient if the tribal organization, the Alaska Native 
        organization, or the organization serving Native Hawaiians did 
        not receive a grant under title VI of the Older Americans Act 
        of 1965 for either fiscal year 1980 or fiscal year 1991.

``SEC. 204. SURPLUS EDUCATIONAL FACILITIES.

    ``(a) Requirement.--Notwithstanding any other provision of law, the 
Secretary of the Interior--
            ``(1) acting through the Bureau of Indian Affairs, shall 
        make available surplus Indian educational facilities and 
        surplus Alaska Native educational facilities to tribal 
        organizations and Alaska Native organizations, and to nonprofit 
        organizations with the approval of the Indian tribe or Alaska 
        Native organization involved, and
            ``(2) shall make available to organizations described in 
        section 201(b)(3) any other surplus educational facilities 
        located in the State of Hawaii that are under the control of 
        the Secretary of the Interior,
for use as multipurpose senior centers. Such centers may be altered so 
as to provide extended care facilities, community center facilities, 
nutrition services, adult day care services, child care services, and 
other supportive services.
    ``(b) Application.--To request to receive surplus educational 
facilities made available under subsection (a), a tribal organization, 
an Alaska Native organization, or an organization described in section 
201(b)(3) shall submit an application to the Secretary of the Interior 
at such time and such manner, and containing such information, as the 
Secretary of the Interior determines to be necessary to carry out this 
section.

``SEC. 205. ADMINISTRATION.

    ``For the purpose of issuing rules to carry out this title, the 
Assistant Secretary shall consult with the Secretary of the Interior.

``SEC. 206. PAYMENTS.

    ``Payments may be made under this title (after necessary 
adjustments on account of previously made overpayments or 
underpayments) in advance or by way of reimbursement in such 
installments and on such conditions as the Assistant Secretary may 
determine.

``SEC. 207. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$17,460,000 for fiscal year 1997 and such sums as may be necessary for 
fiscal years 1998, 1999, 2000, and 2001.

     ``TITLE III--GRANTS FOR STATE AND COMMUNITY PROGRAMS ON AGING

               ``Subtitle A--Grants for Programs on Aging

                    ``CHAPTER 1--GENERAL PROVISIONS

``SEC. 301. TECHNICAL ASSISTANCE AND COOPERATION.

    ``In carrying out this title, the Assistant Secretary may request 
the technical assistance and cooperation of such other Federal agencies 
as the Assistant Secretary considers to be appropriate.

``SEC. 302. ALLOTMENTS; FEDERAL SHARE.

    ``(a) Allotment of Funds for Supportive Services, Multipurpose 
Senior Centers, and Nutrition Services.--
            ``(1) Reservation of funds.--(A) Subject to subparagraphs 
        (B) and (C), the amounts appropriated under subsections (a) and 
        (b) of section 381 for fiscal years 1997 through 2001 shall be 
        allotted by the Assistant Secretary among the States as 
        follows:
                    ``(i) For each of the fiscal years 1997, 1998, 
                1999, and 2000--
                            ``(I) the product of such amount 
                        appropriated for such fiscal year and the base 
                        percentage rate for such fiscal year shall be 
                        allotted among the States proportionately based 
                        on their respective shares of the funds 
                        appropriated for fiscal year 1996 allotted to 
                        the States to carry out titles III and VII of 
                        the Older Americans Act of 1965, and
                            ``(II) the balance of the such amount 
                        appropriated for such fiscal year shall be 
                        allotted among the State proportionately based 
                        on the population of individuals 60 years of 
                        age or older in the States.
                    ``(ii) For purposes of clause (i), the base 
                percentage rates are the following:

                Fiscal year:
                                                  Base percentage rate:
                        1997...............................  80 percent
                        1998...............................  60 percent
                        1999...............................  40 percent
                        2000...............................  20 percent

                    ``(iii) Such amount appropriated for fiscal year 
                2001 shall be allotted among the States proportionately 
                based on the population of individuals 60 years of age 
                or older in the States.
            ``(B) The amounts allotted under subparagraph (A) shall be 
        reduced proportionately to the extent necessary to increase 
        other allotments under such subparagraph to achieve the 
        following:
                    ``(i) Each State shall be allotted \1/2\ of 1 
                percent of the amount appropriated for the fiscal year 
                for which the determination is made.
                    ``(ii) Guam and the Virgin Islands of the United 
                States shall each be allotted \1/4\ of 1 percent of the 
                amount appropriated for the fiscal year for which the 
                determination is made.
                    ``(iii) American Samoa and the Commonwealth of the 
                Northern Mariana Islands shall each be allotted \1/16\ 
                of 1 percent of the amount appropriated for the fiscal 
                year for which the determination is made.
            ``(C) For the purposes of subparagraph (B)(i), the term 
        `State' does not include Guam, American Samoa, the Virgin 
        Islands of the United States, and the Commonwealth of the 
        Northern Mariana Islands.
            ``(D) The number of individuals 60 years of age or older in 
        any State and in all States shall be determined by the 
        Assistant Secretary on the basis of the most recent data 
        available from the Bureau of the Census and other reliable 
        demographic data satisfactory to the Assistant Secretary.
            ``(2) Withholding of funds.--(A) If the Assistant Secretary 
        finds that a State fails to qualify under the State plan 
        requirements of section 304, the Assistant Secretary shall 
        withhold from the State funds allotted under paragraph (1) for 
        the fiscal year for which such plan is submitted.
            ``(B) The Assistant Secretary shall disburse the funds so 
        withheld directly to any public or nonprofit private 
        institution or organization, agency, or political subdivision 
        of the State submitting an approved plan under section 304, 
        that includes an agreement that any such funds so disbursed 
        shall be matched in cash or in kind, from non-Federal sources, 
        to pay the remainder of the cost of carrying out chapters 2 and 
        3 as described in paragraph (3)(A), but not less than 15 
        percent of such cost.
            ``(3) Federal share.--(A) Funds received by a State from 
        allotments made under this subsection for a fiscal year may be 
        used to pay not more than 85 percent of the cost of carrying 
        out chapters 2 and 3.
            ``(B) The non-Federal share of such cost shall be 
        contributed in cash or in kind. In determining the amount of 
        the non-Federal share, the Assistant Secretary may attribute 
        fair market value to services and facilities contributed from 
        non-Federal sources.
    ``(b) Allotment of Funds for Community Service Employment.--
            ``(1) Reservation of funds for tribal organizations.--
                    ``(A) Amount reserved.--Of the amount appropriated 
                under subsection (c) of section 381 for each of the 
                fiscal years 1997, 1998, 1999, 2000, and 2001, the 
                Assistant Secretary shall reserve not more than 1.3 
                percent for making grants under chapter 4 to tribal 
                organizations.
                    ``(B) Administrative costs.--Of the amounts 
                reserved under subparagraph (A) for grants to tribal 
                organizations, such part of such grants as the 
                Secretary determines, but not more than 7 percent, may 
                be used by tribal organizations for administrative 
                costs incurred by the tribal organizations to carry out 
                chapter 4.
            ``(2) Allotment of funds for fiscal years 1997-2001.--(A) 
        After reserving funds under paragraph (1), the amount 
        appropriated under subsection (c) of section 381 for fiscal 
        years 1997 through 2001 shall be allotted by the Assistant 
        Secretary among the States as follows:
                    ``(i) For each of the fiscal years 1997, 1998, 
                1999, 2000, and 2001, such amount appropriated for such 
                fiscal year, to the extent such amount does not exceed 
                the amount appropriated for fiscal year 1996 to carry 
                out title V of the Older Americans Act of 1965, shall 
                be allotted among the States proportionately based on 
                the sum of--
                            ``(I) their respective shares of the funds 
                        appropriated for fiscal year 1996 allotted to 
                        the States to carry out such title V, and
                            ``(II) the amount of such funds 
                        appropriated for fiscal year 1996 expended by 
                        national organizations in the States, 
                        respectively.
                    ``(ii) If such amount appropriated for any of such 
                fiscal years exceeds the amount appropriated for fiscal 
                year 1996 to carry out title V, the excess amount shall 
                be allotted in accordance with subparagraph (B).
            ``(B) Allotments based on age and per capita income.--Each 
        amount referred to in subparagraph (A)(ii) shall be allotted as 
        follows:
                    ``(i) Subject to clause (ii), each State shall be 
                allotted the amount that bears the same ratio to the 
                amount so referred to as the product of the number of 
                individuals 55 years of age or older in the State and 
                the allotment percentage of the State bears to the sum 
                of the corresponding products for all the States.
                    ``(ii) The amounts allotted under clause (i) shall 
                be reduced proportionately to the extent necessary to 
                increase other allotments under such clause to achieve 
                the following:
                            ``(I) Each State shall be allotted \1/2\ of 
                        1 percent of the amount appropriated for the 
                        fiscal year for which the determination is 
                        made.
                            ``(II) Guam, American Samoa, the Virgin 
                        Islands of the United States, and the 
                        Commonwealth of the Northern Mariana Islands 
                        shall each be allotted not less than \1/4\ of 1 
                        percent of the amount appropriated for the 
                        fiscal year for which the determination is made 
                        or $50,000, whichever is greater.
            ``(C) Allotment percentage.--For purposes of subparagraph 
        (B)(i)--
                    ``(i) except as provided in clause (ii), the 
                allotment percentage of each State shall be 100 percent 
                less that percentage which bears the same ratio to 50 
                percent as the per capita income of the State bears to 
                the per capita income of all the States, except that 
                the allotment percentage shall be not more than 75 
                percent and not less than 33\1/3\ percent, and
                    ``(ii) the allotment percentage for the District of 
                Columbia, the Commonwealth of Puerto Rico, Guam, 
                American Samoa, the Virgin Islands of the United 
                States, and the Commonwealth of the Northern Mariana 
                Islands shall be 75 percent.
            ``(D) Limitation.-- For purposes of subparagraphs 
        (B)(ii)(I) and (C)(i), the term `State' does not include Guam, 
        American Samoa, the Virgin Islands of the United States, or 
        Commonwealth of the Northern Mariana Islands.
            ``(E) Population and per capita income determinations.--For 
        purposes of this paragraph, the number of individuals 55 years 
        of age or older in each State, and the per capita income of 
        each State, shall be determined by the Assistant Secretary on 
        the basis of the most satisfactory data available to the 
        Assistant Secretary on the basis of the most satisfactory data 
        available to the Assistant Secretary.
    ``(c) Permitted Use of Allotments.--
            ``(1) Administration of state plans.--(A) Except as 
        provided in subparagraph (B), the greater of 7 percent of the 
        aggregate of the allotments made to a State under subsections 
        (a) and (b), or $800,000, whichever is greater, shall be 
        available to the State to use in accordance with section 306(a) 
        and for administrative costs incurred by the State to carry out 
        chapter 4.
            ``(B) In the case of allotments made under subsections (a) 
        and (b) to Guam, American Samoa, the Virgin Islands of the 
        United States, and the Commonwealth of the Northern Mariana 
        Islands, 7 percent of the aggregate of such allotments or 
        $120,000, whichever is greater, shall be available to each to 
        use in accordance with section 306(a) and for administrative 
        costs incurred by the State to carry out chapter 4.
            ``(2) Application to use additional funds.--(A) If the 
        Assistant Secretary determines, based upon a particularized 
        showing of need that--
                    ``(i) the State will be unable to fully and 
                effectively administer its State plan and to carry out 
                programs, projects, and activities authorized by 
                chapters 2, 3, and 4 unless additional funds are made 
                available by the Assistant Secretary,
                    ``(ii) the State is making full and effective use 
                of its allotment under paragraph (1) and of the 
                personnel of the State agency and area agencies 
                designated under section 303(a)(2)(A) in the 
                administration of its State plan in accordance with 
                section 306(a), and
                    ``(iii) the State agency and area agencies on aging 
                are carrying out, on a full-time basis, programs, 
                projects, and activities that are in furtherance of the 
                purpose of chapters 2 and 3,
        then the Assistant Secretary may approve an application 
        submitted by the State to request permission to use in 
        accordance with section 306(a) a greater percentage of the 
        aggregate of its allotments under subsections (a) and (b).
            ``(B) Subject to subparagraph (C), the Assistant Secretary 
        may approve any part of the greater percentage requested in 
        such application that the Assistant Secretary determines is 
        justified in such application.
            ``(C) The aggregate amount available under this subsection 
        to a particular State in any fiscal year may not exceed \3/4\ 
        of 1 percent of the aggregate of the allotments made under 
        subsections (a) and (b) for such fiscal year.
            ``(D) An application submitted under subparagraph (A) by a 
        State may not be approved unless it contains assurances that no 
        funds received by the State under this subsection will be used 
        to hire any individual to fill a job opening created by the 
        action of the State in laying off or terminating the employment 
        of any regular employee not supported under this Act in 
        anticipation of filling the vacancy so created by hiring an 
        employee to be supported through use of amounts received under 
        this subsection.
            ``(3) Additional uses.--(A) Of the allotments made under 
        subsection (a) to a State for a fiscal year and remaining after 
        the application of paragraph (1), such part as the State agency 
        determines, but not more than 10 percent of such remaining 
        amount, may be used to pay such percentage as the State agency 
        determines, but not more than 85 percent, of the administrative 
        costs incurred to carry out area plans submitted in accordance 
        with section 305.
            ``(B)(i) Of the allotments made under subsection (a) to a 
        State for a fiscal year and remaining after the application of 
        paragraph (1) and subparagraph (A), such part as the State 
        agency determines, but not more than 5 percent of such 
        remaining amount or $500,000 (whichever is less), may be 
        reserved by the State until June 30 for distribution to area 
        agencies on aging in such State for the delivery of supportive 
        services (and related supplies) during any major disaster 
        declared by the President in accordance with the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act.
            ``(ii) Any amount reserved under clause (i) that is not 
        distributed in accordance with such clause shall be used as if 
        this subparagraph were not in effect.

``SEC. 303. ELIGIBILITY OF STATES; ORGANIZATION.

    ``(a) Eligibility of States.--For a State to be eligible to receive 
funds allotted under section 302(a)--
            ``(1) the State shall, in accordance with rules issued by 
        the Secretary, designate a State agency as the sole State 
        agency to--
                    ``(A) develop a State plan to be submitted to the 
                Assistant Secretary for approval under section 304,
                    ``(B) administer the State plan within the State,
                    ``(C) be responsible for the planning, policy 
                development, administration, coordination, priority 
                setting, and evaluation of all State activities related 
                to carrying out chapters 2 and 3,
                    ``(D) serve as an effective and visible advocate 
                for older individuals by reviewing and commenting on 
                all State plans, budgets, and policies that affect 
                older individuals, and to provide technical assistance 
                to any agency, organization, or association 
                representing the needs of older individuals, and
                    ``(E) except as provided in subsection (e), divide 
                the State into distinct planning and service areas or 
                designate the entire State as a single planning and 
                service area,
            ``(2) the State agency shall--
                    ``(A) designate an area agency on aging for each 
                planning and service area,
                    ``(B) take into account in the development and 
                administration of the State plan for any fiscal year--
                            ``(i) the views of recipients of supportive 
                        services, nutrition services, or community 
                        service employment, or
                            ``(ii) individuals using multipurpose 
                        senior centers,
                as the case may be, provided under such plan,
                    ``(C) after consultation with area agencies and 
                using the best available data, develop and publish for 
                review and comment a formula for distribution within 
                the State of funds received under chapters 2 and 3 that 
                takes into account--
                            ``(i) the geographical distribution of 
                        older individuals in the State, and
                            ``(ii) the distribution among planning and 
                        service areas of older individuals with 
                        greatest economic need and older individuals 
                        with greatest social need, and
                    ``(D) provide an assurance that preference will be 
                given to providing services to older individuals with 
                greatest economic need and older individuals with 
                greatest social need, with particular attention to low-
                income minority individuals, and include proposed 
                methods to carry out the preference in the State plan.
    ``(b) Designation of Area Agencies on Aging.--(1) An area agency on 
aging designated under subsection (a) shall be--
            ``(A) an established office of aging,
            ``(B) any office or agency of a unit of general purpose 
        local government, that is designated to function only for the 
        purpose of serving as an area agency on aging by the chief 
        elected official of such unit,
            ``(C) any office or agency designated by the appropriate 
        chief elected officials of any combination of units of general 
        purpose local government to act only on behalf of such 
        combination for such purpose,
            ``(D) any public or nonprofit private agency in a planning 
        and service area, or any separate organizational unit within 
        such agency, that is under the supervision or direction for 
        this purpose of the designated State agency and that can and 
        will engage only in the planning or provision of a broad range 
        of supportive services, or nutrition services within the 
        planning and service area, or
            ``(E) in the case of a State designated under subsection 
        (a)(1)(E) as a single planning and service area, the State 
        agency,
and shall provide assurance, determined adequate by the State agency, 
that the area agency on aging will have the ability to develop an area 
plan and to carry out, directly or through contractual or other 
arrangements, a program in accordance with the plan within the planning 
and service area.
    ``(2) In designating an area agency on aging within the planning 
and service area or within any unit of general purpose local government 
designated as a planning and service area, the State shall give 
preference to an established office on aging, unless the State agency 
finds that no such office within the planning and service area will 
have the capacity to carry out the area plan.
    ``(c) Due Process.--A State agency shall establish, after 
consultation with area agencies on aging, procedures to provide due 
process to affected parties, if the State agency initiates an action or 
proceeding to change the designation of any designated planning and 
service area or of any designated area agency on aging.
    ``(d) Grandfather Provision.--A State that on or before October 1, 
1980, had designated, with the approval of the Commissioner on Aging, a 
single planning and service area covering all of the older individuals 
in the State, in which the State agency was administering the area 
plan, may after that date designate one or more additional planning and 
service areas within the State to be administered by public or 
nonprofit private agencies or organizations as area agencies on aging. 
The State agency shall continue to perform the functions of an area 
agency on aging for any area of the State not included in a planning 
and service area for which an area agency on aging has been designated.

``SEC. 304. STATE PLANS.

    ``(a) Plan.--Each State, in order to be eligible for grants from 
its allotment under section 302(a) for any fiscal year, shall submit to 
the Assistant Secretary a State plan for a 2-, 3-, or 4-year period 
determined by the State agency, with such annual revisions as are 
necessary. Each such plan shall comply with all of the following 
requirements:
            ``(1) Uniform area plan format.--The plan shall contain 
        assurances that the State plan will be based upon area plans 
        developed by area agencies on aging within the State designated 
        under section 303(a)(2)(A) and that the State will prepare and 
        distribute a uniform format for use by area agencies on aging 
        in developing area plans under section 305.
            ``(2) Approval of area plan.--The plan shall provide that 
        each area agency on aging designated under section 303(a)(2)(A) 
        will develop and submit to the State agency for approval an 
        area plan that complies with section 305.
            ``(3) Evaluation of need.--The plan shall provide that the 
        State agency will evaluate the need for supportive services, 
        nutrition services (taking into consideration the comparative 
        need for home-delivered nutrition services and for congregate 
        nutrition services), multipurpose senior centers, and community 
        service employment within the State and determine the extent to 
        which existing public or private programs meet such need. To 
        conduct the evaluation, the State agency shall use the 
        procedures implemented under section 112(10).
            ``(4) Hearings.--The plan shall provide that the State 
        agency establish a grievance procedure that will afford an 
        opportunity for a hearing upon request to any agency on aging 
        submitting a plan under section 305, to any provider of a 
        service under such a plan, or to any applicant to provide a 
        service under such a plan. The State agency shall establish and 
        publish the procedures for requesting and conducting such 
        hearing.
            ``(5) Fiscal control and fund accounting; conflicts of 
        interest.--(A) The plan shall provide satisfactory assurance 
        that such fiscal control and fund accounting procedures will be 
        adopted as may be necessary to assure proper disbursement of, 
        and accounting for, funds received from allotments made under 
        section 302(a) to the State, including any such funds paid to 
        the recipients of a grant or contract.
            ``(B) The plan shall provide assurances that--
                    ``(i) no individual (appointed or otherwise) 
                involved in the designation of the State agency or an 
                area agency on aging, or in the designation of the head 
                of any subdivision of the State agency or of an area 
agency on aging, is subject to a conflict of interest prohibited under 
this subtitle,
                    ``(ii) no officer, employee, or other 
                representative of the State agency or an area agency on 
                aging is subject to a conflict of interest prohibited 
                under this subtitle, and
                    ``(iii) mechanisms are in place to identify and 
                remove conflicts of interest prohibited under this 
                subtitle.
            ``(C) The plan shall provide assurances that the State 
        agency and each area agency on aging will--
                    ``(i) maintain the integrity and public purpose of 
                services provided, and service providers, under the 
                State plan in all contractual and commercial 
                relationships, and
                    ``(ii) demonstrate that the quantity or quality of 
                the services to be provided under the State plan will 
                be enhanced as a result of such contract or such 
                relationship,
            ``(6) Information and assistance services.--The plan shall 
        provide for establishing and maintaining information and 
        assistance services in sufficient numbers to ensure, to the 
        maximum extent practicable, that all older individuals in the 
        State who are not furnished adequate information and assistance 
        services under section 305(a)(3) will have reasonably 
        convenient access to such services.
            ``(7) Limitations.--(A) The plan shall provide that no 
        supportive services, nutrition services, or in-home services 
        will be directly provided by the State agency or an area agency 
        on aging, except when, in the judgment of the State agency--
                    ``(i) provision of such services by the State 
                agency or an area agency on aging is necessary to 
                ensure an adequate supply of such services,
                    ``(ii) such services are directly related to the 
                administrative functions of the State agency or area 
                agency on aging, or
                    ``(iii) such services of comparable quality can be 
                provided more economically by the State agency or area 
                agency on aging.
            ``(B)(i) Subparagraph (A) shall apply to case management 
        services only if such services are provided through an agency 
        (other than the State agency) designated to provide case 
        management services under another law.
            ``(ii) Subparagraph (A) shall not apply with respect to 
        information and assistance services and to outreach.
            ``(8) State long-term care ombudsman program.--Subject to 
        subsection (g), the plan shall provide assurances that the 
        State agency will carry out a State long-term care ombudsman 
        program that complies with all the following specifications:
                    ``(A) Duties.--The State agency shall--
                            ``(i) identify, investigate, and resolve 
                        complaints that--
                                    ``(I) are made by or on behalf of 
                                older individuals who are residents of 
                                long-term care facilities, and
                                    ``(II) relate to action, inaction, 
                                or decisions that may adversely affect 
                                the health, safety, welfare, or rights 
                                of such residents (including the 
                                welfare and rights of such residents 
                                with respect to the appointment and 
                                activities of guardians and 
                                representative payees), of providers 
                                (or representatives of providers) of 
                                long-term care services, public 
                                agencies, or health and social service 
                                agencies,
                            ``(ii) provide services to assist such 
                        residents in protecting the health, safety, 
                        welfare, and rights of such residents,
                            ``(iii) inform such residents about means 
                        of obtaining services provided by providers or 
                        agencies described in clause (i)(II) or 
                        services described in clauses (i),
                            ``(iv) ensure that such residents have 
                        regular and timely access to the services 
                        provided through the State long-term care 
                        ombudsman program and that such residents and 
                        complainants receive from program 
                        representatives of the State agency timely 
                        responses to complaints,
                            ``(v) represent the interests of such 
                        residents before governmental agencies and seek 
                        administrative, legal, and other remedies to 
                        protect the health, safety, welfare, and rights 
                        of the residents,
                            ``(vi) provide administrative and technical 
                        assistance to entities designated under 
                        subparagraph (F) to assist the entities in 
                        participating in the program,
                            ``(vii) analyze, comment on, and monitor 
                        the development and implementation of Federal, 
                        State, and local laws, rules, and other 
                        governmental policies and actions, that pertain 
                        to the health, safety, welfare, and rights of 
                        the residents, with respect to the adequacy of 
                        long-term care facilities and services in the 
                        State,
                            ``(viii) provide for training program 
                        representatives of the State agency, and
                            ``(ix) carry out such other activities as 
                        the State agency determines to be appropriate.
                    ``(B) Contracts and arrangements.--(i) Except as 
                provided in clause (ii), the State agency may carry out 
                the program, directly, or by contract or other 
                arrangement with any public agency or nonprofit private 
                organization.
                    ``(ii) The State agency may not enter into a 
                contract or other arrangement described in clause (i) 
                with--
                            ``(I) an agency or organization that is 
                        responsible for licensing or certifying long-
                        term care services in the State, or
                            ``(II) an association (or an affiliate of 
                        such an association) of long-term care 
                        facilities, or of any other residential 
                        facilities for older individuals.
                    ``(C) Designation of local ombudsman entities and 
                representatives.--(i) In carrying out the duties 
                specified in subparagraph (A), the State agency may 
                designate an entity as a local ombudsman entity, and 
                may designate an individual (including an employee or 
                volunteer) to represent the entity.
                    ``(ii) An individual so designated may, in 
                accordance with the policies and procedures established 
                by the State agency--
                            ``(I) provide services to protect the 
                        health, safety, welfare, and rights of older 
                        individuals who are residents of long-term care 
                        facilities,
                            ``(II) ensure that residents in the service 
                        area of the entity have regular, timely access 
                        to representatives of the State long-term care 
                        ombudsman program and timely responses to 
                        complaints and requests for assistance,
                            ``(III) identify, investigate, and resolve 
                        complaints made by or on behalf of such 
                        residents that relate to action, inaction, or 
                        decisions, that may adversely affect the 
                        health, safety, welfare, or rights of such 
                        residents,
                            ``(IV) represent the interests of such 
                        residents before government agencies and seek 
                        administrative, legal, and other remedies to 
                        protect the health, safety, welfare, and rights 
                        of such residents,
                            ``(V) review, and if necessary, comment on 
                        existing and proposed laws, rules, and other 
                        government policies and actions, that pertain 
                        to the rights and well-being of such residents,
                            ``(VI) facilitate the ability of the public 
                        to comment on such laws, rules, policies, and 
                        actions,
                            ``(VII) support the development of resident 
                        and family councils, and
                            ``(VIII) carry out other activities that 
                        the State agency determines to be appropriate.
                    ``(iii)(I) The State agency shall establish 
                policies and procedures for monitoring local ombudsman 
                entities designated to carry out the duties specified 
                in subparagraph (A).
                    ``(II) If the entities are grantees, or the 
                representatives are employees, of area agencies on 
                aging, the State agency shall develop the policies 
                after consultation with the area agencies on aging. The 
                policies shall provide for participation and comment by 
                such agencies and for resolution of concerns with 
                respect to case activity.
                    ``(III) The State agency shall develop the policies 
                and procedures in accordance with all provisions of 
                this subtitle regarding confidentiality and conflict of 
                interest.
                    ``(D) Procedures for access.--The State shall 
                ensure, and shall establish procedures that ensure, 
                that program representatives of the State agency shall 
                have--
                            ``(i) access to long-term care facilities 
                        and residents,
                            ``(ii)(I) appropriate access to review the 
                        medical and social records of a resident, if 
                        the representative has the permission of the 
                        resident (or the legal representative of the 
                        resident), or the resident is unable to consent 
                        to the review and has no legal representative, 
                        or
                            ``(II) access to such records as is 
                        necessary to investigate a complaint if a legal 
                        guardian of the resident refuses to give the 
                        permission, a program representative of the 
                        State agency has reasonable cause to believe 
                        that the guardian is not acting in the best 
                        interests of the resident, and the program 
                        representative obtains the approval of the 
                        State agency,
                            ``(iii) access to the administrative 
                        records, policies, and documents, to which the 
                        residents have, or the general public has 
                        access, of long-term care facilities, and
                            ``(iv) access to and, on request, copies of 
                        all licensing and certification records 
                        maintained by the State with respect to long-
                        term care facilities.
                    ``(E) Reporting system.--The State agency shall 
                collect and analyze data relating to complaints and 
                conditions in long-term care facilities and to older 
                individuals who are residents of long-term care 
                facilities, for the purpose of identifying and 
                resolving significant problems.
                    ``(F) Disclosure.--(i) The State agency shall 
                establish procedures for the disclosure by the State 
                agency or local ombudsman entities of files maintained 
                by the State long-term care ombudsman program, 
                including records and data described in subparagraphs 
                (D) and (E).
                    ``(ii) The procedures described in clause (i) shall 
                provide that, subject to clause (iii), the files and 
                records described in clause (i) may be disclosed only 
                at the discretion of the State agency. The procedures 
                described in clause (i) shall prohibit the disclosure 
                of the identity of any complainant, or resident of a 
                long-term care facility, with respect to whom the State 
                agency maintains such files or records unless--
                            ``(I) the complainant or resident, or the 
                        legal representative of the complainant or 
                        resident, consents to the disclosure and the 
                        consent is given in writing,
                            ``(II) the complainant or resident gives 
                        consent orally and the consent is documented 
                        contemporaneously in writing made by a program 
                        representative of the State agency in 
                        accordance with such requirements as the State 
                        agency shall establish, or
                            ``(III) the disclosure is required by court 
                        order.
                    ``(G) Consultation.--In planning and operating the 
                State long-term care ombudsman program, the State 
                agency shall consider the views of area agencies on 
                aging, older individuals, and providers of long-term 
                care.
                    ``(H) Conflict of interest.--The State agency shall 
                develop procedures to prevent conflicts of interest 
                with respect to individuals and entities that carry out 
                activities under the State long-term care ombudsman 
                program.
                    ``(I) Legal counsel.--The State agency shall ensure 
                that--
                            ``(i)(I) adequate legal counsel is 
                        available and able to provide advice and 
                        consultation needed to protect the health, 
                        safety, welfare, and rights of older 
                        individuals who are residents of long-term care 
                        facilities, and to assist the program 
                        representatives of the State agency in the 
                        performance of the official duties of the State 
                        agency, and
                            ``(II) legal representation is provided to 
                        any program representative of the State agency 
                        against whom suit or other legal action is 
                        brought or threatened to be brought in 
                        connection with the performance of the official 
                        duties of the State agency or such a 
                        representative, and
                            ``(ii) the State agency pursues 
                        administrative, legal, and other appropriate 
                        remedies on behalf of such residents.
                    ``(J) Liability.--The State shall ensure that no 
                program representative of the State agency will be 
                liable under State law for the good faith performance 
                of official duties.
                    ``(K) Noninterference.--The State shall--
                            ``(i) ensure that willful interference with 
                        the State agency in the performance of the 
                        official duties under the State long-term care 
                        ombudsman program shall be unlawful,
                            ``(ii) prohibit retaliation and reprisals 
                        by a long-term care facility or other entity 
                        with respect to any resident, employee, or 
                        other person for filing a complaint with, 
                        providing information to, or otherwise 
                        cooperating with any representative of, the 
                        State agency, and
                            ``(iii) provide for appropriate sanctions 
                        with respect to the interference, retaliation, 
                        and reprisals.
            ``(9) Legal assistance.--If a State elects to provide legal 
        assistance, the plan shall contain assurances that with respect 
        to legal assistance that area agencies on aging will--
                    ``(A) enter into contracts with providers of legal 
                assistance that can demonstrate the experience or 
                capacity to deliver legal assistance, and
                    ``(B) attempt to involve the private bar in legal 
                assistance activities authorized under this chapter, 
                including groups within the private bar furnishing 
                services to older individuals on a pro bono and reduced 
                fee basis.
            ``(10) Prevention of elder abuse, neglect, and 
        exploitation.--Subject to subsection (g), and if the State 
        elects to provide for a fiscal year for services for the 
        prevention of elder abuse, neglect, and exploitation, the plan 
        shall--
                    ``(A) contain an assurance that the State has in 
                effect laws relating to elder abuse, neglect, and 
                exploitation that include provisions for immunity for 
                persons who report, in good faith, instances of elder 
                abuse, neglect, and exploitation, from prosecution 
                under any State or local law arising out of such 
                reporting,
                    ``(B) contain an assurance that individuals who 
                provide services to prevent elder abuse, neglect, and 
                exploitation are trained to effectively deal with such 
                reported instances,
                    ``(C) contain an assurance that involuntary or 
                coerced participation in such program by alleged 
                victims, abusers, or members of their households will 
                not be permitted,
                    ``(D) contain an assurance that the State requires 
                all information gathered in the course of receiving 
                reports on instances of, and of making referrals 
                relating to elder abuse, neglect, and exploitation 
                remain confidential except--
                            ``(i) if all parties to such complaint 
                        consent in writing to the release of such 
                        information,
                            ``(ii) if the release of such information 
                        is to a law enforcement agency, public 
                        protective service agency, licensing or 
                        certification agency, ombudsman program, or 
                        protection or advocacy system, or
                            ``(iii) upon court order,
                    ``(E) contain an assurance that the State agency 
                will make all reasonable efforts to resolve any 
                conflicts with other public agencies with respect to 
                confidentiality of the information described in 
                subparagraph (D),
                    ``(F) contain an assurance that the State agency 
                will coordinate its program with law enforcement 
                officials, courts of competent jurisdiction, and other 
                relevant State and local programs, including area 
                agencies on aging and agencies that administer adult 
                protective services, medicaid fraud and abuse services 
                (including services provided by a State Medicaid fraud 
                control unit, as defined in section 1903(q) of the 
                Social Security Act (42 U.S.C. 1396b(q)), and victim 
                assistance programs,
                    ``(G) contain an assurance that older individuals 
                participate in decisions regarding their welfare, and
                    ``(H) specify such other activities that the State 
                agency determines to be beneficial in the prevention of 
                abuse, neglect, or exploitation of older individuals 
                and intends to carry out under such program.
            ``(11) Outreach.--The plan shall provide assurances that 
        the State agency will require outreach efforts that will--
                    ``(A) identify individuals eligible for assistance 
                under chapters 2 and 3, with special emphasis on--
                            ``(i) older individuals residing in rural 
                        areas,
                            ``(ii) older individuals with greatest 
                        economic need,
                            ``(iii) older individuals with greatest 
                        social need,
                            ``(iv) older individuals with severe 
                        disabilities,
                            ``(v) older individuals with limited 
                        English-speaking ability,
                            ``(vi) older individuals with Alzheimer's 
                        disease or related disorders with neurological 
                        and organic brain dysfunction (and the 
                        caretakers of such individuals), and
                            ``(vii) low-income minority individuals, 
                        and
                    ``(B) inform the older individuals referred to in 
                clauses (i) through (vii) of subparagraph (A), and the 
                caretakers of such individuals, of the availability of 
                such assistance.
            ``(12) Older individuals with disabilities.--The plan shall 
        provide, with respect to the needs of older individuals with 
        disabilities, assurances that the State agency will coordinate 
        planning, identification, assessment of needs, and services for 
        older individuals with disabilities (with particular attention 
        to individuals with severe disabilities) with the State 
        agencies with primary responsibility for individuals with 
        disabilities (including severe disabilities).
            ``(13) Coordination of community-based long-term care 
        services.--The plan shall provide assurances that area agencies 
        on aging will conduct efforts to facilitate the coordination of 
        community-based long-term care services, pursuant to section 
        305(a)(6)(G), for older individuals who--
                    ``(A) reside at home and are at risk of 
                institutionalization because of limitations on their 
                ability to function independently,
                    ``(B) are patients in hospitals and are at risk of 
                prolonged institutionalization, or
                    ``(C) are patients in long-term care facilities, 
                but who can return to their homes if community-based 
                services are provided to them.
            ``(14) Prohibition on misuse of funds.--The plan shall 
        provide assurances that funds received from allotments under 
        section 302(a) will not be used to pay any part of a cost 
        (including an administrative cost) incurred by the State or an 
        area agency on aging to carry out a contract or commercial 
        relationship that is not carried out to implement chapter 2 or 
        3.
            ``(15) Coordination of services; provision of 
        multigenerational services.--The plan shall provide assurances 
        that demonstrable efforts will be made--
                    ``(A) to coordinate services provided under 
                chapters 2 and 3 with other State services that benefit 
                older individuals, and
                    ``(B) to provide multigenerational activities, such 
                as opportunities for older individuals to serve as 
                mentors or advisers in programs that provide child 
                care, youth day care, educational assistance, at-risk 
                youth intervention, juvenile delinquency treatment, and 
                family support.
            ``(16) Quality assurance.--The plan shall include 
        assurances that the State has in effect a mechanism to provide 
        for quality in the provision of services under chapters 2 and 
        3.
            ``(17) Cost sharing.--If the State, after consultation with 
        area agencies on aging, elects to require cost sharing by 
        recipients of services under the State plan (or to require or 
        permit area agencies on aging to require cost sharing by 
        recipients of services under area plans), the plan shall--
                    ``(A) provide that no cost sharing shall be 
                required for--
                            ``(i) information and assistance services, 
                        outreach, benefits counseling, or case 
                        management services, or
                            ``(ii) ombudsman or other protective 
                        services, or
                    ``(B)(i) exempt from cost-sharing requirements 
                individuals with incomes below a low-income threshold 
                set by the State that is not lower than 125 percent of 
                the poverty line,
                    ``(ii) set cost-sharing rates for individuals with 
                incomes above such threshold on a sliding-fee scale 
                based on income,
                    ``(iii) provide that the income of older 
                individuals will be determined by self-declaration, and
                    ``(C) provide that individuals will not be denied a 
                service under the plan because of the inability of such 
                individual to pay a share of the cost of such service.
            ``(18) Solicitation of voluntary contributions.--The plan 
        shall provide that the State will permit area agencies on aging 
        to permit service providers to solicit for services provided 
        under the plan voluntary contributions that--
                    ``(A) are based on the ability of older individuals 
                to make such contributions, and
                    ``(B) will be used to increase, or expand access 
                to, services provided under the plan.
            ``(19) Use of vouchers to obtain services.--(A) Subject to 
        subparagraph (B), the plan shall identify each specific 
        supportive service and each nutrition service, if any, the 
        State agency elects to permit area agencies on aging to provide 
        by issuing vouchers (redeemable by the State agency or area 
        agency on aging) to older individuals to permit such 
        individuals to obtain such service.
            ``(B) A State agency may make an election under 
        subparagraph (A) with respect to a nutrition service only if 
        the plan includes an assurance that--
                    ``(i) such service provided in exchange for 
                vouchers will provide meals that satisfy the 
                requirements specified in section 332(2)(A), and
                    ``(ii) an area agency on aging will be permitted by 
                the State agency to provide such service by issuing 
                such vouchers, only if the area agency on aging is 
                unable to provide such service by contract with a 
                service provider.
    ``(b) Approval of State Plan.--The Assistant Secretary shall 
approve any State plan that the Assistant Secretary finds fulfills the 
requirements of subsection (a).
    ``(c) Disapproval of State Plan.--(1) The Assistant Secretary shall 
not make a final determination disapproving any State plan, or any 
modification thereof, or make a final determination that a State is 
ineligible under section 303, without first affording the State 
reasonable notice and opportunity for a hearing.
    ``(2) Not later than 30 days after such final determination, a 
State dissatisfied with such final determination may appeal such final 
determination to the Secretary for review. If the State timely appeals 
such final determination in accordance with subsection (e)(1), the 
Secretary shall dismiss the appeal filed under this paragraph.
    ``(3)(A) If the State is dissatisfied with the decision of the 
Secretary after review under paragraph (2), the State may appeal such 
decision not later than 30 days after such decision and in the manner 
described in subsection (e).
    ``(B) For purposes of appellate review under subparagraph (A), a 
reference in subsection (e) to the Assistant Secretary shall be deemed 
to be a reference to the Secretary.
    ``(d) Notification of State.--(1) Whenever the Assistant Secretary, 
after providing reasonable notice and opportunity for a hearing to the 
State agency, finds that--
            ``(A) the State is not eligible under section 303,
            ``(B) the State plan has been so changed that it no longer 
        complies substantially with subsection (a), or
            ``(C) in the administration of the plan there is a failure 
        to comply substantially with any provision of subsection (a),
the Assistant Secretary shall notify the State agency that no further 
payments from its allotments under section 302(a) will be made to the 
State (or, in the Assistant Secretary's discretion, that further 
payments to the State will be limited to projects under or portions of 
the State plan not affected by such failure), until the Assistant 
Secretary is satisfied that there will no longer be any failure to 
comply. Until the Assistant Secretary is so satisfied, no further 
payments shall be made to the State from its allotments under section 
302(a) (or payments shall be limited to projects under or portions of 
the State plan not affected by such failure).
    ``(2)(A) The Assistant Secretary shall, in accordance with rules 
the Secretary shall issue, disburse the funds so withheld directly to 
any public or nonprofit private organization or agency or political 
subdivision of the State submitting an approved plan in accordance with 
the provisions of this section.
    ``(B) The limitation specified in section 302(a)(3) shall apply 
with respect to the use of such funds by the organization, agency, or 
political subdivision that receives such funds.
    ``(e) Appeal.--(1) A State that is dissatisfied with a final action 
of the Assistant Secretary under subsection (b), (c), or (d) may appeal 
to the United States court of appeals for the circuit in which the 
State is located, by filing a petition with such court within 30 days 
after such final action. A copy of the petition shall be forthwith 
transmitted by the clerk of the court to the Assistant Secretary, or 
any officer designated by the Assistant Secretary for such purpose. The 
Assistant Secretary thereupon shall file in the court the record of the 
proceedings on which the Assistant Secretary's action is based, as 
provided in section 2112 of title 28, United States Code.
    ``(2) Upon the filing of such petition, the court shall have 
jurisdiction to affirm the action of the Assistant Secretary or to set 
it aside, in whole or in part, temporarily or permanently, but until 
the filing of the record, the Assistant Secretary may modify or set 
aside the Assistant Secretary's order. The findings of the Assistant 
Secretary as to the facts, if supported by substantial evidence, shall 
be conclusive, but the court, for good cause shown may remand the case 
to the Assistant Secretary to take further evidence, and the Assistant 
Secretary shall, within 30 days, file in the court the record of those 
further proceedings. Such new or modified findings of fact shall 
likewise be conclusive if supported by substantial evidence. The 
judgment of the court affirming or setting aside, in whole or in part, 
any action of the Assistant Secretary shall be final, subject to review 
by the Supreme Court of the United States upon certiorari or 
certification as provided in section 1254 of title 28, United States 
Code.
    ``(3) The commencement of proceedings under this subsection shall 
not, unless so specifically ordered by the court, operate as a stay of 
the Assistant Secretary's action.
    ``(f) Preservation of Attorney-Client Privilege.--Neither a State, 
nor a State agency, may require any provider of legal assistance under 
this chapter to reveal any information that is protected by the 
attorney-client privilege.
    ``(g) Limitation on Expenditures.--(1) Except as provided in 
paragraph (2), the aggregate amount of funds made available under this 
Act that may be expended by a State in any fiscal year--
            ``(A) to carry out the State long-term care ombudsman 
        program described in subsection (a)(8), and
            ``(B) to provide services for the prevention of elder 
        abuse, neglect, and exploitation, described in subsection 
        (a)(10),
may not exceed the amount that bears the same ratio to the aggregate 
amount of funds made available under this Act for such fiscal year to 
carry out chapter 2 as the amount of funds made available under the 
Older Americans Act of 1965 for fiscal year 1995 expended by the State 
to carry out the State long-term care ombudsman programs, and programs 
with respect to the prevention of elder abuse, neglect, and 
exploitation, under title VII and part B of title III of the Older 
Americans Act of 1965 bears to the aggregate amount of funds made 
available under such Act for fiscal year 1995 to carry out such title 
VII and such part B.
    ``(2)(A) If a State demonstrates, in an application, to the 
satisfaction of the Assistant Secretary that the maximum amount 
paragraph (1) permits the State to expend for a fiscal year--
            ``(i) to carry out the State long-term care ombudsman 
        program described in subsection (a)(8), and
            ``(ii) to provide services for the prevention of elder 
        abuse, neglect, and exploitation, described in subsection 
        (a)(10),
is insufficient to satisfy the need for services provided under 
paragraphs (8) and (10) of subsection (a), then the Assistant Secretary 
may grant a waiver that permits the State to expend for such fiscal 
year an amount equal to not more than 150 percent of such maximum 
amount to provide services under such paragraphs.
    ``(B) At a minimum, the application described in subparagraph (A) 
shall include a description of the additional amount requested to be so 
expended, the purposes for which such amount will be expended, the need 
for such amount, and the impact so expending such amount will have on 
the provision of other services provided under chapter 2. The Assistant 
Secretary shall approve or deny the application in writing.

``SEC. 305. AREA PLANS.

    ``(a) Plan.--Each area agency on aging designated under section 
303(a)(2)(A) shall, in order to be approved by the State agency, 
prepare and develop an area plan for a planning and service area for a 
2-, 3-, or 4-year period determined by the State agency, with such 
annual adjustments as may be necessary. Each such plan shall be based 
upon a uniform format for area plans within the State. Each such plan 
shall comply with all of the following requirements:
            ``(1) Scope of plan.--The plan shall provide, through a 
        comprehensive and coordinated system, for--
                    ``(A) supportive services, nutrition services 
                (including in-home meals and congregate nutrition 
                services), and, where appropriate, for the 
                establishment or maintenance of multipurpose senior 
                centers, within the planning and service area covered 
                by the plan,
                    ``(B) determining the extent of need for supportive 
                services, nutrition services (taking into consideration 
                the comparative need for home-delivered nutrition 
                services and congregate nutrition services), and 
                multipurpose senior centers in such area (taking into 
                consideration, among other things, the number of older 
                individuals with low incomes residing in such area, the 
                number of older individuals who have greatest economic 
                need residing in such area, the number of older 
                individuals who have greatest social need residing in 
                such area, the number of older individuals residing on 
                reservations in such area, and the number of older 
                individuals who are Indians residing in such area, and 
                the efforts of voluntary organizations in the 
                community),
                    ``(C) evaluating the effectiveness of the use of 
                resources in meeting such need, and
                    ``(D) entering into agreements with providers of 
                supportive services, nutrition services, or 
                multipurpose senior centers in such area, for the 
                provision of such services or centers to meet such 
                need.
            ``(2) Promotion of independent living.--The plan shall 
        promote independent living through the provision of home- and 
        community-based care, address the nutrition and health-
        promotion needs of older individuals, provide advocacy for and 
        protect the rights of vulnerable older individuals in both 
        community-based and institutional settings, specify efforts to 
        be undertaken to ensure the quality of supportive services and 
        nutrition services provided in such settings, enhance access to 
        services provided under the plan, and encourage community 
        participation in carrying out the plan.
            ``(3) Information and assistance services.--The plan shall 
        provide for the establishment and maintenance of information 
        and assistance services to ensure that older individuals within 
        the planning and service area covered by the plan will have 
        reasonably convenient access to such services, with particular 
        emphasis on linking services available to isolated older 
        individuals and older individuals with Alzheimer's disease or 
        related disorders with neurological and organic brain 
        dysfunction (and the caretakers of individuals with such 
        disease or disorders).
            ``(4) Specific objectives; outreach.--(A) The plan shall 
        contain assurances that the area agency on aging will set 
        specific objectives for providing services to older individuals 
        with greatest economic need, older individuals with greatest 
        social need, and older individuals residing in rural areas.
            ``(B) The plan shall contain assurances that the area 
        agency on aging will use outreach efforts that will--
                    ``(i) identify individuals eligible for assistance 
                under chapters 2 and 3, with special emphasis on--
                            ``(I) older individuals residing in rural 
                        areas,
                            ``(II) older individuals with greatest 
                        economic need,
                            ``(III) older individuals with greatest 
                        social need,
                            ``(IV) older individuals with severe 
                        disabilities,
                            ``(V) older individuals with limited 
                        English-speaking ability,
                            ``(VI) older individuals with Alzheimer's 
                        disease or related disorders with neurological 
                        and organic brain dysfunction (and the 
                        caretakers of such individuals), and
                            ``(VII) low-income minority individuals, 
                        and
                    ``(ii) inform the older individuals referred to in 
                subclauses (I) through (VII) of clause (i), and the 
                caretakers of such individuals, of the availability of 
                such assistance.
            ``(5) Evaluations; technical assistance and information; 
        advocacy; advisory council.--The plan shall provide that the 
        area agency on aging will--
                    ``(A) furnish appropriate technical assistance, and 
                information in a timely manner, to providers of 
                supportive services, nutrition services, or 
                multipurpose senior centers in the planning and service 
                area covered by the area plan,
                    ``(B) take into account in connection with matters 
                of general policy arising in the development and 
                administration of the area plan, the views of 
                recipients of services under such plan,
                    ``(C) serve as the advocate and focal point for 
                older individuals within the community by (in 
                cooperation with agencies, organizations, and 
                individuals participating in activities under the plan) 
                monitoring, evaluating, and commenting on all policies, 
                programs, hearings, levies, and community actions that 
                will affect older individuals,
                    ``(D) establish an advisory council consisting of 
                older individuals who are participants or who are 
                eligible to participate in programs assisted under this 
                title, representatives of older individuals, local 
                elected officials, providers of veterans' health care 
                (if appropriate), and the general public, to advise 
                continuously the area agency on aging on all matters 
                relating to the development of the area plan, the 
                administration of the plan and operations conducted 
                under the plan,
                    ``(E) facilitate the coordination of community-
                based, long-term care services designed to retain 
                individuals in their homes, thereby deferring 
                unnecessary, costly institutionalization, and designed 
                to include the development of case management services 
                as a component of the long-term care services,
                    ``(F) facilitate the involvement of long-term care 
                providers in the coordination of community-based long-
                term care services and work to ensure community 
                awareness of and involvement in addressing the needs of 
                residents of long-term care facilities,
                    ``(G) coordinate services and activities carried 
                out under the area plan with--
                            ``(i) activities of community-based 
                        organizations established for the benefit of 
                        older individuals with Alzheimer's disease or 
                        related disorders with neurological and organic 
                        brain dysfunction (and the families of such 
                        individuals), and
                            ``(ii) the mental health services provided 
                        by community health centers and by other public 
                        agencies and nonprofit private organizations, 
                        and
                    ``(H) establish a grievance procedure for older 
                individuals who are dissatisfied with or denied 
                services under chapters 2 and 3.
            ``(6) Volunteers.--The plan shall encourage, and enlist the 
        services of, local volunteer groups to provide assistance and 
        services appropriate to the unique needs of older individuals 
        within the planning and service area, including coordination 
        with programs carried out under subtitles A and C of title IV.
            ``(7) Prevention of the abuse, neglect, or exploitation of 
        older individuals.--If the area agency on aging elects to 
        provide a program to prevent the abuse, neglect, or 
        exploitation of older individuals or is required by the State 
        agency to carry out such program, the plan shall--
                    ``(A) contain an assurance that the area agency on 
                aging will conduct such program consistent with the 
                provisions of this subtitle,
                    ``(B) contain an assurance that the area agency on 
                aging will provide public education and outreach to 
                identify and prevent abuse, neglect, and exploitation 
                of older individuals,
                    ``(C) contain an assurance that the area agency on 
                aging--
                            ``(i) will establish procedures for receipt 
                        of reports of abuse, neglect, and exploitation 
                        of older individuals, and
                            ``(ii) upon receipt of a report of known or 
                        suspected instances of elder abuse, neglect, or 
                        exploitation, shall promptly refer to reported 
                        matter to the proper authorities for 
                        investigation and action consistent with State 
                        law, and
                    ``(D) specify such other activities that the area 
                agency determines to be beneficial in the prevention of 
                abuse, neglect, or exploitation of older individuals 
                and intends to carry out under such program.
            ``(8) Description of activities.--The plan shall--
                    ``(A) describe all activities of the area agency on 
                aging for which financial assistance is provided to 
                carry out chapters 2 and 3, and
                    ``(B) contain an assurance that such activities 
                conform with--
                            ``(i) the responsibilities of the area 
                        agency on aging, as set forth in this 
                        subsection, and
                            ``(ii) the laws, rules, and policies of the 
                        State in which the area agency on aging is 
                        carrying out an area plan.
            ``(9) Disclosure of sources and expenditures of funds.--The 
        plan shall contain an assurance that the area agency on aging 
        will, on the request of the State and for the purpose of 
        monitoring compliance with this subtitle (including conducting 
        an audit), disclose all sources and expenditures of funds such 
        agency receives or expends to provide services to older 
        individuals.
            ``(10) Prohibition on misuse of funds.--The plan shall 
        contain assurances that funds received from allotments under 
        section 302(a) will not be used to pay any part of a cost 
        (including an administrative cost) incurred by the area agency 
        on aging to carry out a contract or commercial relationship 
        that is not carried out to implement chapters 2 and 3.
            ``(11) Prohibition of preference.--The plan shall contain 
        assurances that preference in receiving services under chapters 
        2 and 3 will not be given by the area agency on aging to 
        particular older individuals as a result of a contract or 
        commercial relationship that is not carried out to implement 
        such chapters.
            ``(12) Case management services.--The plan shall provide 
        that case management services provided under this chapter 
        through the area agency on aging will--
                    ``(A) not duplicate case management services 
                provided through other Federal and State programs,
                    ``(B) be coordinated with services described in 
                subparagraph (A),
                    ``(C) include a provision, to consumers, of a list 
                of available service providers for appropriate care in 
                the planning and service area served by such agency,
                    ``(D) be provided in a manner that gives a consumer 
                the right to choose a provider of preference, and
                    ``(E) be provided by--
                            ``(i) a public agency, or
                            ``(ii) a nonprofit private agency that--
                                    ``(I) does not provide, and does 
                                not have a direct or indirect ownership 
                                or controlling interest in, or a direct 
                                or indirect affiliation or relationship 
                                with, an entity that provides, services 
                                (other than case management services, 
                                outreach, and information and referral) 
                                under this title,
                                    ``(II) is located in a rural area 
                                and obtains a waiver of the requirement 
                                described in subclause (I), or
                                    ``(III) is a community-based 
                                organization that is described in 
                                section 501(c)(3) of the Internal 
                                Revenue Code of 1986, that is exempt 
                                from taxation under section 501(a) of 
                                such Code, and that is located in a 
                                planning and service area in which an 
                                area agency on aging made a contract 
                                with 1 or more nonprofit private 
                                agencies to provide case management 
                                services in fiscal year 1992 under the 
                                Older Americans Act of 1965.
            ``(13) Cost sharing.--The plan shall contain assurances 
        that any requirements for cost sharing by recipients of 
        services provided under the plan will be consistent with those 
        provisions of the State plan that satisfy the requirement 
        specified in section 304(a)(17).
            ``(14) Older individuals with disabilities.--The plan shall 
        provide, with respect to the needs of older individuals with 
        disabilities, assurances that the area agency will coordinate 
        planning, identification, assessment of needs, and services for 
        older individuals with disabilities (with particular attention 
        to individuals with severe disabilities) with the State agency.
            ``(15) Telephone listing.--The plan shall contain an 
        assurance that the area agency on aging will list the telephone 
        number of such agency in each telephone directory that is 
        published, by the provider of local telephone service, for 
        residents in any geographical area that lies in whole or in 
        part in the service and planning area served by such agency--
                    ``(A) under the name `Area Agency on Aging',
                    ``(B) in the unclassified section of the directory, 
                and
                    ``(C) to the extent possible, in the classified 
                section of the directory, under a subject heading 
                designated by the Assistant Secretary by regulation.
    ``(b) Preservation of Attorney-Client Privilege.--An area agency on 
aging may not require any provider of legal assistance under this 
chapter to reveal any information that is protected by the attorney-
client privilege.
    ``(c) State Authority To Withhold Funds.--(1) If the head of a 
State agency finds that an area agency on aging has failed to comply 
with Federal or State laws, including the area plan requirements of 
this section, rules, or policies, the State may withhold from the area 
agency on aging a portion of the funds available under the allotment 
made under section 302(a).
    ``(2)(A) The head of a State agency shall not make a final 
determination withholding funds under paragraph (1) without first 
affording the area agency on aging due process in accordance with 
procedures established by the State agency.
    ``(B) At a minimum, such procedures shall include procedures for--
            ``(i) providing notice of an action to withhold funds,
            ``(ii) providing documentation of the need for such action, 
        and
            ``(iii) at the request of the area agency on aging, 
        conducting a public hearing concerning such action.
    ``(3)(A) If a State agency withholds the funds under paragraphs (1) 
and (2), the State agency may use the funds withheld to directly 
administer programs under chapters 2 and 3 in the planning and service 
area served by the area agency on aging for a period not to exceed 180 
days, except as provided in subparagraph (B).
    ``(B) If the State agency determines that the area agency on aging 
has not taken corrective action, or if the State agency does not 
approve the corrective action, during the 180-day period described in 
subparagraph (A), the State agency may extend the period for not more 
than 90 days.

``SEC. 306. PLANNING, COORDINATION, EVALUATION, AND ADMINISTRATION OF 
              STATE PLANS.

    ``(a) Grants for State Activities.--(1) Amounts available to States 
under section 302(c)(1) may be used to make grants to States to pay 
such percentage as each State agency determines, but not more than 85 
percent, of the cost of the administration of its State plan, 
including--
            ``(A) the preparation of the State plan,
            ``(B) the evaluation of activities carried out under such 
        plan,
            ``(C) the collection of data and the carrying out of 
        analyses related to the need for supportive services, nutrition 
        services (taking into consideration the comparative need for 
        home-delivered nutrition services and for congregate nutrition 
        services), multipurpose senior centers, and community service 
        employment within the State, and dissemination of information 
        so obtained,
            ``(D) the provision of short-term training to personnel of 
        public or nonprofit private agencies and organizations engaged 
        in the operation of programs, projects, and activities 
        authorized by chapters 2 and 3, and
            ``(E) and the carrying out of demonstration projects of 
        statewide significance relating to the initiation, expansion, 
        or improvement of services and activities provided under 
        chapters 2 and 3.
    ``(2) Any funds available to a State under subsection (b) for part 
of the cost of the administration of its State plan that the State 
determines is not needed for such purpose may be used by the State to 
supplement the amount available under section 302(c)(3)(A) to cover 
part of the cost of the administration of area plans.
    ``(3) The portion of the allotment made available under section 
302(c)(1) to a State for any fiscal year, that the State determines 
will not be required by the State for such year for the purposes 
described in paragraph (1) shall be available to the State to provide 
services under chapter 2, chapter 3, or both, in the State.
    ``(4) Any State that is designated under section 303(a)(1)(E) a 
single planning and service area covering all, or substantially all, of 
the older individuals in the State, as determined by the Assistant 
Secretary, may elect to pay part of the costs of the administration of 
State and area plans either out of the amount of funds received under 
this section or out of the amount of funds made available for the 
administration of area plans under section 302(c)(3)(A), but shall not 
pay such costs out of both such amounts.
    ``(b) Authority To Transfer Funds.--(1)(A) Notwithstanding any 
other provision of this subtitle and except as provided in subparagraph 
(B), of the funds received by a State attributable to funds 
appropriated under subsections (a) and (b) of section 381, the State 
(after consultation with area agencies on aging and with service 
providers) may elect to transfer not more than 25 percent for any 
fiscal year between programs under chapter 2 and programs under chapter 
3 for use as the State considers appropriate. The State shall notify 
the Assistant Secretary of any such election.
    ``(B) If a State demonstrates in an application, to the 
satisfaction of the Assistant Secretary, that funds received by the 
State and attributable to funds appropriated under subsections (a) and 
(b) of section 381, (including funds transferred under subparagraph (A) 
without regard to this subparagraph) for any fiscal year are 
insufficient to satisfy the need for services under chapter 2 or 3, 
then the Assistant Secretary may grant a waiver that permits the State 
to transfer under subparagraph (A) to satisfy such need an additional 
25 percent of the funds so received for such fiscal year.
    ``(C) At a minimum, the application described in subparagraph (B) 
shall include a description of the amount to be transferred, the 
purposes of the transfer, the need for the transfer, and the impact of 
the transfer on the provision of services from which the funding will 
be transferred. The Assistant Secretary shall approve or deny the 
application in writing.
    ``(2) After consultation with service providers, a State agency may 
delegate to an area agency on aging or any other entity the authority 
to make a transfer under paragraph (1).
    ``(3) The Assistant Secretary shall annually collect, and include 
in the report required by section 116, data regarding the transfers 
described in paragraph (1), including--
            ``(A) the amount of funds involved in the transfers, 
        analyzed by State,
            ``(B) in the case of transfers described in paragraph (1), 
        the effect of the transfers on the provision of services 
        provided under--
                    ``(i) chapter 2, and
                    ``(ii) chapter 3, including the effect on the 
                number of meals served.

``SEC. 307. PAYMENTS.

    ``Payments of grants, or under contracts, made under chapters 2 and 
3 may be made (after necessary adjustments resulting from previously 
made overpayments or underpayments) in advance or by way of 
reimbursement, and in such installments, as the Assistant Secretary may 
determine.

    ``CHAPTER 2--SUPPORTIVE SERVICES AND MULTIPURPOSE SENIOR CENTERS

``SEC. 321. PROGRAM AUTHORIZED.

    ``(a) Supportive Services.--The Assistant Secretary shall carry out 
a program for making grants to States under State plans approved under 
section 304 for any of the following supportive services that are 
necessary for the general welfare of older individuals:
            ``(1) Health (including mental health), education and 
        training, welfare, informational, recreational, homemaker, 
        counseling, or referral services.
            ``(2) Services designed to encourage and assist older 
        individuals to use the facilities and services (including 
        information and assistance services) available to them, 
        including language translation services to assist older 
        individuals with limited-English speaking ability to obtain 
        services under this chapter.
            ``(3) Services designed--
                    ``(A) to assist older individuals to obtain 
                adequate housing, including residential repair and 
                renovation projects designed to enable older 
                individuals to maintain their homes in conformity with 
                minimum housing standards,
                    ``(B) to adapt homes to meet the needs of older 
                individuals with disabilities,
                    ``(C) to prevent unlawful entry into residences of 
                older individuals, through the installation of security 
                devices and through structural modifications or 
                alterations of such residences, or
                    ``(D) to receive applications from older 
                individuals for housing under section 202 of the 
                Housing Act of 1959 (12 U.S.C. 1701Q) or under any 
                federally assisted housing program designed to assist 
                older individuals.
            ``(4) Services designed to assist older individuals to 
        avoid institutionalization, and services designed to assist 
        individuals in long-term care institutions who are able to 
        return to their communities, including--
                    ``(A) client assessment services, and development 
                and coordination of community-based services,
                    ``(B) in-home services for frail older individuals, 
                including services for older individuals with 
                Alzheimer's disease and related disorders with 
                neurological and organic brain dysfunction (and for 
                families of such individuals),
                    ``(C) supportive activities to meet the special 
                needs of caregivers, including caregivers who provide 
                in-home services to frail older individuals, and
                    ``(D) in-home and other community-based services to 
                assist older individuals to live independently in a 
                home environment, including home health, homemaker, 
                shopping, escort, reader, and letter-writing services.
            ``(5) Services designed to provide to older individuals 
        legal assistance and other counseling services and assistance, 
        including--
                    ``(A) tax counseling and assistance, financial 
                counseling, and counseling regarding appropriate health 
                and life insurance coverage,
                    ``(B) representation--
                            ``(i) of individuals who are wards (or are 
                        allegedly incapacitated), and
                            ``(ii) in guardianship proceedings of older 
                        individuals who seek to become guardians, if 
                        other adequate representation is unavailable in 
                        the proceedings, and
                    ``(C) provision, to older individuals who provide 
                uncompensated care to their adult children with 
                disabilities, of counseling to assist such older 
                individuals with permanency planning for such children.
            ``(6) Services designed to enable older individuals to 
        attain and maintain physical and mental well-being through 
        programs of regular physical activity,
            ``(7) Activities designed to promote disease prevention and 
        health promotion.
            ``(8) Services designed to provide, for older individuals, 
        preretirement counseling and assistance in planning for and 
        assessing future post-retirement needs with regard to public 
        and private insurance, public benefits, lifestyle changes, 
        relocation, legal matters, leisure time, and other appropriate 
        matters.
            ``(9) Services of an ombudsman to receive, investigate, and 
        act on complaints by older individuals who are residents of 
        long-term care facilities and to advocate for the well-being of 
        such individuals.
            ``(10) Services that are designed to meet the unique needs 
        of older individuals who are disabled, and of older individuals 
        who provide uncompensated care to their adult children with 
        disabilities.
            ``(11) Services to encourage the employment of older 
        individuals, including job and second career counseling and, 
        where appropriate, job development, referral, and placement.
            ``(12) Services for the prevention of abuse, neglect, or 
        exploitation of older individuals.
            ``(13) Crime prevention services and victim assistance 
        programs for older individuals.
            ``(14) Health and nutrition education services, including 
        information concerning prevention, diagnosis, treatment, and 
        rehabilitation of age-related diseases and chronic disabling 
        conditions.
            ``(15) Services designed to enable mentally impaired older 
        individuals to attain and maintain emotional well-being and 
        independent living through a coordinated system of supportive 
        services.
            ``(16) Services designed to provide information and 
        training for individuals who are or may become guardians or 
        representative payees of older individuals, including 
        information on the powers and duties of guardians and 
        representative payees and on alternatives to guardianships.
            ``(17) Services to encourage and facilitate regular 
        interaction between school-age children and older individuals, 
        including visits in long-term care facilities, multipurpose 
        senior centers, and other settings.
            ``(18) Services to assist in the operation of multipurpose 
        senior centers.
            ``(19) Services that provide reasonable opportunities for 
        older individuals to participate on a voluntary basis in 
        multigenerational activities.
            ``(20) Transportation services to facilitate access to the 
        services authorized by this subsection to be provided.
            ``(21) Any other services.

                    ``CHAPTER 3--NUTRITION SERVICES

``SEC. 331. PROGRAM AUTHORIZED.

    ``(a) Nutrition Services.--The Assistant Secretary shall carry out 
a program for making grants to States under State plans approved under 
section 304 for the establishment and operation of nutrition projects 
that 5 or more days a week (except in a rural area where such frequency 
is not feasible) and a lesser frequency when it is approved by the 
State agency, provide--
            ``(1) meals to eligible individuals in congregate meals 
        settings,
            ``(2) meals to eligible individuals in their homes, and
            ``(3) meals to eligible individuals in adult day care 
        settings.
    ``(b) Requirements.--(1) Meals served to eligible individuals under 
subsection (a)(3) may be hot, cold, frozen, dried, canned, or 
supplemental foods (with a satisfactory storage life).
    ``(2) Meal providers shall provide eligible older individuals with 
at least 1 meal per day and any additional meals per day that the 
recipient of a grant or contract under this chapter may elect to 
provide.

``SEC. 332. ADDITIONAL REQUIREMENTS.

    ``A State that establishes and operates a nutrition project under 
this chapter shall--
            ``(1) solicit the advice of a dietitian or individual with 
        comparable expertise in the planning of nutritional services, 
        and
            ``(2) ensure that the project--
                    ``(A) provides meals that--
                            ``(i) comply with the Dietary Guidelines 
                        for Americans, published by the Secretary and 
                        the Secretary of Agriculture,
                            ``(ii) provide to each participating older 
                        individual--
                                    ``(I) a minimum of 33\1/3\ percent 
                                of the daily recommended dietary 
                                allowances as established by the Food 
                                and Nutrition Board of the Institute of 
                                Medicine of the National Academy of 
                                Sciences, if the project provides 1 
                                meal per day,
                                    ``(II) a minimum of 66\2/3\ percent 
                                of the allowances if the project 
                                provides 2 meals per day, and
                                    ``(III) 100 percent of the 
                                allowances if the project provides 3 
                                meals per day, and
                            ``(iii) to the maximum extent practicable, 
                        are adjusted to meet any special dietary needs 
                        of program participants,
                    ``(B) provides flexibility to local nutrition 
                providers in designing meals that are appealing to 
                program participants,
                    ``(C) encourages providers to enter into contracts 
                that limit the amount of time meals must spend in 
                transit before they are consumed,
                    ``(D) where feasible, encourages arrangements with 
                schools and other facilities serving meals to children 
                in order to promote intergenerational meal programs,
                    ``(E) provides that meals, other than in-home 
                meals, are provided in settings in as close proximity 
                to the majority of eligible older individuals' 
                residences as feasible,
                    ``(F) ensures that meal providers carry out such 
                project with the advice of dietitians (or individuals 
                with comparable expertise), meal participants, and 
                other individuals' knowledgeable with regard to the 
                needs of older individuals,
                    ``(G) ensures that each participating area agency 
                on aging establishes procedures that allow nutrition 
                project administrators the option to offer a meal, on 
                the same basis as meals provided to participating older 
                individuals, to individuals providing volunteer 
                services during the meal hours, and to individuals with 
                disabilities who reside at home with and accompany 
                older individuals eligible under this chapter,
                    ``(H) ensures that nutrition services will be 
                available to older individuals and to their spouses, 
                and may be made available to individuals with 
                disabilities who are not older individuals but who 
                reside in housing facilities occupied primarily by 
                older individuals at which congregate nutrition 
                services are provided, and
                    ``(I) provide for nutrition screening and, where 
                appropriate, for nutrition education and counseling.

     ``CHAPTER 4--COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

``SEC. 351. SHORT TITLE.

    ``This chapter may be cited as the `Older American Community 
Service Employment Act of 1996'.

``SEC. 352. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT PROGRAM.

    ``(a) Authority for Program.--(1) With funds allotted under section 
302(b), the Assistant Secretary shall make grants to eligible States 
and tribal organizations for the purpose of providing to unemployed 
low-income older individuals who have poor employment prospects, 
employment opportunities in providing community services.
    ``(2)(A) Not less than 85 percent of each grant made under 
paragraph (1) shall be used to pay wages and benefits for older 
individuals who are employed under agreements made under subsection 
(b).
    ``(B) The amount of such grant remaining (if any) after the 
application of section 302(c) and subparagraph (A) may be used to pay 
other employment-related costs relating to such individuals, including 
costs incurred--
            ``(i) to perform the assessment described in subsection 
        (c)(2)(K),
            ``(ii) to provide the training described in subsection 
        (c)(2)(H),
            ``(iii) to provide counseling to such individuals,
            ``(iv) to provide supportive services to such individuals,
            ``(v) to pay transportation costs,
            ``(vi) to evaluate such individuals for continued 
        participation in such employment,
            ``(vii) to pay incidental costs of attire and tools for 
        such individuals, necessarily incurred to enable such 
        individuals to participate in a project carried out under an 
        agreement made under subsection (b), and
            ``(viii) to provide physical examinations to such 
        individuals.
    ``(C) To the maximum extent practicable, an entity that carries out 
a project under an agreement made under subsection (b) shall provide 
for the payment of the costs described in subparagraph (B) from non-
Federal sources.
    ``(b) Eligibility for Grants.--To be eligible to receive a grant 
under subsection (a), a State or tribal organization shall submit to 
the Assistant Secretary an application in such form and containing such 
information as the Assistant Secretary may require by rule, including 
an assurance that such grant will be used by the State or tribal 
organization to carry out projects (excluding projects involving the 
construction, operation, or maintenance of any facility used or to be 
used as a place for sectarian religious instruction or worship) for the 
purpose specified in subsection (a) through the following types of 
agreements that satisfy the requirements of subsection (c) and that 
provide for meeting specifications and performance goals the State or 
tribal organization shall establish:
            ``(1) Agreements may be made by the State or tribal 
        organization with--
                    ``(A) public or nonprofit private agencies or 
                organizations,
                    ``(B) political subdivisions of States having 
                elected or duly appointed governing officials (or 
                combinations of such political subdivisions),
                    ``(C) tribal organizations,
                    ``(D) area agencies on aging, and
                    ``(E) national organizations, and State and local 
                affiliates of national organizations, that received 
                funds in fiscal year 1995 under section 502 of the 
                Older Americans Act of 1965,
        to pay the cost of providing part-time employment to older 
        individuals described in subsection (a).
            ``(2) At the election of the State or tribal organization, 
        not more than 5 percent of the grant received under subsection 
        (a) may be used to make agreements with businesses (giving 
        special consideration to businesses in growth industries) to 
        pay not more than 50 percent of the cost of providing part-time 
        or full-time employment to older individuals described in 
        subsection (a).
    ``(c) Requirements.--Subject to subsection (d) this subsection 
shall apply to agreements made under subsection (b).
            ``(1) Each such agreement shall be made on a competitive 
        basis and after consideration of the following, as demonstrated 
        by the entity that proposes to carry out a project to provide 
        employment to older individuals described in subsection (a):
                    ``(A) The ability of such entity to provide 
                community service employment and to satisfy the 
                requirements of this chapter.
                    ``(B) The ability to meet applicable specifications 
                and performance goals referred to in subsection (b).
                    ``(C) The ability to provide supportive services to 
                assist older individuals described in subsection (a) to 
                participate in employment provided by the project.
                    ``(D) The effective use of funds to be received 
                under such agreement, to pay administrative costs of 
                the project and to pay wages and benefits for such 
                individuals who are participating in employment 
                provided by the project.
            ``(2) Each such agreement shall provide that no payment 
        shall be made by the State or tribal organization toward the 
        cost of the project unless the State or tribal organization 
        determines that the project, and the entity that carries out 
        the project, will satisfy all of the following:
                    ``(A)(i) The entity that carries out the project 
                will use funds received under such agreement that are 
                attributable to a grant made under subsection (a) or 
                any other Federal law, to pay not more than 85 percent 
                of the cost of the project.
                    ``(ii) The non-Federal share of such cost will be 
                contributed in cash or in kind. In determining the 
                amount of the non-Federal share, the Assistant 
                Secretary may attribute fair market value to services 
                and facilities contributed from non-Federal sources.
                    ``(B) The project will provide employment only for 
                older individuals described in subsection (a), except 
                for necessary technical, administrative, and 
                supervisory personnel, but such personnel shall, to the 
                fullest extent possible, be recruited from among older 
                individuals described in subsection (a).
                    ``(C)(i) If such agreement is made with a State, 
                the project will provide employment for such 
                individuals in the community in which such individuals 
                reside, or in nearby communities.
                    ``(ii) If such agreement is made with a tribal 
                organization, the project will provide employment for 
                such individuals who are Indians residing on or near an 
                Indian reservation.
                    ``(D) The project (except with respect to an 
                agreement described in subsection (b)(2)) will employ 
                such individuals in services related to publicly owned 
                and operated facilities and projects, or related to 
                projects sponsored by organizations (other than 
                political parties) described in section 501(c)(3) of 
                the Internal Revenue Code of 1986 that are exempt from 
                taxation under section 501(a) of such Code.
                    ``(E) The project will contribute to the general 
                welfare of the community.
                    ``(F) The project will--
                            ``(i) result in an increase in employment 
                        opportunities over those opportunities that 
                        would otherwise be available,
                            ``(ii) not result in the displacement of 
                        currently employed workers (including partial 
                        displacement, such as a reduction in the hours 
                        of nonovertime work or wages or employment 
                        benefits), and
                            ``(iii) not impair existing contracts or 
                        result in the substitution of Federal funds for 
                        other funds in connection with work that would 
                        otherwise be performed.
                    ``(G) The project will utilize methods of 
                recruitment and selection (including listing of job 
                vacancies with the employment agency operated by any 
                State or political subdivision thereof) that will 
ensure that the maximum number of older individuals described in 
subsection (a) will have an opportunity to participate in the project.
                    ``(H)(i) The project will include such training as 
                may be necessary to make the most effective use of the 
                skills and talents of such individuals who are 
                participating and assist in their transition into 
                employment for which no financial assistance is 
                provided under this chapter, and may provide for the 
                payment of the reasonable expenses of such individuals 
                being trained.
                    ``(ii) Unless the number of such individuals in 
                need of the training required by clause (i) is 
                sufficient to justify the establishment of a training 
                program by the project, such training shall be 
                provided, to the maximum extent practicable, by the 
                project by placing such individuals in training 
                programs for which Federal or State funds are provided 
                under another law. Such individuals who participate in 
                such training programs shall be deemed to have received 
                the training required by clause (i).
                    ``(I) The project will be established or 
                administered with the advice of individuals competent 
                in the field of service in which employment is being 
                provided, and of individuals who are knowledgeable with 
                regard to the needs of older individuals.
                    ``(J) The project may authorize payment for 
                reasonable transportation costs of older individuals 
                described in subsection (a) that may be incurred in 
                employment in the project.
                    ``(K) The project will prepare an assessment of--
                            ``(i) the participating older individuals' 
                        skills and talents,
                            ``(ii) their need for supportive services, 
                        and
                            ``(iii) their ability to perform community 
                        service employment,
                except to the extent the project has, for the 
                particular participant involved, an assessment of such 
                skills and talents, such need, or such capabilities 
                prepared recently pursuant to another employment or 
                training program.
                    ``(L) The entity that carries out the project will 
                post in the project workplace a notice, and will make 
                available to each individual associated with the 
                project a written explanation, clarifying the law with 
                respect to allowable and unallowable political 
                activities under chapter 15 of title 5, United States 
                Code, applicable to the project and to each category of 
                individuals associated with the project.
                    ``(M) In providing employment opportunities under 
                the project, such entity will give priority to low-
                income individuals who are 60 years of age or older.
    ``(d) Special Consideration.--(1) For purposes of making agreements 
under subsection (b)(1), the State or tribal organization shall give 
special consideration to entities that received funds under 502(b) of 
the Older Americans Act of 1965 for fiscal year 1995 and that 
demonstrate effectiveness in carrying out projects in fiscal year 1995 
under title V of such Act to provide employment opportunities for older 
individuals.
    ``(2) For purposes of paragraph (1), such effectiveness shall be 
deemed to be demonstrated if such entity demonstrates that it has--
            ``(A) in existence coordination agreements or other 
        effective linkages between such entity and Federal, State, and 
        local employment and training programs,
            ``(B) in existence effective linkages between such entity 
        and private entities that promote employment and training 
        opportunities for older individuals,
            ``(C) a record of successfully placing such individuals in 
        employment positions for which no financial assistance is 
        provided under this chapter, and
            ``(D) a record of successfully meeting the need for 
        community service employment in the community served by such 
        entity in such community.
    ``(e) Prerequisite Determination.--(1) To effectively carry out 
subsection (b) and after consultation with the appropriate area 
agencies on aging and with other organizations that received funds 
under this chapter in the preceding fiscal year, a State or tribal 
organization that receives a grant under subsection (a) for a fiscal 
year shall make a determination--
            ``(A) identifying the localities in the State, or on an 
        Indian reservation in the case of a tribal organization, in 
        which projects described in subsection (b) are most needed,
            ``(B) in making such determination, consider the local 
        employment situations and the types of skills possessed by 
        available local older individuals described in subsection (a), 
        and
            ``(C) identify potential projects and the number and 
        percentage of such individuals in the local population.
    ``(2) The State or tribal organization shall coordinate the 
projects assisted under this chapter with--
            ``(A) other programs, projects, and activities carried out 
        under this Act,
            ``(B) federally supported job training programs, and
            ``(C) other Federal and State employment programs,
to increase employment opportunities available to older individuals.
    ``(3) To the maximum extent practicable, the State shall ensure 
that entities that carry out projects under agreements made under 
subsection (b) provide employment under this chapter to older 
individuals who immediately before the effective date of this chapter 
were employees under an agreement made under section 502(b) of the 
Older Americans Act of 1965.
    ``(f) Equitable Use of Funds.--To the maximum extent practicable, 
the State shall use funds available to carry out this chapter to make 
agreements under subsection (b) in an equitable manner, taking into 
consideration the number of eligible older individuals in the various 
geographical areas and the relative distribution of such individuals 
among urban and rural areas.
    ``(g) Prior Submission of Project Description.--Whenever an entity 
(other than an area agency on aging for the planning and service area 
in which the project will be conducted) conducts a project under an 
agreement made under subsection (b) within a planning and service area 
in a State, such entity shall conduct the project in consultation with 
the area agency on aging of the planning and service area and shall 
submit to the area agency on aging, not less than 30 days before 
undertaking the project, a description (including the location) of the 
project.
    ``(h) Alternative Work Modes; Technical Assistance.--States and 
tribal organizations may develop alternatives for innovative work modes 
and provide technical assistance in creating employment opportunities 
through work sharing and other experimental methods to groups 
representing business and industry and workers, as well as to 
individual employers, where appropriate.
    ``(i) Report.--If for a fiscal year a State or tribal organization 
elects under subsection (b) to make agreements described in paragraph 
(2) of such subsection, the State or tribal organization shall submit 
to the Assistant Secretary a report describing the projects carried out 
under such agreements.
    ``(j) Rules.--The Secretary shall issue, and amend from time to 
time, rules that require States and tribal organizations that receive 
grants under subsection (a) to establish, to the maximum extent 
practicable, for projects carried out under this chapter the goal of 
annually placing not less than 20 percent of project participants in 
employment positions for which no financial assistance is provided 
under this chapter.

``SEC. 353. PARTICIPANTS NOT FEDERAL EMPLOYEES.

    ``(a) Project Participants.--Older individuals described in section 
352(a) who participate in a project assisted under this chapter shall 
not be considered to be Federal employees as a result of such 
participation and shall not be subject to the provisions of part III of 
title 5 of the United States Code.
    ``(b) Contracts.--No contract shall be entered into under this 
chapter with a contractor who is, or whose employees are, under State 
law, exempted from operation of the State workmen's compensation law, 
generally applicable to employees, unless the contractor shall 
undertake to provide either through insurance by a recognized carrier, 
or by self-insurance, as authorized by State law, that the individuals 
employed under the contract shall enjoy workmen's compensation coverage 
equal to that provided by law for covered employment.

``SEC. 354. TREATMENT OF EMPLOYMENT ASSISTANCE FOR PURPOSES OF FEDERAL 
              HOUSING AND FOOD STAMP PROGRAMS.

    ``Funds received by eligible older individuals from participation 
in projects carried out under this chapter shall not be considered to 
be income of such individuals for purposes of determining the 
eligibility of such individuals, or of any other individuals, to 
participate in any housing program for which Federal funds may be 
available or for any income determination under the Food Stamp Act of 
1977.

             ``Subtitle B--Authorization of Appropriations

``SEC. 381. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) Supportive Services and Multipurpose Senior Centers.--There 
are authorized to be appropriated to carry out chapter 2 of subtitle A 
$300,638,000 for fiscal year 1997 and such sums as may be necessary for 
fiscal years 1998, 1999, 2000, and 2001.
    ``(b) Nutrition Services.--There are authorized to be appropriated 
to carry out chapter 3 of subtitle A $461,111,000 for fiscal year 1997 
and such sums as may be necessary for fiscal years 1998, 1999, 2000, 
and 2001.
    ``(c) Community Service Employment.--There are authorized to be 
appropriated to carry out chapter 4 of subtitle A $350,000,000 for 
fiscal year 1997 and such sums as may be necessary for fiscal years 
1998, 1999, 2000, and 2001.

``SEC. 382. ADDITIONAL FUNDS AVAILABLE FOR NUTRITION SERVICES.

    ``(a) Funds Available.--In addition to the amount appropriated 
under section 381(b), and to provide nutrition services under subtitle 
A and title II for each of the fiscal years 1997, 1998, 1999, 2000, and 
2001, the amount appropriated under subsection (e) for such fiscal year 
shall be made available to the Assistant Secretary by the Secretary of 
Agriculture.
    ``(b) Division of Funds.--The Assistant Secretary shall divide the 
funds made available under subsection (a) so that--
            ``(1) 98.9 percent of such funds is allotted in accordance 
        with subsection (c) to provide nutrition services under 
        subtitle A, and
            ``(2) the balance is available to make grants under title 
        II to provide nutrition services.
    ``(c) Allotment Based on Meals Served.--
            ``(1) In general.--In providing funds for nutrition 
        services under subsection (b)(1) for a fiscal year, the 
        Assistant Secretary shall allot such funds among States based 
        on number of meals served, as specified in paragraph (2).
            ``(2) Calculation.--The Assistant Secretary shall allot to 
        each State for a fiscal year the amount that bears the same 
        ratio to such 98.9 percent as the number of meals served in the 
        State under this section or under section 311 of the Older 
        Americans Act of 1965 (as in effect immediately before the 
        effective date of this section), as appropriate, for the 
        preceding fiscal year bears to the number of meals served in 
        all States under this section or such section 311, as 
        appropriate, for such preceding fiscal year.
    ``(d) Election To Receive Commodities in Lieu of Cash.--
            ``(1) Election.--A State to which funds are allotted under 
        subsection (b)(1), or a recipient of a grant referred to in 
        subsection (b)(2), may elect to receive commodities in lieu of 
        all or part of such funds or of such grant.
            ``(2) Purchase of commodities from the secretary of 
        agriculture.--If a State or grant recipient makes a timely 
        election under paragraph (1), the Assistant Secretary shall use 
        the amount of such funds designated by the State, or of such 
        grant designated by the grant recipient, to purchase 
        commodities from the Secretary of Agriculture and to make such 
commodities available to the State or grant recipient.
    ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $154,950,000 for fiscal year 
1997 and such sums as may be necessary for fiscal years 1998, 1999, 
2000, and 2001.

          ``TITLE IV--NATIONAL SENIOR VOLUNTEER SERVICE CORPS

``SEC. 401. STATEMENT OF PURPOSES.

    ``It is the purpose of--
            ``(1) this title to provide for the National Senior 
        Volunteer Service Corps, comprised of the Retired and Senior 
        Volunteer Program, the Foster Grandparent Program, and the 
        Senior Companion Program, that empowers older individuals to 
        contribute to their communities through volunteer service, 
        enhances the lives of the volunteers and those whom they serve, 
        and provides communities with valuable services,
            ``(2) subtitle A, the Retired and Senior Volunteer Program, 
        to utilize the vast talents of older individuals willing to 
        share their experiences, abilities, and skills in responding to 
        a wide variety of community needs,
            ``(3) subtitle B, the Foster Grandparent Program, to afford 
        low-income older individuals an opportunity to provide 
        supportive, individualized services to children with 
        exceptional or special needs, and
            ``(4) subtitle C, the Senior Companion Program, to afford 
        low-income older individuals the opportunity to provide 
        personal assistance and companionship to other older 
        individuals through volunteer service.

           ``Subtitle A--Retired and Senior Volunteer Program

``SEC. 411. GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS.

    ``(a) Authority To Make Grants and Contracts.--To carry out a 
Retired and Senior Volunteer Program under this subtitle to help 
retired individuals and working older individuals to avail themselves 
of opportunities for volunteer service in their community, the 
Assistant Secretary may make grants to State agencies, or grants to or 
contracts with other public and nonprofit private agencies and 
organizations, to pay part or all of the costs for the development, 
operation, or both, of volunteer service projects under this subtitle, 
if the Assistant Secretary determines, in accordance with rules the 
Assistant Secretary shall prescribe, the following:
            ``(1) Limitation on reimbursement.--Volunteers will not be 
        reimbursed for other than transportation, meals, and other out-
        of-pocket expenses incident to providing services under this 
        subtitle.
            ``(2) Eligible individuals.--Only older individuals will be 
        enrolled, and individuals 60 years of age or older will be 
        given priority for enrollment, as volunteers to provide 
        services under this subtitle (except for administrative 
        purposes) in the communities where such individuals reside or 
        in nearby communities in either--
                    ``(A) publicly owned and operated facilities or 
                projects, or
                    ``(B) local projects sponsored by nonprofit private 
                agencies and organizations (other than political 
                parties), other than projects involving the 
                construction, operation, or maintenance of so much of 
                any facility as is used, or is to be used for sectarian 
                instruction or as a place for religious worship,
            ``(3) Training.--Such projects include such short-term 
        training as may be necessary to make the most effective use of 
        the skills and talents of participating volunteers and 
        individuals, and provide for the payment of the reasonable 
        expenses of such volunteers while undergoing such training, and
            ``(4) Advice required.--Such projects are being established 
        and will be carried out with the advice of persons competent in 
        the fields of service involved, and persons with interest in 
        and knowledge of the needs of older individuals.
    ``(b) Local Contribution.--The required local contribution 
(including any in-kind contribution) to the cost of a project for which 
a grant or contract is made under this section shall be--
            ``(1) 10 percent in the 1st year for which such grant or 
        contract is made for such project,
            ``(2) 20 percent in the 2nd year for which such grant or 
        contract is made for such project, and
            ``(3) 30 percent in any subsequent year for which such 
        grant or contract is made for such project,
except that the Assistant Secretary may waive all or part of such local 
contribution in cases of demonstrated need, determined (in accordance 
with rules which the Assistant Secretary shall issue) on the basis of 
the financial capability of a particular recipient of such grant or 
contract, to permit a lesser local contribution than any required 
percentage contribution established by the Assistant Secretary in 
generally applicable rules.
    ``(c) State Review of Application.--The Assistant Secretary shall 
not make a grant to or contract with any agency or organization under 
this subtitle for a project in any State unless, if such State has a 
State agency designated under section 303(a)(1), such State agency is 
the recipient of the grant or contract, or such State agency has been 
afforded at least 45 days in which to review the project application 
and make recommendations thereon.
    ``(d) Service Not Deemed Employment.--Notwithstanding any other 
provision of law, volunteer service under this subtitle shall not be 
deemed to be employment for any purpose which the Assistant Secretary 
finds is not fully consistent with the provisions, and in furtherance, 
of the purpose of this subtitle.

                ``Subtitle B--Foster Grandparent Program

``SEC. 421. GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS.

    ``(a) Authority To Make Grants and Contracts.--(1)(A) To carry out 
a Foster Grandparent Program under this subtitle, the Assistant 
Secretary may make grants to or contracts with public and nonprofit 
private agencies and organizations to pay part or all of the cost of 
development and operation of projects (including direct payments to 
individuals serving under this subtitle) designed to provide 
opportunities for low-income older individuals to serve as foster 
grandparents under this subtitle to provide supportive person-to-person 
services in health, education, welfare, and related settings to 
children having exceptional needs. Such services may include services 
by older individuals serving as foster grandparents under this subtitle 
to children who are individuals with disabilities, who have chronic 
health conditions, who are receiving care in hospitals, who are 
residing in homes for dependent and neglected children, or who are 
receiving services provided by day-care centers, schools, early 
intervention programs under part H of the Individuals with Disabilities 
Education Act (20 U.S.C. 1471 et seq.), Head Start agencies under the 
Head Start Act (20 U.S.C. 9831 et seq.), or any of a variety of other 
programs, establishments, and institutions providing services for 
children with special or exceptional needs. Older individuals serving 
as foster grandparents under this subtitle may provide person-to-person 
services to one or more children, depending on the needs of the project 
and local site.
    ``(B) Only older individuals will be enrolled, and individuals 60 
years of age or older will be given priority for enrollment as 
volunteers to provide services under this subtitle.
    ``(2)(A) The Assistant Secretary may provide assistance in excess 
of 90 percent of the cost of the development and operation of such 
projects only if the Assistant Secretary determines, in accordance with 
rules the Assistant Secretary shall issue establishing objective 
criteria, that such action is required in furtherance of the purpose of 
this subtitle.
    ``(B) In the case of any project with respect to which, before 
September 19, 1972, a grant or contract has been made under section 
611(a) of the Older Americans Act of 1965, as in effect before that 
date or with respect to any project under the Foster Grandparent 
program in effect before September 17, 1969, contributions in cash or 
in kind from the Bureau of Indian Affairs of the Department of the 
Interior toward the cost of the project may be counted as part of the 
cost thereof which is met from non-Federal sources.
    ``(b) Selection of Recipient Children.--(1) Any public or nonprofit 
private agency or organization responsible for providing person-to-
person services to a child in a project carried out under subsection 
(a) shall have the exclusive authority to determine, pursuant to 
paragraph (2)--
            ``(A) which children may receive supportive person-to-
        person services under such project, and
            ``(B) the period of time during which such services shall 
        be continued in the case of each individual child.
    ``(2) If such agency or organization determines that it is in the 
best interests of a mentally retarded child receiving, and of a 
particular foster grandparent providing, services in such a project, 
such relationship may be continued after the child reaches the 
chronological age of 21 if such child was receiving such services 
before attaining the chronological age of 21. If the particular foster 
grandparent subject to the determination under this paragraph becomes 
unavailable to serve after such determination is made, such agency or 
organization may select another foster grandparent.
    ``(3) Any determination made by a public or nonprofit private 
agency or organization under paragraphs (1) and (2) shall be made 
through mutual agreement by all parties involved with respect to the 
provision of services to the child involved.
    ``(c) Allowances, Stipends, and Other Support.--(1) The Assistant 
Secretary, in accordance with rules the Assistant Secretary shall 
issue, may provide to low-income older individuals serving as foster 
grandparents under this subtitle, such allowances, stipends, and other 
support as the Assistant Secretary determines are necessary to carry 
out the purpose of this subtitle.
    ``(2) Any stipend or allowance provided under this section shall be 
not less than $2.45 per hour and shall be adjusted once before December 
31, 1997, to account for inflation, as determined by the Assistant 
Secretary and rounded to the nearest 5 cents, except that--
            ``(A) such stipend or allowance shall not be increased as a 
        result of an amendment made to this paragraph unless the funds 
        appropriated for carrying out this subtitle are sufficient to 
        maintain for the fiscal year in question a number of 
        participants to serve under this subtitle at least equal to the 
        number of such participants serving during the preceding fiscal 
        year, and
            ``(B) if sufficient appropriations for any fiscal year are 
        not available to increase any such stipend or allowance 
        provided to the minimum hourly rate specified in this 
        paragraph, the Assistant Secretary shall increase the stipend 
        or allowance to such amount as appropriations for such year 
        permit consistent with subparagraph (A).
    ``(3) In establishing the amount of, and the effective date for, an 
adjustment under paragraph (2), the Assistant Secretary, in 
consultation with appropriate Federal agencies, shall consider the 
effect such adjustment will have on the ability of nonfederally funded 
volunteer programs similar to the programs under this title to maintain 
their current level of volunteer hours.
    ``(d) Special Consideration.--Older individuals whose income is 
described in section 102(34)(B)(ii) shall be given special 
consideration for participation in projects under this subtitle.
    ``(e) Volunteers Who Are Not Low-Income Older Individuals.--(1)(A) 
Except as provided in subparagraphs (B) and (C), individuals who are 
not low-income older individuals may serve as volunteers under this 
subtitle, in accordance with such rules as the Assistant Secretary 
shall issue, if such individuals serve without receiving any allowance, 
stipend, or other financial support under this subtitle except 
reimbursement for transportation, meals, and out-of-pocket expenses 
incident to serving under this subtitle.
    ``(B) The rules issued by the Assistant Secretary to carry out this 
subtitle (other than any rules relating to allowances, stipends, and 
other financial support authorized by subsection (c) to be paid under 
this subtitle to low-income older individuals) shall apply to all 
individuals who provide services under this subtitle, without regard to 
whether such individuals are eligible to receive a stipend under such 
subsection.
    ``(C) Individuals who are not low-income older individuals may not 
serve as volunteers under this subtitle in any community in which there 
are volunteers serving under subtitle A unless--
            ``(i) such individuals were referred previously for 
        possible placement as volunteers under subtitle A, and
            ``(ii) such placement did not occur.
    ``(2)(A) Except as provided in subparagraph (B), each recipient of 
a grant or contract to carry out a project under this subtitle shall 
give equal treatment to all individuals who provide services under such 
project, without regard to whether such individuals are eligible to 
receive a stipend under subsection (c).
    ``(B) An individual who is not a low-income older individual may 
not provide services under this subtitle if allowing such individual to 
provide services under this subtitle would prevent a low-income older 
individual from beginning to participate in providing services under 
this subtitle or would displace a low-income older individual from 
providing services under this subtitle.
    ``(3) The Assistant Secretary may not require as a condition of 
receiving a grant or contract to carry out a project under this 
subtitle, any applicant for such grant or contract--
            ``(A) to accept or to recruit individuals who are not low-
        income older individuals to provide services under this 
        subtitle, or
            ``(B) to solicit locally generated contributions, in cash 
        or in kind, to support such individuals.
The Assistant Secretary may not coerce any applicant for or recipient 
of such grant or contract to engage in conduct described in 
subparagraph (A) or (B), and may not take into consideration whether 
such applicant or such recipient engages in such conduct.
    ``(4) Funds appropriated to carry out this subtitle may not be used 
to pay any cost, including any administrative cost, incurred in 
connection with volunteers under this subtitle who do not receive a 
stipend under subsection (d). Such cost incurred with respect to a 
volunteer may be paid with--
            ``(A) funds received by the Assistant Secretary as 
        unrestricted gifts,
            ``(B) funds received by the Assistant Secretary as gifts to 
        pay such cost,
            ``(C) funds contributed by such volunteer, or
            ``(D) in the discretion of the recipient of a grant or 
        contract under such subsection, locally generated contributions 
        in excess of the amount required by subsection (a) to be 
        contributed to pay the non-Federal cost of the project in which 
        such volunteer participates.

            ``Subtitle C--Senior Companion Volunteer Program

``SEC. 431. GRANTS AND CONTRACTS FOR VOLUNTEER SERVICE PROJECTS.

    ``(a) Authority To Make Grants and Contracts.--(1) To carry out a 
Senior Companion Volunteer Program under this subtitle, the Assistant 
Secretary may make grants to or contracts with public and nonprofit 
private agencies and organizations to pay part or all of the cost of 
development and operation of projects (including direct payments to 
individuals serving under this subtitle in the same manner as provided 
in section 421(a)) designed to provide opportunities for low-income 
older individuals to provide services under this subtitle as senior 
companion volunteers to individuals with exceptional needs.
    ``(2) Only older individuals will be enrolled, and individuals 60 
years of age or older will be given priority for enrollment, as 
volunteers to provide services under this subtitle.
    ``(3) Senior companion volunteers may provide services designed to 
help individuals 60 years of age or older who require--
            ``(A) long-term care, including services to such 
        individuals who receive home health care, nursing care, and 
        home-delivered nutrition services or other nutritional 
        services,
            ``(B) services designed to help individuals 
        deinstitutionalized from mental hospitals, nursing homes, and 
        other institutions, and
            ``(C) services designed to assist individuals who have 
        developmental disabilities and other special needs for 
        companionship.
    ``(b) Other Provisions Applicable.--Subsections (a)(2)(A), (c), 
(d), and (e) of section 421, and such other provisions of subtitle B as 
the Assistant Secretary may determine to be necessary, shall apply to 
this subtitle, except that for purposes of this subtitle any reference 
to subtitle B in such subsections and such provisions shall be deemed 
to be a reference to this subtitle.
    ``(c) Home-Bound Individuals.--The Assistant Secretary may make 
grants or contracts under subsection (a) for senior companion volunteer 
projects to assist homebound individuals 60 years of age or older to 
remain in their own homes and to enable institutionalized individuals 
60 years of age or older to return to home-care settings.

                    ``Subtitle D--General Provisions

``SEC. 441. PROMOTION OF NATIONAL SENIOR VOLUNTEER SERVICE CORPS.

    ``(a) Consultation.--(1) In carrying out this title, the Assistant 
Secretary shall consult with Federal agencies administering related 
programs with a view to achieving optimal coordination with such other 
programs, and shall promote the coordination of projects under this 
title with other public or private programs or projects carried out at 
State and local levels. Such Federal agencies shall cooperate with the 
Assistant Secretary in disseminating information about the availability 
of assistance under this title and in promoting the identification and 
interest of low-income older individuals and other older individuals 
whose services may be utilized in projects under this title.
    ``(2) To the maximum extent practicable, the Assistant Secretary 
shall enter into agreements--
            ``(A)(i) to involve retired and senior volunteers and 
        foster grandparents in Head Start programs,
            ``(ii) to involve retired and senior volunteers and senior 
        companion volunteers in providing services authorized by titles 
        II and III, and
            ``(iii) to promote the recognition of such volunteers who 
        are qualified to provide in-home services for reimbursement 
        under title XVIII of the Social Security Act for providing such 
        services,
            ``(B) with the Department of Education to promote 
        intergenerational tutoring and mentoring for at-risk children, 
        and
            ``(C) with the Environmental Protection Agency to support 
        conservation efforts.
    ``(b) Efforts To Expand Participation.--(1) In carrying out this 
title, the Assistant Secretary shall encourage and facilitate the 
efforts of private organizations to promote the programs established in 
subtitles A, B, and C and the involvement of older individuals as 
volunteers in such programs.
    ``(2) The Assistant Secretary shall take appropriate actions to 
ensure that special efforts are made to publicize the programs 
established in subtitles A, B, and C, in order to facilitate 
recruitment efforts, to encourage greater participation of volunteers, 
and to emphasize the value of volunteering to the health and well-being 
of volunteers and the communities of such volunteers. Such actions 
shall include informing recipients of grants and contracts under this 
title of all informational materials available from the Assistant 
Secretary.
    ``(3) From funds appropriated under section 491, the Assistant 
Secretary shall expend not less than $375,000 in each fiscal year to 
carry out paragraph (2).

``SEC. 442. PAYMENTS.

    ``Payments under this title pursuant to a grant or contract may be 
made (after necessary adjustment, in the case of grants, on account of 
previously made overpayments or underpayments) in advance or by way of 
reimbursement, in such installments and on such conditions, as the 
Assistant Secretary may determine.

``SEC. 443. USE OF LOCALLY GENERATED CONTRIBUTIONS IN NATIONAL SENIOR 
              VOLUNTEER SERVICE CORPS.

    ``Whenever locally generated contributions made to volunteer 
projects for older individuals under this title are in excess of the 
amount required by the Assistant Secretary, the Assistant Secretary may 
not restrict the manner in which contributions are expended if 
expenditures from locally generated contributions are not inconsistent 
with the provisions of this title.

``SEC. 444. ADJUSTMENTS TO FEDERAL FINANCIAL ASSISTANCE; REPORTS.

    ``(a) Adjustments.--(1)(A) In determining the amount of Federal 
financial assistance to be provided under this title to applicants, the 
Assistant Secretary shall consider the impact of changes in the 
Consumer Price Index For All Urban Consumers published by the Bureau of 
Labor Statistics of the Department of Labor on the administrative costs 
of operating the projects for which such assistance will be provided.
    ``(B) The Assistant Secretary shall, to the maximum extent 
practicable, make appropriate adjustments in the amount referred to in 
subparagraph (A) to ensure the effective administration of such 
projects.
    ``(2) The Assistant Secretary shall take reasonable actions to 
inform applicants for such assistance that such adjustments may be 
available.
    ``(b) Reports.--The Assistant Secretary shall submit, at 2-year 
intervals, to the Committee on Economic and Educational Opportunities 
of the House of Representatives and the Committee on Labor and Human 
Resources of the Senate, a report on the extent to which adjustments 
are made under subsection (a).

``SEC. 445. MULTIYEAR GRANTS OR CONTRACTS.

    ``(a) Compliance; Funding.--(1) Subject to paragraph (2) and the 
availability of funds, the Assistant Secretary may make a grant or 
enter into a contract under subtitle A, B, or C for a period not to 
exceed 3 years. Each applicant who receives a grant, or enters into a 
contract, under such subtitle for a period exceeding 1 year shall 
comply with such rules as the Assistant Secretary may issue to require 
such applicant--
            ``(A) to demonstrate that such applicant is in compliance 
        with such subtitle and with the terms and conditions of such 
        grant or contract, and
            ``(B) to provide information to update the application 
        submitted to obtain such grant or contract.
    ``(2) If the amount appropriated for any fiscal year to carry out 
subtitle A, B, or C in a period during which multiyear grants or 
contracts are in effect under such subtitle is less than the amount 
appropriated to carry out such subtitle in the first fiscal year in 
such period, then the amounts payable under all such grants and 
contracts in effect in such period under such part shall be reduced pro 
rata.
    ``(b) Savings.--The Assistant Secretary shall require each 
applicant for a multiyear grant or contract under this section, to 
document or describe in the application any meaningful administrative 
savings that will result from such multiyear grant or contract.
    ``(c) Alternative Consideration.--If an applicant does not receive 
a multiyear grant or contract under this section, the Assistant 
Secretary shall consider such applicant for a single-year grant or 
contract.
    ``(d) Similar Treatment.--If the Assistant Secretary approves an 
application for a contract or grant to carry out a project for a 
multiyear period as referred to in subsection (a), the Assistant 
Secretary shall ensure that such project shall be treated in the same 
manner as a single-year contract or grant with respect to--
            ``(1) the overall level of funding for such project,
            ``(2) any adjustments to Federal financial assistance that 
        may be available under section 444, and
            ``(3) the renewal of funding on the expiration of the term 
        of such contract or grant.

             ``Subtitle E--Administration and Coordination

``SEC. 461. ADMINISTRATIVE STRUCTURE.

    ``To administer this title, the Assistant Secretary shall establish 
in the Administration an organizational structure that, to the maximum 
extent practicable, retains the organizational structure that existed 
to carry out title II of the Domestic Volunteer Service Act of 1973 as 
in effect immediately before the effective date of this Act. Such 
structure shall include State offices, and multistate regional offices, 
that have responsibilities under this title that are similar to the 
responsibilities of such offices had under such Act.

``SEC. 462. POLITICAL ACTIVITIES.

    ``(a) Prohibition.--No part of any funds appropriated to carry out 
this title shall be used--
            ``(1) to finance, directly or indirectly--
                    ``(A) any activity designed to influence the 
                outcome of any election to Federal office or the 
                outcome of any election to any State or local public 
                office, or
                    ``(B) any voter registration activity, or
            ``(2) to pay the salary of any officer or employee of the 
        Administration, who engages in any such activity in an official 
        capacity as such an officer or employee.
    ``(b) Limitation on Use of Personnel.--Programs assisted under this 
title shall not be carried on in a manner involving the use of funds, 
the provision of services, or the employment or assignment of personnel 
in a manner supporting or resulting in the identification of such 
programs with--
            ``(1) any partisan or nonpartisan political activity 
        associated with a candidate, or a contending faction or group, 
        in an election for public or party office,
            ``(2) any activity to provide voters or prospective voters 
        with transportation to the polls or similar assistance in 
        connection with any such election, or
            ``(3) any voter registration activity.
    ``(c) Prohibition of Certain Activities Relating to Legislation.--
No funds appropriated to carry out this title shall be used by any 
program assisted under this title in any activity for the purpose of 
influencing the passage or defeat of legislation or proposals by 
initiative petition, except--
            ``(1) in any case in which a legislative body, a committee 
        of a legislative body, or a member of a legislative body 
        requests any volunteer in, or employee of, such a program to 
        draft, review, or testify regarding measures or to make 
        representations to such legislative body, committee, or member, 
        or
            ``(2) in connection with an authorization or appropriations 
        measure directly affecting the operation of the program.
    ``(d) Enforcement.--The Assistant Secretary, after consultation 
with the Office of Personnel Management, shall issue rules to provide 
for the enforcement of this section, which shall include provisions for 
summary suspension of assistance for not more than 30 days until notice 
and an opportunity to be heard can be provided or other action 
necessary to permit enforcement on an emergency basis can be taken.

``SEC. 463. SPECIAL LIMITATIONS.

    ``(a) Issuance of Rules.--The Assistant Secretary shall issue rules 
and shall carry out this title so as to ensure that the service of 
volunteers assigned, referred, or serving pursuant to grants, 
contracts, or agreements made under this title is limited to activities 
that would not otherwise be performed by employed workers and that will 
not supplant the hiring of or result in the displacement of employed 
workers, or impair existing contracts for service.
    ``(b) Cost Requirement.--All support, including transportation 
provided to volunteers under this title, shall be furnished at the 
lowest possible cost consistent with the effective operation of 
volunteer programs assisted under this title.
    ``(c) Prohibition Relating to Compensation.--No agency or 
organization to which volunteers are assigned under this title, or 
which operates or supervises any volunteer program under this title, 
shall request or receive any compensation from such volunteers or from 
beneficiaries for services of such volunteers provided or supervised by 
such agency or organization.
    ``(d) Prohibition Relating to Labor Activity.--No funds authorized 
to be appropriated to carry out this title shall be directly or 
indirectly used to finance labor or anti-labor organization or related 
activity.
    ``(e) Information on Volunteer Qualifications.--Individuals serving 
as volunteers under this title shall provide such information 
concerning their qualifications, including their integrity and their 
ability to perform their assigned tasks, as the Assistant Secretary 
shall require and shall be subject to such procedures for selection and 
approval as the Assistant Secretary determines are necessary to carry 
out the purposes of this title. The Assistant Secretary may establish 
such special procedures for the recruitment, selection, training, and 
assignment of low-income residents of the area to be served by a 
program under this title who wish to become volunteers as the Assistant 
Secretary determines will carry out the purposes of this title.

``SEC. 464. COORDINATION WITH OTHER PROGRAMS.

    ``The Assistant Secretary shall take necessary steps to coordinate 
volunteer programs authorized under this title with one another and 
shall consult with representatives of the head of such programs, with 
community action programs, and with other related Federal, State, and 
local programs. The Assistant Secretary shall also consult with the 
heads of other Federal, State, and local agencies responsible for 
programs related to the purposes of this title in order to encourage 
greater use of volunteer services in such programs and establish in 
connection with such programs systematic procedures for the 
recruitment, referral, or necessary preservice orientation or training 
of volunteers serving pursuant to this title. The Assistant Secretary 
(in consultation with the Director of the Office of Personnel 
Management, the Secretary of Labor, the Secretary of Commerce, the 
Secretary of the Treasury, and officials of other appropriate 
departments and agencies) shall take all appropriate steps to encourage 
State and local governments, charitable and service organizations, and 
private employers--
            ``(1) to take into account experience in volunteer work in 
        the consideration of applicants for employment, and
            ``(2) to make provision for the listing and description of 
        volunteer work on all employment application forms.

``SEC. 465. NOTICE AND HEARING PROCEDURES FOR SUSPENSION AND 
              TERMINATION OF FINANCIAL ASSISTANCE.

    ``(a) Authority.--The Assistant Secretary may, in accordance with 
this section, suspend or terminate payments under any grant or contract 
providing assistance under this title, whenever the Assistant Secretary 
determines there is a material failure to comply with the applicable 
terms and conditions of any such grant or contract. The Assistant 
Secretary shall establish procedures to ensure that--
            ``(1) assistance under this title shall not be suspended 
        for failure to comply with applicable terms and conditions, 
        except in emergency situations for 30 days,
            ``(2) an application for refunding under this title may not 
        be denied unless the recipient has been given--
                    ``(A) notice at least 75 days before the denial of 
                such application of the possibility of such denial and 
                the grounds for any such denial, and
                    `` (B) opportunity to show cause why such action 
                should not be taken,
            ``(3) in any case where an application for refunding is 
        denied for failure to comply with the terms and conditions of 
        the grant or contract, the recipient shall be afforded an 
        opportunity for an informal hearing before an impartial hearing 
        officer who has been agreed to by the recipient and the 
        Assistant Secretary, and
            ``(4) assistance under this title shall not be terminated 
        for failure to comply with applicable terms and conditions 
        unless the recipient has been afforded reasonable notice and 
        opportunity for a full and fair hearing.
    ``(b) Location of Hearing.--In order to assure equal access to all 
recipients, such hearings or other meetings as may be necessary to 
fulfill the requirements of this section shall be held at locations 
convenient to the recipient agency.

``SEC. 466. DISTRIBUTION OF BENEFITS BETWEEN RURAL AND URBAN AREAS.

    ``The Assistant Secretary shall establish appropriate 
administrative measures to ensure that the benefits of and services 
under this title will be distributed equitably between residents of 
rural areas and residents of urban areas.

``SEC. 467. VOLUNTEERS NOT FEDERAL EMPLOYEES.

    ``Volunteers under this title shall not be considered to be Federal 
employees and shall not be subject to the provisions of law relating to 
officers and employees of the Federal Government and to Federal 
employment.

``SEC. 468. EVALUATION.

    ``(a) Evaluation.--The Assistant Secretary may measure and evaluate 
the impact of all programs, projects, and activities authorized by this 
title, their effectiveness in achieving stated goals in general, and in 
relation to their cost, their impact on related programs, projects, and 
activities, and their structure and mechanisms for delivery of 
services. Evaluations shall be conducted by persons not immediately 
involved in the administration of the program or project evaluated.
    ``(b) Specific Matters for Evaluation.--The Assistant Secretary 
may--
            ``(1) evaluate the impact that volunteers who participate 
        without receiving a stipend in programs, projects, and 
        activities under subtitles B and C, have on such programs, 
        projects, and activities, and shall include in such 
        evaluation--
                    ``(A) information on administrative costs 
                associated with such volunteers,
                    ``(B) a comparison of the quality of services 
                provided by such volunteers and the quality of services 
                provided by volunteers who receive a stipend under such 
                subtitles, including the rate of absenteeism and 
                turnover, and
                    ``(C) a review of the effect that participation by 
                volunteers who do not receive such stipend have on the 
                administration of such programs, projects, and 
                activities, and
            ``(2) submit to the Committee on Economic and Educational 
        Opportunities of the House of Representatives and the Committee 
        on Labor and Human Resources of the Senate a report summarizing 
        in detail the results of the evaluations made under paragraph 
        (1).
    ``(c) Publication of Summaries.--The Assistant Secretary shall 
publish summaries of the results of evaluations of program, project, 
and activity impact and effectiveness.
    ``(d) Availability of Funds.--The Assistant Secretary may use such 
sums as are required, but not to exceed 1 percent of the funds 
appropriated to carry out this title, to conduct program, project, and 
activity evaluations (directly, or by grant or contract) as authorized 
by this title.

``SEC. 469. ELIGIBILITY FOR OTHER BENEFITS.

    ``Notwithstanding any other provision of law, no reimbursement of 
out-of-pocket expenses made to individuals serving pursuant to 
subtitles A, B, and C shall be subject to any tax or charge or be 
treated as wages or compensation for the purposes of unemployment, 
temporary disability, retirement, public assistance, workers' 
compensation or similar benefit payments, or minimum wage laws.

``SEC. 470. LEGAL EXPENSES.

    ``Notwithstanding any other provision of law and pursuant to rules 
which the Assistant Secretary shall issue, counsel may be employed and 
counsel fees, court costs, bail, and other expenses incidental to the 
defense of volunteers may be paid in judicial and administrative 
proceedings to which full-time volunteers (or part-time volunteers if 
such proceedings arise directly out of the performance of activities 
pursuant to this title), serving under this title have been made 
parties.

             ``Subtitle F--Authorization of Appropriations

``SEC. 491. AUTHORIZATION OF APPROPRIATIONS FOR PROGRAMS.

    ``(a) Retired and Senior Volunteer Program.--There are authorized 
to be appropriated to carry out subtitle A, $40,300,000 for fiscal year 
1997 and such sums as may be necessary for each of the fiscal years 
1998, 1999, 2000, and 2001.
    ``(b) Foster Grandparent Program.--There are authorized to be 
appropriated to carry out subtitle B, $64,300,000 for fiscal year 1997 
and such sums as may be necessary for each of the fiscal years 1998, 
1999, 2000, and 2001.
    ``(c) Senior Companion Program.--There are authorized to be 
appropriated to carry out subtitle C, $32,200,000 for fiscal year 1997, 
and such sums as may be necessary for each of the fiscal years 1998, 
1999, 2000, and 2001.''.

SEC. 4. CONFORMING AMENDMENTS.

    (a) Conforming Amendments to the Domestic Volunteer Service Act of 
1973.--The Domestic Volunteer Service Act of 1973 (42 U.S.C. 4950-1585) 
is amended--
            (1) in the table of contents by striking--
                    (A) the matter relating to title II,
                    (B) the items relating to sections 200 through 231, 
                and
                    (C) the items relating to sections 418 and 502,
            (2) by striking title II,
            (3) in section 416(f)--
                    (A) in paragraph (1) by inserting ``and'' at the 
                end,
                    (B) by striking paragraph (2), and
                    (C) in paragraph (3)--
                            (i) by striking ``paragraphs (1) and (2)'' 
                        and inserting ``paragraph (1)'', and
                            (ii) by redesignating paragraph (3) as 
                        paragraph (2),
            (4) by striking section 418,
            (5) in section 421--
                    (A) in paragraph (2) by striking ``and,'' and all 
                that follows through ``Islands'',
                    (B) by striking paragraphs (10), (14), (15), and 
                (18),
            (6) in section 501(c) by striking ``, or under title II,'', 
        and
            (7) by striking section 502.
    (b) Conforming Amendments to Other Laws.--(1) Section 416(a) of the 
Agricultural Act of 1949 (7 U.S.C. 1431) is amended by striking ``Older 
Americans Act of 1965'' and inserting ``Older Americans Act of 1996''.
    (2) Section 1114(a) of the Agriculture and Food Act of 1981 (7 
U.S.C. 1431e(a)) is amended--
            (A) in paragraph (1) by striking ``Older Americans Act of 
        1965'' each place it appears and inserting ``Older Americans 
        Act of 1996'', and
            (B) in subparagraphs (C) and (D) of paragraph (2) by 
        striking ``section 311(a)(4) of the Older Americans Act of 1965 
        (42 U.S.C. 3030a(a)(4)'' each place it appears and inserting 
        ``chapter 3 of subtitle A of title III of the Older Americans 
        Act of 1996''.
    (3) Section 509(f)(5)(B) of the Rehabilitation Act of 1973 (29 
U.S.C. 794e(f)(5)(B)) is amended by striking ``Older Americans Act of 
1965'' and inserting ``Older Americans Act of 1996''.
    (4) The Job Training Partnership Act (29 U.S.C. 1501 et seq.) is 
amended--
            (A) in section 204(d)--
                    (i) in paragraph (4) by striking ``title V of the 
                Older Americans Act of 1965 (42 U.S.C. 3056 et seq.)'' 
                and inserting ``chapter 4 of subtitle A of title III of 
                the Older Americans Act of 1996'', and
                    (ii) in paragraph (5)(B)(i) by striking ``title V 
                of the Older Americans Act of 1965 (42 U.S.C. 3056 et 
                seq.)'' and inserting ``chapter 4 of subtitle A of 
                title III of the Older Americans Act of 1996'',
            (B) by amending section 205(a)(8) to read as follows:
            ``(8) chapter 4 of subtitle A of title III of the Older 
        Americans Act of 1996;'',
            (C) in section 452(d)(1)(B)(iii) by striking ``Older 
        Americans Act of 1965'' and inserting ``Older Americans Act of 
        1996'', and
            (D) in section 455(b) by striking ``title V of the Older 
        Americans Act of 1965 (42 U.S.C. 3056 et seq.)'' and inserting 
        ``chapter 4 of subtitle A of title III of the Older Americans 
        Act of 1996''.
    (5) The Social Security Act (42 U.S.C. 301 et seq.) is amended--
            (A) in section 1819--
                    (i) in subsection (b)(4)(C)(ii)(IV) by striking 
                ``section 307(a)(12) of the Older Americans Act of 
                1965'' and inserting ``section 304(a)(8) of the Older 
                Americans Act of 1996'',
                    (ii) in subsection (c)(2)(B)(iii)(II) by striking 
                ``title III or VII of the Older Americans Act of 1965 
                in accordance with section 712 of the Act'' and 
                inserting ``section 304(a)(8) of the Older Americans 
                Act of 1996'', and
                    (iii) in subsection (g)(5)(B) by striking ``title 
                III or VII of the Older Americans Act of 1965 in 
                accordance with section 712 of the Act'' and inserting 
                ``section 304(a)(8) of the Older Americans Act of 
                1996'', and
            (C) in section 1919--
                    (i) in subsection (b)(4)(C)(ii)(IV) by striking 
                ``section 307(a)(12) of the Older Americans Act of 
                1965'' and inserting ``section 304(a)(8) of the Older 
                Americans Act of 1996'',
                    (ii) in subsection (c)(2)(B)(iii)(II) by striking 
                ``title III or VII of the Older Americans Act of 1965 
                in accordance with section 712 of the Act'' and 
                inserting ``section 304(a)(8) of the Older Americans 
                Act of 1996'', and
                    (iii) in subsection (g)(5)(B) by striking ``title 
                III or VII of the Older Americans Act of 1965 in 
                accordance with section 712 of the Act'' and inserting 
                ``section 304(a)(8) of the Older Americans Act of 
                1996''.
    (6) Section 209 of the Housing and Community Development Act of 
1974 (42 U.S.C. 1438) is amended by striking ``title III of the Older 
Americans Act of 1965'' and inserting ``chapter 1 of subtitle A of 
title III of the Older Americans Act of 1996''.
    (7) Section 3803(c)(2)(C)(xi) of title 31 of the United States Code 
is amended by striking ``section 336 of the Older Americans Act'' and 
inserting ``chapter 3 of subtitle A of title III of the Older Americans 
Act of 1996''.
    (8) Section 4360(d)(1)(C)(ii) of the Omnibus Budget Reconciliation 
Act of 1990 (42 U.S.C. 1395b-4(d)(1)(C)(ii)) is amended by inserting 
``of 1996'' after ``Older Americans Act''.
    (9) The National School Lunch Act (42 U.S.C. 1751 et seq.) is 
amended--
            (A) in section 12(i) by striking ``Older Americans Act of 
        1965'' and inserting ``Older Americans Act of 1996'',
            (B) in section 14--
                    (i) in subsection (a)(1) by striking ``Older 
                Americans Act of 1965'' and inserting ``Older Americans 
                Act of 1996'', and
                    (ii) in subsection (c) by striking ``section 
                311(a)(4) of the Older Americans Act of 1965 (42 U.S.C. 
                3030(a)(4)) or for cash payments in lieu of such 
                donations under section 311(b)(1) of such Act (42 
                U.S.C. 3030(b)(1))'' and inserting ``chapter 3 of 
                subtitle A of title III of the Older Americans Act of 
                1996'', and
            (C) in subsection (o)(3)(B) by striking ``part C of title 
        III of the Older Americans Act of 1965'' and inserting 
        ``chapter 3 of subtitle A of title III of the Older Americans 
        Act of 1996''.
    (10) Section 2(a) of the Environmental Programs Assistance Act of 
1984 (42 U.S.C. 4368a(a)) is amended by striking ``title V of the Older 
Americans Act of 1965'' each place it appears and inserting ``chapter 4 
of subtitle A of title III of the Older Americans Act of 1996''.
    (11) Section 14(g) of the Noise Control Act of 1972 (42 U.S.C. 
4913(g)) is amended by inserting ``of 1996'' after ``Older Americans 
Act''.
    (12) The Developmental Disabilities Assistance and Bill of Rights 
Act (42 U.S.C. 6000 et seq.) is amended--
            (A) in section 124(b)(3) by inserting ``of 1996'' after 
        ``Older Americans Act'', and
            (B) in section 142(a)(2)(D)(ii) by striking ``Older 
        Americans Act of 1965'' and inserting ``Older Americans Act of 
        1996''.
    (13) Section 412(6) of the Energy Conservation in Existing 
Buildings Act of 1976 (42 U.S.C. 6862(6)) is amended by striking 
``paragraphs (4), (5), and (6), respectively, of section 102 of the 
Older Americans Act of 1965'' and inserting ``paragraphs (28), (29), 
and (50), respectively, of the Older Americans Act of 1996''.
    (14) Subsections (c) and (d) of section 405 of the Congregate 
Housing Services Act of 1978 (42 U.S.C. 8004) are amended by striking 
``Older Americans Act of 1965'' each place it appears and inserting 
``Older Americans Act of 1996''.
    (15) The Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701 et seq.) is amended--
            (A) in section 802(d)(2)(B)(i) by striking ``Older 
        Americans Act of 1965'' and inserting ``Older Americans Act of 
        1996'', and
            (B) in section 803(d)(12) by striking ``Older Americans Act 
        of 1965'' and inserting ``Older Americans Act of 1996''.
    (16) Section 675(c)(5) of the Community Services Block Grant Act 
(42 U.S.C. 9904(c)(5)) is amended by striking ``Older Americans Act of 
1965'' and inserting ``Older Americans Act of 1996''.
    (17) The Alzheimer's Disease and Related Dementias Research Act of 
1992 (42 U.S.C. 11201 et seq.) is amended--
            (A) in subsection 934(b)(4) by striking ``section 305(a) 
        (1) and (2)(A) of the Older Americans Act of 1965 (42 U.S.C. 
        3025(a)(1) and (2)(A))'' and inserting ``section 303(a)(2)(A) 
        of the Older Americans Act of 1996'', and
            (B) in section 962--
                    (i) in subsection (a)(1)(A)(iii) by striking 
                ``Older Americans Act of 1965'' and inserting ``Older 
                Americans Act of 1996'', and
                    (ii) in subsection (d) by striking ``section 
                305(a)(1) of the Older Americans Act of 1965'' and 
                inserting ``section 303(a)(1) of the Older Americans 
                Act of 1996''.
    (18) The National and Community Service Act of 1990 (42 U.S.C. 
12501 et seq.) is amended--
            (A) in section 179--
                    (i) in subsection (a)(2)(A) by striking ``and 
                National Senior Volunteer Corps programs'' and 
                inserting ``program'', and
                    (ii) in subsection (g)--
                            (I) in paragraph (3) by striking ``and 
                        National Senior Volunteer Corps programs'', and
                            (II) in paragraph (9) by striking ``and 
                        National Senior Volunteer Corps'',
            (B) by amending section 194(d) to read as follows:
    ``(d) Assistant Director for VISTA.--One of the Managing Directors 
appointed under subsection (a) shall, in accordance with applicable 
provisions of title 5, United States Code, appoint 1 Assistant Director 
who shall report directly to such Managing Director and who shall be 
responsible for programs carried out under parts A and B of title I of 
the Domestic Volunteer Service Act of 1973 (the Volunteers in Service 
to America (VISTA) program) and other antipoverty programs under title 
I of that Act.'', and
            (C) in section 198 by striking subsection (r).

SEC. 5. FISCAL YEAR REFERENCES FOR FISCAL YEAR 1997.

    Any reference in the Older Americans Act of 1996 to ``the preceding 
fiscal year'' that applies with respect to funds appropriated to carry 
out, or to the operation of a program, project, or activity to be 
carried out under, such Act for fiscal year 1997 shall be deemed to be 
a reference to funds appropriated to carry out, or to the operation of 
the corresponding program, project, or activity carried out under, the 
Older Americans Act of 1965 for fiscal year 1996.

SEC. 6. ISSUANCE OF RULES.

    Not later than 180 days after the date of the enactment of this 
Act, the Secretary of Health and Human Services shall issue, and 
publish in the Federal Register, proposed rules for the administration 
of the Older Americans Act of 1996. After allowing a reasonable period 
for public comment on such proposed rules, and not later than 90 days 
after such publication, the Secretary shall issue rules for the 
administration of such Act.

SEC. 7. ENFORCEMENT AUTHORITY.

    On and after October 1, 1996, the Secretary of Health and Human 
Services shall have the authority to enforce compliance with the 
requirements applicable to title II of the Domestic Volunteer Service 
Act of 1973 and to funds made available to carry out such title.

SEC. 8. TRANSFERS; SAVINGS PROVISIONS.

    (a) Transfers.--The Director of the Office of Management and Budget 
shall provide for the transfer to the Administration on Aging for the 
purpose of implementing title IV of the Older Americans Act of 1996, of 
personnel, assets, liabilities, grants, contracts, property, records, 
and unexpended balances of appropriations, authorizations, allocations, 
and other funds held, used, arising, available, or to be made available 
in connection with the implementation of title II of the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 5000-5028a) by the Corporation 
for National and Community Service.
    (b) Savings Provisions.--(1) An amendment or repeal made by this 
Act shall not apply with respect to--
            (A) powers, duties, functions, rights, claims, penalties, 
        or obligations applicable with respect to financial assistance 
        provided before the effective date of amendment or repeal, as 
        the case may be, under the provision of law so amended or so 
        repealed, and
            (B) judicial or administrative actions taken and 
        proceedings commenced before such effective date, or authorized 
        before such effective date to be taken or to be commenced, 
        under such provision.
    (2) With respect to--
            (A) the powers, duties, functions, rights, claims, 
        penalties, and obligations applicable to financial assistance 
        provided or authorized to be provided before such effective 
        date, and
            (B) judicial or administrative actions taken and 
        proceedings commenced before such effective date, or authorized 
        before such effective date to be taken or to be commenced,
under title II of the Domestic Volunteer Service Act of 1973 (42 U.S.C. 
5000-5028a), a reference to the ACTION Agency or the Corporation for 
National and Community Service shall be deemed to be a reference to the 
Administration on Aging or the Secretary of Health and Human Services, 
as appropriate.
    (3) Except as provided in paragraph (2), the rules applicable to 
financial assistance provided under title II of the Domestic Volunteer 
Service Act of 1973 (42 U.S.C. 5000-5028a) as in effect before October 
1, 1996, shall--
            (A) remain in effect with respect to such assistance until 
        such rules are modified or superseded by rules issued by the 
        Secretary of Health and Human Services to carry out title IV of 
        the Older Americans Act of 1996, and
            (B) apply with respect to financial assistance provided 
        under title IV of the Older Americans Act of 1996 until such 
        rules are modified or superseded by rules issued by the 
        Secretary of Health and Human Services to carry out such title.

SEC. 9. EFFECTIVE DATES.

    (a) General Effective Date.--Except as provided in subsection (b), 
this Act and the amendments made by this Act shall take effect on the 
date of the enactment of this Act.
    (b) Special Effective Date.--The amendments made by sections 3, 4, 
and 5 shall take effect on October 1, 1996.
```