OLDER AMERICANS ACT: TITLE III REGULATIONS 

(Based on 1988 Amendments; does not reflect 2000 Amendments) 

[Code of Federal Regulations] 

[Title 45, Volume 4, Parts 1200 to End] 

From the U.S. Government Printing Office via GPO Access 

[CITE: 45CFR1321] 

 

[Pages 249-264] 

 

 TITLE 45--PUBLIC WELFARE 

 

CHAPTER XIII--OFFICE OF HUMAN DEVELOPMENT SERVICES, 

DEPARTMENT OF HEALTH 

 AND HUMAN SERVICES 

 

PART 1321--GRANTS TO STATE AND COMMUNITY PROGRAMS ON AGING 

 

 Subpart A--Introduction 

 

Sec. 

1321.1 Basis and purpose of this part. 

1321.3 Definitions. 

1321.5 Applicability of other regulations. 

 

 Subpart B--State Agency Responsibilities 

 

1321.7 Mission of the State agency. 

1321.9 Organization and staffing of the State agency. 

1321.11 State agency policies. 

1321.13 Advocacy responsibilities. 

1321.15 Duration, format and effective date of the State plan. 

1321.17 Content of State plan. 

1321.19 Amendments to the State plan. 

1321.21 Submission of the State plan or plan amendment to the 

 Commissioner for approval. 

1321.23 Notification of State plan or State plan amendment approval. 

1321.25 Restriction of delegation of authority to other agencies. 

1321.27 Public participation. 

1321.29 Designation of planning and service areas. 

1321.31 Appeal to Commissioner. 

1321.33 Designation of area agencies. 

1321.35 Withdrawal of area agency designation. 

1321.37 Intrastate funding formula. 

1321.41 Single State planning and service area. 

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1321.43 Interstate planning and service area. 

1321.45 Transfer between congregate and home-delivered nutrition 

 service allotments. 

1321.47 Statewide non-Federal share requirements. 

1321.49 State agency maintenance of effort. 

1321.51 Confidentiality and disclosure of information. 

1321.52 Evaluation of unmet need. 

 

 Subpart C--Area Agency Responsibilities 

 

1321.53 Mission of the area agency. 

1321.55 Organization and staffing of the area agency. 

1321.57 Area agency advisory council. 

1321.59 Submission of an area plan and plan amendments to the State for 

 approval. 

1321.61 Advocacy responsibilities of the area agency. 

 

 Subpart D--Service Requirements 

 

1321.63 Purpose of services allotments under Title III. 

1321.65 Responsibilities of service providers under area plans. 

1321.67 Service contributions. 

1321.69 Service priority for frail, homebound or isolated elderly. 

1321.71 Legal assistance. 

1321.73 Grant related income under Title III-C. 

1321.75 Licenses and safety. 

 

 Subpart E--Hearing Procedures for State Agencies 

 

1321.77 Scope. 

1321.79 When a decision is effective. 

1321.81 How the State may appeal. 

1321.83 How the Commissioner may re-allot the State's withheld payments. 

 

 Authority: 42 U.S.C. 3001 et seq.; title III of the Older Americans 

Act, as amended. 

 

 Source: 53 FR 33766, Aug. 31, 1988, unless otherwise noted. 

 

 Subpart A--Introduction 

 

Sec. 1321.1 Basis and purpose of this part. 

 

 (a) This part prescribes requirements State agencies shall meet to 

receive grants to develop comprehensive and coordinated systems for the 

delivery of supportive and nutrition services under title III of the 

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Older Americans Act, as amended (Act). These requirements include: 

 (1) Designation and responsibilities of State agencies; 

 (2) State plans and amendments; 

 (3) Services delivery; and 

 (4) Hearing procedures for applicants for planning and services area 

designation. 

 (b) The requirements of this part are based on title III of the Act. 

Title III provides for formula grants to State agencies on aging, under 

approved State plans, to stimulate the development or enhancement of 

comprehensive and coordinated community-based systems resulting in a 

continuum of services to older persons with special emphasis on older 

individuals with the greatest economic or social need, with 

particular attention to low-income minority individuals. A responsive 

community-based system of services shall include collaboration in 

planning, resource allocation and delivery of a comprehensive array of 

services and opportunities for all older Americans in the community. The 

intent is to use title III funds as a catalyst in bringing together 

public and private resources in the community to assure the provision of 

a full range of efficient, well coordinated and accessible services for 

older persons. 

 (c) Each State agency designates planning and service areas in the 

State, and makes a subgrant or contract under an approved area plan to 

one area agency in each planning and service area for the purpose of 

building comprehensive systems for older people throughout the State. 

Area agencies in turn make subgrants or contracts to service providers 

to perform certain specified functions. 

 

Sec. 1321.3 Definitions. 

 

 Act means the Older Americans Act of 1965 as amended. 

 Altering or renovating, as used in section 307(a)(14) of the Act 

with respect to multipurpose senior centers, means making modifications 

to or in connection with an existing facility which are necessary for 

its effective use as a center. These may include renovation, repair, or 

expansion which is not in excess of double the square footage of the 

original facility and all physical improvements. 

 Constructing, as used in section 307(a)(14) of the Act with respect 

to multipurpose senior centers, means building a new facility, including 

the costs of land acquisition and architectural and engineering fees, or 

making modifications to or in connection with an existing facility which 

are in excess of double the square footage of the original facility and 

all physical improvements. 

 Department means the Department of Health and Human Services. 

 Direct services, as used in this part, means any activity performed 

to provide services directly to an individual older person by the staff 

of a service provider, an area agency, or a State agency in a single 

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planning and service area State. 

 Fiscal year, as used in this part, means the Federal Fiscal Year. 

 Frail, as used in this part, means having a physical or mental 

disability, including having Alzheimer's disease or a related disorder 

with neurological or organic brain dysfunction, that restricts the 

ability of an individual to perform normal daily tasks or which 

threatens the capacity of an individual to live independently. 

 Human services, as used in Sec. 1321.41(a)(1) of this part, with 

respect to criteria for designation of a statewide planning and service 

area, means social, health, or welfare services. 

 In-home service, as used in this part, includes: (a) Homemaker and 

home health aides; (b) visiting and telephone reassurance; (c) chore 

maintenance; (d) in-home respite care for families, including adult day 

care as a respite service for families; and (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. 

 Means test, as used in the provision of services, means the use of an 

older person's income or resource to deny or limit that person's receipt 

of services under this part. 

 Official duties, as used in section 307(a)(12)(J) of the Act with 

respect to representatives of the Long-Term Care Ombudsman Program, 

means work pursuant to the Long-Term Care Ombudsman Program authorized 

by the Act or State law and carried out under the auspices and general 

direction of the State Long-Term Care Ombudsman. 

 Periodic, as used in sections 306(a)(6) and 307(a)(8) of the Act 

with respect to evaluations of, and public hearings on, activities 

carried out under State and area plans, means, at a minimum, once each 

fiscal year. 

 Reservation, as used in section 305(b)(4) of the Act with respect to 

the designation of planning and service areas, means any federally or 

State recognized Indian tribe's reservation, pueblo, or colony, 

including former reservations in Oklahoma, Alaskan Native regions established 

pursuant to the Alaska Native Claims Settlement Act (85 Stat. 688), and Indian 

allotments. 

 Service provider, as used in section 306(a)(1) of the Act with 

respect to the provision of supportive and nutrition services, means an 

entity that is awarded a subgrant or contract from an area agency to 

provide services under the area plan. 

 Severe disability, as used to carry out the provisions of the Act, 

means a severe chronic disability attributable to mental and/or physical 

impairment of an individual that: 

 (a) Is likely to continue indefinitely; and 

 (b) Results in substantial functional limitation in 3 or more of the 

following major life activities: 

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 (1) Self-care, 

 (2) Receptive and expressive language, 

 (3) Learning, 

 (4) Mobility, 

 (5) Self-direction, 

 (6) Capacity for independent living, and 

 (7) Economic self-sufficiency. 

 

Sec. 1321.5 Applicability of other regulations. 

 

 Several other regulations apply to all activities under this part. 

These include but are not limited to: 

 (a) 45 CFR part 16--Procedures of the Departmental Grant Appeals 

Board; 

 (b) 45 CFR part 74--Administration of Grants, except subpart N; 

 (c) 45 CFR part 80--Nondiscrimination under Programs Receiving 

Federal Assistance through the Department of Health and Human Services: 

Effectuation of title VI of the Civil Rights Act of 1964; 

 (d) 45 CFR part 81--Practice and Procedures for Hearings Under Part 

80 of this title; 

 (e) 45 CFR part 84--Nondiscrimination on the Basis of Handicap in 

Programs and Activities Receiving or Benefiting from Federal Financial 

Participation; 

 (f) 45 CFR part 91--Nondiscrimination on the Basis of Age in HHS 

Programs or Activities Receiving Federal Financial Assistance; 

 (g) 45 CFR part 92--Uniform Administrative Requirements for Grants 

and Cooperative Agreements to State and Local Governments; 

 (h) 45 CFR part 100--Intergovernmental Review of Department of 

Health and Human Services Programs and Activities; and 

 (i) 5 CFR part 900, subpart F, Standards for a Merit System of 

Personnel Administration. 

 

 Subpart B--State Agency Responsibilities 

 

Sec. 1321.7 Mission of the State agency. 

 

 (a) The Older Americans Act intends that the State agency on aging 

shall be the leader relative to all aging issues on behalf of all older 

persons in the State. This means that the State agency shall proactively 

carry out a wide range of functions related to advocacy, planning, 

coordination, interagency linkages, information sharing, brokering, 

monitoring and evaluation, designed to lead to the development or 

enhancement of comprehensive and coordinated community based systems in, 

or serving, communities throughout the State. These systems shall be 

designed to assist older persons in leading independent, meaningful and 

dignified lives in their own homes and communities as long as possible. 

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 (b) The State agency shall designate area agencies on aging for the 

purpose of carrying out the mission described above for the State agency 

at the sub-State level. The State agency shall designate as its area 

agencies on aging only those sub-state agencies having the capacity and 

making the commitment to fully carry out the mission described for area 

agencies in Sec. 1321.53 below. 

 (c) The State agency shall assure that the resources made available 

to area agencies on aging under the Older Americans Act are used to 

carry out the mission described for area agencies in Sec. 1321.53 below. 

 

Sec. 1321.9 Organization and staffing of the State agency. 

 

 (a) The State shall designate a sole State agency to develop and 

administer the State plan required under this part and serve as the 

effective visible advocate for the elderly within the State. 

 (b) The State agency shall have an adequate number of qualified 

staff to carry out the functions prescribed in this part. 

 (c) The State agency shall have within the State agency, or shall 

contract or otherwise arrange with another agency or organization, as 

permitted by section 307(a)(12)(A), an Office of the State Long-Term 

Care Ombudsman, with a full-time State ombudsman and such other staff as 

are appropriate. 

 (d) If a State statute establishes a State ombudsman program which 

will perform the functions of section 307(a)(12) of the Act, the State 

agency continues to be responsible to assure that all of the 

requirements of the Act for this program are met regardless of the State 

legislation or source of funds. In such cases, the Governor shall 

confirm this through an assurance in the State plan. 

 

1321.11 State agency policies. 

 

 (a) The State agency on aging shall develop policies governing all 

aspects of programs operated under this part, including the ombudsman 

program whether operated directly by the State agency or under contract. 

These policies shall be developed in consultation with other appropriate 

parties in the State. The State agency is responsible for enforcement of 

these policies. 

 (b) The policies developed by the State agency shall address the 

manner in which the State agency will monitor the performance of all 

programs and activities initiated under this part for quality and 

effectiveness. In monitoring the ombudsman program, access to files, 

minus the identity of any complainant or resident of a long-term care 

facility, shall be available only to the director of the State agency on 

aging and one other senior manager of the State agency designated by the 

State director for this purpose. In the conduct of the monitoring of the 

ombudsman program, the confidentiality protections concerning any 

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complainant or resident of a long term care facility as prescribed in 

section 307(a)(12) of the Act shall be strictly adhered to. 

 

Sec. 1321.13 Advocacy responsibilities. 

 

 (a) The State agency shall: 

 (1) Review, monitor, evaluate and comment on Federal, State and 

local plans, budgets, regulations, programs, laws, levies, hearings, 

policies, and actions which affect or may affect older individuals and 

recommend any changes in these which the State agency considers to be 

appropriate; 

 (2) Provide technical assistance to agencies, organizations, 

associations, or individuals representing older persons; and 

 (3) Review and comment, upon request, on applications to State and 

Federal agencies for assistance relating to meeting the needs of older 

persons. 

 (b) No requirement in this section shall be deemed to supersede a 

prohibition contained in a Federal appropriation on the use of Federal 

funds to lobby the Congress. 

 

Sec. 1321.15 Duration, format and effective date of the State plan. 

 

 (a) A State may use its own judgment as to the format to use for the 

plan, how to collect information for the plan, and whether the plan will 

remain in effect for two, three or four years. 

 (b) An approved State plan or amendment, as identified in 

Sec. 1321.17, becomes effective on the date designated by the 

Commissioner. 

 (c) A State agency may not make expenditures under a new plan or 

amendment requiring approval, as identified in Sec. 1321.17 and 

Sec. 1321.19, until it is approved. 

 

Sec. 1321.17 Content of State plan. 

 

 To receive a grant under this part, a State shall have an approved 

State plan as prescribed in section 307 of the Act. In addition to 

meeting the requirements of section 307, a State plan shall include: 

 (a) Identification by the State of the sole State agency that has 

been designated to develop and administer the plan. 

 (b) Statewide program objectives to implement the requirements under 

Title III of the Act and any objectives established by the Commissioner 

through the rulemaking process. 

 (c) A resource allocation plan indicating the proposed use of all 

title III funds administered by a State agency, and the distribution of title III 

funds to each planning and service area. 

 (d) Identification of the geographic boundaries of each planning and 

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service area and of area agencies on aging designated for each planning 

and service area, if appropriate. 

 (e) Provision of prior Federal fiscal year information related to 

low income minority and rural older individuals as required by sections 

307(a) (23) and (29) of the Act. 

 (f) Each of the assurances and provisions required in sections 305 

and 307 of the Act, and provisions that the State meets each of the 

requirements under Secs. 1321.5 through 1321.75 of this part, and the 

following assurances as prescribed by the Commissioner: 

 (1) Each area agency engages only in activities which are consistent 

with its statutory mission as prescribed in the Act and as specified in 

State policies under Sec. 1321.11; 

 (2) Preference is given to older persons in greatest social or 

economic need in the provision of services under the plan; 

 (3) Procedures exist to ensure that all services under this part are 

provided without use of any means tests; 

 (4) All services provided under title III meet any existing State 

and local licensing, health and safety requirements for the provision of 

those services; 

 (5) Older persons are provided opportunities to voluntarily 

contribute to the cost of services; 

 (6) Area plans shall specify as submitted, or be amended annually to 

include, details of the amount of funds expended for each priority 

service during the past fiscal year; 

 (7) The State agency on aging shall develop policies governing all 

aspects of programs operated under this part, including the manner in 

which the ombudsman program operates at the State level and the relation 

of the ombudsman program to area agencies where area agencies have been 

designated; 

 (8) The State agency will require area agencies on aging to arrange 

for outreach at the community level that identifies individuals eligible 

for assistance under this Act and other programs, both public and 

private, and informs them of the availability of assistance. The 

outreach efforts shall place special emphasis on reaching older 

individuals with the greatest economic or social needs with particular 

attention to low income minority individuals, including outreach to 

identify older Indians in the planning and service area and inform such 

older Indians of the availability of assistance under the Act. 

 (9) The State agency shall have and employ appropriate procedures 

for data collection from area agencies on aging to permit the State to 

compile and transmit to the Commissioner accurate and timely statewide 

data requested by the Commissioner in such form as the Commissioner 

directs; and 

 (10) If the State agency proposes to use funds received under 

section 303(f) of the Act for services other than those for preventive 

health specified in section 361, the State plan shall demonstrate the 

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unmet need for the services and explain how the services are appropriate 

to improve the quality of life of older individuals, particularly those 

with the greatest economic or social need, with special attention to 

low-income minorities. 

 (11) Area agencies shall compile available information, with 

necessary supplementation, on courses of post-secondary education 

offered to older individuals with little or no tuition. The assurance 

shall include a commitment by the area agencies to make a summary of the 

information available to older individuals at multipurpose senior 

centers, congregate nutrition sites, and in other appropriate places. 

 (12) Individuals with disabilities who reside in a non-institutional 

household with and accompany a person eligible for congregate meals 

under this part shall be provided a meal on the same basis that meals 

are provided to volunteers pursuant to section 307(a)(13)(I) of the Act. 

 (13) The services provided under this part will be coordinated, 

where appropriate, with the services provided under title VI of the Act. 

 (14)(i) The State agency will not fund program development and 

coordinated activities as a cost of supportive services for the 

administration of area plans until it has first spent 10 percent of the total of its 

combined allotments under Title III on the administration of area plans; 

 (ii) State and area agencies on aging will, consistent with 

budgeting cycles (annually, biannually, or otherwise), submit the 

details of proposals to pay for program development and coordination as 

a cost of supportive services, to the general public for review and 

comment; and 

 (iii) The State agency certifies that any such expenditure by an 

area agency will have a direct and positive impact on the enhancement of 

services for older persons in the planning and service area. 

 (15) The State agency will assure that where there is a significant 

population of older Indians in any planning and service area that the 

area agency will provide for outreach as required by section 

306(a)(6)(N) of the Act. 

 

Sec. 1321.19 Amendments to the State plan. 

 

 (a) A State shall amend the State plan whenever necessary to 

reflect: 

 (1) New or revised Federal statutes or regulations, 

 (2) A material change in any law, organization, policy or State 

agency operation, or 

 (3) Information required annually by sections 307(a) (23) and (29) 

of the Act. 

 (b) Information required by paragraph (a)(3) of this section shall 

be submitted according to guidelines prescribed by the Commissioner. 

 (c) If a State intends to amend provisions of its plan required 

under Secs. 1321.17 (a) or (f), it shall submit its proposed amendment 

9
to the Commissioner for approval. If the State changes any of the 

provisions of its plan required under Sec. 1321.17 (b) through (d), it 

shall amend the plan and notify the Commissioner. A State need only 

submit the amended portions of the plan. 

 

Sec. 1321.21 Submission of the State plan or plan amendment to the 

 Commissioner for approval. 

 

 Each State plan, or plan amendment which requires approval of the 

Commissioner, shall be signed by the Governor or the Governor's designee 

and submitted to the Commissioner to be considered for approval at least 

45 calendar days before the proposed effective date of the plan or plan 

amendment. 

 

Sec. 1321.23 Notification of State plan or State plan amendment 

 approval. 

 

 (a) The Commissioner approves a State plan or State plan amendment 

by notifying the Governor or the Governor's designee in writing. 

 (b) When the Commissioner proposes to disapprove a State plan or 

amendment, the Commissioner notifies the Governor in writing, giving the 

reasons for the proposed disapproval, and informs the State agency that 

it has 60 days to request a hearing on the proposed disapproval 

following the procedures specified in subpart E of this part. 

 

Sec. 1321.25 Restriction of delegation of authority to other agencies. 

 

 A State or area agency may not delegate to another agency the 

authority to award or administer funds under this part. 

 

Sec. 1321.27 Public participation. 

 

 The State agency shall have a mechanism to obtain and shall consider 

the views of older persons and the public in developing and 

administering the State plan. 

 

Sec. 1321.29 Designation of planning and service areas. 

 

 (a) Any unit of general purpose local government, region within a 

State recognized for area wide planning, metropolitan area, or Indian 

reservation may make application to the State agency to be designated as 

a planning and service area, in accordance with State agency procedures. 

 (b) A State agency shall approve or disapprove any application 

submitted under paragraph (a) of this section. 

 (c) Any applicant under paragraph (a) of this section whose 

application for designation as a planning and service area is denied by 

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a State agency may appeal the denial to the State agency, under 

procedures specified by the State agency. 

 (d) If the State denies an applicant for designation as a planning 

and service area under paragraph (a) of this section, the State shall 

provide a hearing on the denial of the application, if requested by the 

applicant, as well as issue a written decision. 

 

Sec. 1321.31 Appeal to Commissioner. 

 

 This section sets forth the procedures the Commissioner follows for 

providing hearings to applicants for designation as a planning and 

service area, under Sec. 1321.29(a), whose application is denied by the 

State agency. 

 (a) Any applicant for designation as a planning and service area 

under Sec. 1321.29(a) whose application is denied, and who has been 

provided a hearing and a written decision by the State agency, may 

appeal the denial to the Commissioner in writing within 30 days 

following receipt of a State's hearing decision. 

 (b) The Commissioner, or the Commissioner's designee, holds a 

hearing, and issues a written decision, within 60 days following receipt 

of an applicant's written request to appeal the State agency hearing 

decision to deny the applicant's request under Sec. 1321.29(a). 

 (c) When the Commissioner receives an appeal, the Commissioner 

requests the State Agency to submit: 

 (1) A copy of the applicant's application for designation as a 

planning and service area; 

 (2) A copy of the written decision of the State; and 

 (3) Any other relevant information the Commissioner may require. 

 (d) The procedures for the appeal consist of: 

 (1) Prior written notice to the applicant and the State agency of 

the date, time and location of the hearing; 

 (2) The required attendance of the head of the State agency or 

designated representatives; 

 (3) An opportunity for the applicant to be represented by counsel or 

other representative; and 

 (4) An opportunity for the applicant to be heard in person and to 

present documentary evidence. 

 (e) The Commissioner may: 

 (1) Deny the appeal and uphold the decision of a State agency; 

 (2) Uphold the appeal and require a State agency to designate the 

applicant as a planning and service area; or 

 (3) Take other appropriate action, including negotiating between the 

parties or remanding the appeal to the State agency after initial 

findings. 

 (f) The Commissioner will uphold the decision of the State agency if 

it followed the procedures specified in Sec. 1321.29, and the hearing 

11
decision is not manifestly inconsistent with the purpose of this part. 

 (g) The Commissioner's decision to uphold the decision of a State 

agency does not extend beyond the period of the approved State plan. 

 

Sec. 1321.33 Designation of area agencies. 

 

 An area agency may be any of the types of agencies under section 

305(c) of the Act. A State may not designate any regional or local 

office of the State as an area agency. However, when a new area agency 

on aging is designated, the State shall give right of first refusal to a 

unit of general purpose local government as required in section 

305(b)(5)(B) of the Act. If the unit of general purpose local government 

chooses not to exercise this right, the State shall then give preference 

to an established office on aging as required in section 305(c)(5) of 

the Act. 

 

Sec. 1321.35 Withdrawal of area agency designation. 

 

 (a) In carrying out section 305 of the Act, the State agency shall 

withdraw the area agency designation whenever it, after reasonable 

notice and opportunity for a hearing, finds that: 

 (1) An area agency does not meet the requirements of this part; 

 (2) An area plan or plan amendment is not approved; 

 (3) There is substantial failure in the provisions or administration 

of an approved area plan to comply with any provision of the Act or of 

this part or policies and procedures established and published by the 

State agency on aging; or 

 (4) Activities of the area agency are inconsistent with the 

statutory mission prescribed in the Act or in conflict with the 

requirement of the Act that it function only as an area agency on aging. 

 (b) If a State agency withdraws an area agency's designation under 

paragraph (a) of this section it shall: 

 (1) Provide a plan for the continuity of area agency functions and 

services in the affected planning and service area; and 

 (2) Designate a new area agency in the planning and service area in 

a timely manner. 

 (c) If necessary to ensure continuity of services in a planning and 

service area, the State agency may, for a period of up to 180 days after 

its final decision to withdraw designation of an area agency: 

 (1) Perform the responsibilities of the area agency; or 

 (2) Assign the responsibilities of the area agency to another agency 

in the planning and service area. 

 (d) The Commissioner may extend the 180-day period if a State 

agency: 

 (1) Notifies the Commissioner in writing of its action under 

paragraph (c) of this section; 

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 (2) Requests an extension; and 

 (3) Demonstrates to the satisfaction of the Commissioner a need for 

the extension. 

 

Sec. 1321.37 Intrastate funding formula. 

 

 (a) The State agency, after consultation with all area agencies in 

the State, shall develop and use an intrastate funding formula for the 

allocation of funds to area agencies under this part. The State agency 

shall publish the formula for review and comment by older persons, other 

appropriate agencies and organizations and the general public. The 

formula shall reflect the proportion among the planning and service 

areas of persons age 60 and over in greatest economic or social need 

with particular attention to low-income minority individuals. The State 

agency shall review and update its formula as often as a new State plan 

is submitted for approval. 

 (b) The intrastate funding formula shall provide for a separate 

allocation of funds received under section 303(f) for preventive health 

services. In the award of such funds to selected planning and service 

areas, the State agency shall give priority to areas of the State: 

 (1) Which are medically underserved; and 

 (2) In which there are large numbers of individuals who have the 

greatest economic and social need for such services. 

 (c) The State agency shall submit its intrastate formula to the 

Commissioner for review and comment. The intrastate formula shall be 

submitted separately from the State plan. 

 

Sec. 1321.41 Single State planning and service area. 

 

 (a) The Commissioner will approve the application of a State which 

was, on or before October 1, 1980, a single planning and service area, 

to continue as a single planning and service area if the State agency 

demonstrates that: 

 (1) The State is not already divided for purposes of planning and 

administering human services; or 

 (2) The State is so small or rural that the purposes of this part 

would be impeded if the State were divided into planning and services 

areas; and 

 (3) The State agency has the capacity to carry out the 

responsibilities of an area agency, as specified in the Act. 

 (b) Prior to the Commissioner's approval for a State to continue as 

a single planning and service area, all the requirements and procedures 

in Sec. 1321.29 shall be met. 

 (c) If the Commissioner approves a State's application under 

paragraph (a) this section: 

 (1) The Commissioner notifies the State agency to develop a single 

13
State planning and service area plan which meets the requirements of 

section 306 and 307 of the Act. 

 (2) A State agency shall meet all the State and area agency function 

requirements specified in the Act. 

 (d) If the Commissioner denies the application because a State fails 

to meet the criteria or requirements set forth in paragraphs (a) or (b) 

of this section, the Commissioner notifies the State that it shall 

follow procedures in section 305(A)(1)(E) of the Act to divide the State 

into planning and service areas. 

 

Sec. 1321.43 Interstate planning and service area. 

 

 (a) Before requesting permission of the Commissioner to designate an 

interstate planning and service area, the Governor of each State shall 

execute a written agreement that specifies the State agency proposed to 

have lead responsibility for administering the programs within the 

interstate planning and service area and lists the conditions, agreed 

upon by each State, governing the administration of the interstate 

planning and service area. 

 (b) The lead State shall request permission of the Commissioner to 

designate an interstate planning and service area. 

 (c) The lead State shall submit the request together with a copy of 

the agreement as part of its State plan or as an amendment to its State 

plan. 

 (d) Prior to the Commissioner's approval for States to designate an 

interstate planning and service area, the Commissioner shall determine 

that all applicable requirements and procedures in Sec. 1321.29 and 

Sec. 1321.33 of this part, shall be met. 

 (e) If the request is approved, the Commissioner, based on the 

agreement between the States, increases the allotment of the State with 

lead responsibility for administering the programs within the interstate 

area and reduces the allotment(s) of the State(s) without lead 

responsibility by one of these methods: 

 (1) Re-allotment of funds in proportion to the number of individuals 

age 60 and over for that portion of the interstate planning and service 

area located in the State without lead responsibility; or 

 (2) Re-allotment of funds based on the intrastate funding formula of 

the State(s) without lead responsibility. 

 

Sec. 1321.45 Transfer between congregate and home-delivered nutrition 

 service allotments. 

 

 (a) A State agency, without the approval of the Commissioner, may 

transfer between allotments up to 30 percent of a State's separate 

allotments for congregate and home-delivered nutrition services. 

 (b) A State agency may apply to the Commissioner to transfer from 

14
one allotment to the other a portion exceeding 30 percent of a State's 

separate allotments for congregate and home-delivered nutrition 

services. A State agency desiring such a transfer of allotment shall: 

 (1) Specify the percent which it proposes to transfer from one 

allotment to the other; 

 (2) Specify whether the proposed transfer is for the entire period 

of a State plan or a portion of a plan period; and 

 (3) Specify the purpose of the proposed transfer. 

 

Sec. 1321.47 Statewide non-Federal share requirements. 

 

 The statewide non-Federal share for State or area plan 

administration shall not be less than 25 percent of the funds used 

under this part. All services statewide, including ombudsman services 

and services funded under Title III-B, C, D, E and F, shall be funded on 

a statewide basis with a non-Federal share of not less than 15 percent. 

Matching requirements for individual area agencies are determined by the 

State agency. 

Sec. 1321.49 State agency maintenance of effort. 

 

 In order to avoid a penalty, each fiscal year the State agency, to 

meet the required non-federal share applicable to its allotments under 

this part, shall spend under the State plan for both services and 

administration at least the average amount of State funds it spent under 

the plan for the three previous fiscal years. If the State agency spends 

less than this amount, the Commissioner reduces the State's allotments 

for supportive and nutrition services under this part by a percentage 

equal to the percentage by which the State reduced its expenditures. 

 

Sec. 1321.51 Confidentiality and disclosure of information. 

 

 (a) A State agency shall have procedures to protect the 

confidentiality of information about older persons collected in the 

conduct of its responsibilities. The procedures shall ensure that no 

information about an order person, or obtained from an older person by a 

service provider or the State or area agencies, is disclosed by the provider or 

agency in a form that identifies the person without the informed consent of the 

person or of his or her legal representative, unless the disclosure is required by 

court order, or for program monitoring by authorized Federal, State, or 

local monitoring agencies. 

 (b) A State agency is not required to disclose those types of 

information or documents that are exempt from disclosure by a Federal 

agency under the Federal Freedom of Information Act, 5 U.S.C. 552. 

15
 (c) A State or area agency on aging may not require a provider of 

legal assistance under this part to reveal any information that is 

protected by attorney client privilege. 

 

Sec. 1321.52 Evaluation of unmet need. 

 

 Each State shall submit objectively collected and statistically 

valid data with evaluative conclusions concerning the unmet need for 

supportive services, nutrition services, and multipurpose senior centers 

gathered pursuant to section 307(a)(3)(A) of the Act to the 

Commissioner. The evaluations for each State shall consider all services 

in these categories regardless of the source of funding for the 

services. This information shall be submitted not later than June 30, 

1989 and shall conform to guidance issued by the Commissioner. 

 

 Subpart C--Area Agency Responsibilities 

 

Sec. 1321.53 Mission of the area agency. 

 

 (a) The Older Americans Act intends that the area agency on aging 

shall be the leader relative to all aging issues on behalf of all older 

persons in the planning and service area. This means that the area 

agency shall proactively carry out, under the leadership and direction 

of the State agency, a wide range of functions related to advocacy, 

planning, coordination, inter-agency linkages, information sharing, 

brokering, monitoring and evaluation, designed to lead to the 

development or enhancement of comprehensive and coordinated community 

based systems in, or serving, each community in the planning and service 

area. These systems shall be designed to assist older persons in leading 

independent, meaningful and dignified lives in their own homes and 

communities as long as possible. 

 (b) A comprehensive and coordinated community based system described 

in paragraph (a) of this section shall: 

 (1) Have a visible focal point of contact where anyone can go or 

call for help, information or referral on any aging issue; 

 (2) Provide a range of options: 

 (3) Assure that these options are readily accessible to all older 

persons: The independent, semi-dependent and totally dependent, no 

matter what their income; 

 (4) Include a commitment of public, private, voluntary and personal 

resources committed to supporting the system; 

 (5) Involve collaborative decision-making among public, private, 

voluntary, religious and fraternal organizations and older people in the 

community; 

 (6) Offer special help or targeted resources for the most 

vulnerable older persons, those in danger of losing their independence; 

16
 (7) Provide effective referral from agency to agency to assure that 

information or assistance is received, no matter how or where contact is 

made in the community; 

 (8) Evidence sufficient flexibility to respond with appropriate 

individualized assistance, especially for the vulnerable older person; 

 (9) Have a unique character which is tailored to the specific nature 

of the community; 

 (10) Be directed by leaders in the community who have the respect, 

capacity and authority necessary to convene all interested persons, 

assess needs, design solutions, track overall success, stimulate change 

and plan community responses for the present and for the future. 

 (c) The resources made available to the area agency on aging under 

the Older Americans Act are to be used to finance those activities 

necessary to achieve elements of a community based system set forth in 

paragraph (b) of this section. For the purpose of assuring access to 

information and services for older persons, the area agency shall work with 

elected community officials in the planning and service area to designate one or 

more focal points on aging in each community, as appropriate. The area agency 

shall list designated focal points in the area plan. It shall be the responsibility of 

the area agency, with the approval of the State agency, to define ``community'' 

for the purposes of this section. Since the Older Americans Act defines focal 

point as a ``facility'' established to encourage the maximum collocation 

and coordination of services for older individuals, special 

consideration shall be given to developing and/or designating multipurpose senior centers as community focal points on aging. The area 

agency on aging shall assure that services financed under the Older 

Americans Act in, or on behalf of, the community will be either based 

at, linked to or coordinated with the focal points designated. The area 

agency on aging shall assure access from the designated focal points to 

services financed under the Older Americans Act. The area agency on 

aging shall work with, or work to assure that community leadership works 

with, other applicable agencies and institutions in the community to 

achieve maximum collocation at, coordination with or access to other 

services and opportunities for the elderly from the designated community 

focal points. The area agency may not engage in any activity which is 

inconsistent with its statutory mission prescribed in the Act or 

policies prescribed by the State under Sec. 1321.11. 

 

Sec. 1321.55 Organization and staffing of the area agency. 

 

 (a) An area agency may be either: 

 (1) An agency whose single purpose is to administer programs for 

older persons; or 

 (2) A separate organizational unit within a multi-purpose agency 

which functions only for purposes of serving as the area agency on 

aging. Where the State agency on aging designates, as an area agency on 

17
aging, a separate organizational unit of a multipurpose agency which has 

been serving as an area agency, the State agency action shall not be 

subject to section 305(b)(5)(B) of the Act. 

 (b) The area agency, once designated, is responsible for providing 

for adequate and qualified staff to perform all of the functions 

prescribed in this part. 

 (c) The designated area agency continues to function in that 

capacity until either: 

 (1) The area agency informs the State agency that it no longer 

wishes to carry out the responsibilities of an area agency; or 

 (2) The State agency withdraws the designation of the area agency as 

provided in Sec. 1321.35. 

 

Sec. 1321.57 Area agency advisory council. 

 

 (a) Functions of council. The area agency shall establish an 

advisory council. The council shall carry out advisory functions which 

further the area agency's mission of developing and coordinating 

community-based systems of services for all older persons in the 

planning and service area. The council shall advise the agency relative 

to: 

 (1) Developing and administering the area plan; 

 (2) Conducting public hearings; 

 (3) Representing the interest of older persons; and 

 (4) Reviewing and commenting on all community policies, programs and 

actions which affect older persons with the intent of assuring maximum 

coordination and responsiveness to older persons. 

 (b) Composition of council. The council shall include individuals 

and representatives of community organizations who will help to enhance 

the leadership role of the area agency in developing community-based 

systems of services. The advisory council shall be made up of: 

 (1) More than 50 percent older persons, including minority 

individuals who are participants or who are eligible to participate in 

programs under this part; 

 (2) Representatives of older persons; 

 (3) Representatives of health care provider organizations, including 

providers of veterans' health care (if appropriate); 

 (4) Representatives of supportive services providers organizations; 

 (5) Persons with leadership experience in the private and voluntary 

sectors; 

 (6) Local elected officials; and 

 (7) The general public. 

 (c) Review by advisory council. The area agency shall submit the 

area plan and amendments for review and comment to the advisory council 

before it is transmitted to the State agency for approval. 

 

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Sec. 1321.59 Submission of an area plan and plan amendments to the 

 State for approval. 

 

 The area agency shall submit the area plan and amendments to the 

State agency for approval following procedures specified by the State 

agency in the State policies prescribed by Sec. 1321.11. 

 

Sec. 1321.61 Advocacy responsibilities of the area agency. 

 

 (a) The area agency shall serve as the public advocate for the 

development or enhancement of comprehensive and coordinated communitybased systems of services in each community throughout the planning and 

service area. 

 (b) In carrying out this responsibility, the area agency shall: 

 (1) Monitor, evaluate, and, where appropriate, comment on all 

policies, programs, hearings, levies, and community actions which affect 

older persons; 

 (2) Solicit comments from the public on the needs of older persons; 

 (3) Represent the interests of older persons to local level and 

executive branch officials, public and private agencies or 

organizations; 

 (4) Consult with and support the State's long-term care ombudsman 

program; and 

 (5) Undertake on a regular basis activities designed to facilitate 

the coordination of plans and activities with all other public and 

private organizations, including units of general purpose local 

government, with responsibilities affecting older persons in the 

planning and service area to promote new or expanded benefits and 

opportunities for older persons; and 

 (c) Each area agency on aging shall undertake a leadership role in 

assisting communities throughout the planning and service area to target 

resources from all appropriate sources to meet the needs of older 

persons with greatest economic or social need, with particular attention 

to low income minority individuals. Such activities may include location 

of services and specialization in the types of services must needed by 

these groups to meet this requirement. However, the area agency may not 

permit a grantee or contractor under this part to employ a means test 

for services funded under this part. 

 (d) No requirement in this section shall be deemed to supersede a 

prohibition contained in the Federal appropriation on the use of Federal 

funds to lobby the Congress; or the lobbying provision applicable to 

private nonprofit agencies and organizations contained in OMB Circular 

A-122. 

 

 

19
 

 Subpart D--Service Requirements 

 

Sec. 1321.63 Purpose of services allotments under Title III. 

 

 (a) Title III of the Older Americans Act authorizes the distribution 

of Federal funds to the State agency on aging by formula for the 

following categories of services: 

 (1) Supportive services; 

 (2) Congregate meals services; 

 (3) Home delivered meals services; 

 (4) In-home services; 

 (5) Ombudsman services; 

 (6) Special needs services; 

 (7) Elder abuse services; 

 (8) Preventive health services; and 

 (9) Outreach services. 

 

Funds authorized under these categories are for the purpose of assisting 

the State and its area agencies to develop or enhance for older persons 

comprehensive and coordinated community based systems as described in 

Sec. 1321.53(b) throughout the State. 

 (b) Except for ombudsman services, State agencies on aging will 

award the funds made available under paragraph (a) of this section to 

designated area agencies on aging according to the formula determined by 

the State agency. Except where a waiver is granted by the State agency, 

area agencies shall award these funds by grant or contract to community 

services provider agencies and organizations. All funds awarded to area 

agencies under this part are for the purpose of assisting area agencies 

to develop or enhance comprehensive and coordinated community based 

systems for older persons in, or serving, communities throughout the planning 

and service area. 

 

Sec. 1321.65 Responsibilities of service providers under area plans. 

 

 As a condition for receipt of funds under this part, each area 

agency on aging shall assure that providers of services shall: 

 (a) Provide the area agency, in a timely manner, with statistical 

and other information which the area agency requires in order to meet 

its planning, coordination, evaluation and reporting requirements 

established by the State under Sec. 1321.13; 

 (b) Specify how the provider intends to satisfy the service needs of 

low-income minority individuals in the area served, including attempting 

to provide services to low-income minority individuals at least in 

proportion to the number of low-income minority older persons in the 

population serviced by the provider; 

20
 (c) Provide recipients with an opportunity to contribute to the cost 

of the service as provided in Sec. 1321.67; 

 (d) With the consent of the older person, or his or her 

representative, bring to the attention of appropriate officials for 

follow-up, conditions or circumstances which place the older person, or 

the household of the older person, in imminent danger; 

 (e) Where feasible and appropriate, make arrangements for the 

availability of services to older persons in weather related 

emergencies; 

 (f) Assist participants in taking advantage of benefits under other 

programs; and 

 (g) Assure that all services funded under this part are coordinated 

with other appropriate services in the community, and that these 

services do not constitute an unnecessary duplication of services 

provided by other sources. 

 

Sec. 1321.67 Service contributions. 

 

 (a) For services rendered with funding under the Older Americans 

Act, the area agency on aging shall assure that each service provider 

shall: 

 (1) Provide each older person with an opportunity to voluntarily 

contribute to the cost of the service; 

 (2) Protect the privacy of each older person with respect to his or 

her contributions; and 

 (3) Establish appropriate procedures to safeguard and account for 

all contributions. 

 (b) Each service provider shall use supportive services and 

nutrition services contributions to expand supportive services and 

nutrition services respectively. To that end, the State agency shall: 

 (1) Permit service providers to follow either the addition 

alternative or the cost sharing alternatives as stated in 45 CFR 

92.25(g) (2) and (3); or 

 (2) A combination of the two alternatives. 

 (c) Each service provider under the Older Americans Act may develop 

a suggested contribution schedule for services provided under this part. 

In developing a contribution schedule, the provider shall consider the 

income ranges of older persons in the community and the provider's other 

sources of income. However, means tests may not be used for any service 

supported with funds under this part. State agencies, in developing 

State eligibility criteria for in-home services under section 343 of the 

Act, may not include a means test as an eligibility criterion. 

 (d) A service provider that receives funds under this part may not 

deny any older person a service because the older person will not or 

cannot contribute to the cost of the service. 

 

21
Sec. 1321.69 Service priority for frail, homebound or isolated elderly. 

 

 (a) Persons age 60 or over who are frail, homebound by reason of 

illness or incapacitating disability, or otherwise isolated, shall be 

given priority in the delivery of services under this part. 

 (b) The spouse of the older person, regardless of age or condition, 

may receive a home-delivered meal if, according to criteria determined 

by the area agency, receipt of the meal is in the best interest of the 

homebound older person. 

 

Sec. 1321.71 Legal assistance. 

 

 (a) The provisions and restrictions in this section apply only to 

legal assistance providers and only if they are providing legal 

assistance under section 307(a)(15) of the Act. 

 (b) Nothing in this section is intended to prohibit any attorney 

from providing any form of legal assistance to an eligible client, or to 

interfere with the fulfillment of any attorney's professional 

responsibilities to a client. 

 (c) The area agency shall award funds to the legal assistance 

provider(s) that most fully meet the standards in this subsection. The 

legal assistance provider(s) shall: 

 (1) Have staff with expertise in specific areas of law affecting 

older persons in economic or social need, for example, public benefits, 

institutionalization and alternatives to institutionalization; 

 (2) Demonstrate the capacity to provide effective administrative and 

judicial representation in the areas of law affecting older persons with 

economic or social need; 

 (3) Demonstrate the capacity to provide support to other advocacy 

efforts, for example, the long-term care ombudsman program; 

 (4) Demonstrate the capacity to provide legal services to 

institutionalized, isolated, and homebound older individuals 

effectively; and 

 (5) Demonstrate the capacity to provide legal assistance in the 

principal language spoken by clients in areas where a significant number 

of clients do not speak English as their principal language. 

 (d) A legal assistance provider may not require an older person to 

disclose information about income or resources as a condition for 

providing legal assistance under this part. 

 (e) A legal assistance provider may ask about the person's financial 

circumstances as a part of the process of providing legal advice, 

counseling and representation, or for the purpose of identifying 

additional resources and benefits for which an older person may be 

eligible. 

 (f) A legal assistance provider and its attorneys may engage in 

other legal activities to the extent that there is no conflict of 

22
interest nor other interference with their professional responsibilities 

under this Act. 

 (g) No provider shall use funds received under the Act to provide 

legal assistance in a fee generating case unless other adequate 

representation is unavailable or there is an emergency requiring 

immediate legal action. All providers shall establish procedures for the 

referral of fee generating cases. 

 (1) ``Fee generating case'' means any case or matter which, if 

undertaken on behalf of an eligible client by an attorney in private 

practice, reasonably may be expected to result in a fee for legal 

services from an award to a client, from public funds, or from the 

opposing party. 

 (2) Other adequate representation is deemed to be unavailable when: 

 (i) Recovery of damages is not the principal object of the client; or 

 (ii) A court appoints a provider or an employee of a provider 

pursuant to a statute or a court rule or practice of equal applicability 

to all attorneys in the jurisdiction; or 

 (iii) An eligible client is seeking benefits under title II of the 

Social Security Act, 42 U.S.C. 401, et seq., Federal Old Age, Survivors, 

and Disability Insurance Benefits; or title XVI of the Social Security 

Act, 42 U.S.C. 1381, et seq., Supplemental Security Income for Aged, 

Blind, and Disabled. 

 (3) A provider may seek and accept a fee awarded or approved by a 

court or administrative body, or included in a settlement. 

 (4) When a case or matter accepted in accordance with this section 

results in a recovery of damages, other than statutory benefits, a 

provider may accept reimbursement for out-of-pocket costs and expenses 

incurred in connection with the case or matter. 

 (h) A provider, employee of the provider, or staff attorney shall 

not engage in the following prohibited political activities: 

 (1) No provider or its employees shall contribute or make available 

Older Americans Act funds, personnel or equipment to any political party 

or association or to the campaign of any candidate for public or party 

office; or for use in advocating or opposing any ballot measure, 

initiative, or referendum; 

 (2) No provider or its employees shall intentionally identify the 

title III program or provider with any partisan or nonpartisan political 

activity, or with the campaign of any candidate for public or party 

office; 

 (3) While engaged in legal assistance activities supported under the 

Act, no attorney shall engage in any political activity; 

 (i) No funds made available under the Act shall be used for lobbying 

activities, including but not limited to any activities intended to 

influence any decision or activity by any non-judicial Federal, State or 

local individual or body. Nothing in this section is intended to 

prohibit an employee from: 

23
 (1) Communicating with a governmental agency for the purpose of 

obtaining information, clarification, or interpretation of the agency's 

rules, regulations, practices, or policies; 

 (2) Informing a client about a new or proposed statute, executive 

order, or administrative regulation; 

 (3) Responding to an individual client's request for advice only 

with respect to the client's own communications to officials unless 

otherwise prohibited by the Older Americans Act, title III regulations 

or other applicable law. This provision does not authorize publication 

of lobbying materials or training of clients on lobbying techniques or 

the composition of a communication for the client's use; or 

 (4) Making direct contact with the area agency for any purpose; 

 (5) Providing a client with administrative representation in 

adjudicatory or rulemaking proceedings or negotiations, directly 

affecting that client's legal rights in a particular case, claim or 

application; 

 (6) Communicating with an elected official for the sole purpose of 

bringing a client's legal problem to the attention of that official; or 

 (7) Responding to the request of a public official or body for 

testimony, legal advice or other statements on legislation or other 

issues related to aging; provided that no such action will be taken 

without first obtaining the written approval of the responsible area 

agency. 

 (j) While carrying out legal assistance activities and while using 

resources provided under the Act, no provider or its employees shall: 

 (1) Participate in any public demonstration, picketing, boycott, or 

strike, except as permitted by law in connection with the employee's own 

employment situation; 

 (2) Encourage, direct, or coerce others to engage in such 

activities; or 

 (3) At any time engage in or encourage others to engage in: 

 (i) Any illegal activity; or 

 (ii) Any intentional identification of programs funded under the Act 

or recipient with any political activity. 

 (k) None of the funds made available under the Act may be used to 

pay dues exceeding $100 per recipient per annum to any organization 

(other than a bar association), a purpose or function of which is to 

engage in activities prohibited under these regulations unless such dues 

are not used to engage in activities for which Older Americans Act funds 

cannot be used directly. 

 

Sec. 1321.73 Grant related income under Title III-C. 

 

 States and sub-grantees must require that their subgrantees' grant 

related income be used in either the matching or cost sharing 

alternative in 45 CFR 92.25(g)(2) or the additive alternative in 

24
Sec. 92.25(g)(3) or a combination of the two. The deductive alternative 

described in Sec. 92.25(g)(1) is not permitted. 

 

Sec. 1321.75 Licenses and safety. 

 

 The State shall ensure: 

 (a) That, in making awards for multipurpose senior center 

activities, the area agency will ensure that the facility complies with 

all applicable State and local health, fire, safety, building, zoning 

and sanitation laws, ordinances or codes; and 

 (b) The technical adequacy of any proposed alteration or renovation 

of a multipurpose senior center assisted under this part, by requiring 

that any alteration or renovation of a multipurpose senior center that 

affects the load bearing members of the facility is structurally sound 

and complies with all applicable local or State ordinances, laws, or 

building codes. 

 

 Subpart E--Hearing Procedures for State Agencies 

 

Sec. 1321.77 Scope. 

 

 (a) Hearing procedures for State plan disapproval, as provided for 

in section 307(c) and section 307(d) of the Act are subject to the 

previsions of 45 CFR part 213 with the following exceptions: 

 (1) Section 213.1(a); Sec. 213.32(d); and Sec. 213.33 do not apply. 

 (2) Reference to SRS Hearing Clerk shall be read to mean HHS Hearing 

Clerk. 

 (3) References to Administrator shall be read to mean Commissioner 

on Aging. 

 (b) Instead of the scope described in Sec. 213.1(a), this subpart 

governs the procedures and opportunity for a hearing on: 

 (1) Disapproval of a State plan or amendment: 

 (2) Determination that a State agency does not meet the requirements 

of this part: 

 (3) Determination that there is a failure in the provisions or the 

administration of an approved plan to comply substantially with Federal 

requirements, including failure to comply with any assurance required 

under the Act or under this part. 

 

Sec. 1321.79 When a decision is effective. 

 

 (a) The Commissioner's decision specifies the effective date for 

AoA's reduction and withholding of the State's grant. This effective 

date may not be earlier than the date of the Commissioner's decision or 

later than the first day of the next calendar quarter. 

 (b) The decision remains in effect unless reversed or stayed on 

25
26

judicial appeal, or until the agency or the plan is changed to meet all 

Federal requirements, except that the Commissioner may modify or set 

aside his or her decision before the record of the proceedings under 

this subpart is filed in court. 

 

Sec. 1321.81 How the State may appeal. 

 

 A State may appeal the final decision of the Commissioner 

disapproving the State plan or plan amendment, finding of noncompliance, 

or finding that a State agency does not meet the requirements of this 

part to the U.S. Court of Appeals for the circuit in which the State is 

located. The State shall file the appeal within 30 days of the 

Commissioner's final decision. 

 

Sec. 1321.83 How the Commissioner may re-allot the State's withheld 

 payments. 

 

 The Commissioner disburses funds withheld from the State directly to 

any public or nonprofit private organization or agency, or political 

subdivision of the State that has the authority and capacity to carry 

out the functions of the State agency and submits a State plan which 

meets the requirements of this part and which contains an agreement to 

meet the non-federal share requirements.