‘‘(B) the relative distribution of eligible in-
dividuals residing in rural and urban areas in 
the State; and 
‘‘(C) the relative distribution of— 
‘‘(i) eligible individuals who are indi-
viduals with greatest economic need; 
‘‘(ii) eligible individuals who are mi-
nority individuals, including individuals 
who are limited English proficient; and 
‘‘(iii) eligible individuals who are indi-
viduals with greatest social need; 
‘‘(D) the current and projected employ-
ment opportunities in the State, by occupation, 
and the type of skills possessed by local eligible 
individuals; 
‘‘(E) the localities and populations for 
which projects of the type authorized by this 
title are most needed; and 
‘‘(F) plans for facilitating the coordination 
of activities of grantees in the State under this 
title with activities carried out in the State 
under title I of the Workforce Investment Act 
of 1998. 
‘‘(5) 
CHIEF
EXECUTIVE
OFFICER’S
REC-
OMMENDATIONS ON GRANT PROPOSALS.—Before a
proposal for a grant under this title for any fiscal 
year is submitted to the Secretary, the chief execu-
tive officer of each State in which projects are pro-
posed to be conducted under such grant shall be af-
forded a reasonable opportunity to submit rec-
ommendations to the Secretary— 
‘‘(A) regarding the anticipated effect of 
each such proposal upon the overall distribution 
of enrollment positions under this title in the 
State (including such distribution among urban 
and rural areas), taking into account the total 
number of positions to be provided by all grant-
ees in the State; 
‘‘(B) any recommendations for redistribu-
tion of positions to under served areas as va-
cancies occur in previously encumbered posi-
tions in other areas; and 
‘‘(C) in the case of any increase in funding 
that may be available for use in the State under 
this title for any fiscal year, any recommenda-
tions for distribution of newly available posi-
tions in excess of those available during the pre-
ceding year to underserved areas. 
‘‘(6) DISRUPTIONS.—In developing plans and 
considering recommendations under this subsection,
disruptions in the provision of services for current 
participants shall be avoided to the greatest possible 
extent. 
‘‘(7) DETERMINATION; REVIEW.— 
‘‘(A) DETERMINATION.—In order to effec-
tively carry out this title, each State shall make 
the State plan available for public comment. 
The Secretary, in consultation with the Assist-
ant Secretary, shall review the plan and make 
a written determination with findings and a de-
cision regarding the plan. 
‘‘(B) REVIEW.—The Secretary may review, 
on the Secretary’s own initiative or at the re-
quest of any public or private agency or organi-
zation or of any agency of the State, the dis-
tribution of projects and services under this 
title in the State including the distribution be-
tween urban and rural areas in the State. For 
each proposed reallocation of projects or serv-
ices in a State, the Secretary shall give notice 
and opportunity for public comment. 
‘‘(8) EXEMPTION.—The grantees that serve eli-
gible individuals who are older Indians with funds 
reserved under section 506(a)(3) may not be re-
quired to participate in the State planning processes
described in this section but will collaborate with the 
Secretary to develop a plan for projects and services 
to eligible individuals who are Indians. 
‘‘(b) COORDINATION WITH OTHER FEDERAL PRO-
GRAMS.— 
‘‘(1) The Secretary and the Assistant Secretary 
shall coordinate the program carried out under this 
title with programs carried out under other titles of 
this Act, to increase job opportunities available to 
older individuals. 
‘‘(2) The Secretary shall coordinate programs 
carried out under this title with the program carried 
out under the Workforce Investment Act of 1998, 
the Community Services Block Grant Act, the Reha-
bilitation Act of 1973, the Carl D. Perkins Voca-
tional and Technical Education Act of 1998 (20 
U.S.C. 2301 et seq.), the National and Community 
Service Act of 1990 (42 U.S.C. 12501 et seq.), and 
the Domestic Volunteer Service Act of 1973 (42 
U.S.C. 4950 et seq.). The Secretary shall coordinate 
the administration of this title with the administra-
tion of other titles of this Act by the Assistant Sec-
retary to increase the likelihood that eligible individ-
uals for whom employment opportunities under this 
title are available and who need services under such
titles receive such services. Funds appropriated to 
carry out this title may not be used to carry out any 
program under the Workforce Investment Act of 
1998, the Community Services Block Grant Act, the 
Rehabilitation Act of 1973, the Carl D. Perkins Vo-
cational and Technical Education Act of 1998, the 
National and Community Service Act of 1990, or 
the Domestic Volunteer Service Act of 1973. The 
preceding sentence shall not be construed to prohibit 
carrying out projects under this title jointly with 
programs, projects, or activities under any Act speci-
fied in such sentence, or from carrying out section 
512. 
‘‘(3) The Secretary shall distribute to grantees 
under this title, for distribution to program partici-
pants, and at no cost to grantees or participants, in-
formational materials developed and supplied by the 
Equal Employment Opportunity Commission and 
other appropriate Federal agencies that the Sec-
retary determines are designed to help participants 
identify age discrimination and to understand their 
rights under the Age Discrimination in Employment 
Act of 1967. 
‘‘(c) In carrying out this title, the Secretary may use, 
with their consent, the services, equipment, personnel, and
facilities of Federal and other agencies with or without 
reimbursement, and on a similar basis to cooperate with 
other public and private agencies and instrumentalities in 
the use of services, equipment, and facilities. 
‘‘(d) Payments under this title may be made in ad-
vance or by way of reimbursement and in such install-
ments as the Secretary may determine. 
‘‘(e) The Secretary shall not delegate any function of 
the Secretary under this title to any other Federal officer 
or entity. 
‘‘(f)(1) The Secretary shall monitor projects for 
which grants are made under this title to determine 
whether the grantees are complying with rules and regula-
tions issued to carry out this title (including the statewide 
planning, consultation, and coordination requirements of 
this title). 
‘‘(2) Each grantee that receives funds under this title 
shall comply with the applicable uniform cost principles 
and appropriate administrative requirements for grants 
and contracts that are applicable to the type of entity that 
receives funds, as issued as circulars or rules of the Office 
of Management and Budget. 
‘‘(3) Each grantee described in paragraph (2) shall 
prepare and submit a report in such manner and con-
taining such information as the Secretary may require re-
garding activities carried out under this title. 
‘‘(4) Each grantee described in paragraph (2) shall 
keep records that— 
‘‘(A) are sufficient to permit the preparation of 
reports required by this title; 
‘‘(B) are sufficient to permit the tracing of 
funds to a level of expenditure adequate to ensure 
that the funds have not been spent unlawfully; and 
‘‘(C) contain any other information that the 
Secretary determines to be appropriate. 
‘‘(g) The Secretary shall establish by rule and imple-
ment a process to evaluate, in accordance with section 
513, the performance of projects and services carried out 
under this title. The Secretary shall report to the Con-
gress, and make available to the public, the results of each 
such evaluation and shall use such evaluation to improve 
services delivered by, or the operation of, projects carried 
out under this title. 
‘‘SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES. 
‘‘(a) Eligible individuals who are participants in au-
thorized activities in any project funded under this title 
shall not be considered to be Federal employees as a result 
of such participation and shall not be subject to part III 
of title 5, United States Code.
‘‘(b) No grant, subgrant, contract or subcontract 
shall be entered into under this title with an entity who 
is, or whose employees are, under State law, exempted 
from operation of the State workers’ compensation law, 
generally applicable to employees unless the entity shall 
undertake to provide either through insurance by a recog-
nized carrier or by self-insurance, as authorized by State 
law, that the persons employed under the grant, contract, 
subgrant, or subcontract shall enjoy workers’ compensa-
tion coverage equal to that provided by law for covered 
employment. 
‘‘SEC. 505. INTERAGENCY COOPERATION. 
‘‘(a) The Secretary shall consult with and obtain the 
written views of the Assistant Secretary before issuing 
rules and before establishing general policy in the adminis-
tration of this title. 
‘‘(b) The Secretary shall consult and cooperate with 
the Director of the Office of Community Services, the Sec-
retary of Health and Human Services, and the heads of 
other Federal agencies that carry out related programs, 
in order to achieve optimal coordination with such other 
programs. In carrying out this section, the Secretary shall 
promote programs or projects of a similar nature. Each 
Federal agency shall cooperate with the Secretary in dis-
seminating information relating to the availability of as-
sistance under this title and in promoting the identifica-
tion and interests of individuals eligible for employment 
in projects assisted under this title. 
‘‘(c)(1) The Secretary shall promote and coordinate 
carrying out projects under this title jointly with pro-
grams, projects, or activities carried out under other Acts, 
especially activities provided under the Workforce Invest-
ment Act of 1998 (29 U.S.C. 2801 et seq.), including ac-
tivities provided through One-Stop delivery systems estab-
lished under section 134(c)) of such Act (29 U.S.C. 
2864(c)), that provide training and employment opportu-
nities to eligible individuals. 
‘‘(2) The Secretary shall consult with the Secretary 
of Education to promote and coordinate carrying out 
projects under this title jointly with workforce investment 
activities in which eligible individuals may participate that 
are carried out under the Carl D. Perkins Vocational and 
Technical Education Act of 1998. 
‘‘SEC. 506. DISTRIBUTION OF ASSISTANCE. 
‘‘(a) RESERVATIONS.— 
‘‘(1) RESERVATION
FOR
NATIONAL
ACTIVI-
TIES.—Of the funds appropriated to carry out this 
title for each fiscal year, the Secretary may first re-
serve up to 1.5 percent to carry out demonstration
projects, pilot projects, and evaluation projects 
under section 502(d). 
‘‘(2) RESERVATION FOR TERRITORIES.—Of the 
funds appropriated to carry out this title for each 
fiscal year, the Secretary shall reserve up to 0.75 
percent, of which— 
‘‘(A) Guam, American Samoa, and the 
United States Virgin Islands shall each receive 
30 percent of the funds so reserved; and 
‘‘(B) the Commonwealth of the Northern 
Mariana Islands shall receive 10 percent of the 
funds so reserved. 
‘‘(3) RESERVATION
FOR
ORGANIZATIONS.—Of 
the funds appropriated to carry out this title for 
each fiscal year, the Secretary shall reserve such 
amount as may be necessary to make national 
grants to public or nonprofit national Indian aging 
organizations with the ability to provide authorized 
activities for eligible individuals who are Indians and 
to national public or nonprofit Pacific Island and 
Asian American aging organizations with the ability 
to provide authorized activities for eligible individ-
uals who are Pacific Island and Asian Americans. 
‘‘(b) STATE ALLOTMENTS.—The allotment for each 
State shall be the sum of the amounts allotted for national
grants in such State under subsection (d) and for the 
grant to such State under subsection (e). 
‘‘(c) DIVISION BETWEEN NATIONAL GRANTS AND 
GRANTS TO STATES.—The funds appropriated to carry 
out this title for any fiscal year that remain after amounts 
are reserved under paragraphs (1), (2), and (3) of sub-
section (a), shall be divided by the Secretary between na-
tional grants and grants to States as follows: 
‘‘(1) RESERVATION
OF
FUNDS
FOR
FISCAL 
YEAR 2006 LEVEL OF ACTIVITIES.— 
‘‘(A) The Secretary shall reserve the 
amount of funds necessary to maintain the fis-
cal year 2006 level of activities supported by 
grantees that operate under this title under na-
tional grants from the Secretary, and the fiscal 
year 2006 level of activities supported by State 
grantees under this title, in proportion to their 
respective fiscal year 2006 levels of activities. 
‘‘(B) If in any fiscal year for which the 
funds appropriated to carry out this title are in-
sufficient to satisfy the requirement specified in 
subparagraph (A), then the amount described 
in subparagraph (A) shall be reduced propor-
tionally.
‘‘(2) FUNDING IN EXCESS OF FISCAL YEAR 2006 
LEVEL OF ACTIVITIES.— 
‘‘(A) UP TO $35,000,000.—The amount of 
funds remaining after the application of para-
graph (1), but not to exceed $35,000,000, shall 
be divided so that 75 percent shall be provided 
to State grantees and 25 percent shall be pro-
vided to grantees that operate under this title 
under national grants from the Secretary. 
‘‘(B) OVER
$35,000,000.—The amount of 
funds remaining (if any) after the application of 
subparagraph (A) shall be divided so that 50 
percent shall be provided to State grantees and 
50 percent shall be provided to grantees that 
operate under this title under national grants 
from the Secretary. 
‘‘(d) ALLOTMENTS FOR NATIONAL GRANTS.—From 
funds available under subsection (c) for national grants, 
the Secretary shall allot for public and nonprofit private 
agency and organization grantees that operate under this 
title under national grants from the Secretary in each 
State, an amount that bears the same ratio to such funds 
as the product of the number of individuals 55 years of 
age or older in the State and the allotment percentage of