‘‘SEC. 303. ELIGIBILITY OF STATES; ORGANIZATION.
‘‘(a) ELIGIBILITY OF STATES.—For a State to be eli-
gible 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, pri-
ority setting, and evaluation of all State activi-
ties related to carrying out chapters 2 and 3,
‘‘(D) serve as an effective and visible advo-
cate for older individuals by reviewing and com-
menting on all State plans, budgets, and poli-
cies that affect older individuals, and to provide
technical assistance to any agency, organiza-
tion, or association representing the needs of
older individuals, and
‘‘(E) except as provided in subsection (d),
divide the State into distinct planning and serv-
ice areas or designate the entire State as a sin-
gle 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 the views of—
‘‘(i) 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 (in-
cluding distribution in rural areas) of older
individuals in the State, and
‘‘(ii) the distribution among planning
and service areas of older individuals with
greatest economic need and older individ-
uals with greatest social need, with par-
ticular attention to low-income minority
older individuals, and
‘‘(D) provide an assurance that preference
will be given to providing services to older indi-
viduals with greatest economic need and older
individuals with greatest social need, with par-
ticular attention to low-income minority older
individuals, and include in the State plan a de-
scription of the methods the State will use to
carry out such preference.
‘‘(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 func-
tion only for the purpose of serving as an area agen-
cy on aging by the chief elected official of such unit,
‘‘(C) any office or agency designated by the ap-
propriate 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 organi-
zational unit within such agency, that is under the
supervision or direction for this purpose of the des-
ignated 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 serv-
ice 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 estab-
lished 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.—
‘‘(1) ESTABLISHMENT
OF
PROCEDURES.—A
State agency shall establish, after consultation with
area agencies on aging, procedures to provide due
process to affected parties, if the State agency initi-
ates an action or proceeding to change the designa-
tion of any designated planning and service area or
of any designated area agency on aging.
‘‘(2) REQUIREMENTS.—Such procedures shall
include—
‘‘(A) providing notice of an action or pro-
ceeding described in paragraph (1),
‘‘(B) documenting the need for the action
or proceeding,
‘‘(C) conducting a public hearing for the
action or proceeding,
‘‘(D) involving area agencies on aging,
service providers, and older individuals in the
action or proceeding, and
‘‘(E) allowing an appeal of the decision of
the State agency in the action or proceeding to
the Assistant Secretary.
‘‘(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 serv-
ice 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 adminis-
tered by public or nonprofit private agencies or organiza-
tions 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.—To be eligible for grants from its allot-
ment under section 302(a) for any fiscal year, each State
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 be based upon area plans developed by area
agencies on aging within the State designated under
section 303(a)(2)(A), and the State will prepare and
distribute a uniform format to be used by area agen-
cies on aging to submit to the State agency the area
plans developed under section 305.
‘‘(2) APPROVAL
OF
AREA
PLAN.—The plan
shall provide that each area agency on aging des-
ignated 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-de-
livered nutrition services and for congregate nutri-
tion services), multipurpose senior centers, and com-
munity service employment within the State in serv-
ing eligible populations (including older individuals
with greatest economic need and older individuals
with greatest social need, with particular attention
to low-income minority older individuals) and will
determine the extent to which existing public or pri-
vate programs meet such need. To conduct the eval-
uation, the State agency shall use the procedures
implemented under section 112(10).
‘‘(4) HEARINGS.—The plan shall provide that
the State agency will establish a grievance procedure
that will afford an opportunity for a hearing upon
request to any area 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.
‘‘(C) The plan shall provide assurances that the
State agency and each area agency on aging will—
‘‘(i) maintain the integrity and public pur-
pose 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
SERV-
ICES.—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 as-
sistance 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) Subparagraph (A) shall not apply with re-
spect to information and assistance services or to
outreach.
‘‘(C) Subparagraph (A) shall not apply with re-
spect to case management services provided by an
area agency on aging.
‘‘(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 in
accordance with subtitles B and D of title IV.
‘‘(9) LEGAL ASSISTANCE.—The plan shall con-
tain 
assurances 
that 
with 
respect 
to 
legal
assistance—
‘‘(A) that area agencies on aging—
‘‘(i) will enter into contracts with pro-
viders of legal assistance that can dem-
onstrate the experience or capacity to de-
liver legal assistance,
‘‘(ii) will attempt to involve the pri-
vate bar in legal assistance activities au-
thorized under this chapter, including
groups within the private bar furnishing
services to older individuals on a pro bono
and reduced fee basis, and
‘‘(iii) may provide, through the use of
qualified personnel, legal assistance related
to income, health care, long-term care, nu-
trition, housing, utilities, protective serv-
ices, guardianship, abuse neglect, and age
discrimination,
‘‘(B) the State agency will provide for the
coordination of the furnishing of legal assist-
ance to older individuals in the State, will pro-
vide advice and technical assistance in the pro-
vision of legal assistance to older individuals in
the State, and will support the furnishing of
training and technical assistance for legal as-
sistance for older individuals, and
‘‘(C) to the extent practicable, that legal
assistance furnished under the plan will be in
addition to any legal assistance for older indi-
viduals being furnished with funds from sources
other than this Act and that reasonable efforts
will be made to maintain existing levels of legal
assistance for older individuals.
‘‘(10) PREVENTION
AND
REMEDIATION
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 preven-
tion and remediation of elder abuse, neglect, and ex-
ploitation, the plan shall contain assurances that
such services will be provided in accordance with
subtitles C and D of title IV.
‘‘(11) OUTREACH.—The plan shall provide as-
surances that the State agency will require outreach
efforts that will—
‘‘(A) identify individuals eligible for assist-
ance under chapters 2 and 3, with special em-
phasis on—
‘‘(i) older individuals residing in rural
areas,
‘‘(ii) older individuals with greatest
economic need (with particular attention to
low-income minority older individuals) and
older individuals with greatest social need
(with particular attention to low-income
minority older individuals),
‘‘(iii) older individuals with severe dis-
abilities,
‘‘(iv) older individuals with limited
English-speaking ability, and
‘‘(v) older individuals with Alzheimer’s
disease or related disorders with neuro-
logical and organic brain dysfunction (and
the caregivers of such individuals), and
‘‘(B) inform the older individuals referred
to in clauses (i) through (v) of subparagraph
(A), and the caregivers of such individuals, of
the availability of such assistance.
‘‘(12) OLDER
INDIVIDUALS
WITH
DISABIL-
ITIES.—The plan shall provide, with respect to the
needs of older individuals with disabilities, assur-
ances that the State agency will coordinate planning,
identification, assessment of needs, and services for
older individuals with disabilities (with particular at-
tention to individuals with severe disabilities) with
the State agencies with responsibility for individuals
with disabilities (including severe disabilities).
‘‘(13) COORDINATION
OF
COMMUNITY-BASED
LONG-TERM CARE SERVICES.—The plan shall pro-
vide assurances that area agencies on aging will con-
duct efforts to facilitate the coordination of commu-
nity-based long-term care services, pursuant to sec-
tion 305(a)(5)(G), for older individuals who—
‘‘(A) reside at home and are at risk of in-
stitutionalization 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 facili-
ties, but who can return to their homes if com-
munity-based services are provided to them.
‘‘(14) PROHIBITION ON MISUSE OF FUNDS.—
The plan shall provide assurances that funds re-
ceived from allotments under section 302(a) will not
be used to pay any part of a cost (including an ad-
ministrative cost) incurred by the State or an area
agency on aging to carry out a contract or commer-
cial relationship that is not related to implementa-
tion of 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 activi-
ties, such as opportunities for older individuals
to serve as mentors or advisers in programs
that provide child care, youth day care, edu-
cational assistance, at-risk youth intervention,
juvenile delinquency treatment, and family sup-
port.
‘‘(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) VOLUNTARY CONTRIBUTIONS.—The plan
shall provide, after the State consults with area
agencies on aging and with service providers and
provides an opportunity for older individuals to sub-
mit comments to the State, that recipients of serv-
ices (excluding information and assistance services,
outreach, benefits counseling, case management
services, ombudsman services, and protective serv-
ices) under State plans or area plans will be given
an opportunity to voluntarily contribute to the cost
of such services.
‘‘(18) SOLICITATION OF VOLUNTARY CONTRIBU-
TIONS.—The plan shall provide that the State will
permit area agencies on aging to permit service pro-
viders to solicit for services provided under the plan
voluntary contributions that—
‘‘(A) are based on the ability of older indi-
viduals 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
SERV-
ICES.—(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 re-
quirements specified in section 332(2)(A), and
‘‘(ii) an area agency on aging will be per-
mitted 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.
‘‘(20) INFORMATION ON MEETING NEEDS.—The
plan shall contain information describing how the
State and area agencies on aging are meeting the
needs that older individuals have for outreach, case
management services, transportation services, infor-
mation and assistance services, in-home services, and
legal assistance.
‘‘(21) INFORMATION
RELATING
TO
RURAL
AREAS.—The plan shall, with respect to the fiscal
year preceding the fiscal year for which such plan is
prepared, describe the methods and difficulties in
providing services to older individuals who reside in
rural areas (in particular, problems regarding trans-
portation and the cost of providing services).
‘‘(22) SERVICES IN RURAL AREAS.—For each
fiscal year the plan shall identify, and take into con-
sideration for purposes of allocating funds to area
agencies on aging, the actual and projected addi-
tional costs for providing services under this title, in
particular the cost of providing access to such serv-
ices to older individuals residing in rural areas.
‘‘(23) COORDINATION OF SERVICES TO BLIND
OLDER INDIVIDUALS.—The plan shall provide, with
respect to blind older individuals, that the State
agency will coordinate services provided under this
Act with services provided under chapter 2 of title
VII of the Rehabilitation Act of 1973.
‘‘(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 As-
sistant Secretary shall not make a final determination dis-
approving 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 deter-
mination, a State dissatisfied with such final determina-
tion may appeal such final determination to the Secretary
for review. If the State timely appeals such final deter-
mination in accordance with subsection (e)(1), the Sec-
retary 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 sub-
section (e).
‘‘(B) For purposes of appellate review under subpara-
graph (A), a reference in subsection (e) to the Assistant
Secretary shall be deemed to be a reference to the Sec-
retary.
‘‘(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 Sec-
retary’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 com-
ply. Until the Assistant Secretary is so satisfied, no fur-
ther payments shall be made to the State from its allot-
ments 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 organi-
zation or agency or political subdivision of the State sub-
mitting an approved plan in accordance with the provi-
sions 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 Sec-
retary, or any officer designated by the Assistant Sec-
retary for such purpose. The Assistant Secretary there-
upon shall file in the court the record of the proceedings
on which the Assistant Secretary’s action is based, as pro-
vided 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 Sec-
retary or to set it aside, in whole or in part, temporarily
or permanently, but until the filing of the record, the As-
sistant 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 pro-
ceedings. Such new or modified findings of fact shall like-
wise 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 pro-
vided 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 ac-
tion.
‘‘(f) PRESERVATION OF ATTORNEY-CLIENT PRIVI-
LEGE.—Neither a State, nor a State agency, may require
any provider of legal assistance under this chapter to re-
veal any information that is protected by the attorney-cli-
ent privilege.
‘‘(g) LIMITATION ON EXPENDITURES.—
‘‘(1) LIMITATION.—Not more than 15 percent
of the allotment made under section 302(a) for a fis-
cal year and remaining after the application of sub-
section (c)(1), may be used to carry out the State
long-term care ombudsman program described in
subsection (a)(8) and legal assistance described in
subsection (a)(9), and to provide services for the
prevention of elder abuse, neglect, and exploitation
described in subsection (a)(10).
‘‘(2) WAIVER.—If the State demonstrates to
the satisfaction of the Assistant Secretary that the
amount available as a result of the application of
such paragraph is insufficient to satisfy the need for
services under the State long-term care ombudsman
program described in subsection (a)(8), the need for
legal assistance described in subsection (a)(9), and
the need for services to the prevent elder abuse, ne-
glect, and exploitation described in subsection
(a)(10), then the Assistant Secretary may grant a
waiver that permits the State to use an additional
5 percent of such allotment to satisfy such need.
‘‘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 fol-
lowing 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 nutri-
tion 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 con-
gregate nutrition services), and multipurpose
senior centers in such area (taking into consid-
eration, among other things, the number of
older individuals with low incomes residing in
such area (with particular attention to low-in-
come minority older individuals), the number of
older individuals who have greatest economic
need residing in such area, the number of older
individuals who have greatest social need resid-
ing in such area, the number of older individ-
uals residing on reservations in such area, the
number of older individuals who are Indians re-
siding 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 pro-
viders 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 participa-
tion in carrying out the plan.
‘‘(3) INFORMATION
AND
ASSISTANCE
SERV-
ICES.—The plan shall provide for the establishment
and maintenance of information and assistance serv-
ices to ensure that older individuals within the plan-
ning 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 neuro-
logical and organic brain dysfunction (and the care-
givers 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 pro-
viding services to older individuals with greatest eco-
nomic need (with particular attention to low-income
minority older individuals), older individuals with
greatest social need (with particular attention to
low-income minority older individuals), and to 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 assist-
ance under chapters 2 and 3, with special em-
phasis on—
‘‘(I) older individuals residing in rural
areas,
‘‘(II) older individuals with greatest
economic need (with particular attention to
low-income minority older individuals) and
older individuals with greatest social need
(with particular attention to low-income
minority older individuals),
‘‘(III) older individuals with severe
disabilities,
‘‘(IV) older individuals with limited
English-speaking ability, and
‘‘(V) 
older 
individuals 
with 
Alz-
heimer’s disease or related disorders with
neurological and organic brain dysfunction
(and the caregivers of such individuals),
and
‘‘(ii) inform the older individuals referred
to in subclauses (I) through (V) of clause (i),
and the caregivers of such individuals, of the
availability of such assistance.
‘‘(5) TECHNICAL
ASSISTANCE
AND
INFORMA-
TION; ADVOCACY; ADVISORY
COUNCIL.—The plan
shall provide that the area agency on aging will—
‘‘(A) furnish appropriate technical assist-
ance, and information in a timely manner, to
providers of supportive services, nutrition serv-
ices, or multipurpose senior centers in the plan-
ning and service area covered by the area plan,
‘‘(B) take into account in connection with
matters of general policy arising in the develop-
ment 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 com-
menting on all policies, programs, hearings, lev-
ies, and community actions that will affect older
individuals,
‘‘(D) establish an advisory council con-
sisting 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 administra-
tion of the plan and operations conducted under
the plan,
‘‘(E) facilitate the coordination of commu-
nity-based, long-term care services designed to
retain individuals in their homes, thereby defer-
ring 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 com-
munity-based long-term care services and work
to ensure community awareness of and involve-
ment in addressing the needs of residents of
long-term care facilities,
‘‘(G) coordinate services and activities car-
ried out under the area plan with—
‘‘(i) activities of community-based or-
ganizations 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 pro-
vided 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 pro-
grams carried out under parts A and C of title II
of the Domestic Volunteer Service Act of 1973 (42
U.S.C. 5000 et seq.).
‘‘(7) PREVENTION AND REMEDIATION OF THE
ABUSE, NEGLECT, OR EXPLOITATION OF OLDER IN-
DIVIDUALS.—If the area agency on aging elects to
provide a program to prevent and to remediate 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 con-
sistent 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, ne-
glect, and exploitation of older individuals,
‘‘(C) contain an assurance that the area
agency on aging—
‘‘(i) will establish procedures for re-
ceipt of reports of abuse, neglect, and ex-
ploitation of older individuals, and
‘‘(ii) upon receipt of a report of
known or suspected instances of elder
abuse, 
neglect, 
or 
exploitation, 
shall
promptly refer the reported matter to the
proper authorities for investigation and ac-
tion consistent with State law, and
100
‘‘(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 activi-
ties conform with—
‘‘(i) the responsibilities of the area
agency on aging, as set forth in this sub-
section, 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 EXPENDI-
TURES OF FUNDS.—The plan shall contain an assur-
ance that the area agency on aging will, on the re-
quest of the State and for the purpose of monitoring
compliance with this subtitle (including conducting
an audit), disclose all sources and expenditures of
101
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 re-
ceived from allotments under section 302(a) will not
be used to pay any part of a cost (including an ad-
ministrative cost) incurred by the area agency on
aging to carry out a contract or commercial relation-
ship that is not carried out to implement chapters
2 and 3.
‘‘(11) PROHIBITION
OF
PREFERENCE.—The
plan shall contain assurances that preference in re-
ceiving 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 serv-
ices provided through other Federal and State
programs,
102
‘‘(B) be coordinated with services described
in subparagraph (A),
‘‘(C) include 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—
‘‘(i) gives each older individual who
requests services under this title a state-
ment specifying that such individual has
the right to make an independent choice of
service providers, and
‘‘(ii) documents receipt by such indi-
vidual of such statement, and
‘‘(E) be provided by—
‘‘(i) a public agency,
‘‘(ii) a nonprofit private agency, or
‘‘(iii) directly by the area agency on
aging only if the area agency on aging is—
‘‘(I) engaged in providing under
a State program services substantially
similar to case management services,
or
103
‘‘(II) designated by the State
agency to provide case management
services directly.
‘‘(13) VOLUNTARY CONTRIBUTIONS.—The plan
shall contain assurances consistent with the State
plan provisions that satisfy the requirement specified
in section 304(a)(17), that service providers will—
‘‘(A) be required—
‘‘(i) to provide to all older individuals
an opportunity to voluntarily contribute to
the cost of services they receive under this
subtitle from such providers,
‘‘(ii) to protect the privacy of older in-
dividuals with respect to voluntary con-
tributions described in subparagraph (A),
‘‘(iii) to establish appropriate proce-
dures to safeguard and account for all
such contributions, and
‘‘(iv) to use such contributions attrib-
utable to supportive services or nutrition
services to increase supportive services or
nutrition services, respectively,
‘‘(B) be permitted—
‘‘(i) to develop a suggested voluntary
contribution schedule based on income cat-
104
egories of service recipients, taking into
consideration the income ranges of older
individuals in the community, and
‘‘(ii) to furnish written information to
each recipient about the extent of sup-
portive services and nutrition services pro-
vided to such recipient and the actual cost
of such services, and
‘‘(C) not be permitted—
‘‘(i) to use a means test for the pur-
pose of selecting older individuals to re-
ceive such services, or
‘‘(ii) to refuse to provide a service to
an older individual because such individual
will not or cannot contribute to the cost of
such service.
‘‘(14) OLDER
INDIVIDUALS
WITH
DISABIL-
ITIES.—The plan shall provide, with respect to the
needs of older individuals with disabilities, assur-
ances that the area agency on aging will coordinate
planning, identification, assessment of needs, and
services for older individuals with disabilities (with
particular attention to individuals with severe dis-
abilities) with the State agency.
105
‘‘(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 geo-
graphical 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 di-
rectory, and
‘‘(C) to the extent possible, in the classi-
fied section of the directory, under a subject
heading designated by the Assistant Secretary
by regulation.
‘‘(b) PRESERVATION OF ATTORNEY-CLIENT PRIVI-
LEGE.—An area agency on aging may not require any pro-
vider of legal assistance under this chapter to reveal any
information that is protected by the attorney-client privi-
lege.
‘‘(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
106
on aging a portion of the funds available under the allot-
ment 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, dur-
107
ing 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(e)(1) may be used
to make grants to States to pay such percentage as each
State agency determines, but not more than 75 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 serv-
ices, nutrition services (taking into consideration the
comparative need for home-delivered nutrition serv-
ices and for congregate nutrition services), multipur-
pose senior centers, and community service employ-
ment within the State, and dissemination of infor-
mation 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,
108
projects, and activities authorized by chapters 2 and
3, and
‘‘(E) and the carrying out of demonstration
projects of statewide significance relating to the ini-
tiation, 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 pur-
pose may be used by the State to supplement the amount
available under section 302(e)(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(e)(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
109
available for the administration of area plans under sec-
tion 302(e)(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 re-
ceived by a State attributable to funds appropriated under
subsections (a) and (b) of section 391, the State (after
consultation with area agencies on aging and with service
providers) may elect to transfer not more than 20 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)(i) If a State demonstrates in an application, to
the satisfaction of the Assistant Secretary, that funds re-
ceived by the State and attributable to funds appropriated
under subsections (a) and (b) of section 391, (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 re-
ceived for such fiscal year.
110
‘‘(ii) At a minimum, the application described in
clause (i) 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.
‘‘(C) Notwithstanding any other provision of this sub-
title, with respect to funds received by a State and attrib-
utable to funds appropriated under paragraph (1) or (2)
of section 391(b), the State may elect in its plan under
section 304 regarding chapter 3, to transfer not more than
50 percent of the funds so received between part I and
part II of such chapter, for use as the State considers ap-
propriate to meet the needs of the area served.
‘‘(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 para-
graph (1).
‘‘(3) The Assistant Secretary shall annually collect,
and include in the report required by section 117, data
regarding the transfers described in paragraph (1),
including—
‘‘(A) the amount of funds involved in the trans-
fers, analyzed by State, and
111
‘‘(B) in the case of transfers described in para-
graph (1), the effect of the transfers on the provi-
sion 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 adjust-
ments 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.
‘‘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 serv-
ices that are necessary for the general welfare of older in-
dividuals:
‘‘(1) Health (including mental health), edu-
cation and training, welfare, informational, rec-
reational, homemaker, counseling, or referral serv-
ices.
112
‘‘(2) Services designed to encourage and assist
older individuals to use the facilities and services
(including information and assistance services) avail-
able to them, including language translation services
to assist older individuals with limited-English
speaking ability to obtain services under this chap-
ter.
‘‘(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 con-
formity with minimum housing standards,
‘‘(B) to adapt homes to meet the needs of
older individuals with disabilities,
‘‘(C) to prevent unlawful entry into resi-
dences of older individuals, through the installa-
tion of security devices and through structural
modifications or alterations of such residences,
or
‘‘(D) to receive applications from older in-
dividuals 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.
113
‘‘(4) Services designed to assist older individ-
uals to avoid institutionalization, and services de-
signed to assist individuals in long-term care institu-
tions who are able to return to their communities,
including—
‘‘(A) client assessment services, and devel-
opment and coordination of community-based
services,
‘‘(B) in-home services for frail older indi-
viduals, 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 spe-
cial needs of caretakers, including caretakers
who provide in-home services to frail older indi-
viduals, and
‘‘(D) in-home and other community-based
services to assist older individuals to live inde-
pendently in a home environment, including
home health, homemaker, shopping, escort,
reader, and letter-writing services.
‘‘(5) Services designed to provide to older indi-
viduals information and counseling relating to mak-
ing choices offered under titles XVIII and XIX of
114
the Social Security Act (relating to Medicare and
Medicaid), and other health care plans.
‘‘(6) Services designed to provide to older indi-
viduals legal assistance and other counseling services
and assistance, including—
‘‘(A) tax counseling and assistance, finan-
cial counseling, and counseling regarding appro-
priate 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 chil-
dren with disabilities, of counseling to assist
such older individuals with permanency plan-
ning for such children.
‘‘(7) Services designed to enable older individ-
uals to attain and maintain physical and mental
well-being through programs of regular physical ac-
tivity.
115
‘‘(8) Activities designed to promote disease pre-
vention and health promotion.
‘‘(9) Services designed to provide, for older in-
dividuals, 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.
‘‘(10) Services of an ombudsman to receive, in-
vestigate, 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.
‘‘(11) 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.
‘‘(12) Services to encourage the employment of
older individuals, including job and second career
counseling and, where appropriate, job development,
referral, and placement.
‘‘(13) Services for the prevention of abuse, ne-
glect, or exploitation of older individuals.
‘‘(14) Crime prevention services and victim as-
sistance programs for older individuals.
116
‘‘(15) Health and nutrition education services,
including information concerning prevention, diag-
nosis, treatment, and rehabilitation of age-related
diseases and chronic disabling conditions.
‘‘(16) Services designed to enable mentally im-
paired older individuals to attain and maintain emo-
tional well-being and independent living through a
coordinated system of supportive services.
‘‘(17) Services designed to provide information
and training for individuals who are or may become
guardians or representative payees of older individ-
uals, including information on the powers and duties
of guardians and representative payees and on alter-
natives to guardianships.
‘‘(18) Services to encourage and facilitate reg-
ular interaction between school-age children and
older individuals, including visits in long-term care
facilities, multipurpose senior centers, and other set-
tings.
‘‘(19) Services to assist in the operation of mul-
tipurpose senior centers.
‘‘(20) Services that provide reasonable opportu-
nities for older individuals to participate on a vol-
untary basis in multigenerational activities.
117
‘‘(21) Transportation services to facilitate ac-
cess to the services authorized by this subsection to
be provided.
‘‘(22) Any other services.
‘‘CHAPTER 3—NUTRITION SERVICES
‘‘PART I—CONGREGATE NUTRITION SERVICES
‘‘SEC. 331. PROGRAM AUTHORIZED.
‘‘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—
‘‘(1) which, 5 or more days a week (except in
a rural area where such frequency is not feasible (as
defined by the Assistant Secretary by regulation)
and a lesser frequency is approved by the State
agency), provide at least one hot or other appro-
priate meal per day and any additional meals which
the recipient of a grant or contract under this sub-
part may elect to provide,
‘‘(2) which shall be provided in congregate set-
tings (including adult day care settings), and
‘‘(3) which may include nutrition education
services and other appropriate nutrition services for
older individuals.
118
‘‘PART II—HOME DELIVERED NUTRITION
SERVICES
‘‘SEC. 334. PROGRAM AUTHORIZED.
‘‘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 for older individuals which, 5 or more
days a week (except in a rural area where such frequency
is not feasible (as defined by the Assistant Secretary by
regulation) and a lesser frequency is approved by the State
agency), provide at least one home delivered hot, cold, fro-
zen, dried, canned, or supplemental foods (with a satisfac-
tory storage life) meal per day and any additional meals
which the recipient of a grant or contract under this sub-
part may elect to provide.
‘‘PART III—ADDITIONAL REQUIREMENTS
‘‘SEC. 337. NUTRITION.
‘‘A State that establishes and operates a nutrition
project under this chapter shall—
‘‘(1) solicit the advice of a dietitian or indi-
vidual with comparable expertise in the planning of
nutritional services, and
‘‘(2) ensure that the project—
‘‘(A) provides meals that—
119
‘‘(i) comply with the Dietary Guide-
lines for Americans, published by the Sec-
retary and the Secretary of Agriculture,
‘‘(ii) provide to each participating
older individual—
‘‘(I) a minimum of 331⁄3 percent
of the daily recommended dietary al-
lowances 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 662⁄3 percent
of the allowances if the project pro-
vides 2 meals per day, and
‘‘(III) 100 percent of the allow-
ances if the project provides 3 meals
per day, and
‘‘(iii) to the maximum extent prac-
ticable, 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,
120
‘‘(C) encourages providers to enter into
contracts that limit the amount of time meals
must spend in transit before they are con-
sumed,
‘‘(D) where feasible, encourages arrange-
ments 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 indi-
viduals’ residences as feasible,
‘‘(F) ensures that meal providers carry out
such project with the advice of dietitians (or in-
dividuals with comparable expertise), meal par-
ticipants, 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 op-
tion 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 disabil-
121
ities 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 individ-
uals with disabilities who are not older individ-
uals but who reside in housing facilities occu-
pied 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—DISASTER RELIEF
REIMBURSEMENTS
‘‘SEC. 341. DISASTER RELIEF REIMBURSEMENTS.
‘‘(a)(1) The Assistant Secretary may provide reim-
bursements to any State (or tribal organization that re-
ceives a grant under title II), upon application for such
reimbursement, for funds such State (or such tribal orga-
nization) makes available to area agencies on aging in
such State for the delivery of supportive services (and re-
lated supplies) during any major disaster declared by the
President in accordance with the Robert T. Stafford Relief
and Emergency Assistance Act.
122
‘‘(2) Total payments to all States (and tribal organi-
zations) under paragraph (1) in any fiscal year shall not
exceed .05 percent of the total amount appropriated and
available to carry out title III.
‘‘(3) If the Assistant Secretary decides, in the 5-day
period beginning on the date such disaster is declared by
the President, to provide an amount of reimbursement
under paragraph (1) to a State (or tribal organization),
then the Assistant Secretary shall provide not less than
75 percent of such amount to such State (or tribal organi-
zation) not later than 5 days after the date of such deci-
sion.
‘‘(b)(1) At the beginning of each fiscal year the As-
sistant Secretary shall set aside, for payment to States
(and tribal organizations) under subsection (a), an
amount equal to .05 percent of the total amount appro-
priated and available to carry out title III.
‘‘(2) Amounts set aside under paragraph (1) which
are not obligated by the end of the third quarter of any
fiscal year shall be made available to carry out title III.
‘‘(c) Nothing in this section shall be construed to pro-
hibit expenditures by States (or tribal organizations) for
disaster relief for older individuals in excess of amounts
reimbursable under this section, by using funds made
available to them under other sections of this Act or under
123
other provisions of Federal or State law, or from private
sources.
‘‘Subtitle 
B—Disease 
Prevention
and Health Promotion Services
Program Authorized
‘‘SEC. 351. PROGRAM AUTHORIZED.
‘‘(a) The Assistant Secretary shall carry out a pro-
gram for making grants to States under State plans ap-
proved under section 304 to provide disease prevention
and health promotion services and information at multi-
purpose senior centers, at congregate meal sites, through
home delivered meals programs, or at other appropriate
sites. In carrying out such program, the Assistant Sec-
retary shall consult with the Director of the Centers for
Disease Control and Prevention and the Director of the
National Institute on Aging.
‘‘(b) The Assistant Secretary shall, to the extent pos-
sible, ensure that services provided by other community
organizations and agencies are used to carry out the provi-
sions of this subtitle.
‘‘SEC. 352. DISTRIBUTION TO AREA AGENCIES ON AGING.
‘‘The State agency shall give priority, in carrying out
this subtitle, to areas of the State—
‘‘(1) which are medically underserved, and
124
‘‘(2) in which there is a large number of older
individuals who have the greatest economic need for
such services.
‘‘SEC. 353. DEFINITION.
‘‘As used in this subtitle, the term ‘disease prevention
and health promotion services’ means—
‘‘(1) health risk assessments,
‘‘(2) routine health screening,
‘‘(3) nutritional counseling and educational
services for individuals and their primary caregivers,
‘‘(4) health promotion programs,
‘‘(5) programs regarding physical fitness,
‘‘(6) home injury control services,
‘‘(7) screening for the prevention of depression,
coordination of community mental health services,
provision of educational activities, and referral to
psychiatric and psychological services,
‘‘(8) information and outreach services relating
to the prevention, diagnosis, and treatment of
osteoporosis,
‘‘(9) educational programs on the availability,
benefits, and appropriate use of preventive health
services covered under title XVIII of the Social Se-
curity Act (42 U.S.C. 1395 et seq.),
125
‘‘(10) medication management screening and
education to prevent incorrect medication and ad-
verse drug reactions,
‘‘(11) information concerning age-related dis-
eases and chronic disabling conditions,
‘‘(12) gerontological counseling, and
‘‘(13) counseling regarding social services and
followup health services based on any of the services
described in paragraphs (1) through (12),
but does not include services for which payment may be
made under title XVIII of the Social Security Act (42
U.S.C. 1395 et seq.).
‘‘Subtitle C—Family Caregiver
Programs
‘‘SEC. 361. PROGRAM AUTHORIZED.
‘‘(a) IN GENERAL.—The Assistant Secretary may
make grants to States under State plans approved under
section 304 for systems of support for families and other
individuals who provide family caregiving services to older
individuals.
‘‘(b) FAMILY CAREGIVER SERVICES.—A system of
support for which a grant made under subsection (a) may
be used shall provide—
126
‘‘(1) information to caregivers who provide fam-
ily caregiving services to older individuals, about
support services available to such caregivers,
‘‘(2) assistance to such caregivers in gaining ac-
cess to such services,
‘‘(3) individual counseling, organization of sup-
port groups, and training for such caregivers to help
families make decisions and solve problems relating
to their roles as caregivers who provide family
caregiving services to older individuals,
‘‘(4) respite care to enable such caregivers to be
temporarily relieved from their caretaking respon-
sibilities, and
‘‘(5) in-home services to complement family
caregiving services provided by such caregivers.
‘‘(c) ELIGIBILITY.—A grant made under subsection
(a) may be used only for a system of support—
‘‘(1) that provides for caregivers of older indi-
viduals any of the support specified in paragraphs
(1), (2), and (3) of subsection (b),
‘‘(2) that provides for caregivers of frail older
individuals any of the support specified in subsection
(b), and
‘‘(3) that gives priority for family caregiver sup-
port to older individuals and families with the great-
127
est social need and greatest economic need, with
particular attention to low-income older individuals.
‘‘(d) QUALITY STANDARDS AND ACCOUNTABILITY.—
‘‘(1) The State shall have in place mechanisms
designed to ensure the quality of services under this
subtitle.
‘‘(2) The State shall collect data and furnish
records at such time and in such form as the Assist-
ant Secretary may require by rule to enable the As-
sistant Secretary—
‘‘(A) to monitor—
‘‘(i) systems of support for which a
grant made under subsection (a) is used,
and
‘‘(ii) compliance with this subtitle, and
‘‘(B) to compare the effectiveness of such
systems.
‘‘(3) The State shall report to the Assistant
Secretary on the data and information required
under paragraph (2), including the services and ac-
tivities funded under this subtitle, and standards
and methods by which the quality of services shall
be assured.
‘‘(e) STATE OPTION FOR COST SHARING.—
128
‘‘(1) IN GENERAL.—A State may elect to re-
quire cost sharing under this subtitle for services de-
scribed in paragraphs (4) and (5) of subsection (b)
(and may elect to require or permit area agencies on
aging to require cost sharing by recipients of such
services under area plans), except that—
‘‘(A) individuals whose income does not ex-
ceed the poverty line shall be exempt from re-
quired cost-sharing, and
‘‘(B) cost-sharing rates for individuals
whose income exceeds the poverty line may be
established only on a sliding-fee scale based on
income and shall not be effective unless and
until approved under paragraph (2).
‘‘(2) ASSISTANT SECRETARY APPROVAL.—The
Assistant Secretary may approve cost-sharing rates
established in accordance with paragraph (1)(B).
‘‘(3) INCOME DETERMINATIONS.—For purposes
of this subtitle, the income of an older individual
shall be determined by self-declaration.
‘‘(4) INABILITY TO PAY COST.—An older indi-
vidual will not be denied a service under this subtitle
because of the inability of such individual to pay a
share of the cost of such service.
129
‘‘(f) COORDINATION WITH SERVICE PROVIDERS.—In
carrying out this subtitle, each area agency on aging shall
coordinate with other community agencies and voluntary
organizations that provide the types of services provided
by systems for which grants are made under subsection
(a).
‘‘(g) LIMITATION ON USE OF FUNDS.—
‘‘(1) USE
OF
GRANT.—A grant made under
subsection (a) may not be used to pay more than 75
percent of the cost of the system of support for
which such grant is made.
‘‘(2) MATCHING
FUNDS.—Not more than 75
percent of the cost of such system may be paid
funds from Federal sources and from funds received
from cost sharing in effect under subsection (e), in
the aggregate.
‘‘Subtitle D—Authorization of
Appropriations
‘‘SEC. 391. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) SUPPORTIVE SERVICES
AND MULTIPURPOSE
SENIOR CENTERS.—There are authorized to be appro-
priated to carry out chapter 2 of subtitle A $306,200,000
for fiscal year 2000 and such sums as may be necessary
for years fiscal 2001, 2002, 2003, and 2004.
‘‘(b) NUTRITION SERVICES.—
130
‘‘(1) CONGREGATE
NUTRITION
SERVICES.—
There are authorized to be appropriated to carry out
part I of chapter 3 of subtitle A $381,700,000 for
fiscal year 2000 and such sums as may be necessary
for fiscal years 2001, 2002, 2003, and 2004.
‘‘(2) HOME
DELIVERED
NUTRITION
SERV-
ICES.—There are authorized to be appropriated to
carry out part II of chapter 3 of subtitle A
$114,200,000 for fiscal year 2000 and such sums as
may be necessary for fiscal years 2001, 2002, 2003,
and 2004.
‘‘(c) DISEASE PREVENTION
AND HEALTH PRO-
MOTION SERVICES PROGRAM AUTHORIZED.—There are
authorized to be appropriated to carry out subtitle B
$16,400,000 for fiscal year 2000 and such sums as may
be necessary for fiscal years 2001, 2002, 2003, and 2004.
‘‘(d) FAMILY CAREGIVER SUPPORT PROGRAM.—
There is authorized to be appropriated to carry out sub-
title C—
‘‘(1) $100,000,000 for fiscal year 2000 if the
aggregate amount appropriated under subsections
(a) and (b) of this section for fiscal year 2000 is not
less than the aggregate amount appropriated under
subsections (a) and (b) of section 303 of the Older
Americans Act of 1965 for fiscal year 1999, and
131
‘‘(2) such sums as may be necessary for fiscal
years 2002, 2003, 2004, and 2005 if the aggregate
amount appropriated under subsections (a) and (b)
of this section for the particular fiscal year involved
is not less than the aggregate amount appropriated
under such subsections for the preceding fiscal year.
‘‘SEC. 392. ADDITIONAL FUNDS AVAILABLE FOR NUTRITION
SERVICES.
‘‘(a) FUNDS AVAILABLE.—In addition to the amount
appropriated under section 391(b), and to provide nutri-
tion services under subtitle A and title II for each of the
fiscal years 2000, 2001, 2002, 2003, and 2004, 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) ALLOTMENTS BASED ON MEALS SERVED.—
132
‘‘(1) IN GENERAL.—The Secretary shall allot
and pay, to each State agency with a plan approved
under this title for a fiscal year, and to each tribal
organization with an application approved under sec-
tion 202 for such fiscal year, an amount bearing the
same ratio to the total amount appropriated for such
fiscal year under subsection (e) as the number of
meals served in the State, under such plan approved
for the preceding fiscal year (or the number of meals
served by the tribal organization, under such appli-
cation approved for such preceding fiscal year),
bears to the total number of such meals served in
all States and by all tribal organizations under all
such plans and applications approved for such pre-
ceding fiscal year.
‘‘(2) CALCULATION OF ALLOTMENT FOR CER-
TAIN
TRIBAL
ORGANIZATIONS.—For purposes of
paragraph (1), in the case of a tribal organization
that has a plan approved under section 202 for a fis-
cal year but that did not receive assistance under
this section for the preceding fiscal year, the number
of meals served by the tribal organization in the pre-
ceding fiscal year shall be deemed to equal the num-
ber of meals that the Assistant Secretary estimates
133
will be served by the tribal organization in the cur-
rent 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 com-
modities 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
$150,000,000 for fiscal year 2000 and such sums as may
be necessary for fiscal years 2001, 2002, 2003, and 2004.
134
‘‘TITLE IV—STATE LONG-TERM
CARE 
OMBUDSMAN 
PRO-
GRAMS; SERVICES FOR THE
PREVENTION 
AND 
REMEDI-
ATION OF ELDER ABUSE, NE-
GLECT, AND EXPLOITATION
‘‘Subtitle A—Use of Additional
Allotments
‘‘SEC. 401. USE OF ALLOTMENTS.
‘‘Funds allotted under section 302(b) shall be made
available for a fiscal year to States that receive funds from
allotments made under section 302(a) for such fiscal year
and that agree to use funds received under this section—
‘‘(1) to carry out a State long-term care om-
budsman program that complies with the require-
ments of subtitles B and D,
‘‘(2) to provide, through the State agency and
in consultation with area agencies on aging, services
for the prevention and remediation of elder abuse,
neglect, and exploitation and that comply with the
requirements of subtitles C and D, or
‘‘(3) both to carry out the program described in
paragraph (1) and to provide the services described
in paragraph (2).
135
‘‘Subtitle B—State Long-Term Care
Ombudsman Program
‘‘SEC. 421. REQUIREMENTS APPLICABLE TO STATE LONG-
TERM CARE OMBUDSMAN PROGRAM.
‘‘To carry out a State long-term care ombudsman
program for which funds received from allotments made
under subsections (a) and (b) of section 302 may be used,
a State shall comply with all of the following:
‘‘(1) DUTIES.—The State agency shall provide
services—
‘‘(A) to identify, to investigate, and to re-
solve 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 deci-
sions 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 representa-
tive payees), of providers (or representa-
tives of providers) of long-term care serv-
ices, public agencies, or health and social
service agencies,
136
‘‘(B) provide services to assist such resi-
dents in protecting the health, safety, welfare,
and rights of such residents,
‘‘(C) inform such residents about means of
obtaining services provided by providers or
agencies described in subparagraph (A)(ii) or
services described in subparagraph (A),
‘‘(D) ensure that such residents have reg-
ular and timely access to the services provided
through the State long-term care ombudsman
program and that such residents and complain-
ants receive from program representatives of
the State agency timely responses to com-
plaints,
‘‘(E) represent the interests of such resi-
dents before governmental agencies and seek
administrative, legal, and other remedies to pro-
tect the health, safety, welfare, and rights of
the residents,
‘‘(F) provide administrative and technical
assistance to entities designated under para-
graph (6) to assist the entities in participating
in the program,
‘‘(G) analyze, comment on, and monitor
the development and implementation of Fed-
137
eral, State, and local laws, rules, and other gov-
ernmental 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,
‘‘(H) provide for training program rep-
resentatives of the State agency, and
‘‘(I) carry out such other activities as the
State agency determines to be appropriate.
‘‘(2) CONTRACTS
AND
ARRANGEMENTS.—(A)
Except as provided in subparagraph (B), the State
agency may carry out the State long-term care om-
budsman program, directly, or by contract or other
arrangement with any public agency or nonprofit
private organization.
‘‘(B) For purposes of subparagraph (A), the
State agency may not enter into a contract or other
arrangement with—
‘‘(i) an agency or organization that is re-
sponsible 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 individ-
uals.
138
‘‘(3) DESIGNATION OF LOCAL OMBUDSMAN EN-
TITIES
AND
REPRESENTATIVES.—(A) In carrying
out the duties specified in paragraph (1), the State
agency may designate an entity as a local ombuds-
man entity, and may designate an individual (includ-
ing an employee or volunteer) to represent the enti-
ty.
‘‘(B) An individual so designated may, in ac-
cordance with the policies and procedures estab-
lished 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 om-
budsman program and timely responses to com-
plaints and requests for assistance,
‘‘(iii) identify, investigate, and resolve com-
plaints 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 resi-
dents before government agencies and seek ad-
139
ministrative, legal, and other remedies to pro-
tect 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 ac-
tions,
‘‘(vii) support the development of resident
and family councils, and
‘‘(viii) carry out other activities that the
State agency determines to be appropriate.
‘‘(C)(i) The State agency shall establish policies
and procedures for monitoring local ombudsman en-
tities designated to carry out the duties specified in
paragraph (1).
‘‘(ii) If the entities are grantees, or the rep-
resentatives are employees, of area agencies on
aging, the State agency shall develop such policies
after consultation with such area agencies on aging.
Such policies shall provide for participation and
comment by such area agencies on aging and for
resolution of concerns with respect to case activity.
140
‘‘(iii) The State agency shall develop the poli-
cies and procedures in accordance with all provisions
of this subtitle regarding confidentiality and conflict
of interest.
‘‘(4) PROCEDURES
FOR
ACCESS.—The State
shall ensure, and shall establish procedures that en-
sure, that program representatives of the State
agency shall have—
‘‘(A) access to long-term care facilities and
residents,
‘‘(B)(i) appropriate access to review the
medical and social records of a resident, if the
program representative involved has the permis-
sion of the resident (or the legal representative
of the resident), or the resident is unable to
consent to the review and has no legal rep-
resentative, 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 ap-
proval of the State agency,
141
‘‘(C) 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
‘‘(D) access to and, on request, copies of
all licensing and certification records main-
tained by the State with respect to long-term
care facilities.
‘‘(5) 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.
‘‘(6) DISCLOSURE.—(A) The State agency shall
establish procedures for the disclosure by the State
agency or local ombudsman entities of files main-
tained by the State long-term care ombudsman pro-
gram, including records and data described in para-
graphs (4) and (5).
‘‘(B) The procedures described in subparagraph
(A) shall provide that, the files and records de-
scribed in subparagraph (A) may be disclosed only
at the discretion of the State agency. The proce-
dures described in subparagraph (A) shall prohibit
143
that carry out activities under the State long-term
care ombudsman program.
‘‘(9) LEGAL COUNSEL.—The State agency shall
ensure that—
‘‘(A)(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 resi-
dents 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 connec-
tion with the performance of the official duties
of the State agency or such a representative,
and
‘‘(B) the State agency pursues administra-
tive, legal, and other appropriate remedies on
behalf of such residents.
‘‘(10) LIABILITY.—The State shall ensure that
no program representative of the State agency will
144
be liable under State law for the good faith perform-
ance of official duties.
‘‘(11) NONINTERFERENCE.—The State shall—
‘‘(A) ensure that willful interference with
the State agency in the performance of the offi-
cial duties under the State long-term care om-
budsman program shall be unlawful,
‘‘(B) prohibit retaliation and reprisals by a
long-term care facility or other entity with re-
spect to any resident, employee, or other person
for filing a complaint with, providing informa-
tion to, or otherwise cooperating with any rep-
resentative of, the State agency, and
‘‘(C) provide for appropriate sanctions with
respect to such interference and such retaliation
and reprisals.
‘‘Subtitle C—Prevention and Reme-
diation of Elder Abuse, Neglect,
and Exploitation
‘‘SEC. 441. REQUIREMENTS APPLICABLE TO PROVIDING
SERVICES TO PREVENT AND TO REMEDIATE
ELDER 
ABUSE, 
NEGLECT, 
AND 
EXPLOI-
TATION.
‘‘To provide services to prevent and to remediate
elder abuse, neglect, and exploitation, for which funds re-
145
ceived from allotments made under sections 302(a) and
302(b) may be used, a State shall include in the State
plan required by section 304 all of the following:
‘‘(1) IMMUNITY.—An assurance that the State
has in effect laws relating to elder abuse, neglect,
and exploitation that include provisions for immu-
nity for persons who report, in good faith, instances
of elder abuse, neglect, and exploitation, from pros-
ecution under any State or local law arising out of
such reporting.
‘‘(2) TRAINING.—An assurance that individuals
who provide services to prevent and to remediate
elder abuse, neglect, and exploitation are trained to
effectively deal with such reported instances.
‘‘(3) PROHIBITION OF INVOLUNTARY PARTICI-
PATION.—An assurance that involuntary or coerced
participation in services provided under this subtitle
by alleged victims, abusers, or members of their
households will not be permitted.
‘‘(4) CONFLICT OF INTEREST.—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—
146
‘‘(A) unless all parties to such complaint
consent in writing to the release of such infor-
mation,
‘‘(B) unless the release of such information
is to a law enforcement agency, public protec-
tive service agency, licensing or certification
agency, ombudsman program, or protection or
advocacy system, or
‘‘(C) except upon court order.
‘‘(5) CONFLICTS WITH OTHER AGENCIES.—An
assurance that the State agency will make all rea-
sonable efforts to resolve any conflicts with other
public agencies with respect to confidentiality of the
information described in paragraph (4).
‘‘(6) COORDINATION.—An assurance that the
State agency will coordinate its services under this
subtitle 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 serv-
ices 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.
147
‘‘(7) PARTICIPATION IN DECISIONS.—An assur-
ance that older individuals participate in decisions
regarding their welfare.
‘‘(8) OTHER
ACTIVITIES.—A description of
other activities that the State agency determines to
be beneficial in the prevention and remediation of
abuse, neglect, or exploitation of older individuals
and intends to carry out under this subtitle.
‘‘SEC. 442. MANNER OF PROVIDING OF SERVICES.
‘‘The State agency may provide services under section
441 to prevent and to remediate elder abuse, neglect, and
exploitation either directly or through contracts or agree-
ments with public or nonprofit private agencies or organi-
zations, including—
‘‘(1) other State entities,
‘‘(2) area agencies on aging,
‘‘(3) political subdivisions of the State,
‘‘(4) institutions of higher education,
‘‘(5) tribal organizations and Alaska Native or-
ganizations, and
‘‘(6) nonprofit service providers or volunteer or-
ganizations.
148
‘‘Subtitle D—Administrative Provi-
sions; Authorizations of Appro-
priations
‘‘SEC. 491. TECHNICAL ASSISTANCE.
‘‘(a) OTHER AGENCIES.—In carrying out this title,
the Assistant Secretary may request the technical assist-
ance and cooperation of such Federal entities as may be
appropriate.
‘‘(b) ASSISTANT SECRETARY.—The Assistant Sec-
retary shall provide technical assistance and training (by
contract, grant, or otherwise) to individuals and entities
that administer activities carried out in accordance with
subtitle B or C.
‘‘SEC. 492. AUDITS.
‘‘(a) ACCESS.—The Assistant Secretary, the Comp-
troller General of the United States, and any duly author-
ized representative of the Assistant Secretary or the
Comptroller shall have access, for the purpose of con-
ducting an audit or examination, to any books, documents,
papers, and records that are pertinent to financial assist-
ance received to carry out subtitle B or C.
‘‘(b) LIMITATION.—In carrying out subtitles B and
C, State agencies and area agencies on aging shall not
request information or data from providers that is not per-
tinent to services furnished under such subtitles or to a
149
payment made for the services provided under such sub-
titles.
‘‘SEC. 493. AUTHORIZATIONS OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $12,400,000 for fiscal year 2000 and such sums
as may be necessary for fiscal years 2001, 2002, 2003,
and 2004.
‘‘TITLE V—COMMUNITY SERVICE
EMPLOYMENT 
FOR 
OLDER
AMERICANS
‘‘SEC. 501. SHORT TITLE.
‘‘This title may be cited as the ‘Older American Com-
munity Service Employment Act of 1999’.
‘‘SEC. 502. ALLOTMENT AND RESERVATION OF FUNDS FOR
COMMUNITY SERVICE EMPLOYMENT.
‘‘(a) ALLOTMENT OF FUNDS FOR FISCAL YEARS
2000–2004.—
‘‘(1) BASE ALLOTMENT.—The amount appro-
priated under section 506 for each of the fiscal years
2000 through 2 004 shall be allotted by the Sec-
retary of Labor with respect to the States as follows:
‘‘(A) For each of the fiscal years 2000,
2001, 2002, 2003, and 2004 such amount ap-
propriated for such fiscal year, to the extent
such amount does not exceed the aggregate
150
amount the Secretary reserved under section
506(a)(1)(A) of the Older Americans Act of
1965 to carry out title V of such Act for fiscal
year 1999, shall be allotted with respect to the
States proportionately based on the sum of the
respective shares of such aggregate amount ex-
pended in the States to carry out such title for
such fiscal year.
‘‘(B) If such amount appropriated for any
of such fiscal years exceeds such aggregate
amount, the excess amount shall be allotted in
accordance with paragraph (2).
‘‘(2) ALLOTMENTS
BASED
ON
AGE
AND
PER
CAPITA INCOME.—Each amount referred to in para-
graph (1)(B) shall be allotted as follows:
‘‘(A) Subject to subparagraph (B), with re-
spect to each State there 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.
‘‘(B) The amounts allotted under subpara-
graph (A) shall be reduced proportionately to
151
the extent necessary to increase other allot-
ments under such subparagraph to achieve the
following:
‘‘(i) With respect to each State there
shall be allotted 1⁄2 of 1 percent of the
amount appropriated for the fiscal year for
which the determination is made.
‘‘(ii) With respect to each of Guam,
American Samoa, the Virgin Islands of the
United States, and the Commonwealth of
the Northern Mariana Islands there shall
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.
‘‘(3) ALLOTMENT PERCENTAGE.—For purposes
of paragraph (2)(A)—
‘‘(A) except as provided in subparagraph
(B), 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 aggre-
gate per capita income of all the States, except
that the allotment percentage shall be not more
152
than 75 percent and not less than 331⁄3 per-
cent, and
‘‘(B) the allotment percentage for the Dis-
trict of Columbia, the Commonwealth of Puerto
Rico, Guam, American Samoa, the Virgin Is-
lands of the United States, and the Common-
wealth of the Northern Mariana Islands shall
be 75 percent.
‘‘(4) LIMITATION.—For purposes of paragraphs
(2)(B)(i) and (3)(A), the term ‘State’ does not in-
clude Guam, American Samoa, the Virgin Islands of
the United States, or Commonwealth of the North-
ern Mariana Islands.
‘‘(5) POPULATION
AND
PER
CAPITA
INCOME
DETERMINATIONS.—For purposes of this subsection,
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 Secretary on the
basis of the most satisfactory data available to the
Secretary.
‘‘(b) RESERVATION OF ALLOTTED FUNDS.—Subject
to subsection (c), the Secretary shall reserve funds allotted
under subsection (a) as follows:
Allotment with Respect to
the State for Fiscal Year:
Percent of Allotment Re-
served for Grants to Na-
tional Organizations to
Carry Out Projects in the
State:
Percent of Allot-
ment Reserved for
Grants to the State:
2000
73.4
26.6
2001
68.8
31.2
153
Allotment with Respect to
the State for Fiscal Year:
Percent of Allotment Re-
served for Grants to Na-
tional Organizations to
Carry Out Projects in the
State:
Percent of Allot-
ment Reserved for
Grants to the State:
2002
64.2
35.8
2003
59.6
40.4
2004
45.
‘‘(c) 
PENALTY
ADJUSTMENT
TO
RESERVED
AMOUNTS.—(1) If the recipient of a grant under section
503(a)(1) fails (directly or through the operation of
projects carried out under agreements made under section
503(b) by such recipient) in a fiscal year to comply with
the requirements of this title or fails to substantially meet
the applicable performance standards in effect under sec-
tion 503(h), then the Secretary may, in the discretion of
the Secretary, reduce the amount of the grant such recipi-
ent would receive under section 503(a)(1) in the suc-
ceeding fiscal year but for the operation of this subsection,
by an amount, based on the extent of the failure but not
to exceed 15 percent of such grant for such succeeding
fiscal year, and—
‘‘(A) if such recipient is a State, may make the
amount of the reduction in such grant available to
make grants under section 503(a)(1) to eligible or-
ganizations to carry out projects in such State, or
‘‘(B) if such recipient is an organization, may
make the amount of the reduction in such grant
available to make grants under section 503(a)(1)
to—
154
‘‘(i) the State in which such recipient car-
ried out the project that is the basis of the re-
duction, or
‘‘(ii) other eligible organizations to carry
out projects in the State referred to in clause
(i).
‘‘(2) If the recipient of a grant under section
503(a)(1) fails in 3 consecutive fiscal years (directly or
through the operation of projects carried out under agree-
ments made under section 503(b) by such recipient) to
comply with the requirements of this title or to substan-
tially meet the applicable performance standards in effect
under section 503(h), then the Secretary shall make the
applicable reduction described in paragraph (1) and may
make the amount of such reduction available to make
grants in accordance with subparagraphs (A) and (B) of
such paragraph.
‘‘(3) In making any reduction under paragraph (1)
or (2), the Secretary shall ensure, to the maximum extent
practicable, that older individuals who were employed im-
mediately before such reduction is made, in projects for
which the reduced grant will be used shall continue to be
employed in projects for which agreements are made under
section 503(b) for such succeeding fiscal year.
155
‘‘SEC. 503. OLDER AMERICAN COMMUNITY SERVICE EM-
PLOYMENT PROGRAM.
‘‘(a) AUTHORITY FOR PROGRAM.—(1) With funds re-
served under section 502(b), the Secretary shall make
grants to eligible States, and on a competitive basis taking
into account performance reports submitted under sub-
section (j) or other information relating to past perform-
ance similar to performance of the kind described in such
reports, to public and nonprofit private national organiza-
tions, for the purpose of providing to unemployed low-in-
come older individuals who have poor employment pros-
pects, employment opportunities in providing community
services.
‘‘(2)(A)(i) Subject to clause (ii), not less than 85 per-
cent of each grant made under paragraph (1), and not
less than 85 percent of the funds received by an entity
under each agreement made under subsection (b), shall
be used to pay wages and benefits for older individuals
who are employed under agreements made under sub-
section (b).
‘‘(ii) On the request of the recipient of such grant
and based on information submitted to the Secretary by
such applicant, the Secretary may waive the requirement
specified in clause (i) applicable to entities that make
agreements under subsection (b) with such applicant, so
as to permit such applicant to allow any of such entities
156
to use not more than 5 percent (in the aggregate) of the
funds received under their respective agreements—
‘‘(I) to provide employment-related counseling
to such individuals,
‘‘(II) to provide employment-related supportive
services to such individuals, and
‘‘(III) to pay employment-related transportation
costs,
if the Secretary determines that the use of additional
funds is necessary to carry out the activities described in
subclauses (I), (II), or (III).
‘‘(B)(i) Except as provided in clause (ii), not more
than 13.5 percent of such grant may be used to pay ad-
ministrative costs and costs incurred—
‘‘(I) to provide the training described in sub-
section (c)(2)(H), and
‘‘(II) to perform the assessment described in
subsection (c)(2)(L).
‘‘(ii) At the request of the recipient of a grant made
under paragraph (1) and based on information submitted
to the Secretary by such recipient, the Secretary may per-
mit such recipient to use a greater part of such grant,
but not more than 15 percent of such grant, to pay the
administrative costs described in clause (i) if the Secretary
determines that the use of such greater part to pay such
157
costs is necessary to carry out the projects with respect
to which such request is made.
‘‘(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 re-
ceive a grant under subsection (a), a State, or public or
private nonprofit national organization, shall submit to the
Secretary an application in such form and containing such
information as the Secretary may require by rule, includ-
ing an assurance that such grant will be used by the State
or the organization to carry out projects (excluding
projects involving the construction, operation, or mainte-
nance 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 the State or
the organization shall establish and the performance
standards in effect under subsection (i):
‘‘(1) Agreements may be made by the State or
the organization with—
‘‘(A) public or nonprofit private agencies
or organizations,
158
‘‘(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,
to pay the cost of providing part-time employment to
older individuals described in subsection (a).
‘‘(2) At the election of the State or the organi-
zation, not more than 5 percent of the grant re-
ceived under subsection (a) may be used to make
agreements with businesses (giving special consider-
ation 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 de-
scribed in subsection (a).
‘‘(c) REQUIREMENTS.—Subject to subsection (d), this
subsection shall apply to agreements made under sub-
section (b).
‘‘(1) Each such agreement shall be made 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):
159
‘‘(A) The ability of such entity to provide
community service employment and to satisfy
the requirements of this title.
‘‘(B) The ability to meet applicable speci-
fications and performance standards referred to
in subsection (b).
‘‘(C) The ability to provide employment-re-
lated supportive services to assist older individ-
uals described in subsection (a) to participate in
employment provided by the project.
‘‘(D) The effective use of funds to be re-
ceived under such agreement, to pay adminis-
trative costs of the project and to pay wages
and benefits for such individuals who are par-
ticipating in employment provided by the
project.
‘‘(2) Each such agreement shall provide that no
payment shall be made by the State, or by the public
or nonprofit private national organization toward the
cost of the project unless the State or the organiza-
tion determines that the project, and the entity that
carries out the project, will satisfy all of the fol-
lowing:
‘‘(A)(i) The entity that carries out the
project will use funds received under such
160
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 deter-
mining the amount of the non-Federal share,
the 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 sub-
section (a), except for necessary technical, ad-
ministrative, and supervisory personnel, but
such personnel shall, to the fullest extent pos-
sible, 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 commu-
nities.
‘‘(ii) If such agreement is made with a
tribal organization, the project will provide em-
161
ployment 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 or-
ganizations (other than political parties) de-
scribed in section 501(c)(3) of the Internal Rev-
enue Code of 1986 that are exempt from tax-
ation 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 employ-
ment opportunities over those opportuni-
ties that would otherwise be available,
‘‘(ii) not result in the displacement of
currently employed workers (including par-
tial 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