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evaluating results obtained by the project in-
volved against stated objectives. 
‘‘(5) NON-FEDERAL SHARE OF ADMINISTRATIVE 
COSTS.—To the extent practicable, an entity that 
carries out a project under this title shall provide for 
the payment of the expenses described in paragraph 
(4) from non-Federal sources. 
‘‘(6) USE OF FUNDS FOR WAGES AND BENE-
FITS AND PROGRAMMATIC ACTIVITY COSTS.—
‘‘(A) IN GENERAL.—Amounts made avail-
able for a project under this title that are not 
used to pay for the administrative costs shall be 
used to pay for the costs of programmatic ac-
tivities, including the costs of—
‘‘(i) participant wages, such benefits 
as are required by law (such as workers’ 
compensation or unemployment compensa-
tion), the costs of physical examinations, 
compensation for scheduled work hours 
during which an employer’s business is 
closed for a Federal holiday, and necessary 
sick leave that is not part of an accumu-
lated sick leave program, except that no 
amounts provided under this title may be 
used to pay the cost of pension benefits,
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annual leave, accumulated sick leave, or 
bonuses; 
‘‘(ii) participant training (including 
the payment of reasonable costs of instruc-
tors, classroom rental, training supplies, 
materials, equipment, and tuition), which 
may be provided prior to or subsequent to 
placement and which may be provided on 
the job, in a classroom setting, or pursuant 
to other appropriate arrangements; 
‘‘(iii) job placement assistance, includ-
ing job development and job search assist-
ance; 
‘‘(iv) participant supportive services to 
enable a participant to successfully partici-
pate in a project under this title, which 
may include the payment of reasonable 
costs of transportation, health and medical 
services, special job-related or personal 
counseling, incidentals (such as work 
shoes, badges, uniforms, eyeglasses, and 
tools), child and adult care, temporary 
shelter, and follow-up services; and 
‘‘(v) outreach, recruitment and selec-
tion, intake, orientation, and assessments.
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‘‘(B) USE
OF
FUNDS
FOR
WAGES
AND 
BENEFITS.—From the funds made available 
through a grant made under subsection (b), a 
grantee under this title—
‘‘(i) except as provided in clause (ii), 
shall use not less than 75 percent of the 
grant funds to pay the wages, benefits, and 
other costs described in subparagraph 
(A)(i) for eligible individuals who are em-
ployed under projects carried out under 
this title; or 
‘‘(ii) that obtains approval for a re-
quest described in subparagraph (C) may 
use not less than 65 percent of the grant 
funds to pay the wages, benefits, and other 
costs described in subparagraph (A)(i). 
‘‘(C) 
REQUEST
TO
USE
ADDITIONAL 
FUNDS FOR PROGRAMMATIC ACTIVITY COSTS.—
‘‘(i) IN
GENERAL.—A grantee may 
submit to the Secretary a request for ap-
proval—
‘‘(I) to use not less than 65 per-
cent of the grant funds to pay the 
wages, benefits, and other costs de-
scribed in subparagraph (A)(i);
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‘‘(II) to use the percentage of 
grant funds described in paragraph 
(3) to pay for administrative costs, as 
specified in that paragraph; 
‘‘(III) to use not more than 10 
percent of the grant funds for indi-
vidual participants to provide activi-
ties described in clauses (ii) and (iv) 
of subparagraph (A), in which case 
the grantee shall provide (from the 
funds described in this subclause) the 
subsistence allowance described in 
subsection (b)(1)(I) for those indi-
vidual participants who are receiving 
training described in that subsection 
from the funds described in this sub-
clause, but may not use the funds de-
scribed in this subclause to pay for 
any administrative costs; and 
‘‘(IV) to use the remaining grant 
funds to provide activities described in 
clauses (ii) through (v) of subpara-
graph (A).
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‘‘(ii) CONTENTS.—In submitting the 
request the grantee shall include in the re-
quest—
‘‘(I) a description of the activities 
for which the grantee will spend the 
grant funds described in subclauses 
(III) and (IV) of clause (i), consistent 
with those subclauses; 
‘‘(II) an explanation documenting 
how the provision of such activities 
will improve the effectiveness of the 
project, including an explanation con-
cerning whether any displacement of 
eligible individuals or elimination of 
positions for such individuals will 
occur, information on the number of 
such individuals to be displaced and of 
such positions to be eliminated, and 
an explanation concerning how the ac-
tivities will improve employment out-
comes for individuals served, based on 
the assessment conducted under sub-
section (b)(1)(N); and 
‘‘(III) a proposed budget and 
work plan for the activities, including
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a detailed description of the funds to 
be spent on the activities described in 
subclauses (III) and (IV) of clause (i). 
‘‘(iii) SUBMISSION.—The grantee shall 
submit a request described in clause (i) not 
later than 90 days before the proposed 
date of implementation contained in the re-
quest. Not later than 30 days before the 
proposed date of implementation, the Sec-
retary shall approve, approve as modified, 
or reject the request, on the basis of the 
information included in the request as de-
scribed in clause (ii). 
‘‘(D) REPORT.—Each grantee under sub-
section (b) shall annually prepare and submit to 
the Secretary a report documenting the grant-
ee’s use of funds for activities described in 
clauses (i) through (v) of subparagraph (A). 
‘‘(d) PROJECT DESCRIPTION.—Whenever a grantee 
conducts a project within a planning and service area in 
a State, such grantee shall conduct such project in con-
sultation with the area agency on aging of the planning 
and service area and shall submit to the State agency and 
the area agency on aging a description of such project to 
be conducted in the State, including the location of the
130
project, 90 days prior to undertaking the project, for re-
view and public comment according to guidelines the Sec-
retary shall issue to assure efficient and effective coordina-
tion of projects under this title. 
‘‘(e) PILOT, DEMONSTRATION, AND EVALUATION 
PROJECTS.—
‘‘(1) IN GENERAL.—The Secretary, in addition 
to exercising any other authority contained in this 
title, shall use funds reserved under section 
506(a)(1) to carry out demonstration projects, pilot 
projects, and evaluation projects, for the purpose of 
developing and implementing techniques and ap-
proaches, and demonstrating the effectiveness of the 
techniques and approaches, in addressing the em-
ployment and training needs of eligible individuals. 
The Secretary shall enter into such agreements with 
States, public agencies, nonprofit private organiza-
tions, or private business concerns, as may be nec-
essary, to conduct the projects authorized by this 
subsection. To the extent practicable, the Secretary 
shall provide an opportunity, prior to the develop-
ment of a demonstration or pilot project, for the ap-
propriate area agency on aging to submit comments 
on such a project in order to ensure coordination of 
activities under this title.
131
‘‘(2) PROJECTS.—Such projects may include—
‘‘(A) activities linking businesses and eligi-
ble individuals, including activities providing as-
sistance to participants transitioning from sub-
sidized activities to private sector employment; 
‘‘(B) demonstration projects and pilot 
projects designed to—
‘‘(i) attract more eligible individuals 
into the labor force; 
‘‘(ii) improve the provision of services 
to eligible individuals under one-stop deliv-
ery systems established under title I of the 
Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.); 
‘‘(iii) enhance the technological skills 
of eligible individuals; and 
‘‘(iv) provide incentives to grantees 
under this title for exemplary performance 
and incentives to businesses to promote 
their participation in the program under 
this title; 
‘‘(C) demonstration projects and pilot 
projects, as described in subparagraph (B), for 
workers who are older individuals (but targeted 
to eligible individuals) only if such demonstra-
132
tion projects and pilot projects are designed to 
assist in developing and implementing tech-
niques and approaches in addressing the em-
ployment and training needs of eligible individ-
uals; 
‘‘(D) provision of training and technical 
assistance to support any project funded under 
this title; 
‘‘(E) dissemination of best practices relat-
ing to employment of eligible individuals; and 
‘‘(F) evaluation of the activities authorized 
under this title. 
‘‘(3) CONSULTATION.—To the extent prac-
ticable, entities carrying out projects under this sub-
section shall consult with appropriate area agencies 
on aging and with other appropriate agencies and 
entities to promote coordination of activities under 
this title. 
‘‘SEC. 503. ADMINISTRATION. 
‘‘(a) STATE PLAN.—
‘‘(1) GOVERNOR.—For a State to be eligible to 
receive an allotment under section 506, the Governor 
of the State shall submit to the Secretary for consid-
eration and approval, a single State plan (referred to 
in this title as the ‘State plan’) that outlines a 4-
133
year strategy for the statewide provision of commu-
nity service employment and other authorized activi-
ties for eligible individuals under this title. The plan 
shall contain such provisions as the Secretary may 
require, consistent with this title, including a de-
scription of the process used to ensure the participa-
tion of individuals described in paragraph (2). Not 
less often than every 2 years, the Governor shall re-
view the State plan and submit an update to the 
State plan to the Secretary for consideration and ap-
proval. 
‘‘(2) RECOMMENDATIONS.—In developing the 
State plan prior to its submission to the Secretary, 
the Governor shall seek the advice and recommenda-
tions of—
‘‘(A) individuals representing the State 
agency and the area agencies on aging in the 
State, and the State and local workforce invest-
ment boards established under title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 
2801 et seq.); 
‘‘(B) individuals representing public and 
nonprofit private agencies and organizations 
providing employment services, including each
134
grantee operating a project under this title in 
the State; and 
‘‘(C) individuals representing social service 
organizations providing services to older individ-
uals, grantees under title III of this Act, af-
fected communities, unemployed older individ-
uals, community-based organizations serving 
the needs of older individuals, business organi-
zations, and labor organizations. 
‘‘(3) COMMENTS.—Any State plan submitted by 
the Governor in accordance with paragraph (1) shall 
be accompanied by copies of public comments relat-
ing to the plan received pursuant to paragraph (7), 
and a summary of the comments. 
‘‘(4) PLAN PROVISIONS.—The State plan shall 
identify and address—
‘‘(A) the relationship that the number of 
eligible individuals in each area bears to the 
total number of eligible individuals, respectively, 
in the State; 
‘‘(B) the relative distribution of eligible in-
dividuals residing in rural and urban areas in 
the State; and 
‘‘(C) the relative distribution of—
135
‘‘(i) eligible individuals who are indi-
viduals with greatest economic need; 
‘‘(ii) eligible individuals who are mi-
nority individuals; 
‘‘(iii) eligible individuals who are lim-
ited English proficient; and 
‘‘(iv) eligible individuals who are indi-
viduals with greatest social need; 
‘‘(D) the current and projected employ-
ment opportunities in the State (such as by 
providing information available under section 
15 of the Wagner-Peyser Act (29 U.S.C. 49l–
2) by occupation), and the type of skills pos-
sessed by local eligible individuals; 
‘‘(E) the localities and populations for 
which projects of the type authorized by this 
title are most needed; and 
‘‘(F) plans for facilitating the coordination 
of activities of grantees in the State under this 
title with activities carried out in the State 
under title I of the Workforce Investment Act 
of 1998 (29 U.S.C. 2801 et seq.). 
‘‘(5) GOVERNOR’S RECOMMENDATIONS.—Before 
a proposal for a grant under this title for any fiscal 
year is submitted to the Secretary, the Governor of