H. R. 6197—54
‘‘(3) REPORTS.—Each grantee described in paragraph (2) 
shall prepare and submit a report in such manner and con-
taining such information as the Secretary may require 
regarding activities carried out under this title. 
‘‘(4) RECORDS.—Each grantee described in paragraph (2) 
shall keep records that—
‘‘(A) are sufficient to permit the preparation of reports 
required by this title; 
‘‘(B) are sufficient to permit the tracing of funds to 
a level of expenditure adequate to ensure that the funds 
have not been spent unlawfully; and 
‘‘(C) contain any other information that the Secretary 
determines to be appropriate. 
‘‘(g) EVALUATIONS.—The Secretary shall establish by rule and 
implement a process to evaluate, in accordance with section 513, 
the performance of projects carried out and services provided under 
this title. The Secretary shall report to Congress, and make avail-
able to the public, the results of each such evaluation and shall 
use such evaluation to improve services delivered by, or the oper-
ation of, projects carried out under this title. 
‘‘SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES. 
‘‘(a) INAPPLICABILITY OF CERTAIN PROVISIONS COVERING FED-
ERAL EMPLOYEES.—Eligible individuals who are participants in any 
project funded under this title shall not be considered to be Federal 
employees as a result of such participation and shall not be subject 
to part III of title 5, United States Code. 
‘‘(b) WORKERS’ COMPENSATION.—No grant or subgrant shall 
be made and no contract or subcontract shall be entered into under 
this title with an entity who is, or whose employees are, under 
State law, exempted from operation of the State workers’ compensa-
tion law, generally applicable to employees, unless the entity shall 
undertake to provide either through insurance by a recognized 
carrier or by self-insurance, as authorized by State law, that the 
persons employed under the grant, subgrant, contract, or sub-
contract shall enjoy workers’ compensation coverage equal to that 
provided by law for covered employment. 
‘‘SEC. 505. INTERAGENCY COOPERATION. 
‘‘(a) CONSULTATION WITH THE ASSISTANT SECRETARY.—The Sec-
retary shall consult with and obtain the written views of the Assist-
ant Secretary before issuing rules and before establishing general 
policy in the administration of this title. 
‘‘(b) CONSULTATION WITH HEADS OF OTHER AGENCIES.—The 
Secretary shall consult and cooperate with the Secretary of Health 
and Human Services (acting through officers including the Director 
of the Office of Community Services), and the heads of other Federal 
agencies that carry out programs related to the program carried 
out under this title, in order to achieve optimal coordination of 
the program carried out under this title with such related programs. 
Each head of a Federal agency shall cooperate with the Secretary 
in disseminating information relating to the availability of assist-
ance under this title and in promoting the identification and 
interests of individuals eligible for employment in projects assisted 
under this title. 
‘‘(c) COORDINATION.—
‘‘(1) IN GENERAL.—The Secretary shall promote and coordi-
nate efforts to carry out projects under this title jointly with
H. R. 6197—55
programs, projects, or activities carried out under other Acts, 
especially activities provided under the Workforce Investment 
Act of 1998 (29 U.S.C. 2801 et seq.), including activities pro-
vided through one-stop delivery systems established under sec-
tion 134(c)) of such Act (29 U.S.C. 2864(c)), that provide training 
and employment opportunities to eligible individuals. 
‘‘(2) COORDINATION
WITH
CERTAIN
ACTIVITIES.—The Sec-
retary shall consult with the Secretary of Education to promote 
and coordinate efforts to carry out projects under this title 
jointly with activities in which eligible individuals may partici-
pate that are carried out under the Carl D. Perkins Career 
and Technical Education Act of 2006 (20 U.S.C. 2301 et seq.). 
‘‘SEC. 506. DISTRIBUTION OF ASSISTANCE. 
‘‘(a) RESERVATIONS.—
‘‘(1) RESERVATION FOR PILOT DEMONSTRATION AND EVALUA-
TION PROJECTS.—Of the funds appropriated to carry out this 
title for each fiscal year, the Secretary may first reserve not 
more than 1.5 percent to carry out demonstration projects, 
pilot projects, and evaluation projects under section 502(e). 
‘‘(2) RESERVATION FOR TERRITORIES.—Of the funds appro-
priated to carry out this title for each fiscal year, the Secretary 
shall reserve 0.75 percent, of which—
‘‘(A) Guam, American Samoa, and the United States 
Virgin Islands shall each receive 30 percent of the funds 
so reserved; and 
‘‘(B) the Commonwealth of the Northern Mariana 
Islands shall receive 10 percent of the funds so reserved. 
‘‘(3) RESERVATION FOR ORGANIZATIONS.—Of the funds appro-
priated to carry out this title for each fiscal year, the Secretary 
shall reserve such amount as may be necessary to make 
national grants to public or nonprofit national Indian aging 
organizations with the ability to provide community service 
employment and other authorized activities for eligible individ-
uals who are Indians and to national public or nonprofit Pacific 
Island and Asian American aging organizations with the ability 
to provide community service employment and other authorized 
activities for eligible individuals who are Pacific Island and 
Asian Americans. 
‘‘(b) STATE ALLOTMENTS.—The allotment for each State shall 
be the sum of the amounts allotted for national grants in such 
State under subsection (d) and for the grant to such State under 
subsection (e). 
‘‘(c) DIVISION BETWEEN NATIONAL GRANTS
AND GRANTS
TO 
STATES.—The funds appropriated to carry out this title for any 
fiscal year that remain after amounts are reserved under para-
graphs (1), (2), and (3) of subsection (a) shall be divided by the 
Secretary between national grants and grants to States as follows: 
‘‘(1) RESERVATION OF FUNDS FOR FISCAL YEAR 2000 LEVEL 
OF ACTIVITIES.—
‘‘(A) IN
GENERAL.—The Secretary shall reserve the 
amount of funds necessary to maintain the fiscal year 
2000 level of activities supported by grantees that operate 
under this title under national grants from the Secretary, 
and the fiscal year 2000 level of activities supported by 
State grantees under this title, in proportion to their 
respective fiscal year 2000 levels of activities.
H. R. 6197—56
‘‘(B) INSUFFICIENT
APPROPRIATIONS.—If in any fiscal 
year the funds appropriated to carry out this title are 
insufficient to satisfy the requirement specified in subpara-
graph (A), then the amount described in subparagraph 
(A) shall be reduced proportionally. 
‘‘(2) FUNDING IN EXCESS OF FISCAL YEAR 2000 LEVEL OF 
ACTIVITIES.—
‘‘(A) UP TO $35,000,000.—The amount of funds remaining 
(if any) after the application of paragraph (1), but not 
to exceed $35,000,000, shall be divided so that 75 percent 
shall be provided to State grantees and 25 percent shall 
be provided to grantees that operate under this title under 
national grants from the Secretary. 
‘‘(B) OVER $35,000,000.—The amount of funds remaining 
(if any) after the application of subparagraph (A) shall 
be divided so that 50 percent shall be provided to State 
grantees and 50 percent shall be provided to grantees 
that operate under this title under national grants from 
the Secretary. 
‘‘(d) ALLOTMENTS FOR NATIONAL GRANTS.—From funds avail-
able under subsection (c) for national grants, the Secretary shall 
allot for public and nonprofit private agency and organization 
grantees that operate under this title under national grants from 
the Secretary in each State, an amount that bears the same ratio 
to such funds as the product of the number of individuals age 
55 or older in the State and the allotment percentage of such 
State bears to the sum of the corresponding products for all States, 
except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be provided an 
amount under this subsection that is less than 1⁄2 of 1 percent 
of the amount provided under subsection (c) for public and 
nonprofit private agency and organization grantees that operate 
under this title under national grants from the Secretary in 
all of the States. 
‘‘(2) HOLD HARMLESS.—If such amount provided under sub-
section (c) is—
‘‘(A) equal to or less than the amount necessary to 
maintain the fiscal year 2000 level of activities, allotments 
for grantees that operate under this title under national 
grants from the Secretary in each State shall be propor-
tional to the amount necessary to maintain their fiscal 
year 2000 level of activities; or 
‘‘(B) greater than the amount necessary to maintain 
the fiscal year 2000 level of activities, no State shall be 
provided a percentage increase above the amount necessary 
to maintain the fiscal year 2000 level of activities for 
grantees that operate under this title under national grants 
from the Secretary in the State that is less than 30 percent 
of the percentage increase above the amount necessary 
to maintain the fiscal year 2000 level of activities for public 
and private nonprofit agency and organization grantees 
that operate under this title under national grants from 
the Secretary in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not affected by 
paragraphs (1) and (2)(B) shall be reduced proportionally to 
satisfy the conditions in such paragraphs.
H. R. 6197—57
‘‘(e) ALLOTMENTS FOR GRANTS TO STATES.—From the amount 
provided for grants to States under subsection (c), the Secretary 
shall allot for the State grantee in each State an amount that 
bears the same ratio to such amount as the product of the number 
of individuals age 55 or older in the State and the allotment 
percentage of such State bears to the sum of the corresponding 
products for all States, except as follows: 
‘‘(1) MINIMUM ALLOTMENT.—No State shall be provided an 
amount under this subsection that is less than 1⁄2 of 1 percent 
of the amount provided under subsection (c) for State grantees 
in all of the States. 
‘‘(2) HOLD HARMLESS.—If such amount provided under sub-
section (c) is—
‘‘(A) equal to or less than the amount necessary to 
maintain the fiscal year 2000 level of activities, allotments 
for State grantees in each State shall be proportional to 
the amount necessary to maintain their fiscal year 2000 
level of activities; or 
‘‘(B) greater than the amount necessary to maintain 
the fiscal year 2000 level of activities, no State shall be 
provided a percentage increase above the amount necessary 
to maintain the fiscal year 2000 level of activities for State 
grantees in the State that is less than 30 percent of the 
percentage increase above the amount necessary to main-
tain the fiscal year 2000 level of activities for State grantees 
in all of the States. 
‘‘(3) REDUCTION.—Allotments for States not affected by 
paragraphs (1) and (2)(B) shall be reduced proportionally to 
satisfy the conditions in such paragraphs. 
‘‘(f) ALLOTMENT PERCENTAGE.—For purposes of subsections (d) 
and (e) and this subsection—
‘‘(1) the allotment percentage of each State shall be 100 
percent less that percentage that bears the same ratio to 50 
percent as the per capita income of such State bears to the 
per capita income of the United States, except that—
‘‘(A) the allotment percentage shall be not more than 
75 percent and not less than 33 percent; and 
‘‘(B) the allotment percentage for the District of 
Columbia and the Commonwealth of Puerto Rico shall be 
75 percent; 
‘‘(2) the number of individuals age 55 or older in any 
State and in all States, and the per capita income in any 
State and in all States, shall be determined by the Secretary 
on the basis of the most satisfactory data available to the 
Secretary; and 
‘‘(3) for the purpose of determining the allotment percent-
age, the term ‘United States’ means the 50 States, and the 
District of Columbia. 
‘‘(g) DEFINITIONS.—In this section: 
‘‘(1) COST PER AUTHORIZED POSITION.—The term ‘cost per 
authorized position’ means the sum of—
‘‘(A) the hourly minimum wage rate specified in section 
6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 
206(a)(1)), multiplied by the number of hours equal to 
the product of 21 hours and 52 weeks;
H. R. 6197—58
‘‘(B) an amount equal to 11 percent of the amount 
specified under subparagraph (A), for the purpose of cov-
ering Federal payments for fringe benefits; and 
‘‘(C) an amount determined by the Secretary, for the 
purpose of covering Federal payments for the remainder 
of all other program and administrative costs. 
‘‘(2) FISCAL
YEAR
2000
LEVEL
OF
ACTIVITIES.—The term 
‘fiscal year 2000 level of activities’ means—
‘‘(A) with respect to public and nonprofit private agency 
and organization grantees that operate under this title 
under national grants from the Secretary, their level of 
activities for fiscal year 2000; and 
‘‘(B) with respect to State grantees, their level of activi-
ties for fiscal year 2000. 
‘‘(3) GRANTS TO STATES.—The term ‘grants to States’ means 
grants made under this title by the Secretary to the States. 
‘‘(4) LEVEL OF ACTIVITIES.—The term ‘level of activities’ 
means the number of authorized positions multiplied by the 
cost per authorized position. 
‘‘(5) NATIONAL GRANTS.—The term ‘national grants’ means 
grants made under this title by the Secretary to public and 
nonprofit private agency and organization grantees that operate 
under this title. 
‘‘(6) STATE.—The term ‘State’ does not include Guam, Amer-
ican Samoa, the Commonwealth of the Northern Mariana 
Islands, and the United States Virgin Islands. 
‘‘SEC. 507. EQUITABLE DISTRIBUTION. 
‘‘(a) INTERSTATE ALLOCATION.—In making grants under section 
502(b) from allotments made under section 506, the Secretary shall 
ensure, to the extent feasible, an equitable distribution of activities 
under such grants, in the aggregate, among the States, taking 
into account the needs of underserved States. 
‘‘(b) INTRASTATE
ALLOCATION.—The amount allocated for 
projects within each State under section 506 shall be allocated 
among areas in the State in an equitable manner, taking into 
consideration the State priorities set out in the State plan in effect 
under section 503(a). 
‘‘SEC. 508. REPORT. 
‘‘To carry out the Secretary’s responsibilities for reporting in 
section 503(g), the Secretary shall require the State agency for 
each State that receives funds under this title to prepare and 
submit a report at the beginning of each fiscal year on such State’s 
compliance with section 507(b). Such report shall include the names 
and geographic location of all projects assisted under this title 
and carried out in the State and the amount allocated to each 
such project under section 506. 
‘‘SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND 
FOOD STAMP PROGRAMS. 
‘‘Funds received by eligible individuals from projects carried 
out under the program established under this title shall not be 
considered to be income of such individuals for purposes of deter-
mining the eligibility of such individuals, or of any other individuals, 
to participate in any housing program for which Federal funds 
may be available or for any income determination under the Food 
Stamp Act of 1977 (7 U.S.C. 2011 et seq.).
H. R. 6197—59
‘‘SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT ACTIVITIES. 
‘‘Eligible individuals under this title may be considered by 
local workforce investment boards and one-stop operators estab-
lished under title I of the Workforce Investment Act of 1998 (29 
U.S.C. 2801 et seq.) to satisfy the requirements for receiving services 
under such title I that are applicable to adults. 
‘‘SEC. 511. COORDINATION WITH THE WORKFORCE INVESTMENT ACT 
OF 1998. 
‘‘(a) PARTNERS.—Grantees under this title shall be one-stop 
partners as described in subparagraphs (A) and (B)(vi) of section 
121(b)(1) of the Workforce Investment Act of 1998 (29 U.S.C. 
2841(b)(1)) in the one-stop delivery system established under section 
134(c) of such Act (29 U.S.C. 2864(c)) for the appropriate local 
workforce investment areas, and shall carry out the responsibilities 
relating to such partners. 
‘‘(b) COORDINATION.—In local workforce investment areas where 
more than 1 grantee under this title provides services, the grantees 
shall—
‘‘(1) coordinate their activities related to the one-stop 
delivery systems; and 
‘‘(2) be signatories of the memorandum of understanding 
established under section 121(c) of the Workforce Investment 
Act of 1998 (29 U.S.C. 2841(c)). 
‘‘SEC. 512. TREATMENT OF ASSISTANCE. 
‘‘Assistance provided under this title shall not be considered 
to be financial assistance described in section 245A(h)(1)(A) of the 
Immigration and Nationality Act (8 U.S.C. 1255a(h)(1)(A)). 
‘‘SEC. 513. PERFORMANCE. 
‘‘(a) MEASURES AND INDICATORS.—
‘‘(1) ESTABLISHMENT AND IMPLEMENTATION OF MEASURES 
AND INDICATORS.—The Secretary shall establish and implement, 
after consultation with grantees, subgrantees, and host agencies 
under this title, States, older individuals, area agencies on 
aging, and other organizations serving older individuals, core 
measures of performance and additional indicators of perform-
ance for each grantee for projects and services carried out 
under this title. The core measures of performance and addi-
tional indicators of performance shall be applicable to each 
grantee under this title without regard to whether such grantee 
operates the program directly or through subcontracts, sub-
grants, or agreements with other entities. 
‘‘(2) CONTENT.—
‘‘(A) COMPOSITION OF MEASURES AND INDICATORS.—
‘‘(i) MEASURES.—The core measures of performance 
established by the Secretary in accordance with para-
graph (1) shall consist of core indicators of performance 
specified in subsection (b)(1) and the expected levels 
of performance applicable to each core indicator of 
performance. 
‘‘(ii) 
ADDITIONAL
INDICATORS.—The 
additional 
indicators of performance established by the Secretary 
in accordance with paragraph (1) shall be the addi-
tional indicators of performance specified in subsection 
(b)(2).
H. R. 6197—60
‘‘(B) 
CONTINUOUS
IMPROVEMENT.—The 
measures 
described in subparagraph (A)(i) shall be designed to pro-
mote continuous improvement in performance. 
‘‘(C) EXPECTED
LEVELS
OF
PERFORMANCE.—The Sec-
retary and each grantee shall reach agreement on the 
expected levels of performance for each program year for 
each of the core indicators of performance specified in 
subparagraph (A)(i). The agreement shall take into account 
the requirement of subparagraph (B) and the factors 
described in subparagraph (D), and other appropriate fac-
tors as determined by the Secretary, and shall be consistent 
with the requirements of subparagraph (E). Funds may 
not be awarded under the grant until such agreement 
is reached. At the conclusion of negotiations concerning 
the levels with all grantees, the Secretary shall make avail-
able for public review the final negotiated expected levels 
of performance for each grantee, including any comments 
submitted by the grantee regarding the grantee’s satisfac-
tion with the negotiated levels. 
‘‘(D) ADJUSTMENT.—The expected levels of performance 
described in subparagraph (C) applicable to a grantee shall 
be adjusted after the agreement under subparagraph (C) 
has been reached only with respect to the following factors: 
‘‘(i) High rates of unemployment or of poverty or 
participation in the program of block grants to States 
for temporary assistance for needy families established 
under part A of title IV of the Social Security Act 
(42 U.S.C. 601 et seq.), in the areas served by a 
grantee, relative to other areas of the State involved 
or Nation. 
‘‘(ii) Significant downturns in the areas served by 
the grantee or in the national economy. 
‘‘(iii) Significant numbers or proportions of partici-
pants with 1 or more barriers to employment, including 
individuals described in subsection (a)(3)(B)(ii) or (b)(2) 
of section 518, served by a grantee relative to such 
numbers or proportions for grantees serving other 
areas of the State or Nation. 
‘‘(iv) Changes in Federal, State, or local minimum 
wage requirements. 
‘‘(v) Limited economies of scale for the provision 
of community service employment and other authorized 
activities in the areas served by the grantee. 
‘‘(E) PLACEMENT.—
‘‘(i) LEVEL OF PERFORMANCE.—For all grantees, the 
Secretary shall establish an expected level of perform-
ance of not less than the percentage specified in clause 
(ii) (adjusted in accordance with subparagraph (D)) 
for the entry into unsubsidized employment core indi-
cator of performance described in subsection (b)(1)(B). 
‘‘(ii) REQUIRED
PLACEMENT
PERCENTAGES.—The 
minimum percentage for the expected level of perform-
ance for the entry into unsubsidized employment core 
indicator of performance described in subsection 
(b)(1)(B) is—
‘‘(I) 21 percent for fiscal year 2007; 
‘‘(II) 22 percent for fiscal year 2008;
H. R. 6197—61
‘‘(III) 23 percent for fiscal year 2009; 
‘‘(IV) 24 percent for fiscal year 2010; and 
‘‘(V) 25 percent for fiscal year 2011. 
‘‘(3) LIMITATION.—An agreement to be evaluated on the 
core measures of performance and to report information on 
the additional indicators of performance shall be a requirement 
for application for, and a condition of, all grants authorized 
by this title. 
‘‘(b) INDICATORS OF PERFORMANCE.—
‘‘(1) CORE INDICATORS.—The core indicators of performance 
described in subsection (a)(2)(A)(i) shall consist of—
‘‘(A) hours (in the aggregate) of community service 
employment; 
‘‘(B) entry into unsubsidized employment; 
‘‘(C) retention in unsubsidized employment for 6 
months; 
‘‘(D) earnings; and 
‘‘(E) the number of eligible individuals served, 
including the number of participating individuals described 
in subsection (a)(3)(B)(ii) or (b)(2) of section 518. 
‘‘(2) ADDITIONAL INDICATORS.—The additional indicators of 
performance described in subsection (a)(2)(A)(ii) shall consist 
of—
‘‘(A) retention in unsubsidized employment for 1 year; 
‘‘(B) satisfaction of the participants, employers, and 
their host agencies with their experiences and the services 
provided; 
‘‘(C) any other indicators of performance that the Sec-
retary determines to be appropriate to evaluate services 
and performance. 
‘‘(3) DEFINITIONS OF INDICATORS.—The Secretary, after con-
sultation with national and State grantees, representatives of 
business and labor organizations, and providers of services, 
shall, by regulation, issue definitions of the indicators of 
performance described in paragraphs (1) and (2). 
‘‘(c) EVALUATION.—The Secretary shall—
‘‘(1) annually evaluate, and publish and make available 
for public review information on, the actual performance of 
each grantee with respect to the levels achieved for each of 
the core indicators of performance, compared to the expected 
levels of performance established under subsection (a)(2)(C) 
(including any adjustments to such levels made in accordance 
with subsection (a)(2)(D)); and 
‘‘(2) annually publish and make available for public review 
information on the actual performance of each grantee with 
respect to the levels achieved for each of the additional indica-
tors of performance. 
‘‘(d) TECHNICAL ASSISTANCE AND CORRECTIVE EFFORTS.—
‘‘(1) INITIAL DETERMINATIONS.—
‘‘(A) IN GENERAL.—As soon as practicable after July 
1, 2007, the Secretary shall determine if a grantee under 
this title has, for program year 2006—
‘‘(i) met the expected levels of performance estab-
lished under subsection (a)(2)(C) (including any adjust-
ments to such levels made in accordance with sub-
section (a)(2)(D)) for the core indicators of performance
H. R. 6197—62
described in subparagraphs (A), (C), (D), and (E) of 
subsection (b)(1); and 
‘‘(ii) achieved the applicable percentage specified 
in subsection (a)(2)(E)(ii) for the core indicator of 
performance described in subsection (b)(1)(B). 
‘‘(B) TECHNICAL ASSISTANCE.—If the Secretary deter-
mines that the grantee, for program year 2006—
‘‘(i) failed to meet the expected levels of perform-
ance described in subparagraph (A)(i); or 
‘‘(ii) failed to achieve the applicable percentage 
described in subparagraph (A)(ii), 
the Secretary shall provide technical assistance to assist 
the grantee to meet the expected levels of performance 
and achieve the applicable percentage. 
‘‘(2) NATIONAL GRANTEES.—
‘‘(A) IN GENERAL.—Not later than 120 days after the 
end of each program year, the Secretary shall determine 
if a national grantee awarded a grant under section 502(b) 
in accordance with section 514 has met the expected levels 
of performance established under subsection (a)(2)(C) 
(including any adjustments to such levels made in accord-
ance with subsection (a)(2)(D)) for the core indicators of 
performance described in subsection (b)(1). 
‘‘(B) TECHNICAL ASSISTANCE AND CORRECTIVE ACTION 
PLAN.—
‘‘(i) IN GENERAL.—If the Secretary determines that 
a national grantee fails to meet the expected levels 
of performance described in subparagraph (A), the Sec-
retary after each year of such failure, shall provide 
technical assistance and require such grantee to submit 
a corrective action plan not later than 160 days after 
the end of the program year. 
‘‘(ii) CONTENT.—The plan submitted under clause 
(i) shall detail the steps the grantee will take to meet 
the expected levels of performance in the next program 
year. 
‘‘(iii) RECOMPETITION.—Any grantee who has failed 
to meet the expected levels of performance for 4 
consecutive years (beginning with program year 2007) 
shall not be allowed to compete in the subsequent 
grant competition under section 514 following the 
fourth consecutive year of failure but may compete 
in the next such grant competition after that subse-
quent competition. 
‘‘(3) STATE GRANTEES.—
‘‘(A) IN GENERAL.—Not later than 120 days after the 
end of each program year, the Secretary shall determine 
if a State grantee allotted funds under section 506(e) has 
met the expected levels of performance established under 
subsection (a)(2)(C) (including any adjustments to such 
levels made in accordance with subsection (a)(2)(D)) for 
the core indicators of performance described in subsection 
(b)(1). 
‘‘(B) TECHNICAL ASSISTANCE AND CORRECTIVE ACTION 
PLAN.—
‘‘(i) IN GENERAL.—If the Secretary determines that 
a State fails to meet the expected levels of performance
H. R. 6197—63
described in subparagraph (A), the Secretary, after 
each year of such failure, shall provide technical assist-
ance and require the State to submit a corrective action 
plan not later than 160 days after the end of the 
program year. 
‘‘(ii) CONTENT.—The plan submitted under clause 
(i) shall detail the steps the State will take to meet 
the expected levels of performance in the next program 
year. 
‘‘(iii) COMPETITION.—If the Secretary determines 
that the State fails to meet the expected levels of 
performance described in subparagraph (A) for 3 
consecutive program years (beginning with program 
year 2007), the Secretary shall provide for the conduct 
by the State of a competition to award the funds 
allotted to the State under section 506(e) for the first 
full program year following the Secretary’s determina-
tion. 
‘‘(4) SPECIAL RULE FOR ESTABLISHMENT AND IMPLEMENTA-
TION.—The Secretary shall establish and implement the core 
measures of performance and additional indicators of perform-
ance described in this section, including all required indicators 
described in subsection (b), not later than July 1, 2007. 
‘‘(e) IMPACT ON GRANT COMPETITION.—The Secretary may not 
publish a notice announcing a grant competition under this title, 
and solicit proposals for grants, until the day that is the later 
of—
‘‘(1) the date on which the Secretary implements the core 
measures of performance and additional indicators of perform-
ance described in this section; and 
‘‘(2) January 1, 2010. 
‘‘SEC. 514. COMPETITIVE REQUIREMENTS RELATING TO GRANT 
AWARDS. 
‘‘(a) PROGRAM AUTHORIZED.—
‘‘(1) INITIAL APPROVAL OF GRANT APPLICATIONS.—From the 
funds available for national grants under section 506(d), the 
Secretary shall award grants under section 502(b) to eligible 
applicants, through a competitive process that emphasizes 
meeting performance requirements, to carry out projects under 
this title for a period of 4 years, except as provided in paragraph 
(2). The Secretary may not conduct a grant competition under 
this title until the day described in section 513(e). 
‘‘(2) CONTINUATION
OF
APPROVAL
BASED
ON
PERFORM-
ANCE.—If the recipient of a grant made under paragraph (1) 
meets the expected levels of performance described in section 
513(d)(2)(A) for each year of such 4-year period with respect 
to a project, the Secretary may award a grant under section 
502(b) to such recipient to continue such project beyond such 
4-year period for 1 additional year without regard to such 
process. 
‘‘(b) ELIGIBLE APPLICANTS.—An applicant shall be eligible to 
receive a grant under section 502(b) in accordance with subsections 
(a), (c), and (d). 
‘‘(c) CRITERIA.—For purposes of subsection (a)(1), the Secretary 
shall select the eligible applicants to receive grants based on the 
following:
H. R. 6197—64
‘‘(1) The applicant’s ability to administer a project that 
serves the greatest number of eligible individuals, giving par-
ticular consideration to individuals with greatest economic 
need, individuals with greatest social need, and individuals 
described in subsection (a)(3)(B)(ii) or (b)(2) of section 518. 
‘‘(2) The applicant’s ability to administer a project that 
provides employment for eligible individuals in the communities 
in which such individuals reside, or in nearby communities, 
that will contribute to the general welfare of the communities 
involved. 
‘‘(3) The applicant’s ability to administer a project that 
moves eligible individuals into unsubsidized employment. 
‘‘(4) The applicant’s prior performance, if any, in meeting 
core measures of performance and addressing additional indica-
tors of performance under this title and the applicant’s ability 
to address core indicators of performance and additional indica-
tors of performance under this title and under other Federal 
or State programs in the case of an applicant that has not 
previously received a grant under this title. 
‘‘(5) The applicant’s ability to move individuals with mul-
tiple barriers to employment, including individuals described 
in subsection (a)(3)(B)(ii) or (b)(2) of section 518, into unsub-
sidized employment. 
‘‘(6) The applicant’s ability to coordinate activities with 
other organizations at the State and local level. 
‘‘(7) The applicant’s plan for fiscal management of the 
project to be administered with funds received in accordance 
with this section. 
‘‘(8) The applicant’s ability to administer a project that 
provides community service. 
‘‘(9) The applicant’s ability to minimize disruption in serv-
ices for participants and in community services provided. 
‘‘(10) Any additional criteria that the Secretary considers 
to be appropriate in order to minimize disruption in services 
for participants. 
‘‘(d) RESPONSIBILITY TESTS.—
‘‘(1) IN GENERAL.—Before final selection of a grantee, the 
Secretary shall conduct a review of available records to assess 
the applicant’s overall responsibility to administer Federal 
funds. 
‘‘(2) REVIEW.—As part of the review described in paragraph 
(1), the Secretary may consider any information, including the 
applicant’s history with regard to the management of other 
grants. 
‘‘(3) FAILURE TO SATISFY TEST.—The failure to satisfy a 
responsibility test with respect to any 1 factor that is listed 
in paragraph (4), excluding those listed in subparagraphs (A) 
and (B) of such paragraph, does not establish that the applicant 
is not responsible unless such failure is substantial or persists 
for 2 or more consecutive years. 
‘‘(4) TEST.—The responsibility tests include review of the 
following factors: 
‘‘(A) Unsuccessful efforts by the applicant to recover 
debts, after 3 demand letters have been sent, that are 
established by final agency action, or a failure to comply 
with an approved repayment plan.
H. R. 6197—65
‘‘(B) Established fraud or criminal activity of a signifi-
cant nature within the organization or agency involved. 
‘‘(C) Serious administrative deficiencies identified by 
the Secretary, such as failure to maintain a financial 
management system as required by Federal rules or regula-
tions. 
‘‘(D) Willful obstruction of the audit process. 
‘‘(E) Failure to provide services to participants for a 
current or recent grant or to meet applicable core measures 
of performance or address applicable indicators of perform-
ance. 
‘‘(F) Failure to correct deficiencies brought to the 
grantee’s attention in writing as a result of monitoring 
activities, reviews, assessments, or other activities. 
‘‘(G) Failure to return a grant closeout package or 
outstanding advances within 90 days of the grant expira-
tion date or receipt of the closeout package, whichever 
is later, unless an extension has been requested and 
granted. 
‘‘(H) Failure to submit required reports. 
‘‘(I) Failure to properly report and dispose of Govern-
ment property as instructed by the Secretary. 
‘‘(J) Failure to have maintained effective cash manage-
ment or cost controls resulting in excess cash on hand. 
‘‘(K) Failure to ensure that a subrecipient complies 
with its Office of Management and Budget Circular A–
133 audit requirements specified at section 667.200(b) of 
title 20, Code of Federal Regulations. 
‘‘(L) Failure to audit a subrecipient within the required 
period. 
‘‘(M) Final disallowed costs in excess of 5 percent of 
the grant or contract award if, in the judgment of the 
grant officer, the disallowances are egregious. 
‘‘(N) Failure to establish a mechanism to resolve a 
subrecipient’s audit in a timely fashion. 
‘‘(5) DETERMINATION.—Applicants that are determined to 
be not responsible shall not be selected as grantees. 
‘‘(6) DISALLOWED COSTS.—Interest on disallowed costs shall 
accrue in accordance with the Debt Collection Improvement 
Act of 1996, including the amendments made by that Act. 
‘‘(e) GRANTEES
SERVING
INDIVIDUALS
WITH
BARRIERS
TO 
EMPLOYMENT.—
‘‘(1) DEFINITION.—In this subsection, the term ‘individuals 
with barriers to employment’ means minority individuals, 
Indian individuals, individuals with greatest economic need, 
and individuals described in subsection (a)(3)(B)(ii) or (b)(2) 
of section 518. 
‘‘(2) SPECIAL CONSIDERATION.—In areas where a substantial 
population of individuals with barriers to employment exists, 
a grantee that receives a national grant in accordance with 
this section shall, in selecting subgrantees, give special consid-
eration to organizations (including former recipients of such 
national grants) with demonstrated expertise in serving individ-
uals with barriers to employment. 
‘‘(f) MINORITY-SERVING GRANTEES.—The Secretary may not 
promulgate rules or regulations affecting grantees in areas where 
a substantial population of minority individuals exists, that would
H. R. 6197—66
significantly compromise the ability of the grantees to serve their 
targeted population of minority older individuals. 
‘‘SEC. 515. REPORT ON SERVICE TO MINORITY INDIVIDUALS. 
‘‘(a) IN GENERAL.—The Secretary shall annually prepare a 
report on the levels of participation and performance outcomes 
of minority individuals served by the program carried out under 
this title. 
‘‘(b) CONTENTS.—
‘‘(1) ORGANIZATION AND DATA.—Such report shall present 
information on the levels of participation and the outcomes 
achieved by such minority individuals with respect to each 
grantee under this title, by service area, and in the aggregate, 
beginning with data that applies to program year 2005. 
‘‘(2) EFFORTS.—The report shall also include a description 
of each grantee’s efforts to serve minority individuals, based 
on information submitted to the Secretary by each grantee 
at such time and in such manner as the Secretary determines 
to be appropriate. 
‘‘(3) RELATED MATTERS.—The report shall also include—
‘‘(A) an assessment of individual grantees based on 
the criteria established under subsection (c); 
‘‘(B) an analysis of whether any changes in grantees 
have affected participation rates of such minority individ-
uals; 
‘‘(C) information on factors affecting participation rates 
among such minority individuals; and 
‘‘(D) recommendations for increasing participation of 
minority individuals in the program. 
‘‘(c) CRITERIA.—The Secretary shall establish criteria for deter-
mining the effectiveness of grantees in serving minority individuals 
in accordance with the goals set forth in section 502(a)(1). 
‘‘(d) SUBMISSION.—The Secretary shall annually submit such 
a report to the appropriate committees of Congress. 
‘‘SEC. 516. SENSE OF CONGRESS. 
‘‘It is the sense of Congress that—
‘‘(1) the older American community service employment 
program described in this title was established with the intent 
of placing older individuals in community service positions and 
providing job training; and 
‘‘(2) placing older individuals in community service posi-
tions strengthens the ability of the individuals to become self-
sufficient, provides much-needed support to organizations that 
benefit from increased civic engagement, and strengthens the 
communities that are served by such organizations. 
‘‘SEC. 517. AUTHORIZATION OF APPROPRIATIONS. 
‘‘(a) IN GENERAL.—There are authorized to be appropriated 
to carry out this title such sums as may be necessary for fiscal 
years 2007, 2008, 2009, 2010, and 2011. 
‘‘(b) OBLIGATION.—Amounts appropriated under this section for 
any fiscal year shall be available for obligation during the annual 
period that begins on July 1 of the calendar year immediately 
following the beginning of such fiscal year and that ends on June 
30 of the following calendar year. The Secretary may extend the 
period during which such amounts may be obligated or expended 
in the case of a particular organization or agency that receives
H. R. 6197—67
funds under this title if the Secretary determines that such exten-
sion is necessary to ensure the effective use of such funds by 
such organization or agency. 
‘‘(c) RECAPTURING FUNDS.—At the end of the program year, 
the Secretary may recapture any unexpended funds for the program 
year, and reobligate such funds within the 2 succeeding program 
years for—
‘‘(1) incentive grants to entities that are State grantees 
or national grantees under section 502(b); 
‘‘(2) technical assistance; or 
‘‘(3) grants or contracts for any other activity under this 
title. 
‘‘SEC. 518. DEFINITIONS AND RULE. 
‘‘(a) DEFINITIONS.—For purposes of this title: 
‘‘(1) COMMUNITY SERVICE.—The term ‘community service’ 
means—
‘‘(A) social, health, welfare, and educational services 
(including literacy tutoring), legal and other counseling 
services and assistance, including tax counseling and 
assistance and financial counseling, and library, rec-
reational, and other similar services; 
‘‘(B) conservation, maintenance, or restoration of nat-
ural resources; 
‘‘(C) community betterment or beautification; 
‘‘(D) antipollution and environmental quality efforts; 
‘‘(E) weatherization activities; 
‘‘(F) economic development; and 
‘‘(G) such other services essential and necessary to 
the community as the Secretary determines by rule to 
be appropriate. 
‘‘(2) COMMUNITY SERVICE EMPLOYMENT.—The term ‘commu-
nity service employment’ means part-time, temporary employ-
ment paid with grant funds in projects described in section 
502(b)(1)(D), through which eligible individuals are engaged 
in community service and receive work experience and job 
skills that can lead to unsubsidized employment. 
‘‘(3) ELIGIBLE INDIVIDUAL.—
‘‘(A) IN GENERAL.—The term ‘eligible individual’ means 
an individual who is age 55 or older and who has a low 
income (including any such individual whose income is 
not more than 125 percent of the poverty line), excluding 
any income that is unemployment compensation, a benefit 
received under title XVI of the Social Security Act (42 
U.S.C. 1381 et seq.), a payment made to or on behalf 
of veterans or former members of the Armed Forces under 
the laws administered by the Secretary of Veterans Affairs, 
or 25 percent of a benefit received under title II of the 
Social Security Act (42 U.S.C. 401 et seq.), subject to sub-
section (b). 
‘‘(B) PARTICIPATION.—
‘‘(i) EXCLUSION.—Notwithstanding any other provi-
sion of this paragraph, the term ‘eligible individual’ 
does not include an individual who has participated 
in projects under this title for a period of 48 months 
in the aggregate (whether or not consecutive) after