[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5293 Introduced in House (IH)]








109th CONGRESS
  2d Session
                                H. R. 5293

 To amend the Older Americans Act of 1965 to authorize appropriations 
      for fiscal years 2007 through 2011, and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                              May 4, 2006

  Mr. Tiberi (for himself and Mr. Hinojosa) introduced the following 
    bill; which was referred to the Committee on Education and the 
                               Workforce

_______________________________________________________________________

                                 A BILL


 
 To amend the Older Americans Act of 1965 to authorize appropriations 
      for fiscal years 2007 through 2011, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Independence Act of 2006''.

SEC. 2. DEFINITIONS.

    Section 102 of the Older Americans Act of 1965 (42 U.S.C. 3002) is 
amended--
            (1) by amending paragraph (12)(D) to read as follows:
                    ``(D) evidence-based health promotion programs, 
                including programs related to the prevention and 
                mitigation of the effects of chronic disease (including 
                osteoporosis, hypertension, obesity, diabetes, and 
                cardiovascular disease), alcohol and substance abuse 
                reduction, smoking cessation, weight loss and control, 
                stress management, falls prevention, physical activity, 
                and improved nutrition through the consumption of a 
                healthful diet and multivitamin-mineral 
                supplementation;'',
            (2) in paragraph (29)(E)--
                    (A) in clause (i) by striking ``and'' at the end,
                    (B) in clause (ii) by striking the period at the 
                end and inserting ``; and'' , and
                    (C) by adding at the end the following:
                            ``(iii) older individuals at risk for 
                        institutional placement.'',
            (3) by redesignating paragraphs (1) through (43) as 
        paragraphs (43), (7), (46), (36), (24), (25), (50), (13), (45), 
        (8), (27), (12), (1), (2), (3), (5), (6), (10), (23), (34), 
        (11), (14),(15), (16), (18), (19), (20), (21), (26), (28), 
        (30), (31) (32), (35), (37), (40), (41), (47), (49), (17), 
        (38), (39), and (44), respectively,
            (4) by transferring such paragraphs so as to arrange them 
        in numerical order as so redesignated,
            (5) by inserting after paragraph (3), as so redesignated 
        the following:
            ``(4) The term `Aging and Disability Resource Center' means 
        a program established by a State as part of the State's system 
        of long-term care, to provide a coordinated system for 
        providing--
                    ``(A) comprehensive information on available public 
                and private long-term care programs, options, and 
                resources;
                    ``(B) personal counseling to assist individuals in 
                assessing their existing or anticipated long-term care 
                needs, and developing and implementing a plan for long-
                term care designed to meet their specific needs and 
                circumstances; and
                    ``(C) consumer access to the range of publicly-
                supported long-term care programs for which they may be 
                eligible, by serving as a convenient point of entry for 
                such programs.'',
            (6) by inserting after paragraph (8), as so redesignated, 
        the following:
            ``(9) The term `at risk for institutional placement' means, 
        with respect to an older individual, that such individual is 
        unable to perform at least two activities of daily living 
        without substantial human assistance (including verbal 
        reminding, physical cuing, or supervision) and is determined by 
        the State to be in need of placement in a long-term care 
        facility.'',
            (7) by inserting after paragraph (21), as so redesignated, 
        the following:
            ``(22) The term `Hispanic serving institution' has the 
        meaning as defined in section 502 of the Higher Education Act 
        of 1965 (20 U.S.C. 1101A).'',
            (8) by inserting after paragraph (28), as so redesignated, 
        the following:
            ``(29) The term `long-term care' means any services, care, 
        or items (including assistive devices)a, including disease 
        prevention and health promotion services, in-home services, and 
        case management service--
                    ``(A) intended to assist individuals in coping 
                with, and to the extent practicable compensate for, 
                functional impairments in carrying out activities of 
                daily living;
                    ``(B) furnished at home, in a community care 
                setting (including a small community care setting as 
                defined in subsection (g)(1), and a large community 
                care setting as defined in subsection (h)(1), of 
                section 1929 of the Social Security Act (42 U.S.C. 
                1396t)), or in a long-term care facility; and
                    ``(C) not furnished to prevent, diagnose, treat, or 
                cure a medical disease or condition.'',
            (9) by inserting after paragraph (32), as so redesignated, 
        the following:
            ``(33) The term `multivitamin-mineral supplement' means a 
        dietary supplement that provides at least two-third's of the 
        essential vitamins and minerals at 100 percent of the daily 
        value levels as determined by the Food and Drug 
        Administration.'',
            (10) by inserting after paragraph (40), as so redesignated, 
        the following:
            ``(41) The term `self-directed care' means an approach to 
        providing services (including programs, benefits, supports, and 
        technology) under this Act intended to an older individual to 
        assist such individual with activities of daily living, in 
        which
                    ``(A) such services (including the amount, 
                duration, scope, provider, and location of such 
                services) are planned, budgeted, and purchased under 
                the direction and control of such individual;
                    ``(B) such individual is provided with such 
                information and assistance as necessary and appropriate 
                to enable such individual to make informed decisions 
                about his or her care options;
                    ``(C) the needs, capabilities, and preferences of 
                such individual with respect to such services, and such 
                individual's ability to direct and control his or her 
                receipt of such services, are assessed by the area 
                agency on aging or the local provider agency;
                    ``(D) based on the assessment made under 
                subparagraph (C), the area agency on aging develops 
                together with such individual and his or her family, 
                caregiver, or legal representative--
                            ``(i) a plan of services for such 
                        individual that specifies which services such 
                        individual will be responsible for directing;
                            ``(ii) a determination of the role of 
                        family members (and others whose participation 
                        is sought by such individual) in providing 
                        services under such plan; and
                            ``(iii) a budget for such services; and
                    ``(E) the area agency on aging or State agency 
                provides for oversight of such individual's self-
                directed receipt of services, including steps to ensure 
                the quality of services provided and the appropriate 
                use of funds under this Act.'', and
            (11) by inserting after paragraph (47), as so redesignated, 
        the following:
            ``(48) The term `State system of long-term care' means the 
        Federal, State, and local programs and activities administered 
        by a State that provide, support, or facilitate access to long-
        term care to individuals in such State.''.

SEC. 3. FUNCTIONS OF THE ASSISTANT SECRETARY.

    Section 202 of the Older Americans Act of 1965 (42 U.S.C. 3012) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (20)--
                            (i) by striking ``and area agencies on 
                        aging'' and inserting ``, area agencies on 
                        aging, and service providers'',
                            (ii) by striking ``and benefits'' and 
                        inserting ``benefits'', and
                            (iii) by inserting ``benefits under any 
                        other applicable Federal program, or any other 
                        service (including technology and internet-
                        based decision support tools) to assist 
                        consumers to learn about, to receive benefits 
                        under, and to participate in programs for which 
                        they may be eligible'' after ``(7 U.S.C. 2011 
                        et seq.),'',
                    (B) in paragraph (26)(D)--
                            (i) by striking ``gaps in'',
                            (ii) by inserting ``(including services 
                        that would permit such individuals to receive 
                        long-term care in home and community-based 
                        settings)'' after ``individuals'', and
                            (iii) by striking ``and'' at the end,
                    (C) in paragraph (27) by striking the period at the 
                end and inserting ``; and'', and
                    (D) by addng at the end the following:
            ``(28) make available to States information and technical 
        assistance to support the provision of disease prevention and 
        health promotion services.'', and
            (2) by amending subsection (b) to read as follows:
    ``(b) To promote the development and implementation of 
comprehensive, coordinated systems at Federal, State, and local levels 
for providing long-term care in home and community-based settings, in a 
manner responsive to the needs and preferences of older individuals and 
their family caregivers, the Assistant Secretary shall, consistent with 
the applicable provisions of this title--
            ``(1) collaborate, coordinate, and consult with other 
        Federal agencies and departments responsible for formulating 
        and implementing programs, benefits, and services related to 
        providing long-term care, and may make grants, contracts, and 
        cooperative agreements with funds received from other Federal 
        entities;
            ``(2) conduct research and demonstration projects to 
        identify innovative, cost-effective strategies for modifying 
        State systems of long-term care to--
                    ``(A) respond to the needs and preferences of older 
                individuals and family caregivers;
                    ``(B) target services to individuals at risk for 
                institutional placement, to permit such individuals to 
                remain in home and community-based care settings; and
                    ``(C) establish criteria and promote the 
                implementation (through service providers and such 
                other entities as the Assistant Secretary determines to 
                be appropriate) of evidence-based programs to assist 
                older individuals and their family caregivers in 
                learning about and making behavioral changes intended 
                to reduce the risk of injury, disease, and disability 
                among older individuals;
            ``(3) facilitate the provision of long-term care in home 
        and community-based settings, including consumer-directed 
        models;
            ``(4) provide for the Administration to play a lead role 
        with respect to issues concerning home and community-based 
        long-term care, including--
                    ``(A) directing (as the Secretary or the President 
                determines to be appropriate) or otherwise 
                participating in departmental and interdepartmental 
                activities concerning long-term care;
                    ``(B) reviewing and commenting on departmental 
                rules, regulations, and policies related to providing 
                long-term care; and
                    ``(C) making recommendations to the Secretary with 
                respect to home and community-based long-term care, 
                including recommendations based on findings made 
                through projects conducted under paragraph (2);
            ``(5) promote, in coordination with other appropriate 
        Federal agencies, enhanced awareness by the public of the 
        importance of planning in advance for long-term care and the 
        availability of information and resources to assist in such 
        planning, and the implementation of Aging and Disability 
        Resource Centers;
            ``(6) establish, either directly or through grants or 
        contracts, a national technical assistance program to assist 
        State agencies, area agencies on aging, and community-based 
        service providers funded under this Act in implementing such 
        home and community-based long-term care systems including 
        evidence-based programs;
            ``(7) develop, in collaboration with the Administrator of 
        the Centers for Medicare and Medicaid Services, performance 
        standards and measures for use by States to determine the 
        extent to which their systems of long-term care fulfill the 
        objectives described in this subsection; and
            ``(8) conduct such other activities as the Assistant 
        Secretary determines to be appropriate.''.

SEC. 4. FEDERAL AGENCY CONSULTATION.

    Section 203(a)(3)(A) of the Older Americans Act of 1965 (42 U.S.C. 
3013(a)(3)(A)) is amended by striking ``(with particular attention to 
low income minority individuals and older individuals residing in rural 
areas)'' and inserting ``(with particular attention to low-income older 
individuals, including low-income minority older individuals, older 
individuals with limited English proficiency, and older individuals 
residing in rural areas)''.

SEC. 5. ADMINISTRATION.

    Section 205 of the Older Americans Act of 1965 (42 U.S.C. 3016) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) in subparagraph (B) by adding ``and'' 
                        at the end,
                            (ii) in subparagraph (C) by adding ``; 
                        and'' at the end,
                            (iii) in subparagraph (D) by striking the 
                        semicolon at the end and inserting a period, 
                        and
                            (iv) by striking subparagraph (E), and
                    (B) in paragraph (2)--
                            (i) in subparagraph (A)--
                                    (I) by amending clause (i) to read 
                                as follows:
            ``(i) designing, implementing, and evaluating evidence-
        based programs to support improved nutrition and regular 
        physical activity for older individuals;'',
                                    (II) by amending clause (iii) to 
                                read as follows:
            ``(iii) conducting outreach and disseminating evidence-
        based information to nutrition service providers about the 
        benefits of healthful diets and regular physical activity, 
        including information about the most current Dietary Guidelines 
        for Americans published under section 301 of the National 
        Nutrition Monitoring and Related Research Act of 1990 (7 U.S.C. 
        5341), the Food Guide Pyramid published jointly by the 
        Secretary and the Secretary of Agriculture, and advances in 
        nutrition science;'',
                                    (III) in clause (vii) by striking 
                                ``and'' at the end, and
                                    (IV) by striking clause (viii) and 
                                inserting the following:
                    ``(viii) disseminating guidance that describes 
                strategies for improving the nutritional quality of 
                meals provided under title III, particularly strategies 
                for increasing the consumption of whole grains, lowfat 
                dairy products, fruits and vegetables;
                    ``(ix) developing and disseminating guidelines for 
                conducting nutrient analyses of meals provided in 
                subparts 1 and 2 of part C, including guidelines for 
                averaging key nutrients over an appropriate period of 
                time; and
                    ``(x) providing technical assistance to the 
                regional offices of the Administration with respect to 
                each duty described in clauses (i) through (viii).'', 
                and
                            (ii) by amending subparagraph (C)(i) to 
                        read as follows:
            ``(i) have expertise in nutrition, energy balance, and meal 
        planning; and''.

SEC. 6. EVALUATION.

    The 1st sentence of section 206(g) of the Older Americans Act of 
1965 (42 U.S.C. 3017(g)) is amended to read as follows:
``From the total amount appropriated for each fiscal year to carry out 
title III, the Secretary may use such sums as may be necessary, but not 
to exceed \1/2\ of 1 percent of such amount, for purposes of conducting 
evaluations under this section, either directly or through grants or 
contracts.''.

SEC. 7. REPORTS.

    Section 207(b)(2) of the Older Americans Act of 1965 (42 U.S.C. 
3018(b)(2)) is amended--
            (1) in subparagraph (B) by striking ``Labor'' and inserting 
        ``the Workforce'', and
            (2) in subparagraph (C) by striking ``Labor and Human 
        Resources'' and inserting ``Health, Education, Labor, and 
        Pensions''.

SEC. 8. CONTRACTUAL, COMMERCIAL AND PRIVATE PAY RELATIONSHIPS; 
              APPROPRIATE USE OF ACT FUNDS.

    (a) Private Pay Relationships; Appropriate Use of Act Funds.--
Section 212 of the Older Americans Act (42 U.S.C. 3020c) is amended to 
read as follows:

``SEC. 212. CONTRACTING AND GRANT AUTHORITY; PRIVATE PAY RELATIONSHIPS; 
              APPROPRIATE USE OF FUNDS.

    ``(a) In General.--Subject to subsection (b), this Act shall not be 
construed to prevent a recipient of a grant or a contract from entering 
into an agreement--
            ``(1) with a profitmaking organization;
            ``(2) under which funds provided under such grant or 
        contract are used to pay part or all of a cost (including an 
        administrative cost) incurred by such recipient to carry out a 
        contract or commercial relationship for the benefit of older 
        individuals or their family caregivers, whether such 
        relationship is carried out to implement a provision of this 
        Act or to conduct activities inherently associated with 
        implementing such provision; or
            ``(3) under which any individual, regardless of age or 
        income (including the family caregiver of such individual), who 
        seeks to receive 1 or more services pays, at their own private 
        expense, to receive such services based on the fair market 
        value of such services.
    ``(b) Ensuring Appropriate Use of Funds.--An agreement described 
under subsection (a) may not--
            ``(1) be made without the prior approval of the State 
        agency (or, in the case of a grantee under title VI, without 
        the prior recommendation of the Director of the Office for 
        American Indian, Alaska Native, and Native Hawaiian Aging and 
        the prior approval of the Assistant Secretary);
            ``(2) directly or indirectly provide for, or have the 
        effect of, paying, reimbursing, or otherwise compensating an 
        entity under such agreement in an amount that exceeds the fair 
        market value of the goods or services furnished by such entity 
        under such agreement;
            ``(3) result in the displacement of services otherwise 
        available to an older individual with the greatest social need, 
        an older individual with greatest economic need, or an older 
        individual who is at risk for institutional placement; or
            ``(4) in any other way compromise, undermine, or be 
        inconsistent with the objective of serving the needs of older 
        individuals, as determined by the Assistant Secretary.''.

SEC. 9. NUTRITION EDUCATION.

    Section 214 of the Older Americans Act of 1965 (42 U.S.C. 3020e) is 
amended to read as follows:

``SEC. 214. NUTRITION EDUCATION.

    ``The Assistant Secretary, in consultation with the Secretary of 
Agriculture, shall conduct outreach and provide technical assistance to 
agencies and organizations that serve older individuals to assist such 
agencies and organizations to carry out integrated health promotion and 
disease prevention programs that are designed for older individuals and 
that include nutrition education, physical activity, and other 
activities to modify behavior and to improve health literacy through 
education and counseling in accordance with section 339(2)(J).''.

SEC. 10. PENSION COUNSELING AND INFORMATION PROGRAMS.

    Section 215 of the Older Americans Act of 1965 (42 U.S.C. 3020e-1) 
is amended--
            (1) in subsection (e)(1)(J) by striking ``and low income 
        retirees'' and inserting ``, low-income retirees, and older 
        individuals with limited English proficiency'',
            (2) in subsection (f) by amending paragraph (2) to read as 
        follows:
            ``(2) The ability of the entity to perform effective 
        outreach to affected populations, particularly populations with 
        limited English proficiency and other populations that are 
        identified in need of special outreach.'', and
            (3) in subsection (h)(2) by inserting ``(including 
        individuals with limited English proficiency)'' after 
        ``individuals''.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

    Section 216 of the Older Americans Act of 1965 (42 U.S.C. 3020f) is 
amended--
            (1) in subsection (a) by striking ``2001, 2002, 2003, 2004, 
        and 2005'' and inserting ``2007, 2008, 2009, 2010, and 2011.'', 
        and
            (2) in subsections (b) and (c) by striking ``year'' and all 
        that follows through ``years'', and inserting ``years 2007, 
        2008, 2009, 2010, and 2011''.

SEC. 12. PURPOSE; ADMINISTRATION.

    Section 301(a)(2) of the Older Americans Act of 1965 (42 U.S.C. 
3021(a)(2)) is amended--
            (1) in subparagraph (D) by striking ``and'' at the end
            (2) in subparagraph (E) by striking the period at the end 
        and inserting ``; and'', and
            (3) by adding at the end the following:
            ``(F) organizations with experience in providing senior 
        volunteer services, such as Federal volunteer programs 
        administered by the Corporation for National and Community 
        Service designed to provide training, placement, and stipends 
        for volunteers in community service settings.''.

SEC. 13. AUTHORIZATION OF APPROPRIATIONS; USES OF FUNDS.

    Section 303 of the Older Americans Act of 1965 (42 U.S.C. 3023) is 
amended--
            (1) in subsection (a)(1), (b), and (d) by striking ``year 
        2001'' and all that follows through ``years'' each place it 
        appears, and inserting ``years 2007, 2008, 2009, 2010, and 
        2011'', and
            (2) in subsection (e)(1) by striking ``2001'' each place it 
        appears and inserting ``2007''.

SEC. 14. ORGANIZATION.

    Section 305(a) of the Older Americans Act of 1965 (42 U.S.C. 
3025(a)) is amended--
            (1) in paragraph (1)(E) by striking ``(with particular 
        attention to low income minority individuals and older 
        individuals residing in rural areas)'' each place it appears 
        and inserting ``(with particular attention to low-income older 
        individuals, including low-income minority older individuals, 
        older individuals with limited English proficiency, and older 
        individuals residing in rural areas)'',
            (2) in paragraph (2)(E) by striking ``with particular 
        attention to low income minority individuals and older 
        individuals residing in rural areas'' and inserting ``with 
        particular attention to low-income older individuals, including 
        low-income minority older individuals, older individuals with 
        limited English proficiency, and older individuals residing in 
        rural areas'', and
            (3) by adding at the end the following:
            ``(3) the State agency shall, consistent with this section, 
        promote the development and implementation of a comprehensive, 
        coordinated system in such State for providing long-term care 
        in home and community-based settings, in a manner responsive to 
        the needs and preferences of older individuals and their family 
        caregivers, by--
                    ``(A) collaborating, coordinating, and consulting 
                with other agencies in such State responsible for 
                formulating, implementing, and administering programs, 
                benefits, and services related to providing long-term 
                care;
                    ``(B) participating in any State government 
                activities concerning long-term care, including 
                reviewing and commenting on any State rules, 
                regulations, and policies related thereto;
                    ``(C) conducting analyses and making 
                recommendations with respect to strategies for 
                modifying the State's system of long-term care to 
                better--
                            ``(i) respond to the needs and preferences 
                        of older individuals and family caregivers;
                            ``(ii) facilitate the provision of long-
                        term care in home and community-based settings 
                        through service providers;
                            ``(iii) target services to individuals at 
                        risk for institutional placement, to permit 
                        such individuals to remain in home and 
                        community-based care settings; and
                            ``(iv) implement (through area agencies on 
                        aging, service providers, and such other 
                        entities as the State determines to be 
                        appropriate) evidence-based programs to assist 
                        older individuals and their family caregivers 
                        in learning about and making behavioral changes 
                        intended to reduce the risk of injury, disease, 
                        and disability among older individuals; and
                    ``(D) providing for the availability and 
                distribution (through public education campaigns, aging 
                and disability resource centers, area agencies on 
                aging, and other appropriate means) of information 
                relating to--
                            ``(i) the need to plan in advance for long-
                        term care; and
                            ``(ii) the range of available public and 
                        private long-term care programs, options, and 
                        resources.''.

SEC. 15. AREA PLANS.

    Section 306 of the Older Americans Act of 1965 (42 U.S.C. 3026) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1)--
                            (i) by striking ``(with particular 
                        attention to low income minority individuals 
                        and older individuals residing in rural 
                        areas)'' each place it appears and inserting 
                        ``(with particular attention to low-income 
                        older individuals, low-income minority older 
                        individuals, older individuals with limited 
                        English proficiency, and older individuals 
                        residing in rural areas)'', and
                            (ii) by inserting ``the number of older 
                        individuals at risk for institutional placement 
                        residing in such area,'' after ``individuals) 
                        residing in such area,'',
                    (B) in paragraph (4)--
                            (i) in subparagraph (A)--
                                    (I) by amending clause (i) to read 
                                as follows:
            ``(i) provide assurances that the area agency on aging 
        will--
                    ``(I) set specific objectives, consistent with 
                State policy, for providing services to older 
                individuals with greatest economic need, older 
                individuals with greatest social need, and older 
                individuals at risk for institutional placement;
                    ``(II) include in the area plan specific objectives 
                for providing services to low-income minority older 
                individuals and older individuals residing in rural 
                areas; and
                    ``(III) include in the area plan proposed methods 
                to achieve such objectives;''. and
                                    (II) in clause (ii) by inserting 
                                ``(including older individuals with 
                                limited English proficiency)'' after 
                                ``low income minority individuals'' 
                                each place it appears; and
                            (ii) in subparagraph (B)--
                                    (I) by moving the left margin of 
                                each of subparagraph (B), clauses (i) 
                                and (ii), and subclauses (I) through 
                                (VI) of clause (i), 2 ems to the left,
                                    (II) in clause (i)--
                                            (aa) in subclause (V) by 
                                        striking ``and'' at the end; 
                                        and
                                            (bb) by adding at the end 
                                        the following:
                                    ``(VI) older individuals at risk 
                                for institutional placement; and'', and
                                    (III) by striking ``(VI)'' and 
                                inserting ``(VII)'',
                    (C) in paragraph (5) by inserting ``and individuals 
                at risk for institutional placement'' after ``severe 
                disabilities'',
                    (D) in paragraph (6)--
                            (i) in subparagraph (C)--
                                    (I) in clause (i) by striking 
                                ``and'' at the end,
                                    (II) in clause (ii) by adding 
                                ``and'' at the end, and
                                    (III) by inserting after clause 
                                (ii) the following:
                            ``(iii) make use of trained volunteers in 
                        providing direct services delivered to elderly 
                        and disabled individuals needing such care and, 
                        if possible, work in coordination with 
                        volunteer programs (including programs 
                        administered by the Corporation for National 
                        Service) designed to provide training, 
                        placement, and stipends for volunteers in 
                        community service settings.''.
                            (ii) in subparagraph (D)--
                                    (I) by inserting ``family 
                                caregivers of such individuals,'' after 
                                ``Act,''. and
                                    (II) by inserting ``service 
                                providers, the business community,'' 
                                after ``individuals,'',
                    (E) by amending paragraph (7) to read as follows:
            ``(7) provide that the area agency on aging shall, 
        consistent with this section, facilitate the area-wide 
        development and implementation of a comprehensive, coordinated 
        system for providing long-term care in home and community-based 
        settings, in a manner responsive to the needs and preferences 
        of older individuals and their family caregivers, by--
                    ``(A) collaborating, coordinating, and consulting 
                with other local public and private agencies and 
                organizations responsible for administering programs, 
                benefits, and services related to providing long-term 
                care;
                    ``(B) conducting analyses and making 
                recommendations with respect to strategies for 
                modifying the local system of long-term care to 
                better--
                            ``(i) respond to the needs and preferences 
                        of older individuals and family caregivers;
                            ``(ii) facilitate the provision, through 
                        service providers, of long-term care in home 
                        and community-based settings;
                            ``(iii) target services to older 
                        individuals at risk for institutional 
                        placement, to permit such individuals to remain 
                        in home and community-based care settings; and
                            ``(iv) implement, through the agency or 
                        service providers, evidence-based programs to 
                        assist older individuals and their family 
                        caregivers in learning about and making 
                        behavioral changes intended to reduce the risk 
                        of injury, disease, and disability among older 
                        individuals; and
                    ``(C) provide for the availability and distribution 
                (through public education campaigns, aging and 
                disability resource centers, and other appropriate 
                means) of information relating to--
                            ``(i) the need to plan in advance for long-
                        term care; and
                            ``(ii) the range of available public and 
                        private long-term care programs, options, and 
                        resources.''.
                    (F) by striking paragraph (14) and the 2 paragraphs 
                (15),
                    (G) by redesignating paragraph (16) as paragraph 
                (14), and
                    (H) by adding at the end the following:
            ``(15) provide assurances that funds received under this 
        title will be used--
                    ``(A) in a manner, consistent with paragraph (4), 
                that gives priority in furnishing benefits and services 
                to older individuals with greatest economic need, older 
                individuals with greatest social need, and older 
                individuals at risk for institutional placement; and
                    ``(B) in compliance with the assurances specified 
                in paragraph (13) and the limitations specified in 
                section 212(b), and
            ``(16) provide, to the maximum extent feasible, for the 
        furnishing of services under this Act consistent with self-
        directed care.'',
            (2) by redesignating subsections (b), (c), (d), and (e) as 
        subsections (c), (d), (e), and (f), and
            (3) by inserting after subsection (a) the following:
    ``(b)(1) An area agency on aging may include in the area plan an 
assessment of how prepared the planning and service area is for change 
in the number of older individual during the 10-year period following 
the fiscal year for which the plan is submitted. Such assessment may 
include--
                    ``(A) the projected change in the number of older 
                individuals in the planning and service area;
                    ``(B) an analysis of how such change may affect 
                such individuals, including such individuals with low 
                incomes, such individuals with greatest economic need, 
                minority older individuals, older individuals residing 
                in rural areas, and older individuals with limited 
                English proficiency;
                    ``(C) an analysis of how the programs, policies, 
                and services provided by such area agency can be 
                improved, and how resource levels can be adjusted to 
                meet the needs of the changing population of older 
                individuals in the planning and service area; and
                    ``(D) an analysis of how the change in the number 
                of individuals 85 years of age and older is expected to 
                affect the need for supportive services.
    ``(2) An area agency on aging, in cooperation with government 
officials, State agencies, tribal organizations, or local entities, may 
make recommendations to government officials in the planning and 
service area and the State, on actions determined by the area agency to 
build the capacity in the planning and service area to meet the needs 
of older individuals for--
            ``(A) health and human services;
            ``(B) land use;
            ``(C) housing;
            ``(D) transportation;
            ``(E) public safety;
            ``(F) workforce and economic development;
            ``(G) recreation;
            ``(H) education;
            ``(I) civic engagement; and
            ``(J) any other service as determined by such agency.''.

SEC. 16. STATE PLANS.

    Section 307(a) of the Older Americans Act of 1965 (42 U.S.C. 
3027(a)) is amended--
            (1) in paragraph (4) by striking ``with particular 
        attention to low income minority individuals and older 
        individuals residing in rural areas'' and inserting ``low-
        income minority older individuals, older individuals with 
        limited English proficiency, and older individuals residing in 
        rural areas'',
            (2) by striking paragraph (15),
            (3) by redesignating paragraph (14) as paragraph (15),
            (4) by inserting after paragraph (13) the following:
            ``(14) The plan shall, with respect to the fiscal year 
        preceding the fiscal year for which such plan is prepared--
                    ``(A) identify the number of low-income minority 
                older individuals in the State, including the number of 
                low-income older individuals with limited English 
                proficiency; and
                    ``(B) describe the methods used to satisfy the 
                service needs of such minority older individuals, 
                including the plan to service the needs of older 
                individuals with limited English proficiency.'',
            (5) in clauses (ii) and (iii) of paragraph (16)(A) by 
        striking ``(with particular attention to low income minority 
        individuals and older individuals residing in rural areas)'' 
        each place it appears and inserting ``(with particular 
        attention to low-income older individuals, low-income minority 
        older individuals, older individuals with limited English 
        proficiency, and older individuals residing in rural areas)'', 
        and
            (6) by adding at the end the following:
            ``(27) The plan shall provide assurances that area agencies 
        on aging will, to the maximum extent feasible, provide for the 
        furnishing of services under this Act consistent with self-
        directed care.''.

SEC. 17. PAYMENTS.

    Section 309(b)(2) of the Older Americans Act of 1965 (42 U.S.C. 
3029(b)(2)) is amended by striking ``the non-Federal share required 
prior to fiscal year 1981'' and inserting ``10 percent of the cost of 
the services specified in such section 304(d)(1)(D)''.

SEC. 18. CONSUMER CONTRIBUTIONS.

    Section 315 of the Older Americans Act of 1965 (42 U.S.C. 3030c-2) 
is amended---
            (1) in subsection (b)--
                    (A) in paragraph (1) by striking ``provided that'' 
                and inserting ``, and such contributions shall be 
                encouraged for individuals whose self-declared income 
                is at or above 125 percent of the poverty line and may 
                be requested at contribution levels based on the actual 
                cost of services, if'', and
                    (B) in paragraph (4)(E) by inserting ``and to 
                supplement (not supplant) funds received under this 
                Act'' after ``given''.
            (2) in subsection (c)(2) by striking ``(with particular 
        attention to low income minority individuals and older 
        individuals residing in rural areas)'' and inserting ``(with 
        particular attention to low-income older individuals, including 
        low-income minority older individuals, older individuals with 
        limited English proficiency, and older individuals residing in 
        rural areas)'', and
            (3) in subsection (d) by striking ``with particular 
        attention to low income minority individuals and older 
        individuals residing in rural areas'' and inserting ``, with 
        particular attention to low-income older individuals, including 
        low-income minority older individuals, older individuals with 
        limited English proficiency, and older individuals residing in 
        rural areas''.

SEC. 19. NUTRITION SERVICE.

    After the heading of part C of title III of the Older Americans Act 
of 1965 (42 U.S.C. 3030e-3030g-22), insert the following:

``SEC. 330. PURPOSE.

    ``It is the purpose of this part to promote socialization and the 
health and well-being of older individuals by assisting such 
individuals to gain access to disease prevention and health promotion 
services (including information, nutrition services, and programs of 
physical activity) to delay the onset of health conditions resulting 
from poor nutritional health or sedentary behavior.''.

SEC. 20. CONGREGATE NUTRITION PROGRAM.

    Section 331 of the Older Americans Act of 1965 (42 U.S.C. 3030e) is 
amended--
            (1) by striking ``projects--'' and inserting ``projects 
        that--'',
            (2) in paragraph (1) by striking ``which'',
            (3) in paragraph (2)--
                    (A) by striking ``which'', and
                    (B) by striking ``and'' at the end,
            (4) by striking paragraph (3) and inserting the following:
            ``(3) provide nutrition education, nutrition counseling, 
        and other nutrition services, as appropriate, based on the 
        needs of meal participants; and
            ``(4) may provide along with a meal described in (1), a 
        multivitamin-mineral supplement as an addition to such meal.''.

SEC. 21. HOME DELIVERED NUTRITION SERVICES.

    Section 336 of the Older Americans Act of 1965 (42 U.S.C. 3030f) is 
amended to read as follows:

``SEC. 336 PROGRAM AUTHORIZED.

    ``The Assistant Secretary shall establish and carry out a program 
to make grants to States under State plans approved under section 307 
for the establishment and operation of nutrition projects for older 
individuals which provide, on 5 or more days a week (except in a rural 
area where such frequency is not feasible (as defined by the Assistant 
Secretary by rule) and a lesser frequency is approved by the State 
agency)--
            ``(1) at least 1 home delivered meal per day consisting of 
        hot, cold, frozen, dried, canned, fresh, or supplemental foods 
        and any additional meals that the recipient of a grant or 
        contract under this subpart elects to provide; and
            ``(2) nutrition education, nutrition counseling, and other 
        nutrition services as appropriate, based on the needs of meal 
        recipients.''.

SEC. 22. CRITERIA.

    Section 337 of the Older Americans Act of 1965 (42 U.S.C. 3030g) is 
amended to read as follows:

``SEC. 337. CRITERIA.

    ``The Assistant Secretary, in consultation with experts in the 
field of nutrition science, dietetics, meal planning and food service 
management, and aging, shall develop minimum criteria of efficiency and 
quality for the furnishing of home delivered meal services for projects 
described in section 336.''.

SEC. 23. NUTRITION.

    Section 339 of the Older Americans Act of 1965 (42 U.S.C. 3030g-21) 
is amended--
            (1) by amending paragraph (1) to read as follows:
            ``(1) solicit the expertise of a dietitian or other 
        individual with equivalent education and training in nutrition 
        science, or if such an individual is not available, an 
        individual with comparable expertise in the planning of 
        nutritional services, and'', and
            (2) in paragraph (2)--
                    (A) in subparagraph (A)--
                            (i) by amending clause (i) to read as 
                        follows:
                            ``(i) comply with the most recent Dietary 
                        Guidelines for Americans, published by the 
                        Secretary and the Secretary of Agriculture, 
                        and'', and
                            (ii) in clause (ii) by striking ``daily 
                        recommended dietary allowances as'' and 
                        inserting ``dietary reference intakes'',
                    (B) in subparagraph (D)--
                            (i) by inserting ``joint'' after 
                        ``encourages'', and
                            (ii) by inserting ``shared'' after 
                        ``promote'',
                    (C) by amending subparagraph (G) to read as 
                follows:
                    ``(G) ensures that local meal providers solicit the 
                advice and expertise of--
                            ``(i) a dietitian or, if a dietitian is not 
                        available, an individual with comparable 
                        expertise in the planning of nutrition and food 
                        services,
                            ``(ii) meal participants, and
                            ``(iii) other individuals knowledgeable 
                        with regard to the needs of older 
                        individuals,'', and
                    (D) by amending subparagraph (J) to read as 
                follows:
                    ``(J) provide for nutrition screening and nutrition 
                education, and nutrition assessment and counseling if 
                appropriate.''.

SEC. 24. CAREGIVER SUPPORT PROGRAM.

    Section 373 of the National Family Support Caregiver Act (42 U.S.C. 
3030s-1) is amended--
            (1) in subsection by (b)(3) by striking ``caregivers to 
        assist'' and all that follows through the end and inserting the 
        following: ``assist the caregivers in the areas of health, 
        nutrition, and financial literacy, and in making decisions and 
        solving problems relating to their caregiving roles;'',
            (2) by amending subsection (d) to read as follows:
    ``(d) Use of Volunteers.--In carrying out this subpart, each area 
agency on aging shall encourage the use of trained volunteers to expand 
the available services described in subsection (b) and shall, if 
possible, coordinate with volunteer programs (including programs 
administered by the Corporation for National Service) designed to 
provide training, placement, and stipends for volunteers in community 
service settings.''.
            (3) in subsection (f)(1) by striking ``2001 through 2005'' 
        and inserting ``2007, 2008, 2009, 2010, and 2011''.

SEC. 25. GRANT PROGRAMS.

    Section 411 of the Older Americans Act of 1965 (42 U.S.C. 3032) is 
amended--
            (1) in subsection (a)--
                    (A) by redesignating paragraphs (6), (7), (8), and 
                (9) as paragraphs (7), (8), (9), and (10), and
                    (B) by inserting after paragraph (5) the following:
            ``(6) efforts to assess the aging population and to 
        facilitate planning and coordination between State and local 
        agencies to meet the needs of older individuals in the 
        community; and''.
            (2) in subsection (b) by striking ``year'' and all that 
        follows through ``years'', and inserting ``years 2007, 2008, 
        2009, 2010, and 2011''.

SEC. 26. CAREER PREPARATION FOR THE FIELD OF AGING.

    Section 412(a) of the Older Americans Act of 1965 (42 U.S.C. 
3032a(a)) is amended by amending subsection (a) to read as follows:
    ``(a) Grants.--The Assistant Secretary shall make grants to 
institutions of higher education, including historically Black colleges 
or universities, Hispanic serving institutions, and Hispanic Centers of 
Excellence in Applied Gerontology, to provide education and training 
that prepares students for careers in the field of aging.''.

SEC. 27. DEMONSTRATION PROJECTS FOR MULTIGENERATIONAL ACTIVITIES.

    Section 417(c)(2) of the Older Americans Act of 1965 (42 U.S.C. 
3032f(c)(2)) is amended by striking ``(with particular attention to low 
income minority individuals and older individuals residing in rural 
areas)'' and inserting ``(with particular attention to low-income older 
individuals, including low-income minority older individuals, older 
individuals with limited English proficiency, and older individuals 
residing in rural areas)''.

SEC. 28. COMMUNITY SERVICE EMPLOYMENT-BASED TRAINING FOR OLDER 
              AMERICANS.

    Title V of the Older Americans Act of 1965 (42 U.S.C. 3056 et seq.) 
is amended to read as follows:

   ``TITLE V--COMMUNITY SERVICE EMPLOYMENT-BASED TRAINING FOR OLDER 
                               AMERICANS

``SEC. 501. SHORT TITLE.

    ``This title may be cited as the `Older American Community Service 
Employment-Based Training Act'.

``SEC. 502. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT-BASED TRAINING 
              PROGRAM.

    ``(a) To foster individual economic self-sufficiency and to 
increase the number of individuals who may enjoy the benefits of 
unsubsidized employment in both the public and private sectors, the 
Secretary of Labor (hereafter in this title referred to as the 
`Secretary') may establish an older American community service 
employment-based training program to foster and promote useful part-
time public and private-sector training opportunities for unemployed 
low-income eligible individuals who have poor employment prospects and 
to provide vital social and human services to communities through the 
placement of low-income individuals in community service activities.
    ``(b)(1) To carry out this title, the Secretary may make grants to 
public and nonprofit agencies and organizations, agencies of a State, 
and tribal organizations to carry out the program established under 
subsection (a). Such grants may provide for the payment of costs, as 
provided in subsection (c), of projects developed by such organizations 
and agencies in cooperation with the Secretary in order to make such 
program effective or to supplement such program. No payment shall be 
made by the Secretary toward the cost of any project established or 
administered by any organization or agency unless the Secretary 
determines that such project--
            ``(A) will provide authorized activities, including 
        community service employment-based training, only for eligible 
        individuals;
            ``(B)(i) will provide authorized activities, including 
        community service employment-based training, for eligible 
        individuals in the community in which such individuals reside, 
        or in nearby communities; or
            ``(ii) if such project is carried out by a tribal 
        organization that receives a grant under this subsection or 
        receives assistance from a State that receives a grant under 
        this subsection, will provide authorized activities, including 
        community service employment-based training for such 
        individuals, including those who are Indians residing on an 
        Indian reservation, as defined in section 2601(2) of the Energy 
        Policy Act of 1992 (25 U.S.C. 3501(2));
            ``(C) together with any other such project carried out by 
        such grantee under this title, will ensure that the average 
        duration of participation in the program under this title by 
        the participants served by the grantee during any program year 
        will not be in excess of 24 months;
            ``(D) will provide employment-based training to eligible 
        individuals in service related to publicly owned and operated 
        facilities and projects, or projects sponsored by profitmaking 
        or nonprofit organizations (excluding political parties exempt 
        from taxation under section 501(c)(3) of the Internal Revenue 
        Code of 1986), but excluding projects involving the 
        construction, operation, or maintenance of any facility used or 
        to be used as a place for sectarian religious instruction or 
        worship;
            ``(E) will contribute to the general welfare of the 
        community, which may include support for children, youth, and 
        families;
            ``(F) is intended to result in unsubsidized employment for 
        eligible individuals after completion of such program;
            ``(G)(i) will not reduce the number of job opportunities or 
        vacancies that would otherwise be available to individuals not 
        participating in such program;
            ``(ii) will not displace currently employed workers 
        (including partial displacement, such as a reduction in the 
        hours of non-overtime work, wages, or employment benefits);
            ``(iii) will not impair existing contracts or result in the 
        substitution of Federal funds for other funds in connection 
        with work that would otherwise be performed; and
            ``(iv) will not place an eligible individual in employment-
        based training to perform work the same or substantially the 
        same work as that performed by any other individual who is on 
        layoff;
            ``(H) will coordinate with training and other services 
        provided under title I of the Workforce Investment Act, 
        including utilizing the One-Stop delivery system to recruit 
        eligible individuals to ensure that the maximum number of 
        eligible individuals will have an opportunity to participate in 
        the project;
            ``(I) will include such training (such as community service 
        employment-based training, work experience, on-the-job 
        training, and classroom training) as may be necessary to make 
        the most effective use of the skills and talents of those 
        individuals who are participating;
            ``(J) will ensure that safe and healthy conditions of the 
        employment-based training facility or other training facility 
        will be provided, and will ensure that individuals employed in 
        community service and other jobs assisted under this title 
        shall be paid wages that shall not be lower than whichever is 
        the highest of--
                    ``(i) the minimum wage that would be applicable to 
                the employee under the Fair Labor Standards Act of 
                1938, if section 6(a)(1) of such Act applied to the 
                participant and if the participant were not exempt 
                under section 13 thereof;
                    ``(ii) the State or local minimum wage for the most 
                nearly comparable covered employment; or
                    ``(iii) the prevailing rates of pay for individuals 
                employed in similar occupations by the same employer;
            ``(K) will be established or administered with the advice 
        of persons competent in the field of service in which job 
        training is being provided, and of persons who are 
        knowledgeable about the needs of older individuals;
            ``(L) will authorize payment for necessary supportive 
        service costs, (including transportation costs) of eligible 
        individuals that may be incurred in training in any project 
        funded under this title, in accordance with rules issued by the 
        Secretary;
            ``(M) will ensure that, to the extent feasible, such 
        project will serve the needs of minority, limited English-
        speaking, and Indian eligible individuals, and eligible 
        individuals who have the greatest economic need, at least in 
        proportion to their numbers in the State and take into 
        consideration their rates of poverty and unemployment;
            ``(N)(i) will prepare an assessment of the participants' 
        skills and talents and their needs for services, except to the 
        extent such project has, for the participant involved, recently 
        prepared an assessment of such skills and talents, and such 
        needs, pursuant to another employment or training program (such 
        as a program under the Workforce Investment Act of 1998 (29 
        U.S.C. 2801 et seq.), the Carl D. Perkins Vocational and 
        Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), or 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.));
            ``(ii) will provide training and employment counseling to 
        eligible individuals based on strategies that identify 
        appropriate employment objectives and the need for supportive 
        services, developed as a result of the assessment and service 
        strategy provided for in clause (i), and provide other 
        appropriate information regarding such program; and
            ``(iii) will provide counseling to participants on their 
        progress in meeting such objectives and satisfying their need 
        for supportive services;
            ``(O) will provide appropriate services for participants 
        through the One-Stop delivery system as established under 
        section 134(c) of the Workforce Investment Act of 1998 (29 
        U.S.C. 2864(c)), and will be involved in the planning and 
        operations of such system pursuant to a memorandum of 
        understanding with the local workforce investment board in 
        accordance with section 121(c) of such Act (29 U.S.C. 2841(c));
            ``(P) will post in such project workplace a notice, and 
        will make available to each person associated with such project 
        a written explanation--
                    ``(i) clarifying the law with respect to political 
                activities allowable and unallowable under chapter 15 
                of title 5, United States Code, applicable to the 
                project and to each category of individuals associated 
                with such project; and
                    ``(ii) containing the address and telephone number 
                of the Inspector General of the Department of Labor, to 
                whom questions regarding the application of such 
                chapter may be addressed;
            ``(Q) will provide to the Secretary the description and 
        information described in--
                    ``(i) paragraph (8), relating to coordination with 
                other Federal programs, of section 112(b) of the 
                Workforce and Investment Act of 1998; and
                    ``(ii) paragraph (14), relating to implementation 
                of One-Stop delivery systems, of section 112(b) of the 
                Workforce Investment Act of 1998; and
            ``(R) will ensure that entities that carry out activities 
        under the project (including State agencies, local entities, 
        subgrantees, subcontractors) and affiliates of such entities 
        receive an amount of the administrative cost allocation 
        determined by the Secretary to be sufficient.
    ``(2) The Secretary may establish, issue, and amend such 
regulations as may be necessary to effectively carry out this title.
    ``(3)(A) An assessment and service strategy required by paragraph 
(1) to be prepared for an eligible individual shall satisfy any 
condition for an assessment and service strategy or individual 
employment plan for an adult participant under subtitle B of title I of 
the Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.), in order 
to determine whether such eligible individual also qualifies for 
intensive or training services described in section 134(d) of such Act 
(29 U.S.C. 2864(d)).
    ``(B) An assessment and service strategy or individual employment 
plan prepared under subtitle B of title I of the Workforce Investment 
Act of 1998 (29 U.S.C. 2811 et seq.) for an eligible individual may be 
used to comply with the requirement specified in subparagraph (A).
    ``(c)(1) The Secretary may pay a share not to exceed 90 percent of 
the cost of any project for which a grant is made under subsection (b), 
except that the Secretary may pay all of such cost if such project is--
            ``(A) an emergency or disaster project; or
            ``(B) a project located in an economically depressed area, 
        as determined by the Secretary in consultation with the 
        Secretary of Commerce and the Secretary of Health and Human 
        Services.
    ``(2) The non-Federal share shall be in cash or in kind. In 
determining the amount of the non-Federal share, the Secretary may 
attribute fair market value to services and facilities contributed from 
non-Federal sources.
    ``(3) Of the amount to be paid under this subsection by the 
Secretary for a project, not to exceed 13.5 percent shall be available 
for any fiscal year to pay the administrative costs of such project, 
except that--
            ``(A) the Secretary may increase the amount available to 
        pay administrative costs to an amount not to exceed 15 percent 
        of the cost of such project if the Secretary determines, based 
        on information submitted by the grantee under subsection (b), 
        that such increase is necessary to carry out such project; and
            ``(B) if the grantee under subsection (b) demonstrates to 
        the Secretary that--
                    ``(i) major administrative cost increases are being 
                incurred in necessary program components, including 
                liability insurance, payments for workers' 
                compensation, costs associated with achieving 
                unsubsidized placement goals, and other operation 
                requirements imposed by the Secretary;
                    ``(ii) the number of positions in the project or 
                the number of minority eligible individuals 
                participating in the project will decline if the amount 
                available to pay administrative costs is not increased; 
                or
                    ``(iii) the size of the project is so small that 
                the amount of administrative costs incurred to carry 
                out the project necessarily exceeds 13.5 percent of the 
                cost of such project;
        the Secretary shall increase the amount available for such 
        fiscal year to pay administrative costs to an amount not to 
        exceed 15 percent of the cost of such project.
    ``(4) Administrative costs are the costs, both personnel and non-
personnel and both direct and indirect, associated with the following:
            ``(A) The costs of performing general administrative 
        functions and of providing for the coordination of functions, 
        such as--
                    ``(i) accounting, budgeting, financial, cash 
                management and related data processing;
                    ``(ii) quality assurance;
                    ``(iii) preparing program plans;
                    ``(iv) procurement and purchasing;
                    ``(v) property management;
                    ``(vi) personnel management, including personnel 
                administration, administration of affirmative action 
                plans, and training and staff development;
                    ``(vii) administrative salaries, including clerical 
                and other support staff salaries;
                    ``(viii) payroll functions;
                    ``(ix) coordinating the resolution of findings 
                arising from audits, reviews, investigations, and 
                incident reports;
                    ``(x) audit;
                    ``(xi) general legal services;
                    ``(xii) developing systems and procedures, 
                including information systems, required for 
                administrative functions;
                    ``(xiii) preparing reports; and
                    ``(xiv) other activities necessary for the general 
                administration of government funds and associated 
                programs.
            ``(B) The costs of performing oversight and monitoring 
        responsibilities.
            ``(C) The costs of goods and services required for 
        administrative functions of such program, including goods and 
        services such as rental or purchase of equipment, utilities, 
        office supplies, postage, and rental and maintenance of office 
        space.
            ``(D) The travel costs incurred for official business in 
        carrying out such program, excluding travel costs related to 
        providing services.
            ``(E) The costs of information systems related to 
        personnel, procurement, purchasing, property management, 
        accounting, and payroll systems), including the purchase, 
        systems development, and operating costs of such systems.
            ``(F) The costs of technical assistance, professional 
        organization membership dues, removal of architectural 
        barriers, operating and maintaining assistive technology, and 
        evaluating program results against stated objectives.
    ``(5) 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)(A) Amounts made available 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 activities, including--
            ``(i) participant wages, such benefits as are required by 
        law (such as workers compensation or unemployment compensation) 
        the costs of physical examinations, compensation for scheduled 
        work hours during which an employer is closed for a Federal 
        holiday, and necessary sick leave that is not part of an 
        accumulated sick leave program, except that no amounts provided 
        under this title may be used to pay the cost of pension 
        benefits, annual leave, accumulated sick leave, or bonuses;
            ``(ii) participant training (including the payment of 
        reasonable costs of instructors, 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, including job development 
        and job search assistance;
            ``(iv) participant supportive services to enable a 
        participant to successfully participate in a project under this 
        title, which may include the payment of reasonable costs of 
        transportation, 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 selection, intake, 
        orientation, and assessments.
    ``(B) Not less than 65 percent of the funds made available under a 
grant made under this title (excluding a grant made under subsection 
(d)) shall be used to pay wages and benefits for eligible individuals 
who are employed under projects carried out under this title.
    ``(d) Pilot, Demonstration, and Evaluation Projects.--The Secretary 
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 approaches, 
and demonstrating the effectiveness of the specialized methods, in 
addressing the employment and training needs of older workers. Such 
projects may include--
            ``(1) activities linking businesses and older workers, 
        including assistance to participants transitioning from 
        subsidized activities to private-sector employment; and
            ``(2) demonstration projects and pilot projects designed 
        to--
                    ``(A) attract more older workers into the labor 
                force;
                    ``(B) improve the provision of services to older 
                workers under the One-Stop delivery system established 
                in accordance with title I of the Workforce Investment 
                Act of 1998;
                    ``(C) enhance the technological skills of older 
                workers; and
                    ``(D) provide incentives to grantees under this 
                title for exemplary performance and incentives to 
                businesses to promote their participation in the 
                program under this title;
            ``(3) training and technical assistance to support any 
        project funded under this title;
            ``(4) dissemination of best practices; and
            ``(5) evaluation of the activities authorized under this 
        title.

``SEC. 503. ADMINISTRATION.

    ``(a) State Plan.--
            ``(1) Chief executive officer submits plan.--For a State to 
        be eligible to receive an allotment under section, 506, the 
        chief executive officer of the State shall submit to the 
        Secretary for consideration and approval, a single State plan 
        (referred to in this title as the `State plan') that outlines a 
        3-year strategy for the statewide provision of training and 
        related activities for eligible individuals under this title. 
        The plan shall contain such provisions as the Secretary may 
        require, consistent with this title, including a description of 
        the process used to ensure the participation of individuals 
        described in paragraph (2).
            ``(2) Recommendations.--In developing the State plan prior 
        to its submission to the Secretary, the chief executive officer 
        of the State shall seek the advice and recommendations of--
                    ``(A) individuals representing the State agency and 
                the area agencies on aging in the State, and the State 
                and local workforce investment 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 grantee operating a project 
                under this title in the State; and
                    ``(C) individuals representing social service 
                organizations providing services to older individuals, 
                grantees under title III of this Act, affected 
                communities, unemployed older individuals, community-
                based organizations serving the needs of older 
                individuals, business organizations, and labor 
                organizations..
            ``(3) 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 
                individuals residing in rural and urban areas in the 
                State; and
                    ``(C) the relative distribution of--
                            ``(i) eligible individuals who are 
                        individuals with greatest economic need;
                            ``(ii) eligible individuals who are 
                        minority individuals, including individuals who 
                        are limited English proficient; and
                            ``(iii) eligible individuals who are 
                        individuals with greatest social need;
                    ``(D) the current and projected employment 
                opportunities in the State, by occupation, and the type 
                of skills possessed by local eligible individuals;
                    ``(E) the localities and populations for which 
                projects of the type authorized by this title are most 
                needed; and
                    ``(F) plans for facilitating the coordination of 
                activities of grantees in the State under this title 
                with activities carried out in the State under title I 
                of the Workforce Investment Act of 1998.
            ``(4) Chief executive officer's recommendations on grant 
        proposals.--Before a proposal for a grant under this title for 
        any fiscal year is submitted to the Secretary, the chief 
        executive officer of each State in which projects are proposed 
        to be conducted under such grant shall be afforded a reasonable 
        opportunity to submit recommendations to the Secretary--
                    ``(A) regarding the anticipated effect of each such 
                proposal upon the overall distribution of enrollment 
                positions under this title in the State (including such 
                distribution among urban and rural areas), taking into 
                account the total number of positions to be provided by 
                all grantees in the State;
                    ``(B) any recommendations for redistribution of 
                positions to under served areas as vacancies occur in 
                previously encumbered positions in other areas; and
                    ``(C) in the case of any increase in funding that 
                may be available for use in the State under this title 
                for any fiscal year, any recommendations for 
                distribution of newly available positions in excess of 
                those available during the preceding year to 
                underserved areas.
            ``(5) Disruptions.--In developing plans and considering 
        recommendations under this subsection, disruptions in the 
        provision of services for current participants shall be avoided 
        to the greatest possible extent.
            ``(6) Determination; review.--
                    ``(A) Determination.--In order to effectively carry 
                out this title, each State shall make the State plan 
                available for public comment. The Secretary, in 
                consultation with the Assistant Secretary, shall review 
                the plan and make a written determination with findings 
                and a decision regarding the plan.
                    ``(B) Review.--The Secretary may review, on the 
                Secretary's own initiative or at the request of any 
                public or private agency or organization or of any 
                agency of the State, the distribution of projects and 
                services under this title in the State including the 
                distribution between urban and rural areas in the 
                State. For each proposed reallocation of projects or 
                services in a State, the Secretary shall give notice 
                and opportunity for public comment.
            ``(7) Exemption.--The grantees that serve eligible 
        individuals who are older Indians with funds reserved under 
        section 506(a)(3) may not be required to participate in the 
        State planning processes described in this section but will 
        collaborate with the Secretary to develop a plan for projects 
        and services to eligible individuals who are Indians.
    ``(b) Coordination With Other Federal Programs.--
            ``(1) The Secretary and the Assistant Secretary shall 
        coordinate the program carried out under this title with 
        programs carried out under other titles of this Act, to 
        increase job opportunities available to older individuals.
            ``(2) The Secretary shall coordinate programs carried out 
        under this title with the program carried out under the 
        Workforce Investment Act of 1998, the Community Services Block 
        Grant Act, the Rehabilitation Act of 1973, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 U.S.C. 2301 
        et seq.), the National and Community Service Act of 1990 (42 
        U.S.C. 12501 et seq.), and the Domestic Volunteer Service Act 
        of 1973 (42 U.S.C. 4950 et seq.). The Secretary shall 
        coordinate the administration of this title with the 
        administration of other titles of this Act by the Assistant 
        Secretary to increase the likelihood that eligible individuals 
        for whom employment opportunities under this title are 
        available and who need services under such titles receive such 
        services. Funds appropriated to carry out this title may not be 
        used to carry out any program under the Workforce Investment 
        Act of 1998, the Community Services Block Grant Act, the 
        Rehabilitation Act of 1973, the Carl D. Perkins Vocational and 
        Technical Education Act of 1998, the National and Community 
        Service Act of 1990, or the Domestic Volunteer Service Act of 
        1973. The preceding sentence shall not be construed to prohibit 
        carrying out projects under this title jointly with programs, 
        projects, or activities under any Act specified in such 
        sentence, or from carrying out section 512.
            ``(3) The Secretary shall distribute to grantees under this 
        title, for distribution to program participants, and at no cost 
        to grantees or participants, informational materials developed 
        and supplied by the Equal Employment Opportunity Commission and 
        other appropriate Federal agencies that the Secretary 
        determines are designed to help participants identify age 
        discrimination and to understand their rights under the Age 
        Discrimination in Employment Act of 1967.
    ``(c) In carrying out this title, the Secretary may use, with their 
consent, the services, equipment, personnel, and facilities of Federal 
and other agencies with or without reimbursement, and on a similar 
basis to cooperate with other public and private agencies and 
instrumentalities in the use of services, equipment, and facilities.
    ``(d) Payments under this title may be made in advance or by way of 
reimbursement and in such installments as the Secretary may determine.
    ``(e) The Secretary shall not delegate any function of the 
Secretary under this title to any other Federal officer or entity.
    ``(f)(1) The Secretary shall monitor projects for which grants are 
made under this title to determine whether the grantees are complying 
with rules and regulations issued to carry out this title (including 
the statewide planning, consultation, and coordination requirements of 
this title).
    ``(2) Each grantee that receives funds under this title shall 
comply with the applicable uniform cost principles and appropriate 
administrative requirements for grants and contracts that are 
applicable to the type of entity that receives funds, as issued as 
circulars or rules of the Office of Management and Budget.
    ``(3) Each grantee described in paragraph (2) shall prepare and 
submit a report in such manner and containing such information as the 
Secretary may require regarding activities carried out under this 
title.
    ``(4) Each grantee described in paragraph (2) shall keep records 
that--
            ``(A) are sufficient to permit the preparation of reports 
        required by this title;
            ``(B) are sufficient to permit the tracing of funds to a 
        level of expenditure adequate to ensure that the funds have not 
        been spent unlawfully; and
            ``(C) contain any other information that the Secretary 
        determines to be appropriate.
    ``(g) The Secretary shall establish by rule and implement a process 
to evaluate, in accordance with section 513, the performance of 
projects and services carried out under this title. The Secretary shall 
report to the Congress, and make available to the public, the results 
of each such evaluation and shall use such evaluation to improve 
services delivered by, or the operation of, projects carried out under 
this title.

``SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES.

    ``(a) Eligible individuals who are participants in authorized 
activities in any project funded under this title shall not be 
considered to be Federal employees as a result of such participation 
and shall not be subject to part III of title 5, United States Code.
    ``(b) No grant, subgrant, contract or subcontract shall be entered 
into under this title with an entity who is, or whose employees are, 
under State law, exempted from operation of the State workers' 
compensation law, generally applicable to employees unless the entity 
shall undertake to provide either through insurance by a recognized 
carrier or by self-insurance, as authorized by State law, that the 
persons employed under the grant, contract, subgrant, or subcontract 
shall enjoy workers' compensation coverage equal to that provided by 
law for covered employment.

``SEC. 505. INTERAGENCY COOPERATION.

    ``(a) The Secretary shall consult with and obtain the written views 
of the Assistant Secretary before issuing rules and before establishing 
general policy in the administration of this title.
    ``(b) The Secretary shall consult and cooperate with the Director 
of the Office of Community Services, the Secretary of Health and Human 
Services, and the heads of other Federal agencies that carry out 
related programs, in order to achieve optimal coordination with such 
other programs. In carrying out this section, the Secretary shall 
promote programs or projects of a similar nature. Each Federal agency 
shall cooperate with the Secretary in disseminating information 
relating to the availability of assistance under this title and in 
promoting the identification and interests of individuals eligible for 
employment in projects assisted under this title.
    ``(c)(1) The Secretary shall promote and coordinate carrying out 
projects under this title jointly with 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 provided through One-Stop delivery systems 
established under section 134(c) of such Act (29 U.S.C. 2864(c)), that 
provide training and employment opportunities to eligible individuals.
    ``(2) The Secretary shall consult with the Secretary of Education 
to promote and coordinate carrying out projects under this title 
jointly with workforce investment activities in which eligible 
individuals may participate that are carried out under the Carl D. 
Perkins Vocational and Technical Education Act of 1998.

``SEC. 506. DISTRIBUTION OF ASSISTANCE.

    ``(a) Reservations.--
            ``(1) Reservation for national activities.--Of the funds 
        appropriated to carry out this title for each fiscal year, the 
        Secretary may first reserve up to 1.5 percent to carry out 
        demonstration projects, pilot projects, and evaluation projects 
        under section 502(d).
            ``(2) Reservation for territories.--Of the funds 
        appropriated to carry out this title for each fiscal year, the 
        Secretary shall reserve up to 0.75 percent, of which--
                    ``(A) Guam, American Samoa, and the United States 
                Virgin Islands shall each receive 30 percent of the 
                funds so reserved; and
                    ``(B) the Commonwealth of the Northern Mariana 
                Islands shall receive 10 percent of the funds so 
                reserved.
            ``(3) Reservation for organizations.--Of the funds 
        appropriated to carry out this title for each fiscal year, the 
        Secretary shall reserve such amount as may be necessary to make 
        national grants to public or nonprofit national Indian aging 
        organizations with the ability to provide authorized activities 
        for eligible individuals who are Indians and to national public 
        or nonprofit Pacific Island and Asian American aging 
        organizations with the ability to provide authorized activities 
        for eligible 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 paragraphs (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 2006 level of 
        activities.--
                    ``(A) The Secretary shall reserve the amount of 
                funds necessary to maintain the fiscal year 2006 level 
                of activities supported by grantees that operate under 
                this title under national grants from the Secretary, 
                and the fiscal year 2006 level of activities supported 
                by State grantees under this title, in proportion to 
                their respective fiscal year 2006 levels of activities.
                    ``(B) If in any fiscal year for which the funds 
                appropriated to carry out this title are insufficient 
                to satisfy the requirement specified in subparagraph 
                (A), then the amount described in subparagraph (A) 
                shall be reduced proportionally.
            ``(2) Funding in excess of fiscal year 2006 level of 
        activities.--
                    ``(A) Up to $35,000,000.--The amount of funds 
                remaining after the application of 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 available under 
subsection (c) for national grants, the Secretary shall allot for 
public and nonprofit private agency and organization grantees that 
operate under this title under national grants from the Secretary in 
each State, an amount that bears the same ratio to such funds as the 
product of the number of individuals 55 years of age or older in the 
State and the allotment percentage of 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 the amount provided under 
        subsection (c) is--
                    ``(A) equal to or less than the amount necessary to 
                maintain the fiscal year 2006 level of activities, 
                allotments for grantees that operate under this title 
                under national grants from the Secretary in each State 
                shall be proportional to their fiscal year 2006 level 
                of activities; or
                    ``(B) greater than the amount necessary to maintain 
                the fiscal year 2006 level of activities, no State 
                shall be provided a percentage increase above the 
                fiscal year 2006 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 
                such percentage increase above the fiscal year 2006 
                level of activities 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.
            ``(3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be reduced 
        proportionally to satisfy the conditions in such paragraphs.
    ``(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 55 years of 
age or older in the State and the allotment percentage of such State 
bears to the sum of the corresponding product 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 the amount provided under 
        subsection (c) is--
                    ``(A) equal to or less than the amount necessary to 
                maintain the fiscal year 2006 level of activities, 
                allotments for State grantees in each State shall be 
                proportional to their fiscal year 2006 level of 
                activities; or
                    ``(B) greater than the amount necessary to maintain 
                the fiscal year 2006 level of activities, no State 
                shall be provided a percentage increase above the 
                fiscal year 2006 level of activities for State grantees 
                in the State that is less than 30 percent of such 
                percentage increase above the fiscal year 2006 level of 
                activities for State grantees in all of the States.
            ``(3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be reduced 
        proportionally to satisfy the conditions in such paragraphs.
    ``(f) Allotment Percentage.--For purposes of subsections (d) and 
(e)--
            ``(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 55 years of age 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 
        percentage, the term `United States' means the 50 States and 
        the District of Columbia.
    ``(g) Definitions.--For purposes of 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;
                    ``(B) an amount equal to 11 percent of the amount 
                specified under subparagraph (A), for the purpose of 
                covering 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 2006 level of activities.--The term 
        `fiscal year 2006 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 2006; and
                    ``(B) with respect to State grantees, their level 
                of activities for fiscal year 2006.
            ``(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 under national grants from the Secretary.
            ``(6) State.--The term `State' does not include Guam, 
        American 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 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 in this title shall not be considered to 
be income of such individuals for purposes of determining 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.

``SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT ACTIVITIES.

    ``Eligible individuals under this title may be considered by local 
workforce investment boards established under title I of the Workforce 
Investment Act of 1998 to satisfy the requirements for receiving 
services under such title I that are applicable to adults.

``SEC. 511. 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. 512. 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 system; and
            ``(2) shall 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. 513. PERFORMANCE.

    ``(a) Measures.--
            ``(1) Establishment of measures.--The Secretary shall 
        establish, in consultation with grantees, subgrantees, and host 
        agencies under this title, States, older individuals, area 
        agencies on aging, and other organizations serving older 
        individuals, performance measures for each grantee for projects 
        and services carried out under this title.
            ``(2) Content.--
                    ``(A) Composition of measures.--The performance 
                measures established by the Secretary in accordance 
                with paragraph (1) shall consist of--
                            ``(i) core indicators of performance 
                        specified in subsection (b)(1) and the expected 
                        levels of performance applicable to each core 
                        indicator of performance, and
                            ``(ii) additional indicators of performance 
                        specified in subsection (b)(2)
                    ``(B) Continuous improvement.--The measures 
                described in subparagraph (A)(i) shall be designed to 
                promote continuous improvement in performance.
                    ``(C) Expected levels of performance.--The 
                Secretary 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 subsection (b)(1). The agreement shall 
                take into account the factors described in 
                subparagraphs (B) and (D) and other appropriate factors 
                as determined by the Secretary, and shall be consistent 
                with the requirements of subparagraph (E). Funds under 
                the grant may not be awarded until such agreement is 
                reached.
                    ``(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 welfare participation, in the areas 
                        served by a grantee, relative to other areas of 
                        the State or Nation.
                            ``(ii) Significant downturns in the areas 
                        served by the grantee or in the national 
                        economy.
                            ``(iii) Significant numbers or proportions 
                        of participants with 1 or more barriers to 
                        employment served by a grantee relative to 
                        grantees serving other areas of the State or 
                        Nation.
                            ``(iv) Changes in Federal, State, or local 
                        minimum wage requirements.
                    ``(E) Placement.--
                            ``(i) Level of performance.--For all 
                        grantees, the Secretary shall establish a level 
                        of performance of not less than the percentage 
                        specified in clause (ii) (adjusted in 
                        accordance with subparagraph (D)) for the entry 
                        into unsubsidized employment core indicator of 
                        performance described in subsection (b)(1)(A). 
                        If a grantee achieved a level of performance 
                        less than the percentage specified in such 
                        clause for the preceding fiscal year for which 
                        results are available before the enactment of 
                        the Senior Independence Act of 2006, the 
                        Secretary shall provide technical assistance to 
                        assist such grantee to achieve the applicable 
                        percentage specified in such clause.
                            ``(ii) Required placement percentages.--The 
                        minimum percentage for the entry into 
                        unsubsidized employment described in subsection 
                        (b)(1)(A) is--
                                    ``(I) 22 percent in fiscal year 
                                2007;
                                    ``(II) 24 percent in fiscal year 
                                2008;
                                    ``(III) 26 percent in fiscal year 
                                2009;
                                    ``(IV) 28 percent in fiscal year 
                                2010; and
                                    ``(V) 30 percent in fiscal year 
                                2011.
            ``(3) Performance evaluation of grantees.--The Secretary 
        shall annually establish national performance measures for each 
        grantee under this title, which shall be applicable to the 
        grantee without regard to whether such grantee operates such 
        program directly or through contracts, grants, or agreements 
        with other entities. The measures shall include the core 
        indicators of performance and expected level of performance for 
        each such indicator, and the additional indicators of 
        performance. In addition, the Secretary shall annually publish 
        the actual performance of each grantee with respect to--
                    ``(A) the levels achieved for each of the core 
                indicators of performance, compared to expected levels 
                of performance under paragraph (2)(C) (including any 
                adjustments to such levels made in accordance with to 
                paragraph (2)(D)); and
                    ``(B) the levels achieved for each of the 
                additional indicators of performance.
            ``(4) Limitation.--An agreement to be evaluated on the 
        performance measures 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) entry into unsubsidized employment;
                    ``(B) retention in unsubsidized employment for 6 
                months; and
                    ``(C) earnings.
            ``(2) Additional indicators.--The additional indicators of 
        performance described in subsection (a)(2)(A)(ii) shall consist 
        of--
                    ``(A) community services provided;
                    ``(B) retention in unsubsidized employment for 1 
                year;
                    ``(C) the number of eligible individuals served, 
                including the number of participating individuals 
                described in section 516(2)(A)(i), and
                    ``(D) any other indicators of performance that the 
                Secretary determines to be appropriate to evaluate 
                services and performance.
    ``(c) Definitions of Indicators.--
            ``(1) In general.--The Secretary, after consultation with 
        national and State grantees, representatives of business and 
        labor organizations, and providers of services, shall issue 
        rules that define the indicators of performance described in 
        subsection (b).
    ``(d) Corrective Efforts.--
            ``(1) 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 514 has met the expected levels of performance 
                established under subsection (a)(2)(C) (including any 
                adjustments to such levels made in accordance with to 
                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 grantee fails to meet the 
                        expected levels of performance described in 
                        paragraph (1), the Secretary 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 
                        subparagraph (A) shall detail the steps the 
                        grantee will take to meet the national 
                        performance measures in the next program year.
            ``(2) State grantees.--
                    ``(A) In general.--Not later than 120 days after 
                the end of the 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 to subsection (a)(2)(D)) for the core 
                indicators of performance described in subsection 
                (b)(1).
                    ``(B) Technical assistance and corrective action 
                plan.--If a State fails to meet the levels of 
                performance described in subparagraph (A), the 
                Secretary shall provide technical assistance and 
                require the State to submit a corrective action plan 
                not later than 160 days after the end of the program 
                year.
                    ``(C) Content.--The plan described in subparagraph 
                (B) shall detail the steps the State will take to meet 
                the standards.
                    ``(D) Failure to meet performance measures for 
                second and third years.--
                            ``(i) After second year of failure.--If a 
                        State fails to meet the levels of performance 
                        described in subparagraph (A) for a second 
                        consecutive program year, the Secretary shall 
                        provide for the conduct by the State of a 
                        competition to award, for the first full 
                        program year following the determination 
                        (minimizing, to the extent possible, the 
                        disruption of services provided to 
                        participants), an amount equal to 25 percent of 
                        the funds available to the State for such year.
                            ``(ii) After third year of failure.--If the 
                        State fails to meet the levels of performance 
                        described in subparagraph (A) for a third 
                        consecutive program year, the Secretary shall 
                        provide for the conduct by the State of a 
                        competition to award the funds allocated to the 
                        State for the first full program year following 
                        the Secretary's determination that the State 
                        has not met the performance measures.

``SEC. 514. COMPETITIVE REQUIREMENTS RELATING TO GRANT AWARDS.

    ``(a) Program Authorized.--From the funds available for national 
grants under section 506(d), the Secretary shall award grants to 
eligible applicants to carry out projects under this title through a 
competitive process that is conducted at least once every 3 years.
    ``(b) Eligible Applicants.--An applicant shall be eligible to 
receive a grant under subsection (a) in accordance with section 
502(b)(1), and subsections (c) and (d).
    ``(c) Criteria.--The Secretary shall select the eligible applicants 
to receive grants under subsection (a) based on the following:
            ``(1) The applicant's ability to administer a program that 
        serves the greatest number of eligible individuals, giving 
        particular consideration to individuals with greatest economic 
        need, greatest social need, poor employment history or 
        prospects, and over the age of 65.
            ``(2) The applicant's ability to administer a program 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 community.
            ``(3) The applicant's ability to administer a program that 
        moves eligible individuals into unsubsidized employment, and 
        the prior performance of the applicant, if any, in meeting 
        performance measures under this title and under other Federal 
        or State programs.
            ``(4) The applicant's ability to move individuals with 
        multiple barriers to employment into unsubsidized employment.
            ``(5) The applicant's ability to coordinate with other 
        organizations at the State and local level.
            ``(6) The applicant's plan for fiscal management of the 
        program to be administered with funds received under this 
        section.
            ``(7) Any additional criteria that the Secretary considers 
        to be appropriate in order to minimize disruption for current 
        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 
        organization's history with regard to the management of other 
        grants.
            ``(3) Failure to satisfy test.--The failure to satisfy any 
        1 responsibility test that is listed in paragraph (4), 
        excluding those listed in subparagraphs (A) and (B), does not 
        establish that the organization 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 organization 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.
                    ``(B) Established fraud or criminal activity of a 
                significant nature within the organization.
                    ``(C) Serious administrative deficiencies 
                identified by the Secretary, such as failure to 
                maintain a financial management system as required by 
                Federal rules or regulations.
                    ``(D) Willful obstruction of the audit process.
                    ``(E) Failure to provide services to applicants as 
                agreed to in a current or recent grant or to meet 
                applicable performance measures.
                    ``(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 
                expiration date or receipt of 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 
                Government property as instructed by the Secretary.
                    ``(J) Failure to have maintained effective cash 
                management 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 
                findings.
                    ``(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.

``SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) There is 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) 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 funds under this title if the Secretary determines 
that such extension is necessary to ensure the effective use of such 
funds by such organization or agency.
    ``(c) 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) technical assistance; or
            ``(2) grants or contracts for any other program under this 
        title.

``SEC. 516. DEFINITIONS.

    ``For purposes of this title:
            ``(1) Community service employment-based training.--The 
        term `community service employment-based training' means 
        training provided through work experience that is related to 
        providing 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, recreational, 
        and other similar services; conservation, maintenance, or 
        restoration of natural resources; community betterment or 
        beautification; antipollution and environmental quality 
        efforts; weatherization activities; economic development; and 
        such other services essential and necessary to the community as 
        the Secretary determines by rule.
            ``(2) Eligible individuals.--
                    ``(A)  In general.--The term `eligible individual' 
                means an individual who is 55 years old or older who 
                has a low income (including any such individual whose 
                income is not more that 125 percent of the poverty 
                line).
                    ``(B) Exception.--Pursuant to regulations 
                prescribed by the Secretary, any such individual who 
                otherwise meets the requirements of subparagraph (A) 
                and meets one or more of the following criteria shall 
                have priority for the work opportunities provided under 
                this title.
                            ``(i) is 65 years old or older;
                            ``(ii) has one or more of the following 
                        barriers to employment:
                                    ``(I) A disability.
                                    ``(II) Limited English proficiency 
                                or low literacy skills.
                                    ``(III) Residing in a rural area.
                                    ``(IV) Having low employment 
                                prospects.
                                    ``(V) Having failed to find 
                                employment after utilizing services 
                                provided under title I of the Workforce 
                                Investment Act of 1998.
                    ``(C) Four-year time limit.--Notwithstanding 
                section 502(b)(1)(C), an individual who meets the 
                requirements of this paragraph may only participate in 
                projects carried out under this title for a period that 
                does not exceed 48 months in the aggregate (whether or 
                not consecutive).
            ``(3) Pacific island and asian americans.--The term 
        `Pacific Island and Asian Americans' means Americans having 
        origins in any of the original peoples of the Far East, 
        Southeast Asia, the Indian Subcontinent, or the Pacific 
        Islands.
            ``(4) Program.--The term `program' means the older American 
        community service employment-based training program established 
        under this title.''.

SEC. 29. NATIVE AMERICANS CAREGIVER SUPPORT PROGRAM.

    Section 643 of the Older Americans Act of 1965 (42 U.S.C. 3057n) is 
amended by striking ``2001'' each place it appears and inserting 
``2007''.

SEC. 30. VULNERABLE ELDER RIGHTS PROTECTION ACTIVITIES.

    Section 702 of the Older Americans Act of 1965 (42 U.S.C. 3058a) is 
amended by striking ``2001'' each place it appears and inserting 
``2007''.

SEC. 31. NATIVE AMERICAN ORGANIZATION PROVISIONS.

    Section 751(d) of the Older Americans Act of 1965 (42 U.S.C. 
3058aa(b)) is amended by striking ``2001'' and inserting ``2007''.

SEC. 32. ELDER ABUSE, NEGLECT, AND EXPLOITATION PREVENTION AMENDMENT.

    Section 721 (b) of the Older Americans Act of 1965 (42 U.S.C. 
3058i(b)) is amended--
            (1) by inserting after paragraph (1) the following new 
        paragraph:
            ``(2) providing for public education and outreach to 
        promote financial literacy and prevent identity theft and 
        financial exploitation of older individuals;''; and
            (2) by redesignating paragraphs (2) through (8) as 
        paragraphs (3) through (9), respectively.

SEC. 33. TECHNICAL AMENDMENTS.

    The Older Americans Act of 1965 (42 U.S.C. 2001 et seq.) is 
amended--
            (1) in section 202(e)(1)(A) by adding a period at the end, 
        and
            (2) by inserting before section 401 the following:

    ``TITLE IV--ACTIVITIES FOR HEALTH, INDEPENDENCE AND LONGEVITY''.

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