[Title 45 CFR 1208]
[Code of Federal Regulations (annual edition) - October 1, 1996 Edition]
[Title 45 - PUBLIC WELFARE]
[Subtitle B - Regulations Relating to Public Welfare (Continued)]
[Chapter XII - ACTION]
[Part 1208 - FOSTER GRANDPARENT PROGRAM]
[From the U.S. Government Publishing Office]




  45
  PUBLIC WELFARE
  4
  1996-10-01
  1996-10-01
  false
  FOSTER GRANDPARENT PROGRAM
  1208
  PART 1208
  
    PUBLIC WELFARE
    Regulations Relating to Public Welfare (Continued)
    ACTION
  


PART 1208--FOSTER GRANDPARENT PROGRAM--Table of Contents




                           Subpart A--General

Sec.
1208.1-1  Purpose of the program.
1208.1-2  Definitions.
1208.1-3  Coordination.

               Subpart B--Project Development and Funding

1208.2-1  Inquiries.
1208.2-2  Local support.
1208.2-3  Sponsor eligibility and solicitation of proposals.
1208.2-4  Project proposals.
1208.2-5  Review of project proposals.
1208.2-6  Awards.
1208.2-7  Grant management.
1208.2-8  Suspension, termination and denial of refunding.

                      Subpart C--Project Operations

1208.3-1  Sponsor responsibility.
1208.3-2  Project staff.
1208.3-3  Advisory Council.

[[Page 51]]

1208.3-4  Volunteer station responsibility.
1208.3-5  Foster grandparents.
1208.3-6  Foster grandparent assignments.
1208.3-7  Children served.
1208.3-8  Non-stipended volunteers.

                  Subpart D--Non-ACTION Funded Projects

1208.4-1  Memorandum of agreement.

              Subpart E--Sanctions and Legal Representation

1208.5-1  Special limitations.
1208.5-2  Legal representation.

    Authority: Secs. 211(a), 212, 221, 222, 223, 402(14) and 420 of Pub. 
L. 93-113, 87 Stat. 402, 403, 404, 407 and 414, 42 U.S.C. 5011 (a) and 
(f), 5012, 5021, 5022, 5023, 5042(14), and 5060.

    Source: 48 FR 26809, June 10, 1983, unless otherwise noted.



                           Subpart A--General



Sec. 1208.1-1  Purpose of the program.

    The Foster Grandparent Program (FGP) is authorized under title II, 
part B, of the Domestic Volunteer Service Act of 1973, as amended (Pub. 
L. 93-113). The dual purpose of the program is to provide opportunities 
for low-income persons aged 60 or over to give supportive person-to-
person service in health, education, welfare or related settings to help 
alleviate the physical, mental, or emotional problems of children having 
exceptional or special needs.



Sec. 1208.1-2  Definitions.

    Terms used in this part are defined as follows:
    Act is the Domestic Volunteer Service Act of 1973, as amended (Pub. 
L. 93-113, 87 Stat. 394, 42 U.S.C. 4951).
    Advisory Council is a group of persons formally organized by the 
project sponsor for the purpose of advising and supporting the sponsor 
in operating the project effectively.
    Agency is the federal ACTION agency.
    Allowable medical expenses are annual out-of-pocket expenses for 
health insurance premiums, health care services, and medications 
provided to the applicant, enrollee, or spouse and were not and will not 
be paid for by Medicare, Medicaid, other insurance, or other third party 
and, shall not exceed 15 percent of the applicable ACTION income 
guideline.
    Annual Income is counted for the past 12 months and includes: The 
applicant or enrollee's income and, the applicant or enrollee's spouse's 
income, if the spouse lives in the same residence. Project directors may 
count the value of shelter, food, and clothing, if provided at no cost 
by persons related to the applicant, enrollee, or spouse.
    Child is any individual under 21 years of age.
    Children having exceptional needs are those who are developmentally 
disabled such as those who are mentally retarded, autistic, have 
cerebral palsy or epilepsy or are visually handicapped, speech impaired, 
hearing impaired, orthopedically impaired, multi-handicapped, 
emotionally disturbed or have a language disorder, specific learning 
disability or other significant health impairment. Existence of a 
child's exceptional need shall be verified by an appropriate 
professional, such as a physician, psychiatrist, psychologist, 
registered nurse or licensed practical nurse, speech therapist or 
educator before a Foster Grandparent is assigned to the child.
    Children with special needs includes those who are: Abused or 
neglected; in need of foster care; status offenders; juvenile 
delinquents; runaway youths; certain teen-age parents; and children in 
need of protective intervention in their homes. Existence of a child's 
special need shall be verified by an appropriate professional before a 
Foster Grandparent is assigned to the child.
    Direct Benefits are stipends, meals, transportation, annual physical 
examinations, volunteer insurance, recognition and uniforms included in 
the budget as Volunteer Expenses.
    Director is the Director of ACTION.
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of the Interior as eligible for 
the special programs and services provided through the Bureau of Indian 
Affairs.
    Handbook is the FGP Handbook No. 4405.90 which contains policies for 
implementing these regulations.

[[Page 52]]

    Handicapped is a person or persons having physical or mental 
impairments that substantially limit one or more major life activities.
    Hard-to-reach individuals are those who are physically or socially 
isolated because of factors such as language, disability, or inadequate 
transportation.
    Individual Care or Treatment Plan is a written description of a 
Foster Grandparent's assignment with a child. The plan defines the goals 
for the child to be attained through the relationship with a Foster 
Grandparent and the specific activities to be performed by the Foster 
Grandparent in the assignment.
    In-home refers to non-institutional assignment of a Foster 
Grandparent in a private residence, a foster home, or a group home.
    Letter of Agreement is a written agreement between a volunteer 
station, the project sponsor, and the person or persons legally 
responsible for the child served. It authorizes the assignment of a 
Foster Grandparent in the child's home, defines the Foster Grandparent's 
activities and delineates specific arrangements for supervision.
    Memorandum of Understanding is a written statement prepared and 
signed by the Foster Grandparent project sponsor and the volunteer 
station which identifies project requirements, working relationships and 
mutual responsibilities.
    OAVP refers to the Older American Volunteer Programs, which include: 
the Foster Grandparent Program, the Retired Senior Volunteer Program, 
and the Senior Companion Program.
    Parent is a natural parent or a person acting in place of a natural 
parent, such as a child's natural grandparent, or a step-parent with 
whom the child lives. The term also includes otherwise unrelated 
individuals who are legally responsible for a child's welfare.
    Project is the locally planned and implemented Foster Grandparent 
Program activity as agreed upon between ACTION and the sponsor.
    Service Area is a geographically defined area in which Foster 
Grandparents are recruited, enrolled, and placed on assignments.
    Service Schedule is the 20 hours per week that a Foster Grandparent 
serves.
    Sponsor is a public agency or private nonprofit organization which 
is responsible for the operation of the Foster Grandparent project.
    Stipend is a payment to Foster Grandparents to enable them to serve 
without cost to themselves.
    United States and States mean the several states, the District of 
Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa and the 
Trust Territory of the Pacific Islands.
    Volunteer Station means a public agency, private nonprofit 
organization or proprietary health care agency or organization that 
accepts the responsibility for assignment and supervision of Foster 
Grandparents in health, education, welfare or related settings such as 
private homes, hospitals, homes for dependent and neglected children, or 
similiar establishments.
    Each volunteer station must be licensed or otherwise certified, when 
required, by the appropriate state or local government.
    Private homes are not volunteer stations.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983, as amended at 
59 FR 15122, Mar. 31, 1994]



Sec. 1208.1-3  Coordination.

    The sponsor shall coordinate activities with project-related groups 
and individuals, including those representing government, industry, 
labor, volunteer organizations, programs for children, programs for the 
aging, including State and Area Agencies on Aging, and other ACTION 
programs, to facilitate cooperation with existing or planned community 
services and to develop community support.



               Subpart B--Project Development and Funding



Sec. 1208.2-1  Inquiries.

    Inquiries regarding the Foster Grandparent Program application 
process, program criteria, or the availability of funds, should be 
directed to the ACTION State Office serving the inquirer's own state. 
ACTION headquarters office in Washington, DC will assist in directing 
inquiries to the appropriate state office.

[[Page 53]]



Sec. 1208.2-2  Local support.

    An ACTION grant may be awarded to fund up to 90% of the cost of 
development and operation of a Foster Grandparent project. The sponsor 
is required to contribute at least 10% of the total project cost. 
Stipend payments in excess of the amount established by ACTION may not 
be included as part of the local support commitment. In exceptional 
circumstances the Director may approve assistance for more than 90% of 
the total project cost if:
    (a) The project is located in an area where local resources are too 
limited to provide 10%; or
    (b) A test project is determined to be of exceptional value, 
sufficient to warrant Federal support in excess of 90% of the total 
project cost.



Sec. 1208.2-3  Sponsor eligibility and solicitation of proposals.

    (a) Sponsor eligibility. ACTION will award grants only to public 
agencies and private non-profit organizations in the United States which 
have the authority to accept and the capability to administer such 
grants.
    (b) Solicitation of Proposals. (1) Any eligible organization may 
file an application for a grant. Applicants may also be solicited by 
ACTION pursuant to its objective of achieving equitable program resource 
distribution. Solicited applications are not assured of selection or 
approval and may have to compete with other solicited or unsolicited 
applications.
    (2) Grants for projects to be carried out over an area in a state 
more comprehensive than one community shall be awarded to the State 
Agency on Aging unless:
    (i) The state has not established or designated such an agency, or
    (ii) Such agency has been afforded at least 45 days to review and 
make recommendations on a prospective sponsor's application.
    (3) Grants for projects to be carried out entirely in a community 
served by a Community Action Agency shall be awarded to that agency 
unless that agency and the State Agency on Aging have been afforded at 
least 45 days to review and make recommendations on a new grant 
application.
    (4) In the event that the State Agency on Aging or the Community 
Action Agency is not awarded the applicable grant, any application that 
is approved will contain or be supported by satisfactory assurances that 
the project has been developed and will, to the extent feasible, be 
conducted in consultation with, or with the participation of, such 
agencies.



Sec. 1208.2-4  Project proposals.

    (a) Applicants shall use standard forms prescribed by ACTION. ACTION 
State Offices will provide applicants with guidance and any additional 
instruction necessary to plan and budget proposed program activities.
    (b) Agencies and organizations submitting grant applications must 
comply with the provisions of Executive Order 12372, the 
``Intergovernmental Review of Federal Programs and Activities,'' as set 
forth in 45 CFR part 1233.
    (c) A potential sponsor must submit one copy of an application for a 
new FGP project to the State Agency on Aging, which has 45 days to 
review the application and make recommendations. The State Agency on 
Aging shall state in writing to ACTION its recommendations and reasons 
within this time period or will be considered to have waived its rights 
under this part.



Sec. 1208.2-5  Review of project proposals.

    (a) The ACTION State Office for the applicant's state will review 
the grant application to ensure that program requirements are complied 
with and that required documentation has been attached.
    (b) If not approved, the application will be returned to the 
applicant with explanation of ACTION's decision. The unsuccessful 
applicant may reapply when the inadequacy, if any, found in the 
application is resolved.



Sec. 1208.2-6  Awards.

    (a) ACTION will, within funds available, award a grant in writing to 
those applicants whose grant proposals provide the best potential for 
serving the purpose of the program. The award will be documented by 
Notice of Grant Award [NGA].

[[Page 54]]

    (b) The parties to the NGA are ACTION and the sponsoring 
organization. The NGA will document the sponsor's commitment to fulfill 
specific programmatic objectives and financial obligations. It will 
document the extent of ACTION's obligation to provide financial support 
to the sponsor.
    (c) A sponsor may receive a grant award for more than one OAVP 
project.



Sec. 1208.2-7  Grant management.

    (a) Sponsors shall manage grants awarded to them in accordance with 
these regulations. ACTION Handbook 2650.2 entitled, Grants Management 
Handbook for Grantees, and the FGP Handbook No. 4405.90. A copy of each 
document will be furnished to the sponsor at the time the initial grant 
is awarded.
    (b) Project support provided under an ACTION grant shall be 
furnished at the lowest possible cost consistent with the effective 
operation of the project.
    (c) Project costs for which ACTION funds are budgeted must be 
justified as being essential to project operation.



Sec. 1208.2-8  Suspension, termination and denial of refunding.

    Grant suspension, termination and denial of refunding procedures are 
set forth in 45 CFR part 1206, chapter XII, and in ACTION Handbook 
2650.2.



                      Subpart C--Project Operations



Sec. 1208.3-1  Sponsor responsibility.

    The sponsor is responsible for all programmatic and fiscal aspects 
of the project and may not delegate or contract this responsibility to 
another entity. The sponsor has the responsibility to:
    (a) Employ, supervise and support a Project Director, who will be 
directly responsible to the sponsor for the management of the project, 
including selection, training and supervision of project staff:
    (b) Provide for the recruitment, assignment, supervision and support 
of Foster Grandparents. Special efforts are to be made to recruit and 
assign persons from minority groups, handicapped and hard-to-reach 
individuals, and groups in the community which are underrepresented in 
the project. The sponsor will stress the recruitment and enrollment of 
persons not already volunteering;
    (c) Provide financial and in-kind support to fulfill the project's 
local share commitment;
    (d) Establish, orient and support an independent FGP Advisory 
Council;
    (e) Provide Foster Grandparents with not less than the minimum 
accident, personal liability, and excess auto liability insurance 
required by ACTION:
    (f) Provide for appropriate recognition of the Foster Grandparents 
and their activities;
    (g) Establish personnel practices, including provision of position 
descriptions for project staff, and service policies for Foster 
Grandparents, including grievance and appeal procedures for both 
volunteers and project staff;
    (h) Ensure compliance with ACTION requirements relating to 
nondiscrimination, religious activity, political activity, lobbying, 
patronage toward persons related by blood or marriage, labor or anti-
labor organization or related activities, nondisplacement of employed 
workers, nonimpairment of contracts, and noncompensation for services;
    (i) Maintain project records in accordance with generally accepted 
accounting practice and provide for the accurate and timely preparation 
and submission of reports required by ACTION;
    (j) Develop Foster Grandparent service opportunities through 
volunteer stations;
    (k) Obtain ACTION concurrence in the selection of volunteer stations 
prior to the placement of Foster Grandparents.
    (l) Negotiate, prior to placement of Foster Grandparents, a written 
Memorandum of Understanding with each volunteer station, identifying 
sponsor responsibilities, volunteer station responsibilities and joint 
responsibilities;
    (m) Orient volunteer station staff to the Program and its 
activities;
    (n) Provide not less than 40 hours of pre-service orientation to 
Foster Grandparents;
    (o) Arrange group in-service training for Foster Grandparents for a 
minimum of four hours each month;

[[Page 55]]

    (p) Provide or arrange for direct benefits (insurance, meals, 
physical examinations, recognition, stipends, transportation and 
uniforms, if needed) for the Foster Grandparents in a timely manner;
    (q) Ensure provision for volunteer safety;
    (r) Comply with program regulations, policies and procedures 
prescribed by ACTION;
    (s) Ensure that appropriate liability insurance is maintained for 
owned, nonowned, or hired vehicles used in the project;
    (t) Develop a realistic transportation plan for the project based on 
the lowest cost transportation modes; and
    (u) Conduct an annual appraisal of volunteers' performance and an 
annual review of volunteers' income eligibility.
    (v) Assure that individuals whose income is at or below 100 percent 
of the poverty level receive special consideration for participation in 
the Program.

[48 FR 26809, June 10, 1983, as amended at 59 FR 15122, Mar. 31, 1994]



Sec. 1208.3-2  Project staff.

    (a) Project staff are employees of the sponsor and are subject to 
its personnel policies and practices.
    (b) ACTION must concur in writing with the sponsor's selection of a 
project director before such person is employed or earns pay from grant 
funds.
    (c) The FGP Project Director shall serve full time and may not be 
employed or serve concurrently in another capacity, paid or unpaid, 
during established working hours, without prior approval from ACTION. 
This does not preclude participation of the project director in 
activities of related local agencies, boards or organizations for the 
purposes of coordination and facilitating achievement of project goals 
and objectives.
    (d) Compensation levels for project staff, including wages, salaries 
and fringe benefits, should be comparable to like or similar positions 
in the sponsor organization and in the community.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983]



Sec. 1208.3-3  Advisory Council.

    An Advisory Council shall be established to advise and assist the 
project sponsor and staff. There shall be a separate Advisory Council 
for each Older American Volunteer project administered by the sponsor. 
When a small number of volunteers is enrolled or other special 
conditions prevail, this requirement may be waived by the Director of 
OAVP. The Advisory Council shall;
    (a) Advise the project director in the formulation of local policy, 
planning, and the development of operational procedures and practices 
consistent with program policies;
    (b) Assist the sponsor by promoting community support for the 
project, advise on personnel actions affecting volunteers and project 
staff, and assist in developing local financial and in-kind resources;
    (c) Include in its membership, when available: community, business 
and labor leaders, representatives from volunteer stations, public and 
private agencies, and persons specializing in the fields of aging, child 
development and voluntarism. In addition, at least one-fourth of the 
Advisory Council shall be low-income persons aged 60 or over. This group 
must include Foster Grandparents as voting members. The sponsor's chief 
executive or designee, one member of its governing board, and the 
project director should be members of the Advisory Council but may not 
be officers of the Advisory Council. The sponsor's chief executive and 
the project director may not be voting members. The member representing 
the sponsor's governing board may be a voting member. The provisions of 
Sec. 1208.5-1(d), Nondiscrimination, apply to the Advisory Council;
    (d) Meet on a regular schedule and establish its own procedures, 
including election of officers and terms of office;
    (e) Conduct an annual appraisal of project operation and submit a 
report to the sponsor, which shall be attached to the continuation grant 
application;
    (f) Have an opportunity to advise the sponsor in advance on the 
selection or termination of the project director; and

[[Page 56]]

    (g) Ensure procedures are in effect to hear an appeal to actions 
affecting a Foster Grandparent adversely.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983]



Sec. 1208.3-4  Volunteer station responsibility.

    (a) Normally the volunteer station is an organization other than the 
sponsoring organization. The sponsor may function as a Foster 
Grandparent volunteer station only if the sponsor is:
    (1) A state organization administering a statewide Foster 
Grandparent project where the volunteer station is part of the state 
organization, (2) a Federally recognized Indian tribal government, or 
(3) in a sparsely populated area. In such sparsely populated areas, up 
to 10% of the enrolled volunteers may be placed directly by the sponsor.
    (b) Volunteer Station responsibilites include:
    (1) Assisting with or arranging for volunteer transportation on or 
between assignments;
    (2) Assisting in the provision of appropriate volunteer recognition;
    (3) Developing and monitoring volunteer assignments, selecting 
children to be served, supervising the volunteers, assisting the sponsor 
in matching volunteers to assignments and in providing pre-service 
orientation and in-service training for the Foster Grandparents;
    (4) Providing for volunteer safety;
    (5) Keeping records and preparing reports required by the sponsor; 
and
    (6) Signing, prior to the placement of Foster Grandparents, a 
Memorandum of Understanding with the sponsor establishing working 
relationships and mutual responsibilities, and detailing the 
responsibilities outlined above, as well as other agreed upon 
responsibilities, including the particulars of the volunteers' 
supervision.
    (i) When Foster Grandparents are to serve in private homes, the 
Memorandum of Understanding shall also require that the volunteer 
station obtain a Letter of Agreement from the child's parent(s) 
authorizing or requesting volunteer service in the home and indicating 
what specific activities are to be performed. This agreement will 
constitute an individual care plan and will be followed for the child 
served by a Foster Grandparent in an in-home placement.
    (ii) The Memorandum of Understanding is to be reviewed and, as 
appropriate, changed annually. It may be amended at any time by mutual 
agreement and must be signed and dated annually to indicate that review 
and update, if needed, have been accomplished.



Sec. 1208.3-5  Foster grandparents.

    (a) Eligibility. (1) Foster Grandparents shall be 60 years of age or 
older, no longer in the regular work force, determined by a physical 
examination to be capable of serving children with exceptional or 
special needs without detriment to either themselves or the children 
served, and willing to accept supervision as required.
    (2) Eligibility to be a Foster Grandparent may not be restricted on 
the basis of education, experience, citizenship, race, color, creed, 
belief, sex, national origin, handicap, or political affiliation.
    (3) To be enrolled, a Foster Grandparent cannot have an annual 
income from all sources, after deducting allowable medical expenses, 
which exceeds ACTION's income eligibility guidelines for the state in 
which he or she resides. The ACTION income eligibility guidelines for 
each state is 125 percent of the poverty line as set forth in section 
625 of the Economic Opportunity Act of 1964, as amended by Pub. L. 92-
424 (42 U.S.C. 2971d), except: (i) In those primary metropolitan 
statistical areas (PMSA), metropolitan statistical areas (MSA) and 
nonmetropolitan counties identified by the Director as being higher in 
cost of living, as determined by application of the VISTA subsistence 
rates, in which case the guideline shall be 10 percent above that 
amount; and (ii) in Alaska, where the guideline may be waived by the 
ACTION State Director for individual locations if a project demonstrates 
that low-income individuals in that location are participating in the 
project. No Foster Grandparent currently participating in the Program, 
shall become ineligible as a result of this change in guidelines.
    (4) Once enrolled, a Foster Grandparent shall remain eligible to 
serve

[[Page 57]]

and to receive a stipend as long as his or her annual income, after 
deducting allowable medical expenses, does not exceed the prescribed 
ACTION income eligibility guideline by 20 percent. Income eligibility 
shall be reviewed annually by the sponsor.
    (5) Recruitment and selection of a Foster Grandparent may not be 
based on any requirement of employment experience or formal education.
    (b) Terms of service. (1) Foster Grandparents serve a total of 
twenty hours a week, usually five days a week. Travel time between the 
volunteer's home and place of assignment may not be considered part of 
the service schedule and is not stipended. Travel time between 
individual assignments is a part of the service schedule. Meal time may 
be part of the service schedule only if meals are taken with the 
individual served, and the taking of meals together is deemed by the 
sponsor and the volunteer station to be beneficial to the person served.
    (2) Foster Grandparents are volunteers, not employees, of the 
sponsor.
    (c) Direct benefits. The total of direct benefits for Foster 
Grandparents, including stipends, insurance, transportation, meals, 
physical examinations, recognition, and uniforms if appropriate, shall 
be a sum equal to at least 90 percent of the amount of the ACTION 
federal share of the grant award. In exceptional circumstances, the 
Director may waive this requirement. Federal and non-federal resources 
can be used to make up this sum. Direct benefits may not be subject to 
any tax or charge or be treated as wages or compensation for the 
purposes of unemployment insurance, temporary disability, retirement, 
public assistance, or similar benefit payments or minimum wage laws. 
Direct Benefits include:
    (1) Insurance. Foster Grandparents shall be provided with the 
ACTION-specified minimum levels of accident insurance, personal 
liability insurance and, when appropriate, excess automobile liability 
insurance.
    (i) Accident insurance. Accident insurance shall cover Foster 
Grandparents for personal injury during travel between their homes and 
places of assignment, during their volunteer service, during meal 
periods while serving as a volunteer, and while attending project-
sponsored activities, such as recognition activities, orientation and 
Advisory Council meetings. Protection shall be provided against claims 
in excess of any benefits or services for medical care or treatment 
available to the volunteer from other sources, including:
    (A) Health insurance coverage;
    (B) Other hospital or medical service plans;
    (C) Any coverage under labor-management trusteed plans, union 
welfare plans, employer organization plans, or employee benefit 
organization plans; and
    (D) Coverage under any governmental programs, or coverage provided 
by any statute.

When benefits are provided in the form of services rather than by cash 
payments, the reasonable cash value of each service rendered shall be 
considered in determining the applicability of this provision. The 
benefits payable under a plan shall include the benefits that would have 
been payable had a claim been duly made therefor. The benefits payable 
shall be reduced to the extent necessary so that the sum of such reduced 
benefits and all the benefits provided for by any other plan shall not 
exceed the total expenses incurred by the volunteer.
    (ii) Personal Liability Insurance. Protection shall be provided 
against claims in excess of protection provided by other insurance.
    (iii) Excess Automobile Liability Insurance. Protection shall be 
provided against claims in excess of the greater of either:
    (A) Liability insurance volunteers carry on their own automobiles, 
or
    (B) The limits of applicable state financial responsibility law, or
    (C) In the absence of a state financial responsibility law, levels 
of protection to be determined by ACTION for each person, each accident, 
and for property damage.
    Foster Grandparents who drive their personal vehicles to or on 
assignments or project-related activities must maintain personal 
automobile liability insurance equal to or exceeding the

[[Page 58]]

levels established by paragraph (c)(1)(iii) (B) or (C) of this section.
    (2) Meals. Within the limits of available resources and project 
policy, Foster Grandparents will be provided or will receive assistance 
with the cost of meals taken during their service schedule.
    (3) Physical Examinations. Foster Grandparents are required to have 
a physical examination prior to assignment and annually thereafter.
    (4) Appropriate Recognition will be provided for Foster 
Grandparents.
    (5) Stipends. A Foster Grandparent will receive a stipend in an 
amount determined by ACTION and payable in regular installments. The 
minimum amount of the stipend is set by law and may be adjusted by the 
Director from time to time. When both the eligible husband and wife 
serve as a Foster Grandparent or Senior Companion, only one spouse shall 
be entitled to receive a stipend. Both spouses in such cases shall be 
entitled to other direct benefits. Only in cases where enrolled Foster 
Grandparents or Senior Companions marry, may each continue to receive a 
stipend.
    (6) Transportation. Foster Grandparents shall be provided 
transportation or receive assistance with the cost of transportation to 
and from volunteer assignments and official project activities, 
including orientation, training, advisory council meetings and 
recognition events. Reimbursement will be within the limits of available 
resources and project policy. Project funds may not be utilized to 
reimburse Foster Grandparents for transportation provided for or on 
behalf of children.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983, as amended at 
59 FR 15122, Mar. 31, 1994]



Sec. 1208.3-6  Foster grandparent assignments.

    (a) Foster Grandparents shall serve children with special or 
exceptional needs.
    (b) Priority consideration shall be given to placing Foster 
Grandparents in assignments where: those assignments constitute early 
intervention; there is a possibility for significant improvement in the 
quality of life for the children served, and there is a probability of a 
long-term relationship between the Foster Grandparent and the child.
    (c) Priority consideration shall also be given to preventing or 
minimizing institutionalization by placing Foster Grandparents with 
children in-home, in special education classes, in special training 
centers, in developmental centers, in day care centers for children with 
exceptional or special needs, in hospitals, and in the juvenile justice 
system.
    (d) The individualized care plan for a Foster Grandparent to follow 
in each in-home assignment he or she receives, should include the 
projected role and functions of the Foster Grandparent, be updated on a 
regular basis, and be used as a guide for evaluating the child's 
development and the Foster Grandparent's role.
    (e) Where state, county or local sponsor's definition(s) of children 
having exceptional needs and children with special needs vary from the 
definitions in Sec. 1208.1-2 of these regulations, ACTION will determine 
the suitability of non-ACTION definition(s) in regard to placement of 
Foster Grandparents with children.
    (f) Foster Grandparent activities develop person-to-person, 
supportive relationships with children and do not provide service to 
volunteer stations or any other agency or organization where volunteers 
serve. Activities of Foster Grandparents should serve the dual purpose 
of being personally meaningful to the volunteers themselves and 
providing support and companionship to the children served.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983]



Sec. 1208.3-7  Children served.

    (a) Identification of individual children to receive supportive 
person-to-person services from a Foster Grandparent is a responsibility 
of volunteer station professional staff and will be made in accordance 
with criteria specified in Sec. 1208.3-6. Actual Foster Grandparent 
assignments to individual children and a determination of the length of 
time each child should receive such services will be made with 
concurrence of the sponsor or his or her designee,

[[Page 59]]

usually the project director, in accordance with the Memorandum of 
Understanding described in Sec. 1208.3-1(l).
    (b) Foster Grandparent concurrence with assignments to individual 
children is required.
    (c) Preference will be given to assigning Foster Grandparents to 
young children. Each Foster Grandparent shall preferably, but not 
exclusively, be assigned to two children.
    (d) When a Foster Grandparent is assigned to a mentally retarded 
child, that assignment may continue beyond the child's 21st birthday, 
provided:
    (1) That such child was receiving such services prior to attaining 
the chronological age of 21;
    (2) That the public or private nonprofit agency (volunteer station) 
responsible for providing services to the child determines that it is in 
the best interest of both the Foster Grandparent and the child; and
    (3) There is mutual agreement by all parties with respect to 
provision of services to the child involved.

[48 FR 26809, June 10, 1983; 48 FR 44797, 44798, Sept. 30, 1983]



Sec. 1208.3-8  Non-stipended volunteers.

    (a) Purpose: Projects are encouraged to enroll persons aged 60 and 
over, who are not low-income, as non-stipended volunteers in order to:
    (1) Open opportunities for and tap the unused resources of older 
Americans, and
    (2) Expand needed services to unserved and underserved populations.
    (b) Conditions of Service: (1) Over-income persons, age 60 or over, 
may not be enrolled in FGP projects as non-stipended volunteers in 
communities where a Retired Senior Volunteer Program (RSVP) project is 
available and the RSVP project is willing and able to assume the 
management role of placing the volunteer at an FGP volunteer station. 
When a Foster Grandparent project is contacted by an individual 
expressing an interest in serving as a non-stipended volunteer, the 
project shall contact the ACTION State Office for its determintion as to 
whether:
    (i) Enrollment in the project is appropriate,
    (ii) The volunteer should be referred to an RSVP project that has 
agreed, in writing, to serve in the prescribed management role.
    (2) Non-stipended volunteers serve under the following conditions:
    (i) Their service must not supplant, replace, or displace any 
stipended volunteers.
    (ii) No special privilege or status is granted or created among 
volunteers, stipended or non-stipended, and equal treatment is required.
    (iii) Training, supervision, and other support services and direct 
benefits, other than the stipend, are available equally to all 
volunteers.
    (iv) All regulations and requirements applicable to the program, 
with the exception listed in paragraph (b)(2)(vi) of this section, apply 
to all volunteers.
    (v) Non-stipended volunteers may be placed in separate volunteer 
stations where warranted.
    (vi) Non-stipended volunteers serving in FGP volunteer stations will 
be encouraged but not required to serve 20 hours per week and 50 weeks 
per year. Volunteers will maintain a close one-to-one relationship with 
clients, and will serve a minimum of two clients on a regular basis.
    (vii) Non-stipended volunteers may contribute the cost of direct 
benefits.
    (3) There are no requirements on either FGP or RSVP projects to 
enroll non-stipended volunteers. Implementation of these regulations by 
a local project may not be a factor in awarding new or renewal grants.
    (c) Funding: No appropriated funds for FGP may be used to pay any 
cost, including any administrative cost, incurred in implementing these 
regulations. Such costs may be paid with:
    (1) Funds received by the Director as unrestricted gifts.
    (2) Funds received by the Director as gifts to pay such costs.
    (3) Funds contributed by non-stipended volunteers.
    (4) Locally-generated contributions in excess of the amount required 
by law.

[52 FR 32134, Aug. 26, 1987]

[[Page 60]]



                  Subpart D--Non-ACTION Funded Projects



Sec. 1208.4-1  Memorandum of agreement.

    (a) If an eligible agency or organization wishes to sponsor a 
project without ACTION funding, and wishes to receive technical 
assistance and materials from ACTION, it must sign a Memorandum of 
Agreement with ACTION identifying mutual responsibilities and certifying 
its intent to comply with ACTION regulations.
    (b) A non-ACTION funded project sponsor's noncompliance with the 
Memorandum of Agreement may result in suspension or termination of 
ACTION's technical assistance to the project.
    (c) Termination of the agreement by either the project sponsor or 
ACTION will result in loss of the tax exempt status of volunteer direct 
benefits allowable to Foster Grandparents and loss of coverage by the 
statutory provision that receipt of the stipend will not affect the 
volunteers' eligibility for any governmental assistance.
    (d) Entry into a Memorandum of Agreement with a sponsoring agency 
which does not receive ACTION funds will not, under any circumstances, 
create a financial obligation on the part of ACTION for costs associated 
with the project including increases in required payments to volunteers 
which may result from changes in the Act or in ACTION regulations.



              Subpart E--Sanctions and Legal Representation



Sec. 1208.5-1  Special limitations.

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with (i) any partisan or nonpartisan political activity 
associated with a candidate, or contending faction or group, in an 
election, or (ii) any activity to provide voters or prospective voters 
with transportation to the polls or similar assistance in connection 
with any such election, or (iii) any voter registration activity.
    (3) No Foster Grandparent or employee of a sponsor or volunteer 
station may take any action, when serving in such capacity, with respect 
to a partisan or nonpartisan political activity that would result in the 
identification or apparent identification of the Foster Grandparent 
Program with such activity.
    (4) No grant funds may be used by the sponsor in any activity for 
the purpose of influencing the passage or defeat of legislation or 
proposals by initiative petition, except
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests a Foster 
Grandparent, a sponsor chief executive, his or her designee, or project 
staff to draft, review or testify regarding measures or to make 
representation to such legislative body, committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the Foster Grandparent Program. 
Prohibitions on Electoral and Lobbying-Activities are fully set forth in 
45 CFR part 1226.
    (b) Restrictions on State or local Government Employees. If the 
sponsor is a State or local government agency which receives a grant 
from ACTION, certain restrictions contained in chapter 15 of title 5 of 
the United States Code are applicable. They are related to persons who 
are principally employed in activities associated with the project. The 
restrictions are not applicable to employees of educational or research 
institutions. An employee subject to these restrictions may not:
    (1) Use his/her official authority or influence for the purpose of 
interfering with or affecting the result of an election or nomination 
for office;
    (2) Directly or indirectly coerce, attempt to coerce, command or 
advise a State or local officer or employee to pay, lend, or contribute 
anything of value to a party, committee, organization agency, or person 
for political purposes; or

[[Page 61]]

    (3) Be a candidate for elective office, except in a nonpartisan 
election.

Nonpartisan election means an election at which none of the candidates 
is to be nominated or elected as representing a political party any of 
whose candidates for Presidential elector received votes in the last 
preceding election at which Presidential electors were selected.
    (c) Religious activities. Foster Grandparents and project staff 
funded by ACTION shall not give religious instruction, conduct worship 
services or engage in any form of proselytization as part of their 
duties.
    (d) Nondiscrimination. For purposes of this subpart, and for 
purposes of title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000 d 
et seq.). Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794), 
and the Age Discrimination Act of 1975 (Pub. L. 94-135, title III; 42 
U.S.C. 6101 et seq.), any program, project, or activity to which 
volunteers are assigned under this Act shall be deemed to be receiving 
Federal financial assistance.
    (1) No person with responsibility in the operation of a project 
shall discriminate with respect to any activity or program because of 
race, creed, belief, color, national origin, sex, age, handicap, or 
political affiliation.
    (2) Sponsors are required to take affirmative action to overcome the 
effects of prior discrimination. Even in the absence of prior 
discrimination, a sponsor may take affirmative action to overcome 
conditions which resulted in limiting participation.
    (3) No person in the United States shall on the ground of sex be 
excluded from participation in, be denied the benefits of, be subjected 
to discrimination under, or be denied employment in connection with a 
Foster Grandparent project.
    (e) Labor and Anti-Labor Activity. No grant funds shall be directly 
or indirectly utilized to finance labor or anti-labor organization or 
related activity.
    (f) Nondisplacement of Employed Workers. A Foster Grandparent may 
not perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant the 
hiring of employed workers.
    (g) Nonimpairment of Contracts. A Foster Grandparent may not perform 
any service or duty or engage in any activity which impairs an existing 
contract for service. The term ``contract for service'' includes but is 
not limited to contracts, understandings, and arrangements, either 
written or oral, to provide professional, managerial, technical, or 
administrative service.
    (h) Noncompensation for Services. No person, organization, or agency 
shall request or receive any compensation for services of Foster 
Grandparents.
    (i) Nepotism. Persons selected for project staff positions may not 
be related by blood or marriage to other project staff, sponsor staff or 
officers, or members of the sponsor Board of Directors, unless there is 
concurrence by the Advisory Council, with notification to ACTION.
    (j) Volunteer Separation. A sponsor may separate a volunteer for 
cause, including, but not limited to, extensive or unauthorized 
absences, misconduct, inability to perform assignments or having income 
in excess of the eligibility level established by ACTION.

[48 FR 26809, June 10, 1983; 48 FR 44797, Sept. 30, 1983]



Sec. 1208.5-2  Legal representation.

    Counsel may be employed and counsel fees, court costs, bail and 
other expenses incidental to the defense of a Foster Grandparent may be 
paid in a criminal, civil or administrative proceeding, when such a 
proceeding arises directly out of performance of the Foster 
Grandparent's activities. 45 CFR part 1220 establishes the circumstances 
under which ACTION may pay such expenses.