[Congressional Record (Bound Edition), Volume 152 (2006), Part 9]
[Senate]
[Pages 12669-12694]
[From the U.S. Government Publishing Office, www.gpo.gov]




          STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS

      By Mr. Enzi (for himself, Mr. Kennedy, Mr. DeWine, and Ms. 
        Mikulski):
  S. 3570. A bill to amend the Older Americans Act of 1965 to authorize 
appropriations for fiscal years 2007 through 2011, and for other 
purposes; to the Committee on Health, Education, Labor, and Pensions.
  Mr. ENZI. Mr. President, I rise today to join Senator DeWine, Senator 
Kennedy and Senator Mikulski in introducing the Older Americans Act 
Amendments of 2006.
  The Older Americans Act Amendments of 2006 is the primary source for 
the delivery of social and nutrition services for older individuals. 
Enacted in 1965, the act's programs include supportive services, 
congregate and home-delivered nutrition services, community service 
employment, the long-term care ombudsman program, and services to 
prevent the abuse, neglect and exploitation of older individuals. The 
act also provides grants to Native Americans and research, training, 
and demonstration activities.
  The 2000 amendments to the act authorized the National Family 
Caregiver

[[Page 12670]]

Support Program; allowed State agencies on aging to impose cost-sharing 
for certain supportive services for older persons; revised the State 
funding formulas; and required the Department of Labor to establish 
performance measures for the community service employment program.
  Title I of the Older Americans Act set broad social policy objective 
to improve the lives of all older Americans. It recognized the need for 
an adequate income in retirement, and the importance of physical and 
mental health, employment in community services for older individuals 
and long-term care services.
  Title II established the Administration on Aging, AOA, within the 
Department of Health and Human Services to be the primary Federal 
advocate for older individuals and to administer the provisions of the 
Older Americans Act. It also established the National Eldercare Locator 
Service to provide nationwide information with regard to resources for 
older individuals; the National Long-term Care Ombudsman Resource 
Center; the National Center on Elder Abuse; the National Aging 
Information Center; and the Pension Counseling and Information Program. 
The 2006 amendments will establish an Office of Elder Abuse Prevention 
and Services to develop a long-term plan and national response to elder 
abuse prevention, detection, treatment, and intervention. Further, the 
2006 amendments strengthen the leadership of the Department of Health 
and Human Services through an interagency coordinating committee to 
guide policy and program development across the Federal Government with 
respect to aging and demographic changes.
  Title III authorized grants to State and area agencies on aging to 
act as advocates on behalf of older individuals. Title III services are 
targeted to those with the greatest economic and social need, 
particularly low-income minority persons and older persons residing in 
rural communities. It funds supportive services, congregate and home-
delivered meals, transportation, home care, adult day care, information 
assistance, and legal assistance. The 2006 amendments will expand the 
Caregiver Support Program to permit the use of volunteers to enhance 
services and increase program authorization levels. In addition, the 
bill contains a new demonstration project that promises to lead to 
changes in our long-term care delivery system, leading to consumer 
driven choices.
  Title IV authorized grants for training, research, and demonstration 
projects in the field of aging. This title supports a wide range of 
projects including those related to income, health, housing, retirement 
and long-term care, as well as career preparation and continuing 
education. The 2006 amendments will expand gerontology training for 
minority students; multigenerational activities, and civic engagement 
activities.
  Title V authorized the community service employment program for older 
Americans known as the Senior Community Service Employment or SCSEP--to 
promote part-time opportunities in community service for unemployed, 
low-income persons who are 55 years or older and who have poor 
employment prospects. It is administered by the Department of Labor. 
The 2006 amendments establish 4-year grant cycles for the competitive 
program and permit poor performing grantees to be terminated from the 
program based on performance measures and establishes a 3 year limit 
for participating in subsidized employment with a 20-percent waiver for 
difficult to place individuals.
  Title VI authorized funds for Supportive and nutrition services for 
older Native Americans. The 2006 amendments will increase the funding 
levels for this program.
  Title VII authorized the long-term care ombudsman program and elder 
abuse, neglect and exploitation prevention programs. The 2006 
amendments will enhance the elder abuse prevention activities by 
awarding grants to States and Indian tribes to enable them to 
strengthen long-term care and provide assistance for elder justice and 
elder abuse prevention programs. It will create grants for prevention, 
detection, assessment, treatment of, intervention in, investigation of, 
and response to elder abuse; safe havens demonstrations for older 
individuals; volunteer programs; multidisciplinary activities; elder 
fatality and serious injury review teams; programs for underserved 
populations; incentives for longterm care facilities to train and 
retain employees; and other collaborative and innovative approaches. 
Further, it will initiate a new incidence and prevalence study and a 
data collection process.
  The proportion of the population aged 60 and over will increase 
dramatically over the next 30 years as more than 78 million baby 
boomers approach retirement. It is essential that in the coming years 
Congress and the Federal Government take a leadership role in assisting 
the states in addressing the needs of older Americans. The bill we 
offer today will ensure that our Nation's older Americans are healthy, 
fed, housed, able to get where they need to go and safe from abuse and 
scams. The No. 1 resolution of the 2005 White House Conference on Aging 
called upon Congress to reauthorize the Older Americans Act during the 
109th Congress. I am pleased that the Senate and the House are well on 
the way to accomplis1ing this goal on behalf of one of our Nation's 
greatest resources--our older Americans.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3570

       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 ``Older Americans Act 
     Amendments of 2006''.

     SEC. 2. DEFINITIONS.

       Section 102 of the Older Americans Act of 1965 (42 U.S.C. 
     3002) is amended--
       (1) in 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;'';
       (2) by striking paragraph (24) and inserting the following:
       ``(24) The term `exploitation' means the fraudulent or 
     otherwise illegal, unauthorized, or improper act or process 
     of an individual, including a caregiver or fiduciary (as such 
     terms are defined in section 751), that uses the resources of 
     an older individual for monetary or personal benefit, profit, 
     or gain, or that results in depriving an older individual of 
     rightful access to, or use of, benefits, resources, 
     belongings, or assets.'';
       (3) 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.'';
       (4) in paragraph (32)(D), by inserting ``, including an 
     assisted living facility,'' after ``home'';
       (5) by striking paragraph (34) and inserting the following:
       ``(5)(A) The term `neglect' means--
       ``(i) the failure of a caregiver or fiduciary (as such 
     terms are defined in section 751) to provide the goods or 
     services that are necessary to maintain the health or safety 
     of an older individual; or
       ``(ii) self-neglect.
       ``(B) The term `self-neglect' means an adult's inability, 
     due to physical or mental impairment or diminished capacity, 
     to perform essential self-care tasks including--
       ``(i) obtaining essential food, clothing, shelter, and 
     medical care;
       ``(ii) obtaining goods and services necessary to maintain 
     physical health, mental health, or general safety; or
       ``(iii) managing one's own financial affairs.''; and
       (6) by adding at the end the following:
       ``(44) The term `Aging and Disability Resource Center' 
     means a center 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

[[Page 12671]]

     which consumers may be eligible, by serving as a convenient 
     point of entry for such programs.
       ``(45) 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 assistance (including verbal 
     reminding, physical cuing, or supervision), including such an 
     older individual that is determined by the State involved to 
     be in need of placement in a long-term care facility.
       ``(46) The term `Hispanic-serving institution' has the 
     meaning given the term in section 502 of the Higher Education 
     Act of 1965 (20 U.S.C. 1101a).
       ``(47) The term `long-term care' means any services, care, 
     or items (including assistive devices) that are--
       ``(A) intended to assist individuals in coping with, and to 
     the extent practicable compensating 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 diagnose, treat, or cure a medical 
     disease or condition.
       ``(48) The term `self-directed care' means an approach to 
     providing services (including programs, benefits, supports, 
     and technology) under this Act intended to assist an older 
     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 is necessary and appropriate to enable such 
     individual to make informed decisions about the individual's 
     service options;
       ``(C) the needs, capabilities, and preferences of such 
     individual with respect to such services, and such 
     individual's ability to direct and control the individual's 
     receipt of such services, are assessed by the area agency on 
     aging involved or the local provider agency;
       ``(D) based on the assessment made under subparagraph (C), 
     upon request, the area agency on aging assists such 
     individual and the individual's family, caregiver, or legal 
     representative in developing--
       ``(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 involved 
     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.
       ``(49) 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. OFFICE OF ELDER ABUSE PREVENTION AND SERVICES.

       Section 201 of the Older Americans Act of 1965 (42 U.S.C. 
     3011) is amended by adding at the end the following:
       ``(e)(1) In this subsection, the terms defined in section 
     751 shall have the meanings given those terms in that 
     section.
       ``(2) The Secretary is authorized to establish or designate 
     within the Administration (as defined in section 102) an 
     Office of Elder Abuse Prevention and Services.
       ``(3) It shall be the duty of the Assistant Secretary, 
     acting through the head of the Office of Elder Abuse 
     Prevention and Services to--
       ``(A) develop objectives, priorities, policy, and a long-
     term plan for--
       ``(i) carrying out elder justice programs and activities 
     relating to--
       ``(I) elder abuse prevention, detection, treatment, and 
     intervention, and response;
       ``(II) training of individuals regarding the matters 
     described in subclause (I); and
       ``(III) the improvement of the elder justice system in the 
     United States;
       ``(ii) annually collecting, maintaining, and disseminating 
     data relating to the abuse, neglect, and exploitation of 
     elders (and, in the discretion of the Secretary, vulnerable 
     adults), including collecting, maintaining, and disseminating 
     such data under section 753 after consultation with the 
     Attorney General and working with experts from the Department 
     of Justice described in section 753(b)(1);
       ``(iii) disseminating information concerning best practices 
     regarding, and providing training on, carrying out activities 
     related to abuse, neglect, and exploitation of elders (and, 
     in the discretion of the Secretary, vulnerable adults);
       ``(iv) in conjunction with the necessary experts, 
     conducting research related to abuse, neglect, and 
     exploitation of elders (and, in the discretion of the 
     Secretary, vulnerable adults);
       ``(v) providing technical assistance to States and other 
     eligible entities that provide or fund the provision of the 
     services described in subtitle B of title VII; and
       ``(vi) carrying out a study to determine the national 
     incidence and prevalence of elder abuse, neglect, and 
     exploitation in all settings;
       ``(B) implement the overall policy and a strategy to carry 
     out the plan described in subparagraph (A); and
       ``(C) provide advice to the Secretary on elder justice 
     issues and administer such programs relating to elder abuse, 
     neglect, and exploitation as the Secretary determines to be 
     appropriate.
       ``(4) The Secretary, acting through the Assistant 
     Secretary, may issue such regulations as may be necessary to 
     carry out this subsection and subtitle B of title VII.''.

     SEC. 4. 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 (12)--
       (i) by striking ``carry on'' and inserting the following:
       ``(B) carry on''; and
       (ii) by striking ``(12)'' and inserting the following:
       ``(12)(A) consult and coordinate activities with the 
     Administrator of the Centers for Medicare & Medicaid Services 
     to implement and build awareness of programs providing new 
     benefits affecting older individuals; and'';
       (B) by striking paragraph (20) and inserting the following:
       ``(20)(A) provide technical assistance and support for 
     outreach and benefits enrollment assistance to support 
     efforts--
       ``(i) to inform older individuals with greatest economic 
     need, who may be eligible to participate, but who are not 
     participating, in Federal and State programs for which the 
     individuals are eligible, about the programs; and
       ``(ii) to enroll the individuals in the programs;
       ``(B) in cooperation with related Federal agency partners 
     administering the Federal programs, make a grant to or enter 
     into a contract with a qualified, experienced entity to 
     establish a National Center on Senior Benefits Outreach and 
     Enrollment, which shall--
       ``(i) maintain and update web-based decision support and 
     enrollment tools, and integrated, person-centered systems, 
     designed to inform older individuals about the full range of 
     benefits for which the individuals may be eligible under 
     Federal and State programs;
       ``(ii) utilize cost-effective strategies to find older 
     individuals with greatest economic need and enroll the 
     individuals in the programs;
       ``(iii) create and support efforts for Aging and Disability 
     Resource Centers, and other public and private State and 
     community-based organizations, including faith-based 
     organizations and coalitions, to serve as benefits enrollment 
     centers for the programs;
       ``(iv) develop and maintain an information clearinghouse on 
     best practices and the most cost-effective methods for 
     finding and enrolling older individuals with greatest 
     economic need in the programs; and
       ``(v) provide, in collaboration with related Federal agency 
     partners administering the Federal programs, training and 
     technical assistance on the most effective outreach, 
     screening, enrollment, and follow-up strategies for the 
     Federal and State programs.'';
       (C) 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;
       (D) in paragraph (27), by striking the period at the end 
     and inserting ``; and''; and
       (E) by adding at the end the following:
       ``(28) make available to States information and technical 
     assistance to support the provision of evidence-based disease 
     prevention and health promotion services.''; and
       (2) by striking subsection (b) and inserting the following:
       ``(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 (other than the 
     Administration on Aging) 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 those other 
     Federal agencies and departments;
       ``(2) conduct research and demonstration projects to 
     identify innovative, cost-effective strategies for modifying 
     State systems of long-term care to--

[[Page 12672]]

       ``(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 settings; and
       ``(C) establish criteria for and promote the implementation 
     (through area agencies on aging, 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, in coordination with the Administrator of 
     the Centers for Medicare & Medicaid Services, including the 
     provision of such care through self-directed care models 
     that--
       ``(A) provide for the assessment of the needs and 
     preferences of an individual at risk for institutional 
     placement to help such individual avoid unnecessary 
     institutional placement and depletion of income and assets to 
     qualify for benefits under the Medicaid program under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.);
       ``(B) respond to the needs and preferences of such 
     individual and provide the option--
       ``(i) for the individual to direct and control the receipt 
     of supportive services provided; or
       ``(ii) as appropriate, for a person who was appointed by 
     the individual, or is legally acting on the individual's 
     behalf, in order to represent or advise the individual in 
     financial or service coordination matters (referred to in 
     this paragraph as a `representative' of the individual), to 
     direct and control the receipt of those services; and
       ``(C) assist an older individual (or, as appropriate, a 
     representative of the individual) to develop a plan for long-
     term support, including selecting, budgeting for, and 
     purchasing home and community-based long-term care and 
     supportive services;
       ``(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; and
       ``(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--
       ``(A) enhanced awareness by the public of the importance of 
     planning in advance for long-term care; and
       ``(B) the availability of information and resources to 
     assist in such planning;
       ``(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 home 
     and community-based long-term care systems, including 
     evidence-based programs;
       ``(7) develop, in collaboration with the Administrator of 
     the Centers for Medicare & 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.
       ``(c) The Assistant Secretary, after consultation with the 
     Chief Executive Officer of the Corporation for National and 
     Community Service, shall--
       ``(1) encourage and permit volunteer groups (including 
     organizations carrying out national service programs and 
     including organizations of youth in secondary or 
     postsecondary school) that are active in supportive services 
     and civic engagement to participate and be involved 
     individually or through representative groups in supportive 
     service and civic engagement programs or activities to the 
     maximum extent feasible;
       ``(2) develop a comprehensive strategy for utilizing older 
     individuals to address critical local needs of national 
     concern; and
       ``(3) encourage other community capacity-building 
     initiatives involving older individuals.''.

     SEC. 5. FEDERAL AGENCY CONSULTATION.

       Section 203 of the Older Americans Act of 1965 (42 U.S.C. 
     3013) is amended--
       (1) in subsection (a)(3)(A)--
       (A) by striking ``(with particular attention to low-income 
     minority older 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
       (B) by striking ``section 507'' and inserting ``section 
     516'';
       (2) in subsection (b), by adding at the end the following:
       ``(19) Sections 4 and 5 of the Assistive Technology Act of 
     1998 (29 U.S.C. 3003, 3004).''; and
       (3) by adding at the end the following:
       ``(c)(1) The Secretary, in collaboration with the Secretary 
     of Housing and Urban Development and with the other Federal 
     officials specified in paragraph (2), shall establish an 
     interagency coordinating committee (referred to in this 
     subsection as the `Committee') focusing on the coordination 
     of agencies with respect to aging issues, particularly issues 
     related to demographic changes and housing needs among older 
     individuals.
       ``(2) The officials referred to in paragraph (1) are the 
     Secretary of Labor, the Secretary of Housing and Urban 
     Development, the Attorney General, the Secretary of 
     Transportation, the Secretary of the Treasury, the Secretary 
     of Agriculture, the Commissioner of Social Security, the 
     Surgeon General, the Administrator of the Centers for 
     Medicare & Medicaid Services, the Director of the Centers for 
     Disease Control and Prevention, the Director of the National 
     Institutes of Health, the Assistant Secretary for Children 
     and Families, the Administrator of the National Highway 
     Traffic Safety Administration, and such other Federal 
     officials as the Secretary of Health and Human Services 
     determines to be appropriate.
       ``(3) The Secretary of Health and Human Services shall 
     serve as the first chairperson of the Committee, for an 
     initial period of 2 years. After that initial period, the 
     Secretary of Housing and Urban Development and the Secretary 
     of Health and Human Services shall alternate as chairpersons 
     of the Committee, each serving as chairperson for a period of 
     2 years.
       ``(4) The Committee shall--
       ``(A) review all Federal programs and services that assist 
     older individuals in finding and affording housing, health 
     care, and other services, including those Federal programs 
     and services that assist older individuals in accessing 
     health care, transportation, supportive services, and 
     assistance with daily activities, at the place or close to 
     the place where the older individuals live;
       ``(B) monitor, evaluate, and recommend improvements in 
     programs and services administered, funded, or financed by 
     Federal, State, and local agencies to assist older 
     individuals in meeting their housing, health care, and other 
     service needs and make any recommendations about how the 
     agencies can better carry out and provide the programs and 
     services to house and serve older individuals;
       ``(C) recommend ways to--
       ``(i) facilitate aging in place of older individuals, by 
     identifying and making available the programs and services 
     necessary to enable older individuals to remain in their 
     homes as the individuals age;
       ``(ii) reduce duplication by Federal agencies of programs 
     and services to assist older individuals in meeting their 
     housing, health care, and other service needs;
       ``(iii) ensure collaboration among and within agencies in 
     providing and making available the programs and services so 
     that older individuals are able to easily access needed 
     programs and services;
       ``(iv) work with States to better provide housing, health 
     care, and other services to older individuals by--
       ``(I) holding individual meetings with State 
     representatives;
       ``(II) providing ongoing technical assistance to States 
     about better meeting the needs of older individuals; and
       ``(III) working with States to designate State liaisons for 
     the Committee;
       ``(v) identify model programs and services to assist older 
     individuals in meeting their housing, health care, and other 
     service needs, including model--
       ``(I) programs linking housing, health care, and other 
     services;
       ``(II) financing products offered by government, quasi-
     government, and private sector entities; and
       ``(III) innovations in technology applications that give 
     older individuals access to information on available services 
     or that help in providing services to older individuals;
       ``(vi) collect and disseminate information about older 
     individuals and the programs and services available to the 
     individuals to ensure that the individuals can access 
     comprehensive information; and
       ``(vii) work with the Federal Interagency Forum on Aging-
     Related Statistics, the Bureau of the Census, and member 
     agencies--
       ``(I) to collect and maintain data relating to the housing, 
     health care, and other service needs of older individuals so 
     that all such data can be accessed in one place on a 
     designated website; and
       ``(II) to identify and address unmet data needs;
       ``(D) make recommendations to guide policy and program 
     development across Federal agencies with respect to 
     demographic changes among older individuals; and
       ``(E) actively seek input from and consult with all 
     appropriate and interested parties, including public health 
     interest and research groups and foundations about the 
     activities described in subparagraphs (A) through (D).
       ``(5) Each year, the Committee shall prepare and submit to 
     the President, the Committee on Financial Services of the 
     House of

[[Page 12673]]

     Representatives, the Committee on Education and the Workforce 
     of the House of Representatives, the Committee on Banking, 
     Housing, and Urban Affairs of the Senate, the Committee on 
     Health, Education, Labor, and Pensions of the Senate, and the 
     Special Committee on Aging of the Senate, a report that--
       ``(A) describes the activities and accomplishments of the 
     Committee in working with Federal, State, and local 
     governments, and private organizations, in coordinating 
     programs and services to meet the requirements of paragraph 
     (4);
       ``(B) assesses the level of Federal assistance required to 
     meet the needs described in paragraph (4);
       ``(C) incorporates an analysis from the head of each agency 
     that is a member of the interagency coordinating committee 
     established under paragraph (1) that describes the barriers 
     and impediments, including barriers and impediments in 
     statutory and regulatory law, to the access and use by older 
     individuals of programs and services administered by such 
     agency; and
       ``(D) makes recommendations for appropriate legislative and 
     administrative actions to meet the needs described in 
     paragraph (4) and for coordinating programs and services 
     designed to meet those needs.
       ``(6)(A) The Secretary of Health and Human Services, after 
     consultation with the Secretary of Housing and Urban 
     Development, shall appoint an executive director of the 
     Committee.
       ``(B) On the request of the Committee, any Federal 
     Government employee may be detailed to the Committee without 
     reimbursement, and such detail shall be without interruption 
     or loss of civil service status or privilege.''.

     SEC. 6. 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 (C), by adding ``and'' at the end;
       (ii) in subparagraph (D), by striking ``; and'' at the end 
     and inserting a period; and
       (iii) 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 by 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; and
       ``(ix) 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 and meal planning; and''.

     SEC. 7. EVALUATION.

       Section 206(g) of the Older Americans Act of 1965 (42 
     U.S.C. 3017(g)) is amended by striking the first sentence and 
     inserting the following: ``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 more than \1/
     2\ of 1 percent of such amount, for purposes of conducting 
     evaluations under this section, either directly or by grant 
     or contract.''.

     SEC. 8. 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. 9. 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 under this Act 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 
     contract or 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 may voluntarily pay, 
     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 in 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 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. 10. 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--
       ``(1) are designed for older individuals; and
       ``(2) include--
       ``(A) nutrition education;
       ``(B) physical activity; and
       ``(C) other activities to modify behavior and to improve 
     health literacy, including providing information on optimal 
     nutrient intake, through education and counseling in 
     accordance with section 339(2)(J).''.

     SEC. 11. 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 as in need of special outreach.''; and
       (3) in subsection (h)(2), by inserting ``(including 
     individuals with limited English proficiency)'' after 
     ``individuals''.

     SEC. 12. 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. 13. 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 and designed to provide training, placement, and 
     stipends for volunteers in community service settings.''.

     SEC. 14. AUTHORIZATION OF APPROPRIATIONS; USES OF FUNDS.

       Section 303 of the Older Americans Act of 1965 (42 U.S.C. 
     3023) is amended--
       (1) in subsections (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)--
       (A) in paragraph (1) by striking ``$125,000,000'' and all 
     that follows and inserting ``$160,000,000 for fiscal year 
     2007.''; and
       (B) in paragraph (2), by striking ``such sums'' and all 
     that follows and inserting ``$170,000,000 for fiscal year 
     2008, $180,000,000 for fiscal year 2009, $190,000,000 for 
     fiscal year 2010, and $200,000,000 for fiscal year 2011.''.

[[Page 12674]]



     SEC. 15. ALLOTMENTS.

       Section 304(d)(1)(A) of the Older Americans Act of 1965 (42 
     U.S.C. 3024(d)(1)(A)) is amended to read as follows:
       ``(A)(i) such amount as the State agency determines, but 
     not more than 10 percent thereof, shall be available for 
     paying such percentage as the agency determines, but not more 
     than 75 percent, of the cost of administration of area plans; 
     and
       ``(ii) in addition to that amount, for any fiscal year 
     among fiscal years 2007 through 2011 for which the amount 
     appropriated under subsections (a) through (d) of section 303 
     is not less than 110 percent of that appropriated amount for 
     fiscal year 2006, an amount equal to 1 percent of the State's 
     allotment shall be used by the area agencies on aging in the 
     State to carry out the assessment described in section 
     306(b);''.

     SEC. 16. ORGANIZATION.

       Section 305 of the Older Americans Act of 1965 (42 U.S.C. 
     3025) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)(E)--
       (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, 
     including low-income minority older individuals, older 
     individuals with limited English proficiency, and older 
     individuals residing in rural areas)''; and
       (ii) by striking ``and'' at the end;
       (B) in paragraph (2)--
       (i) in subparagraph (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
       (ii) in subparagraph (G), by striking the period and 
     inserting ``; and''; and
       (C) 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 to 
     long-term care;
       ``(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, by 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 settings; and
       ``(iv) implement (through area agencies on aging, service 
     providers, and such other entities as the State determines to 
     be appropriate) 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.''; and
       (2) in subsection (b), by adding at the end the following:
       ``(6) Nothing in this section shall prevent the 
     Commonwealth of Puerto Rico from designating, with the 
     approval of the Assistant Secretary, a single planning and 
     service area to cover all the older individuals in the 
     Commonwealth.''.

     SEC. 17. 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)'' 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)'';
       (ii) by striking ``(with particular attention to low-income 
     minority individuals)'' 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
       (iii) 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 (2)(A)--
       (i) by inserting after ``transportation,'' the following: 
     ``health services (including mental health services),''; and
       (ii) by inserting after ``information and assistance'' the 
     following: ``(which may include information and assistance to 
     consumers on availability of services under part B and how to 
     receive benefits under and participate in publicly supported 
     programs for which the consumer may be eligible)'';
       (C) 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 specific objectives for providing services 
     to low-income minority older individuals, older individuals 
     with limited English proficiency, 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; and
       (II) in clause (i)--

       (aa) in subclause (V) by striking ``with limited English-
     speaking ability; and'' and inserting ``with limited English 
     proficiency;''; and
       (bb) by adding at the end the following:
       ``(VII) older individuals at risk for institutional 
     placement; and'';
       (D) in paragraph (5), by inserting ``and individuals at 
     risk for institutional placement'' after ``severe 
     disabilities'';
       (E) 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 older individuals and individuals with 
     disabilities needing such services and, if possible, work in 
     coordination with entities carrying out volunteer programs 
     (including programs administered by the Corporation for 
     National and Community Services) 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, representatives of 
     the business community,'' after ``individuals,''; and

       (iii) in subparagraph (F), by inserting ``(including mental 
     health screening)'' before ``provided'' each place it 
     appears;
       (F) in 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, by 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 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) providing 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.'';

[[Page 12675]]

       (G) by striking the 2 paragraphs (15);
       (H) by redesignating paragraph (16) as paragraph (15); and
       (I) by adding at the end the following:
       ``(16) provide assurances that funds received under this 
     title will be used--
       ``(A) to provide benefits and services to older individuals 
     giving priority to older individuals identified in paragraph 
     (4)(A)(i); and
       ``(B) in compliance with the assurances specified in 
     paragraph (13) and the limitations specified in section 
     212(b); and
       ``(17) provide, to the extent feasible, for the furnishing 
     of services under this Act, consistent with self-directed 
     care.
       ``(18) include information detailing how the area agency on 
     aging will coordinate activities, and develop long-range 
     emergency plans, with local and State emergency response 
     agencies, relief organizations, local and State governments, 
     and any other institutions that have responsibility for 
     disaster relief service delivery.'';
       (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) In any fiscal year, an area agency on aging may 
     include in the area plan an assessment of how prepared the 
     area agency on aging and service providers in the planning 
     and service area are for a change in the number of older 
     individuals during the 10-year period following the fiscal 
     year for which the plan is submitted. In a fiscal year 
     described in section 304(d)(1)(A)(ii), an area agency or 
     aging shall include the assessment in the area plan.
       ``(2) 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 individuals with low incomes, 
     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 age 85 and older in the planning and service area 
     is expected to affect the need for supportive services.
       ``(3) 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;
       ``(J) emergency preparedness; and
       ``(K) any other service as determined by such agency.''.

     SEC. 18. STATE PLANS.

       Section 307(a) of the Older Americans Act of 1965 (42 
     U.S.C. 3027(a)) is amended--
       (1) in paragraph (2)(C), by striking ``section 306(b)'' and 
     inserting ``section 306(c)'';
       (2) in paragraph (4), 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 minority older 
     individuals, older individuals with limited English 
     proficiency, and older individuals residing in rural 
     areas)'';
       (3) by striking paragraph (15);
       (4) by redesignating paragraph (14) as paragraph (15);
       (5) 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 
     minority older individuals with limited English proficiency; 
     and
       ``(B) describe the methods used to satisfy the service 
     needs of the low-income minority older individuals described 
     in subparagraph (A), including the plan to meet the needs of 
     low-income minority older individuals with limited English 
     proficiency.'';
       (6) 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, including low-
     income minority older individuals, older individuals with 
     limited English proficiency, and older individuals residing 
     in rural areas)''; and
       (7) by adding at the end the following:
       ``(27) The plan shall provide assurances that area agencies 
     on aging will provide, to the extent feasible, for the 
     furnishing of services under this Act, consistent with self-
     directed care.
       ``(28)(A) The plan shall include, at the election of the 
     State, an assessment of how prepared the State is, under the 
     State's statewide service delivery model, for a change in the 
     number of older individuals during the 10-year period 
     following the fiscal year for which the plan is submitted.
       ``(B) Such assessment may include--
       ``(i) the projected change in the number of older 
     individuals in the State;
       ``(ii) an analysis of how such change may affect such 
     individuals, including individuals with low incomes, 
     individuals with great economic need, minority older 
     individuals, older individuals residing in rural areas, and 
     older individuals with limited English proficiency;
       ``(iii) an analysis of how the programs, policies, and 
     services provided by the State can be improved, including 
     coordinating with area agencies on aging, and how resource 
     levels can be adjusted to meet the needs of the changing 
     population of older individuals in the State; and
       ``(iv) an analysis of how the change in the number of 
     individuals age 85 and older in the State is expected to 
     affect the need for supportive services.
       ``(29) The plan shall include information detailing how the 
     State will coordinate activities, and develop long-range 
     emergency preparedness plans, with area agencies on aging, 
     local emergency response agencies, relief organizations, 
     local governments, and any other institutions that have 
     responsibility for disaster relief service delivery.
       ``(30) The plan shall include information describing the 
     involvement of the head of the State agency in the 
     development, revision, and implementation of emergency 
     preparedness plans, including the State Public Health 
     Emergency Preparedness and Response Plan.
       ``(31) The plan shall provide that the State shall 
     implement an Aging and Disability Resource Center--
       ``(A) to serve as a visible and trusted source of 
     information on the full range of options for long-term care, 
     including both institutional and home and community-based 
     care, that are available in the State;
       ``(B) to provide personalized and consumer-friendly 
     assistance to empower individuals to make informed decisions 
     about their long-term care options;
       ``(C) to provide coordinated and streamlined access to all 
     publicly funded long-term care options so that consumers can 
     obtain the care they need through a single intake, 
     assessment, and eligibility determination process;
       ``(D) to help individuals to plan ahead for their long-term 
     care needs; and
       ``(E) to assist, in coordination with the entity carrying 
     out the health insurance information, counseling, and 
     assistance program (receiving funding under section 4360 of 
     the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 
     1395b-4)) in the State, beneficiaries, and prospective 
     beneficiaries, under the Medicare program established under 
     title XVIII of the Social Security Act (42 U.S.C. 1395 et 
     seq.) in understanding and accessing prescription drug and 
     preventative health benefits under the provisions of, and 
     amendments made by, the Medicare Prescription Drug, 
     Improvement, and Modernization Act of 2003.''.

     SEC. 19. 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 section 
     304(d)(1)(D)''.

     SEC. 20. NUTRITION SERVICES INCENTIVE PROGRAM.

       Section 311 of the Older Americans Act of 1965 (42 U.S.C. 
     3030a) is amended--
       (1) in subsection (b), by adding at the end the following:
       ``(3) Each State agency and grantee under title VI shall 
     promptly and equitably disburse amounts received under this 
     subsection to recipients of grants and contracts.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by inserting ``, including bonus 
     commodities,'' after ``agricultural commodities'';
       (B) in paragraph (2), by inserting ``, including bonus 
     commodities,'' after ``food commodities''; and
       (C) in paragraph (3), by inserting ``, including bonus 
     commodities,'' after ``Dairy products'';
       (3) in subsection (d)(4), by inserting ``and grantee under 
     title VI'' after ``State agency''; and
       (4) in subsection (e), by striking ``2001'' and inserting 
     ``2007''.

     SEC. 21. 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)--
       (i) by striking ``provided that'' and inserting ``if''; and
       (ii) by adding at the end the following: ``Such 
     contributions shall be encouraged for individuals whose self-
     declared income is at or above 200 percent of the poverty 
     line, at contribution levels based on the actual cost of 
     services.''; and

[[Page 12676]]

       (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 and minority older 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. 22. SUPPORTIVE SERVICES AND SENIOR CENTERS.

       Section 321(a) of the Older Americans Act of 1965 (42 
     U.S.C. 3030d(a)) is amended--
       (1) in paragraph (8), by inserting ``(including mental 
     health screening)'' after ``screening'';
       (2) in paragraph (11) by striking ``services'' and 
     inserting ``provision of devices and services (including 
     provision of assistive technology devices and assistive 
     technology services)'';
       (3) in paragraph (14)(B) by inserting ``(including mental 
     health)'' after ``health'';
       (4) in paragraph (22) by striking the period at the end and 
     inserting a semicolon;
       (5) by redesignating paragraph (23) as paragraph (24); and
       (6) by inserting after paragraph (22) the following:
       ``(23) services designed to support States, area agencies 
     on aging, and local service providers in carrying out and 
     coordinating activities for older individuals with respect to 
     mental health services, including outreach for, education 
     concerning, and screening for such services, and referral to 
     such services for treatment; and''.

     SEC. 23. NUTRITION SERVICES.

       After the part heading of part C of title III of the Older 
     Americans Act of 1965 (42 U.S.C. 3030e et seq.), 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 nutrition 
     services to delay the onset of adverse health conditions.''.

     SEC. 24. 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'' the first place 
     it appears;
       (3) in paragraph (2), by striking ``which''; and
       (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.''.

     SEC. 25. 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 that provide--
       ``(1) 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) at least 1 home delivered meal 
     per day, which may consist 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. 26. 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 recognized 
     experts in the fields 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. 27. NUTRITION.

       Section 339 of the Older Americans Act of 1965 (42 U.S.C. 
     3030g-21) is amended--
       (1) in paragraph (1), to read as follows:
       ``(1) solicit the advice and expertise of a dietitian or 
     other individual with 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), 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
       (B) in subparagraph (D), by inserting ``joint'' after 
     ``encourages''; and
       (C) in subparagraph (G), to read as follows:
       ``(G) ensures that meal providers solicit the advice and 
     expertise of--
       ``(i) a dietitian or other individual described in 
     paragraph (1),
       ``(ii) meal participants, and
       ``(iii) other individuals knowledgeable with regard to the 
     needs of older individuals,''; and
       (D) in subparagraph (I), by striking ``and'' at the end; 
     and
       (E) in subparagraph (J), to read as follows:
       ``(J) provides for nutrition screening and nutrition 
     education, and nutrition assessment and counseling if 
     appropriate; and
       ``(K) encourages individuals who distribute nutrition 
     services under subpart 2 to provide, to homebound older 
     individuals, available medical information approved by health 
     care professionals, such as informational brochures and 
     information on how to get vaccines, including vaccines for 
     influenza, pneumonia, and shingles, in the individuals' 
     communities.''.

     SEC. 28. STUDY OF NUTRITION PROJECTS.

       (a) Study.--
       (1) In general.--The Assistant Secretary for Aging shall 
     use funds allocated in section 206(g) of the Older Americans 
     Act of 1965 (42 U.S.C. 3017(g)) to enter into a contract with 
     the Food and Nutrition Board of the Institute of Medicine of 
     the National Academy of Sciences, for the purpose of 
     establishing an independent panel of experts that will 
     conduct an evidence-based study of the nutrition projects 
     authorized under such Act.
       (2) Study.--Such study shall, to the extent data are 
     available, include--
       (A) an evaluation of the effect of the nutrition projects 
     authorized by such Act on--
       (i) improvement of the health status, including nutritional 
     status, of participants in the projects;
       (ii) prevention of hunger and food insecurity of the 
     participants; and
       (iii) continuation of the ability of the participants to 
     live independently;
       (B) a cost-benefit analysis of nutrition projects 
     authorized by such Act, including the potential to affect 
     costs of the Medicaid program under title XIX of the Social 
     Security Act (42 U.S.C. 1396 et seq.); and
       (C) an analysis of how nutrition projects authorized by 
     such Act may be modified to improve the outcomes described in 
     subparagraph (A), including by improving the nutritional 
     quality of the meals provided through the projects and 
     undertaking other potential strategies to improve the 
     nutritional status of the participants.
       (b) Reports.--
       (1) Report to the assistant secretary.--The panel described 
     in subsection (a) shall submit to the Assistant Secretary a 
     report containing the results of the evidence-based study 
     described in subsection (a), including any recommendations 
     resulting from the analysis described in subsection 
     (a)(2)(C).
       (2) Report to congress.--The Assistant Secretary shall 
     submit a report containing the results described in paragraph 
     (1) to the Committee on Education and the Workforce of the 
     House of Representatives and the Committee on Health, 
     Education, Labor, and Pensions of the Senate.
       (c) Timing.--The Food and Nutrition Board shall establish 
     the independent panel of experts described in subsection (a) 
     not later than 90 days after the date of the enactment of 
     this Act. The panel shall submit the report described in 
     subsection (b)(1) to the Assistant Secretary not later than 
     24 months after the date of the enactment of this Act.

     SEC. 29. IMPROVING INDOOR AIR QUALITY IN BUILDINGS WHERE 
                   OLDER INDIVIDUALS CONGREGATE.

       Section 361 of the Older Americans Act of 1965 (42 U.S.C. 
     3030m) is amended by adding at the end the following:
       ``(c) The Assistant Secretary shall work in consultation 
     with qualified experts to provide information on methods of 
     improving indoor air quality in buildings where older 
     individuals congregate.''.

     SEC. 30. CAREGIVER SUPPORT PROGRAM DEFINITIONS.

       Section 372 of the Older Americans Act of 1965 (42 U.S.C. 
     3030s) is amended--
       (1) in paragraph (1), by inserting ``or an adult child with 
     mental retardation or a related developmental disability'' 
     after ``age'';
       (2) in paragraph (2), by inserting before the period the 
     following: ``or an individual with Alzheimer's disease or a 
     related disorder with neurological and organic brain 
     dysfunction who is 50 years of age or older'';
       (3) in paragraph (3)--
       (A) by striking ``child'' the first place it appears and 
     inserting ``child (including an adult child with mental 
     retardation or a related developmental disability)'';
       (B) by striking ``a child by blood or marriage'' and 
     inserting ``such a child by blood, marriage, or adoption''; 
     and
       (C) by striking ``60'' and inserting ``55'';
       (4) by redesignating paragraphs (2) and (3) as paragraphs 
     (3) and (4), respectively; and

[[Page 12677]]

       (5) by inserting after paragraph (1) the following:
       ``(2) Developmental disability.--The term `developmental 
     disability' has the meaning given the term in section 102 of 
     the Developmental Disabilities Assistance and Bill of Rights 
     Act of 2000 (42 U.S.C. 15002).''.

     SEC. 31. CAREGIVER SUPPORT PROGRAM.

       Section 373 of the National Family Support Caregiver Act 
     (42 U.S.C. 3030s-1) is amended--
       (1) in subsection (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) in subsection (c)(2)--
       (A) by striking ``(as defined'' and all that follows and 
     inserting a period; and
       (B) by adding at the end the following: ``In providing 
     services for family caregivers under this subpart, the State 
     shall give priority for services to family caregivers who 
     provide care for older individuals.''; and
       (3) in subsection (d), to read as follows:
       ``(d) Use of Volunteers.--In carrying out this subpart, 
     each area agency on aging shall make use of trained 
     volunteers to expand the provision of the available services 
     described in subsection (b) and shall, if possible, work in 
     coordination with entities carrying out volunteer programs 
     (including programs administered by the Corporation for 
     National and Community Service) designed to provide training, 
     placement, and stipends for volunteers in community service 
     settings.''; and
       (4) in subsection (e)(3), by adding at the end the 
     following: ``The reports shall describe any mechanisms used 
     in the State to provide to persons who are family caregivers, 
     or grandparents or older individuals who are relative 
     caregivers, information about and access to various services 
     so that the persons can better carry out their care 
     responsibilities.''; and
       (5) in subsection (f)(1), by striking ``2001 through 2005'' 
     and inserting ``2007, 2008, 2009, 2010, and 2011''.

     SEC. 32. ACTIVITIES AND PROGRAMS OF NATIONAL SIGNIFICANCE.

       Section 376(a) of the National Family Support Caregiver Act 
     (42 U.S.C. 3030s-12(a)) is amended--
       (1) by striking the title heading and inserting the 
     following:

     ``SEC. 376. ACTIVITIES AND PROGRAMS OF NATIONAL 
                   SIGNIFICANCE.'';

       (2) by striking ``(a) In General.--'';
       (3) by striking ``shall'' and inserting ``may'';
       (4) by striking ``program'' and inserting ``activities that 
     include'';
       (5) by striking ``research.'' and inserting ``research, and 
     programs that include--
       ``(1) multigenerational programs, including programs that 
     provide supports for grandparents and other older individuals 
     who are relative caregivers (as defined in section 372) 
     raising children (such as kinship navigator programs), and 
     programs that sustain and replicate innovative 
     multigenerational family support programs involving 
     volunteers who are older individuals;
       ``(2) programs providing support and information to 
     families who have a child with a disability or chronic 
     illness, and to other families in need of family support 
     programs;
       ``(3) programs addressing unique issues faced by rural 
     caregivers;
       ``(4) programs focusing on the needs of older individuals 
     with Alzheimer's disease and related dementia and their 
     caregivers; and
       ``(5) programs supporting caregivers in the roles the 
     caregivers carry out in health promotion and disease 
     prevention.''; and
       (6) by striking subsection (b).

     SEC. 33. GRANT PROGRAMS.

       Section 411 of the Older Americans Act of 1965 (42 U.S.C. 
     3032) is amended--
       (1) in subsection (a)--
       (A) in paragraph (8), by striking ``and'' at the end;
       (B) by redesignating paragraph (9) as paragraph (11); and
       (C) by inserting after paragraph (8) the following:
       ``(9) planning activities to prepare communities for the 
     aging of the population, which activities may include--
       ``(A) efforts to assess the aging population;
       ``(B) activities to coordinate the activities of State and 
     local agencies in order to meet the needs of older 
     individuals; and
       ``(C) training and technical assistance to support States, 
     area agencies on aging, and tribal organizations receiving 
     grants under part A of title VI, in engaging in community 
     planning activities; and
       ``(10) the development, implementation, and assessment of 
     technology-based service models and best practices, to 
     support the use of health monitoring and assessment 
     technologies, communication devices, assistive technologies, 
     and other technologies that may remotely connect family and 
     professional caregivers to frail older individuals residing 
     in home and community-based settings or rural areas.''.

     SEC. 34. 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 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, Hispanic Centers of Excellence in Applied 
     Gerontology, and other educational institutions that serve 
     the needs of minority students, to provide education and 
     training that prepare students for careers in the field of 
     aging.''.

     SEC. 35. HEALTH CARE SERVICE DEMONSTRATION PROJECTS IN RURAL 
                   AREAS.

       Section 414 of the Older Americans Act of 1965 (42 U.S.C. 
     3032c) is amended--
       (1) in subsection (a), by inserting ``mental health care,'' 
     after ``adult day health care,''; and
       (2) in subsection (b)(1)(B)(i), by inserting ``mental 
     health,'' after ``public health,''.

     SEC. 36. TECHNICAL ASSISTANCE AND INNOVATION TO IMPROVE 
                   TRANSPORTATION FOR OLDER INDIVIDUALS.

       Section 416 of the Older Americans Act of 1965 (42 U.S.C. 
     3032e) is amended to read as follows:

     ``SEC. 416. TECHNICAL ASSISTANCE AND INNOVATION TO IMPROVE 
                   TRANSPORTATION FOR OLDER INDIVIDUALS.

       ``(a) In General.--The Secretary may award grants or 
     contracts to nonprofit organizations to improve 
     transportation services for older individuals.
       ``(b) Use of Funds.--
       ``(1) In general.--A nonprofit organization receiving a 
     grant or contract under subsection (a) shall use the funds 
     received through such grant or contract to carry out a 
     demonstration project, or to provide technical assistance to 
     assist local transit providers, area agencies on aging, 
     senior centers, and local senior support groups, to encourage 
     and facilitate coordination of Federal, State, and local 
     transportation services and resources for older individuals. 
     The organization may use the funds to develop and carry out 
     an innovative transportation demonstration project to create 
     transportation services for older individuals.
       ``(2) Specific activities.--In carrying out a demonstration 
     project or providing technical assistance under paragraph (1) 
     the organization may carry out activities that include--
       ``(A) developing innovative approaches for improving access 
     by older individuals to transportation services, including 
     volunteer driver programs, economically sustainable 
     transportation programs, and programs that allow older 
     individuals to transfer their automobiles to a provider of 
     transportation services in exchange for the services;
       ``(B) preparing information on transportation options and 
     resources for older individuals and organizations serving 
     such individuals, and disseminating the information by 
     establishing and operating a toll-free telephone number;
       ``(C) developing models and best practices for providing 
     comprehensive integrated transportation services for older 
     individuals, including services administered by the Secretary 
     of Transportation, by providing ongoing technical assistance 
     to agencies providing services under title III and by 
     assisting in coordination of public and community 
     transportation services; and
       ``(D) providing special services to link seniors to 
     transportation services not provided under title III.
       ``(c) Economically Sustainable Transportation.--In this 
     section, the term `economically sustainable transportation' 
     means demand responsive transportation for older 
     individuals--
       ``(1) that may be provided through volunteers; and
       ``(2) that the provider will provide without receiving 
     Federal or other public financial assistance, after a period 
     of not more than 5 years of providing the services under this 
     section.''.

     SEC. 37. COMMUNITY PLANNING.

       Title IV of the Older Americans Act of 1965 is amended by 
     inserting after section 416 (42 U.S.C. 3032e) the following:

     ``SEC. 416A. COMMUNITY PLANNING FOR THE AGING POPULATION.

       ``The Secretary may establish, either directly or through 
     grants or contracts, a national technical assistance program 
     to assist States and area agencies on aging funded under this 
     Act in planning efforts to prepare communities for the aging 
     of the population.''.

     SEC. 38. DEMONSTRATION, SUPPORT, AND RESEARCH PROJECTS FOR 
                   MULTI-
                   GENERATIONAL ACTIVITIES AND CIVIC ENGAGEMENT 
                   ACTIVITIES.

       Section 417 of the Older Americans Act of 1965 (42 U.S.C. 
     3032f) is amended to read as follows:

     ``SEC. 417. DEMONSTRATION, SUPPORT, AND RESEARCH PROJECTS FOR 
                   MULTI-
                   GENERATIONAL ACTIVITIES AND CIVIC ENGAGEMENT 
                   ACTIVITIES.

       ``(a) Grants and Contracts.--The Assistant Secretary shall 
     award grants and enter into contracts with eligible 
     organizations to--
       ``(1) conduct productivity and cost-benefit research to 
     determine the effectiveness of engaging older individuals in 
     paid and unpaid positions with public and nonprofit 
     organizations;
       ``(2) develop a national agenda and blueprint for creating 
     paid and unpaid positions for older individuals with public 
     and nonprofit organizations to increase the capacity

[[Page 12678]]

     of the organizations to provide needed services to 
     communities;
       ``(3) carry out demonstration and support projects to 
     provide older individuals with multigenerational activities, 
     and civic engagement activities, designed to meet critical 
     community needs; and
       ``(4) carry out demonstration projects to coordinate 
     multigenerational activities and civic engagement activities, 
     and facilitate development of and participation in multi-
     generational activities.
       ``(b) Use of Funds.--An eligible organization shall use 
     funds made available under a grant awarded, or a contract 
     entered into, under subsection (a)--
       ``(1)(A) to conduct the research described in subsection 
     (a)(1);
       ``(B) to develop the national agenda and blueprint 
     described in subsection (a)(2); or
       ``(C) to carry out a demonstration or support project 
     described in subsection (a)(3);
       ``(D) to carry out a demonstration project described in 
     subsection (a)(4); and
       ``(2) to evaluate the project involved in accordance with 
     subsection (f).
       ``(c) Preference.--In awarding grants and entering into 
     contracts under subsection (a) to carry out a demonstration 
     or support project described in subsection (a)(3), the 
     Assistant Secretary shall give preference to--
       ``(1) eligible organizations with a demonstrated record of 
     carrying out multi-
     generational activities or civic engagement activities;
       ``(2) eligible organizations proposing multigenerational 
     activity service projects that will serve older individuals 
     and communities with the greatest need (with particular 
     attention to low-income minority older individuals, older 
     individuals with limited English proficiency, older 
     individuals residing in rural areas, and low-income minority 
     communities);
       ``(3) eligible organizations proposing civic engagement 
     activity service projects that will serve communities with 
     the greatest need; and
       ``(4) eligible organizations with the capacity to develop 
     meaningful roles and assignments that use the time, skills, 
     and experience of older individuals to serve public and 
     nonprofit organizations.
       ``(d) Application.--To be eligible to receive a grant or a 
     contract under subsection (a), an organization shall submit 
     an application to the Assistant Secretary at such time, in 
     such manner, and accompanied by such information as the 
     Assistant Secretary may reasonably require.
       ``(e) Eligible Organizations.--Organizations eligible to 
     receive a grant or enter into a contract under subsection 
     (a)--
       ``(1) to carry out activities described in subsection 
     (a)(1) shall be research or academic organizations with the 
     capacity to conduct productivity and cost-benefit research 
     described in subsection (a)(1);
       ``(2) to carry out activities described in subsection 
     (a)(2) shall be organizations with the capacity to develop 
     the national agenda and blueprint described in subsection 
     (a)(2);
       ``(3) to carry out activities described in subsection 
     (a)(3) shall be organizations that provide paid or unpaid 
     positions for older individuals to serve in multigenerational 
     activities, or civic engagement activities, designed to meet 
     critical community needs and use the full range of time, 
     skills, and experience of older individuals; and
       ``(4) to carry out activities described in subsection 
     (a)(4) shall be organizations with the capacity to facilitate 
     and coordinate activities as described in subsection (a)(4), 
     through the use of multigenerational coordinators.
       ``(f) Local Evaluation and Report.--
       ``(1) Evaluation.--Each organization receiving a grant or a 
     contract under subsection (a) to carry out a demonstration or 
     support project under subsection (a)(3) shall evaluate the 
     multigenerational activities or civic engagement activities 
     assisted under the project to determine the effectiveness of 
     the activities involved, the impact of such activities on the 
     community being served and the organization providing the 
     activities, and the impact of such activities on older 
     individuals involved in such project.
       ``(2) Report.--The organization shall submit a report to 
     the Assistant Secretary containing the evaluation not later 
     than 6 months after the expiration of the period for which 
     the grant or contract is in effect.
       ``(g) Report to Congress.--Not later than 6 months after 
     the Assistant Secretary receives the reports described in 
     subsection (f)(2), the Assistant Secretary shall prepare and 
     submit to the Speaker of the House of Representatives and the 
     President pro tempore of the Senate a report that assesses 
     the evaluations and includes, at a minimum--
       ``(1) the names or descriptive titles of the demonstration, 
     support, and research projects funded under subsection (a);
       ``(2) a description of the nature and operation of the 
     projects;
       ``(3) the names and addresses of organizations that 
     conducted the projects;
       ``(4) in the case of demonstration and support projects 
     carried out under subsection (a)(3), a description of the 
     methods and success of the projects in recruiting older 
     individuals as employees and volunteers to participate in the 
     projects;
       ``(5) in the case of demonstration and support projects 
     carried out under subsection (a)(3), a description of the 
     success of the projects in retaining older individuals 
     involved in the projects as employees and as volunteers;
       ``(6) in the case of demonstration and support projects 
     carried out under subsection (a)(3), the rate of turnover of 
     older individual employees and volunteers in the projects;
       ``(7) a strategy for disseminating the findings resulting 
     from the projects described in paragraph (1); and
       ``(8) any policy change recommendations relating to the 
     projects.
       ``(h) Definitions.--As used in this section:
       ``(1) Civic engagement activity.--The term `civic 
     engagement activity' includes an opportunity that uses the 
     time, skills, and experience of older individuals, in paid or 
     unpaid positions with a public or nonprofit organization, to 
     help address the unmet human, educational, health care, 
     environmental, and public safety needs and nurture and 
     sustain active participation in community affairs.
       ``(2) Multigenerational activity.--The term 
     `multigenerational activity' includes an opportunity that 
     uses the time, skills, and experience of older individuals, 
     in paid or unpaid positions with a public or nonprofit 
     organization, to serve as a mentor or adviser in a child care 
     program, a youth day care program, an educational assistance 
     program, an at-risk youth intervention program, a juvenile 
     delinquency treatment program, a before- or after-school 
     program, or a family support program.
       ``(3) Multigenerational coordinator.--The term 
     `multigenerational coordinator' means a person who--
       ``(A) builds the capacity of public and nonprofit 
     organizations to develop meaningful roles and assignments, 
     that use the time, skill, and experience of older individuals 
     to serve those organizations; and
       ``(B) nurtures productive, sustainable working 
     relationships between--
       ``(i) individuals from the generations with older 
     individuals; and
       ``(ii) individuals in younger generations.''.

     SEC. 39. NATIVE AMERICAN PROGRAMS.

       Section 418(a)(2)(B)(i) of the Older Americans Act of 1965 
     (42 U.S.C. 3032g)(a)(2)(B)(i)) is amended by inserting 
     ``(including mental health)'' after ``health''.

     SEC. 40. MULTIDISCIPLINARY CENTERS AND MULTIDISCIPLINARY 
                   SYSTEMS.

       Section 419 of the Older Americans Act of 1965 (42 U.S.C. 
     3032h) is amended--
       (1) by striking the title and inserting the following:

     ``SEC. 419. MULTIDISCIPLINARY CENTERS AND MULTIDISCIPLINARY 
                   SYSTEMS.'';

       (2)(A) in subsection (b)(2), by redesignating subparagraphs 
     (A) through (G) as clauses (i) through (vii), respectively;
       (B) in subsection (c)(2), by redesignating subparagraphs 
     (A) through (D) as clauses (i) through (iv), respectively; 
     and
       (C) by aligning the margins of the clauses described in 
     subparagraphs (A) and (B) with the margins of clause (iv) of 
     section 418(a)(2)(A) of such Act;
       (3)(A) in subsection (b), by redesignating paragraphs (1) 
     and (2) as subparagraphs (A) and (B), respectively;
       (B) in subsection (c), by redesignating paragraphs (1) and 
     (2) as subparagraphs (A) and (B), respectively; and
       (C) by aligning the margins of the subparagraphs described 
     in subparagraphs (A) and (B) with the margins of subparagraph 
     (D) of section 420(a)(1) of such Act;
       (4) in subsection (a), by striking ``(a)'' and all that 
     follows through ``The'' and inserting the following:
       ``(a) Multidisciplinary Centers.--
       ``(1) Program authorized.--The'';
       (5) in subsection (b)--
       (A) by striking the following:
       ``(b) Use of Funds.--'' and inserting the following:
       ``(2) Use of funds.--''; and
       (B) by striking ``subsection (a)'' each place it appears 
     and inserting ``paragraph (1)'';
       (6) in subsection (c)--
       (A) by striking the following:
       ``(c) Data.--'' and inserting the following:
       ``(3) Data.--'';
       (B) by striking ``subsection (a)'' and inserting 
     ``paragraph (1)'';
       (C) by striking ``such subsection'' and inserting ``such 
     paragraph''; and
       (D) by striking ``paragraph (1)'' and inserting 
     ``subparagraph (A)''; and
       (7) by adding at the end the following:
       ``(b)  Multidisciplinary Health Services in Communities.--
       ``(1) Program authorized.--The Assistant Secretary shall 
     make grants to States, on a competitive basis, for the 
     development and operation of--
       ``(A) systems for the delivery of mental health screening 
     and treatment services for older individuals who lack access 
     to such services; and
       ``(B) programs to--
       ``(i) increase public awareness regarding the benefits of 
     prevention and treatment of mental disorders in older 
     individuals;
       ``(ii) reduce the stigma associated with mental disorders 
     in older individuals and other barriers to the diagnosis and 
     treatment of the disorders; and
       ``(iii) reduce age-related prejudice and discrimination 
     regarding mental disorders in older individuals.

[[Page 12679]]

       ``(2) Application.--To be eligible to receive a grant under 
     this subsection for a State, a State agency shall submit an 
     application to the Assistant Secretary at such time, in such 
     manner, and containing such information as the Assistant 
     Secretary may require.
       ``(3) State allocation and priorities.--A State agency that 
     receives funds through a grant made under this subsection 
     shall allocate the funds to area agencies on aging to carry 
     out this subsection in planning and service areas in the 
     State. In allocating the funds, the State agency shall give 
     priority to planning and service areas in the State--
       ``(A) that are medically underserved; and
       ``(B) in which there are a large number of older 
     individuals.
       ``(4) Area coordination of services with other providers.--
     In carrying out this part, to more efficiently and 
     effectively deliver services to older individuals, each area 
     agency on aging shall--
       ``(A) coordinate services described in paragraph (1) with 
     other community agencies, and voluntary organizations, 
     providing similar or related services; and
       ``(B) to the greatest extent practicable, integrate 
     outreach and educational activities with existing (as of the 
     date of the integration) health care and social service 
     providers serving older individuals in the planning and 
     service area involved.
       ``(5) Relationship to other funding sources.--Funds made 
     available under this part shall supplement, and not supplant, 
     any Federal, State, and local funds expended by a State or 
     unit of general purpose local government (including an area 
     agency on aging) to provide the services described in 
     paragraph (1).
       ``(6) Definition.--In this subsection, the term `mental 
     health screening and treatment services' means patient 
     screening, diagnostic services, care planning and oversight, 
     therapeutic interventions, and referrals, that are--
       ``(A) provided pursuant to evidence-based intervention and 
     treatment protocols (to the extent such protocols are 
     available) for mental disorders prevalent in older 
     individuals; and
       ``(B) coordinated and integrated with the services of 
     social service, mental health, and health care providers in 
     an area in order to--
       ``(i) improve patient outcomes; and
       ``(ii) ensure, to the maximum extent feasible, the 
     continuing independence of older individuals who are residing 
     in the area.''.

     SEC. 41. COMMUNITY INNOVATIONS FOR AGING IN PLACE.

       Part A of title IV of the Older Americans Act of 1965 (42 
     U.S.C. 3031 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 422. COMMUNITY INNOVATIONS FOR AGING IN PLACE.

       ``(a) Definitions.--In this section:
       ``(1) Eligible entity.--The term `eligible entity'--
       ``(A) means a nonprofit health or social service 
     organization, a community-based nonprofit organization, an 
     area agency on aging or other local government agency, a 
     tribal organization, or another entity that--
       ``(i) the Assistant Secretary determines to be appropriate 
     to carry out a project under this part; and
       ``(ii) demonstrates a record of, and experience in, 
     providing or administering group and individual health and 
     social services for older individuals; and
       ``(B) does not include an entity providing housing under 
     the congregate housing services program carried out under 
     section 802 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8011) or the multifamily service 
     coordinator program carried out under section 202(g) of the 
     Housing Act of 1959 (12 U.S.C. 1701q(g)).
       ``(2) Naturally occurring retirement community.--The term 
     `Naturally Occurring Retirement Community' means a 
     residential building, a housing complex, an area (including a 
     rural area) of single family residences, or a neighborhood 
     composed of age-integrated housing--
       ``(A) where--
       ``(i) 40 percent of the heads of households are older 
     individuals; or
       ``(ii) a critical mass of older individuals exists, based 
     on local factors which, taken in total, allow an organization 
     to achieve efficiencies in the provision of health and social 
     services to older individuals living in the community; and
       ``(B) that is not an institutional care or assisted living 
     setting.
       ``(b) Grants.--
       ``(1) In general.--The Assistant Secretary shall make 
     grants to eligible entities to enable the entities to pay for 
     developing or carrying out model aging in place projects. The 
     projects shall permit aging in place for older individuals, 
     including such individuals who reside in Naturally Occurring 
     Retirement Communities, which help to sustain the 
     independence of older individuals in communities where the 
     individuals have established personal, family, and 
     professional supportive networks. The entities shall provide 
     comprehensive and coordinated health and social services 
     through the projects.
       ``(2) Grant periods.--The Assistant Secretary shall make 
     the grants for periods of 3 years.
       ``(c) Applications.--
       ``(1) In general.--To be eligible to receive a grant under 
     subsection (b) for a project, an entity shall submit an 
     application to the Assistant Secretary at such time, in such 
     manner, and containing such information as the Assistant 
     Secretary may require.
       ``(2) Contents.--The application shall include--
       ``(A) a detailed description of the entity's experience in 
     providing services to older individuals in age-integrated 
     settings;
       ``(B) a definition of the contiguous service area and a 
     description of the project boundaries in which the older 
     individuals reside or carry out activities to sustain their 
     well-being;
       ``(C) a description of how the entity will cooperate and 
     coordinate planning and services, with agencies and 
     organizations that provide publicly supported services for 
     older individuals within the project boundaries, including 
     the State agency and area agencies on aging with planning and 
     service areas within the project boundaries;
       ``(D) an assurance that the entity will seek to establish 
     cooperative relationships with interested local entities, 
     including private agencies and businesses that provide health 
     and social services, housing entities, community development 
     organizations, philanthropic organizations, foundations, and 
     other non-Federal entities;
       ``(E) a description of the entity's protocol for referral 
     of residents who may require long-term care services, 
     including coordination with local information and referral 
     agencies and Aging and Disability Resource Centers who serve 
     as single points of entry to public services;
       ``(F) a description of how the entity will offer 
     opportunities for older individuals to be involved in the 
     governance, oversight, and operation of the project;
       ``(G) an assurance that the entity will submit to the 
     Assistant Secretary such evaluations and reports as the 
     Assistant Secretary may require; and
       ``(H) a plan for long-term sustainability of the project.
       ``(d) Use of Funds.--
       ``(1) In general.--An eligible entity that receives a grant 
     under subsection (b) shall use the funds made available 
     through the grant to provide and coordinate, through aging in 
     place projects described in subsection (b), services that 
     include a comprehensive and coordinated array of community-
     based health and social services, which may include mental 
     health services, for eligible older individuals.
       ``(2) Services.--The services described in paragraph (1) 
     shall include--
       ``(A) providing--
       ``(i) case management, case assistance, and social work 
     services;
       ``(ii) health care management and health care assistance, 
     including disease prevention and health promotion services;
       ``(iii) education, socialization, and recreational 
     activities; and
       ``(iv) volunteer opportunities for project participants; 
     and
       ``(B) coordinating the services provided under title III 
     for eligible older individuals served by the project.
       ``(3) Preference.--In carrying out an aging in place 
     project, an eligible entity shall, to the extent practicable, 
     serve communities of low-income individuals and operate or 
     locate projects and services in or in close proximity to 
     locations where large concentrations of older individuals 
     have aged in place and resided, such as Naturally Occurring 
     Retirement Communities.
       ``(4) Supplement not supplant.--Funds made available to an 
     eligible entity under this section shall be used to 
     supplement, not supplant, any Federal, State, or other funds 
     otherwise available to the entity to provide health and 
     social services to eligible older individuals.
       ``(e) Competitive Grants for Technical Assistance.--
       ``(1) Grants.--The Assistant Secretary shall (or shall make 
     a grant, on a competitive basis, to an eligible nonprofit 
     organization, to enable the organization to)--
       ``(A) provide technical assistance to recipients of grants 
     under subsection (b); and
       ``(B) carry out other duties, as determined by the 
     Assistant Secretary.
       ``(2) Eligible organization.--To be eligible to receive a 
     grant under this subsection, an organization shall be a 
     nonprofit organization (including a partnership of nonprofit 
     organizations), that--
       ``(A) has experience and expertise in providing technical 
     assistance to a range of entities serving older individuals 
     and experience evaluating and reporting on programs; and
       ``(B) has demonstrated knowledge of and expertise in 
     community-based health and social services.
       ``(3) Application.--To be eligible to receive a grant under 
     this subsection, an organization (including a partnership of 
     nonprofit organizations) shall submit an application to the 
     Assistant Secretary at such time, in such manner, and 
     containing such information as the Assistant Secretary may 
     require, including an assurance that the organization will 
     submit to the Assistant Secretary such evaluations and 
     reports as the Assistant Secretary may require.
       ``(f) Report.--The Assistant Secretary shall annually 
     prepare and submit a report to Congress that shall include--

[[Page 12680]]

       ``(1) the findings resulting from the evaluations of the 
     model projects conducted under this section;
       ``(2) a description of recommended best practices regarding 
     carrying out health and social service projects for older 
     individuals aging in place; and
       ``(3) recommendations for legislative or administrative 
     action, as the Assistant Secretary determines appropriate.''.

     SEC. 42. CHOICES FOR INDEPENDENCE DEMONSTRATION PROJECTS.

       Part A of title IV of the Older Americans Act of 1965 (42 
     U.S.C. 3031 et seq.), as amended by section 41, is further 
     amended by adding at the end the following:

     ``SEC. 423. CHOICES FOR INDEPENDENCE DEMONSTRATION PROJECTS.

       ``(a) Definitions.--In this section:
       ``(1) Consumer.--The term `consumer' means an older 
     individual, a family member of such individual, and any other 
     person seeking information or assistance with respect to 
     long-term care.
       ``(2) High-risk individual.--The term `high-risk 
     individual' means an older individual who--
       ``(A) has a functional impairment affecting the 
     individual's activities of daily living;
       ``(B) is ineligible for the Medicaid program under title 
     XIX of the Social Security Act (42 U.S.C. 1396 et seq.); and
       ``(C) meets such income and functional status criteria as 
     are determined to be appropriate by the State involved and 
     approved by the Assistant Secretary.
       ``(3) Qualified expenditures.--The term `qualified 
     expenditures' means reported expenditures of a State under 
     this section that have been reviewed and approved by the 
     Assistant Secretary.
       ``(4) Service coordination.--The term `service 
     coordination' means a coordinated approach taken on behalf of 
     high-risk older individuals to facilitate the development and 
     implementation of a long-term care plan and the choice and 
     independence of the individuals in securing long-term care.
       ``(b) Authority.--The Assistant Secretary shall make grants 
     on a competitive basis, in accordance with this section, to 
     States to enable the States to pay for the Federal share of 
     the cost of modifying their systems of long-term care in 
     order to promote and facilitate--
       ``(1) the choice and control of older individuals and their 
     families in securing long-term care;
       ``(2) the coordination and cost-effectiveness of State 
     systems of long-term care;
       ``(3) the provision of long-term care in home and 
     community-based settings; and
       ``(4) the ability of individuals receiving long-term care 
     to remain as independent and self-sufficient as possible.
       ``(c) Applications by States.--For a State to be eligible 
     to receive a grant under this section, the Governor of such 
     State shall submit an application to the Assistant Secretary, 
     at such time, in such manner, and containing such information 
     as the Assistant Secretary may specify, containing a plan for 
     implementation of the component strategies described in 
     subsection (d) and such other information and assurances as 
     the Secretary determines to be appropriate.
       ``(d) Use of Funds by States.--
       ``(1) Component strategies.--A State that receives funds 
     through a grant made under subsection (b) shall use the funds 
     to carry out a demonstration project under this section 
     (directly or by grant or contract) by integrating into the 
     State's system of long-term care the component strategies 
     described in paragraphs (2) through (5).
       ``(2) Public education.--In carrying out the demonstration 
     project, the State shall conduct activities that shall 
     include media campaigns, targeted mailings, and related 
     activities, to help ensure that consumers are aware of--
       ``(A) the need to plan in advance for long-term care;
       ``(B) available public and private long-term care options, 
     including private long-term care insurance; and
       ``(C) sources of information and resources related to long-
     term care, including the resource centers described in 
     paragraph (3).
       ``(3) Aging and disability resource centers.--
       ``(A) In general.--The State shall provide for community-
     level Aging and Disability Resource Centers, which, 
     consistent with section 102(47) and subsection (f), shall 
     provide--
       ``(i) comprehensive information on available public and 
     private long-term care programs, options, and resources;
       ``(ii) personal counseling and service coordination to 
     assist consumers in assessing their existing or anticipated 
     long-term care needs and circumstances, and developing and 
     implementing a plan for long-term care designed to meet their 
     specific needs and circumstances;
       ``(iii) a convenient point of entry to the range of 
     publicly-supported long-term care programs for which an 
     individual may be eligible, including the Medicaid program 
     under title XIX of the Social Security Act (42 U.S.C. 1396 et 
     seq.), and to such other public benefit programs as the State 
     determines to be appropriate;
       ``(iv) a single process for consumer intake, assessment, 
     and application for benefits under the programs described in 
     subparagraph (C), including, where appropriate and feasible, 
     facilitating the determination of an individual's eligibility 
     (including facilitating that determination in compliance with 
     the requirements of title XIX of the Social Security Act) 
     under such programs by collaborating with the appropriate 
     programmatic office; and
       ``(v) the ability--

       ``(I) to respond immediately to a request for assistance 
     from an individual or a family member of the individual, in 
     the event of a crisis situation that could result in 
     placement of such individual in an institutional care 
     setting; and
       ``(II) to provide (or coordinate the provision of), such 
     available short-term assistance as would be necessary and 
     appropriate to temporarily preclude the need for such 
     institutional placement, until a plan for home and community-
     based long-term care can be developed and implemented.

       ``(B) Training.--In providing for the Centers, the State 
     shall ensure that the staff of the Centers is appropriately 
     trained to understand the interactions between private long-
     term care insurance (especially insurance through long-term 
     care partnership policies) and eligibility for benefits under 
     the Medicaid program under title XIX of the Social Security 
     Act (42 U.S.C. 1396 et seq.).
       ``(4) Healthy lifestyle choices.--The State shall, in 
     accordance with standards established by the Assistant 
     Secretary, provide for low-cost, community-level, evidence-
     based prevention programs and related tools 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.
       ``(5) Community living incentives.--
       ``(A) In general.--The State shall provide funding toward 
     and otherwise assist with the provision of home and 
     community-based long-term care to individuals at high risk 
     for placement in institutional care (referred to in this 
     paragraph as `high-risk individuals'). The State shall ensure 
     that individuals at greatest risk for becoming eligible for 
     benefits under the Medicaid program receive priority for the 
     home and community-based long-term care.
       ``(B) Long-term care plan.--The State shall provide for 
     assessments of the needs and preferences of high-risk 
     individuals with respect to long-term care, and based on such 
     assessments, shall develop with such individuals and their 
     family members, caregivers, or legal representatives a plan 
     for long-term care for such individuals, specifying the types 
     of support, providers, budget, and, if the State elects, 
     cost-sharing contributions involved.
       ``(C) Allocation of funds based on individual budgets.--The 
     State shall ensure that the funding described in subparagraph 
     (A) will be allocated among, and disbursed for, the budgets 
     of high-risk individuals under long-term care plans developed 
     for such individuals.
       ``(D) Option to provide consumer-directed care.--The State 
     shall provide high-risk individuals with the option to 
     receive home and community-based long-term care under this 
     paragraph in a manner that permits such individuals to direct 
     and control, in conjunction with a service coordinator, the 
     selection, planning, budgeting, and purchasing of such care 
     (including the amount, duration, scope, providers, and 
     location of such care), to the extent determined appropriate 
     and feasible under the long-term care plan developed under 
     subparagraph (B). The service coordinator shall assist the 
     high-risk individuals in purchasing a range of long-term care 
     services or supplies, not otherwise available or eligible for 
     payment through an entity carrying out a Federal or State 
     program or a similar third party, from a qualified provider 
     that are delivered in home and community-based settings and 
     in a manner that best meets the individuals' needs and 
     respects the individuals' preferences to remain in the least 
     restrictive setting possible.
       ``(e) Federal Share.--The Federal share of the cost of 
     modifying systems of long-term systems care as described in 
     subsection (b) shall be not more than 75 percent of such cost 
     (calculated on an annual basis as the State's qualified 
     expenditures for such modifications for such year).
       ``(f) Special Provisions Relating to Aging and Disability 
     Resource Centers.--A State shall ensure that any Aging and 
     Disability Resource Center shall--
       ``(1) fully coordinate its activities with any health 
     insurance information, counseling, and assistance (receiving 
     funding under section 4360 of the Omnibus Budget 
     Reconciliation Act of 1990 (42 U.S.C. 1395b-4)) in the State;
       ``(2) be subject to such controls as the Assistant 
     Secretary determines to be appropriate to ensure there is no 
     conflict of interest with respect to any referrals, for 
     information or otherwise, made by the Center for individuals 
     receiving services through the Center; and
       ``(3) provide no long-term care services or supplies, with 
     the exception of case management services provided through 
     area agencies on aging as described in section 306(a)(8).
       ``(g) Special Provisions Relating to Option to Provide 
     Consumer-Directed Care.--Payments made for a high-risk 
     individual

[[Page 12681]]

     under subsection (d)(5)(D) shall not be included in the gross 
     income of the high-risk individual for purposes of the 
     Internal Revenue Code of 1986 or be treated as income, be 
     treated as assets or benefits, or otherwise be taken into 
     account, for purposes of determining the individual's 
     eligibility for, the amount of benefits for the individual 
     under, or the amount of cost-sharing required of the 
     individual by, any other Federal or State program, other than 
     the program carried out under this section.
       ``(h) Technical Assistance to States.--The Assistant 
     Secretary, directly or by grant or contract, shall provide 
     for technical assistance to and oversight of States carrying 
     out demonstration projects under this section, for purposes 
     of administration, quality assurance, and quality 
     improvement.
       ``(i) Evaluation and Report.--The Assistant Secretary, 
     directly or by grant or contract, shall provide for an 
     evaluation of the demonstration projects carried out under 
     this section. The Assistant Secretary shall submit to the 
     President a report containing the findings resulting from 
     such evaluation not later than 6 months after the termination 
     of the demonstration projects.''.

     SEC. 43. RESPONSIBILITIES OF ASSISTANT SECRETARY.

       Section 432(c)(2)(B) of the Older Americans Act of 1965 (42 
     U.S.C. 3033a(c)(2)(B)) is amended by inserting before the 
     period the following: ``, including preparing an analysis of 
     such services, projects, and programs, and of how the 
     evaluation relates to improvements in such services, 
     projects, and programs and in the strategic plan of the 
     Administration''.

     SEC. 44. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT PROGRAM.

       Section 502 of the Older Americans Act of 1965 (42 U.S.C. 
     3056) is amended--
       (1) in subsection (a)(1), by adding at the end the 
     following: ``For purposes of this paragraph, an underemployed 
     person shall be considered to be an unemployed person.'';
       (2) in subsection (b)(1)(M), by striking ``minority, 
     limited English-speaking, and Indian eligible individuals, 
     and eligible individuals who have the greatest economic 
     need,'' and inserting ``minority and Indian eligible 
     individuals, eligible individuals with limited English 
     proficiency, and eligible individuals with greatest economic 
     need,''; and
       (3) by adding at the end the following:
       ``(g)(1) Except as provided in paragraphs (2) and (3), an 
     eligible individual may participate in projects carried out 
     under this title for a period of not more than 36 months 
     (whether or not consecutive) in the aggregate.
       ``(2) A grantee for a project may extend the period of 
     participation for not more than 20 percent of the project 
     participants. In selecting participants for the extended 
     period of participation, the grantee shall give priority to--
       ``(A) participants who are 65 years old or older or frail 
     older individuals; and
       ``(B) individuals who have more than 1 of the following 
     barriers to employment:
       ``(i) A disability.
       ``(ii) Limited English proficiency or low literacy skills.
       ``(iii) A residence in a rural area.
       ``(iv) A residence in an area of high unemployment.
       ``(v) Homelessness or a situation that puts the individual 
     at risk for homelessness.
       ``(vi) A failure to find employment after utilizing 
     services under title I of the Workforce Investment Act of 
     1998 (29 U.S.C. 2801 et seq.).
       ``(3) A grantee may petition for a waiver of the 36-month 
     limit described in paragraph (1) if the grantee serves a high 
     concentration of individuals who are hard-to-serve 
     individuals because they have more than 1 barrier to 
     employment as described in paragraph (2)(B), including a 
     grantee who operates a project in an area in which at least 
     60 percent of the counties are rural counties, as defined by 
     the Economic Research Service of the Department of 
     Agriculture.
       ``(h) It is the sense of the Senate that--
       ``(1) the older American community service employment 
     program was created with the intent of placing older 
     individuals in community service positions to provide job 
     training placements; and
       ``(2) placing older individuals in community service 
     positions strengthens the ability of the individuals to 
     become self-sufficient, provides much-needed volunteer 
     support to organizations who benefit significantly from 
     increased civic engagement, and strengthens the communities 
     that are served by such organizations.''.

     SEC. 45. PERFORMANCE.

       Section 513 of the Older Americans Act of 1965 (42 U.S.C. 
     3056k) is amended--
       (1) in subsection (a)--
       (A) in paragraph (1)--
       (i) by striking the paragraph designation and all that 
     follows through ``grantees'' and inserting the following:
       ``(1) Establishment and implementation of measures.--The 
     Secretary shall establish and implement, after consultation 
     with the Assistant Secretary, grantees''; and
       (ii) by adding at the end the following: ``The Assistant 
     Secretary shall provide recommendations to the Secretary on 
     the establishment and implementation of the performance 
     measures.'';
       (B) in paragraph (2)(B), by adding at the end the 
     following:
       ``(iv) Not less than 60 percent of the counties, in the 
     areas served by the grantee, being rural counties as defined 
     by the Economic Research Service of the Department of 
     Agriculture.
       ``(v) The areas served by the grantee comprising a 
     difficult to serve territory due to limited economies of 
     scale.''; and
       (C) by adding at the end the following:
       ``(6) Special rules.--
       ``(A) Establishment and implementation.--The Secretary 
     shall establish and implement the performance measures 
     described in this section, including all required indicators 
     described in subsection (b), not later than 1 year after the 
     date of enactment of the Older Americans Act Amendments of 
     2006.
       ``(B) Impact on grant competition.--The Secretary may not 
     publish a notice announcing a grant competition under this 
     title, and soliciting proposals for grants, until the day 
     that is the later of--
       ``(i) the date on which the Secretary implements all 
     required indicators described in subsection (b); and
       ``(ii) January 1, 2010.''; and
       (2) by adding at the end the following:
       ``(e) Effect of Exemption.--In implementing a performance 
     measure under this section, the Secretary shall not reduce a 
     score on the performance measure of--
       ``(1) a grantee that receives a waiver under section 
     502(g)(3) on the basis that the grantee is extending the 
     period of participation for project participants under that 
     section; and
       ``(2) a grantee on the basis that the grantee is extending 
     the period of participation for project participants under 
     section 502(g)(2).''.

     SEC. 46. COMPETITIVE REQUIREMENTS.

       Section 514 of the Older Americans Act of 1965 (42 U.S.C. 
     3056l) is amended--
       (1) by striking subsection (a) and inserting the following:
       ``(a) Program Authorized.--In accordance with section 
     502(b), the Secretary shall award grants to eligible 
     applicants, through a competitive process that emphasizes 
     meeting performance measures, to carry out projects under 
     this title for a 4-year period. The Secretary may not conduct 
     a grant competition under this title until the day described 
     in section 513(a)(6)(B).'';
       (2) by striking subsection (b) and inserting the following:
       ``(b) Eligible Applicants.--An applicant shall be eligible 
     to receive a grant as described in subsection (a) if the 
     applicant meets the requirements and criteria described in 
     section 502(b)(1), subsections (c) and (d), and paragraphs 
     (2) and (3) of subsection (e).'';
       (3) in subsection (c)--
       (A) by redesignating paragraphs (2) through (7) as 
     paragraphs (4) through (9), respectively;
       (B) by inserting after paragraph (1) the following:
       ``(2) The applicant's performance on the required 
     indicators described in section 513(b), in the case of an 
     applicant that has previously received a grant under this 
     title, and the applicant's ability to meet the required 
     indicators, in the case of any other applicant.
       ``(3) The applicant's ability to administer a program that 
     provides community service.''; and
       (C) by striking paragraph (9) and inserting the following:
       ``(9) The applicant's ability to minimize disruption in 
     services for project participants and the entities employing 
     the participants.
       ``(10) Any additional criteria that the Secretary may 
     determine to be appropriate.'';
       (4) in subsection (e)--
       (A) in paragraph (2), by striking subparagraphs (C) and 
     (D); and
       (B) in paragraph (3)--
       (i) by striking ``(3)'' and all that follows through ``In'' 
     and inserting the following:
       ``(3) Competition requirements for public and private 
     nonprofit agencies and organizations in a state.--In'';
       (ii) by striking subparagraphs (B) through (D); and
       (iii) by striking ``take corrective action'' and inserting 
     ``provide technical assistance'';
       (C) in paragraph (4), by striking ``paragraph (3)(A)'' and 
     inserting ``paragraph (3)'';
       (5) in subsection (f), by striking paragraph (4);
       (6) by adding at the end the following:
       ``(g) Grantees Serving Individuals With Barriers to 
     Employment.--
       ``(1) Definition.--In this subsection, the term 
     `individuals with barriers to employment' means minority and 
     Indian individuals, individuals with limited English 
     proficiency, and individuals with greatest economic need.
       ``(2) Special consideration.--In areas where a substantial 
     population of individuals with barriers to employment exists, 
     a grantee that receives a national grant under this section 
     shall, in selecting subgrantees, give special consideration 
     to organizations (including former recipients of such 
     national grants) with demonstrated expertise in serving 
     individuals with barriers to employment.
       ``(h) Minority-Serving Grantees.--The Secretary may not 
     promulgate rules or regulations, affecting grantees in areas 
     where a substantial population of minority individuals 
     exists, that would significantly compromise the ability of 
     the grantees to serve

[[Page 12682]]

     their targeted population of minority older individuals.''.

     SEC. 47. DEFINITIONS.

       Section 516(2) of the Older Americans Act of 1965 (42 
     U.S.C. 3056n(2)) is amended--
       (1) in the header, by striking ``individuals'' and 
     inserting ``individual'' ;
       (2) by inserting before ``The term'' the following:
       ``(A) In general.--'';
       (3) by striking ``individuals'' and inserting 
     ``individual''; and
       (4) by adding at the end the following:
       ``(B) Determination of low income.--For purposes of 
     determining income eligibility under subparagraph (A), the 
     Secretary shall not include as income--
       ``(i) unemployment compensation;
       ``(ii) benefits received under title XVI of the Social 
     Security Act (42 U.S.C. 1381 et seq.);
       ``(iii) payments made to or on behalf of veterans or former 
     members of the Armed Forces under the laws administered by 
     the Secretary of Veterans Affairs; or
       ``(iv) 25 percent of the old-age and survivors insurance 
     benefits received under title II of the Social Security Act 
     (42 U.S.C. 401 et seq.).''.

     SEC. 48. CLARIFICATION OF MAINTENANCE REQUIREMENT.

       (a) In General.--Section 614A of the Older Americans Act of 
     1965 (42 U.S.C. 3057e-1) is amended by adding at the end the 
     following:
       ``(c) Clarification.--
       ``(1) Definition.--In this subsection, the term `covered 
     year' means fiscal year 2006 or a subsequent fiscal year.
       ``(2) Consortia of tribal organizations.--If a tribal 
     organization received a grant under this part for fiscal year 
     1991 as part of a consortium, the Assistant Secretary shall 
     consider the tribal organization to have received a grant 
     under this part for fiscal year 1991 for purposes of 
     subsections (a) and (b), and shall apply the provisions of 
     subsections (a) and (b)(1) (under the conditions described in 
     subsection (b)) to the tribal organization for each covered 
     year for which the tribal organization submits an application 
     under this part, even if the tribal organization submits--
       ``(A) a separate application from the remaining members of 
     the consortium; or
       ``(B) an application as 1 of the remaining members of the 
     consortium.''.
       (b) Effective Date.--Subsection (a) takes effect on October 
     1, 2005.

     SEC. 49. NATIVE AMERICANS CAREGIVER SUPPORT PROGRAM.

       Section 643 of the Older Americans Act of 1965 (42 U.S.C. 
     3057n) is amended--
       (1) in paragraph (1), by striking ``2001'' and inserting 
     ``2007''; and
       (2) in paragraph (2), by striking ``$5,000,000'' and all 
     that follows and inserting ``$6,500,000 for fiscal year 2007, 
     $7,000,000 for fiscal year 2008, $7,500,000 for fiscal year 
     2009, $8,000,000 for fiscal year 2010, and $8,500,000 for 
     fiscal year 2011.''.

     SEC. 50. 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. 51. ELDER ABUSE, NEGLECT, AND EXPLOITATION PREVENTION 
                   AMENDMENT.

       Section 721 of the Older Americans Act of 1965 (42 U.S.C. 
     3058i) is amended--
       (1) in subsection (b)--
       (A) by redesignating paragraphs (2) through (8) as 
     paragraphs (3) through (9), respectively; and
       (B) 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) in subsection (e)(2)--
       (A) by striking ``subsection (b)(8)(B)(i)'' and inserting 
     ``subsection (b)(9)(B)(i)''; and
       (B) by striking ``subsection (b)(8)(B)(ii)'' and inserting 
     ``subsection (b)(9)(B)(ii)''.

     SEC. 52. NATIVE AMERICAN ORGANIZATION PROVISIONS.

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

     SEC. 53. ELDER JUSTICE PROGRAMS.

       (a) Purposes.--The purposes of this section are as follows:
       (1) To assist States and Indian tribes in developing a 
     comprehensive multi-disciplinary approach to elder justice.
       (2) To promote research and data collection that will fill 
     gaps in knowledge about elder abuse, neglect, and 
     exploitation.
       (3) To support innovative and effective activities of 
     service providers and programs that are designed to address 
     issues relating to elder abuse, neglect, and exploitation.
       (4) To assist States, Indian tribes, and local service 
     providers in the development of short- and long-term 
     strategic plans for the development and coordination of elder 
     justice research, programs, studies, training, and other 
     efforts.
       (5) To promote collaborative efforts and diminish overlap 
     and gaps in efforts in developing the important field of 
     elder justice.
       (b) Elder Justice.--Title VII of the Older Americans Act of 
     1965 (42 U.S.C. 3058 et seq.) is amended--
       (1) by redesignating subtitles B and C as subtitles C and 
     D, respectively;
       (2) by redesignating sections 751, and 761 through 764, as 
     sections 761, and 771 through 774, respectively; and
       (3) by inserting after subtitle A the following:

                  ``Subtitle B--Elder Justice Programs

     ``SEC. 751. DEFINITIONS.

       ``In this subtitle:
       ``(1) Caregiver.--The term `caregiver' means an individual 
     who has the responsibility for the care of an elder, either 
     voluntarily, by contract, by receipt of payment for care, or 
     as a result of the operation of law and means a family member 
     or other individual who provides (on behalf of such 
     individual or of a public or private agency, organization, or 
     institution) compensated or uncompensated care to an elder.
       ``(2) Direct care.--The term `direct care' means care by an 
     employee or contractor who provides assistance or long-term 
     care services to a recipient.
       ``(3) Elder.--The term `elder' means an older individual, 
     as defined in section 102.
       ``(4) Elder justice.--The term `elder justice' means--
       ``(A) efforts to prevent, detect, treat, intervene in, and 
     respond to elder abuse, neglect, and exploitation and to 
     protect elders with diminished capacity while maximizing 
     their autonomy; and
       ``(B) from an individual perspective, the recognition of an 
     elder's rights, including the right to be free of abuse, 
     neglect, and exploitation.
       ``(5) Eligible entity.--The term `eligible entity' means a 
     State or local government agency, Indian tribe, or any other 
     public or private entity, that is engaged in and has 
     expertise in issues relating to elder justice.
       ``(6) Fiduciary.--The term `fiduciary'--
       ``(A) means a person or entity with the legal 
     responsibility--
       ``(i) to make decisions on behalf of and for the benefit of 
     another person; and
       ``(ii) to act in good faith and with fairness; and
       ``(B) includes a trustee, a guardian, a conservator, an 
     executor, an agent under a financial power of attorney or 
     health care power of attorney, or a representative payee.
       ``(7) Grant.--The term `grant' includes a contract, 
     cooperative agreement, or other mechanism for providing 
     financial assistance.
       ``(8) Law enforcement.--The term `law enforcement' means 
     the full range of potential responders to elder abuse, 
     neglect, and exploitation including--
       ``(A) police, sheriffs, detectives, public safety officers, 
     and corrections personnel;
       ``(B) prosecutors;
       ``(C) medical examiners;
       ``(D) investigators; and
       ``(E) coroners.
       ``(9) Long-term care.--
       ``(A) In general.--The term `long-term care' means 
     supportive and health services specified by the Secretary for 
     individuals who need assistance because the individuals have 
     a loss of capacity for self-care due to illness, disability, 
     or vulnerability.
       ``(B) Loss of capacity for self-care.--For purposes of 
     subparagraph (A), the term `loss of capacity for self-care' 
     means an inability to engage effectively in activities of 
     daily living, including eating, dressing, bathing, and 
     management of one's financial affairs.
       ``(10) Long-term care facility.--The term `long-term care 
     facility' means a residential care provider that arranges 
     for, or directly provides, long-term care.
       ``(11) Nursing facility.--The term `nursing facility' has 
     the meaning given such term under section 1919(a) of the 
     Social Security Act (42 U.S.C. 1396r(a)).
       ``(12) State legal assistance developer.--The term `State 
     legal assistance developer' means an individual described in 
     section 731.
       ``(13) State long-term care ombudsman.--The term `State 
     Long-Term Care Ombudsman' means the State Long-Term Care 
     Ombudsman described in section 712(a)(2).

     ``SEC. 752. STATE AND TRIBAL GRANTS TO STRENGTHEN LONG-TERM 
                   CARE AND PROVIDE ASSISTANCE FOR ELDER JUSTICE 
                   PROGRAMS.

       ``(a) Grants.--The Assistant Secretary may award grants to 
     States and Indian tribes to enable the States and tribes to 
     strengthen long-term care and provide assistance for elder 
     justice programs.
       ``(b) Application.--To be eligible to receive a grant under 
     this subtitle, a State or Indian tribe shall submit an 
     application to the Assistant Secretary at such time, in such 
     manner, and containing such information as the Assistant 
     Secretary may require.
       ``(c) Use of Funds.--A State or Indian tribe that receives 
     a grant under this subtitle may use the funds made available 
     through the grant to award grants--
       ``(1) to eligible entities for the prevention, detection, 
     assessment, and treatment of, intervention in, investigation 
     of, and response to elder abuse, neglect, and exploitation;
       ``(2) to eligible entities to examine various types of 
     elder shelters (in this paragraph referred to as `safe 
     havens'), and to test various safe haven models for 
     establishing safe havens (at home or elsewhere), that--

[[Page 12683]]

       ``(A) recognize autonomy and self-determination, and fully 
     protect the due process rights of elders; and
       ``(B)(i) provide a comprehensive, culturally sensitive, and 
     multidisciplinary team response to allegations of elder 
     abuse, neglect, or exploitation;
       ``(ii) provide a dedicated, elder-friendly setting;
       ``(iii) have the capacity to meet the needs of elders for 
     care; and
       ``(iv) provide various services including--
       ``(I) nursing and forensic evaluation;
       ``(II) therapeutic intervention;
       ``(III) victim support and advocacy; and
       ``(IV) case review and assistance to make the elders safer 
     at home or to find appropriate placement in safer 
     environments, including shelters, and, in some circumstances 
     long-term care facilities, other residential care facilities, 
     and hospitals;
       ``(3) to eligible entities to establish or continue 
     volunteer programs that focus on the issues of elder abuse, 
     neglect, and exploitation, or to provide related services;
       ``(4) to eligible entities to support multidisciplinary 
     elder justice activities, such as--
       ``(A) supporting and studying team approaches for bringing 
     a coordinated multidisciplinary or interdisciplinary response 
     to elder abuse, neglect, and exploitation, including a 
     response from individuals in social service, health care, 
     public safety, and legal disciplines;
       ``(B) establishing a State or tribal coordinating council, 
     which shall identify the individual State's or Indian tribe's 
     needs and provide the Secretary with information and 
     recommendations relating to efforts by the State or Indian 
     tribe to combat elder abuse, neglect, and exploitation;
       ``(C) providing training, technical assistance, and other 
     methods of support to groups carrying out multidisciplinary 
     efforts at the State or Indian tribe level (referred to in 
     some States as `State Working Groups');
       ``(D) broadening and studying various models for elder 
     fatality and serious injury review teams, to make 
     recommendations about their composition, protocols, 
     functions, timing, roles, and responsibilities, with a goal 
     of producing models and information that will allow for 
     replication based on the needs of other States, Indian 
     tribes, and communities; or
       ``(E) carrying out such other interdisciplinary or 
     multidisciplinary efforts as the Assistant Secretary 
     determines to be appropriate;
       ``(5) to eligible entities to provide training for 
     individuals with respect to issues of elder abuse, neglect, 
     and exploitation, consisting of--
       ``(A) training within a discipline; or
       ``(B) cross-training activities that permit individuals in 
     multiple disciplines to train together, fostering 
     communication, coordinating efforts, and ensuring 
     collaboration;
       ``(6) to eligible entities to address underserved 
     populations of elders, such as--
       ``(A) elders living in rural locations;
       ``(B) elders in minority populations; or
       ``(C) low-income elders;
       ``(7) to eligible entities to provide incentives for 
     individuals to train for, seek, and maintain employment 
     providing direct care in a long-term care facility, such as--
       ``(A) to eligible entities to provide incentives to 
     participants in programs carried out under part A of title 
     IV, and section 403(a)(5), of the Social Security Act (42 
     U.S.C. 601 et seq., 603(a)(5)) to train for and seek 
     employment providing direct care in a long-term care 
     facility;
       ``(B) to long-term care facilities to carry out programs 
     through which the facilities--
       ``(i) offer, to employees who provide direct care to 
     residents of a long-term care facility, continuing training 
     and varying levels of professional certification, based on 
     observed clinical care practices and the amount of time the 
     employees spend providing direct care; and
       ``(ii) provide, or make arrangements with employers to 
     provide, bonuses or other increased compensation or benefits 
     to employees who achieve professional certification under 
     such a program; or
       ``(C) to long-term care facilities to enable the facilities 
     to provide training and technical assistance to eligible 
     employees regarding management practices using methods that 
     are demonstrated to promote retention of employees of the 
     facilities, such as--
       ``(i) the establishment of basic human resource policies 
     that reward high performance, including policies that provide 
     for improved wages and benefits on the basis of job reviews; 
     or
       ``(ii) the establishment of other programs that promote the 
     provision of high quality care, such as a continuing 
     education program that provides additional hours of training, 
     including on-the-job training, for employees who are 
     certified nurse aides;
       ``(8) to encourage the establishment of eligible 
     partnerships to develop collaborative and innovative 
     approaches to improve the quality of, including preventing 
     abuse, neglect, and exploitation in, long-term care; or
       ``(9) to eligible entities to establish multidisciplinary 
     panels to address and develop best practices concerning 
     methods of--
       ``(A) improving the quality of long-term care; and
       ``(B) addressing abuse, including resident-to-resident 
     abuse, in long-term care.
       ``(d) Administrative Expenses.--A State or Indian tribe 
     that receives a grant under this section shall not use more 
     than 5 percent of the funds made available through the grant 
     to pay for administrative expenses.
       ``(e) Supplement Not Supplant.--Funds made available 
     pursuant to this section shall be used to supplement and not 
     supplant other Federal, State, and local (including tribal) 
     funds expended to provide activities described in subsection 
     (c).
       ``(f) Maintenance of Effort.--The State or Indian tribe, in 
     using the proceeds of a grant received under this section, 
     shall maintain the expenditures of the State or tribe for 
     activities described in subsection (c) at a level equal to 
     not less than the level of such expenditures maintained by 
     the State or tribe for the fiscal year preceding the fiscal 
     year for which the grant is received.
       ``(g) Accountability Measures.--The Assistant Secretary 
     shall develop accountability measures to ensure the 
     effectiveness of the activities conducted using funds made 
     available under this section, including accountability 
     measures to ensure that the activities described in 
     subsection (c)(7) benefit eligible employees and increase the 
     stability of the long-term care workforce.
       ``(h) Evaluating Programs.--The Assistant Secretary shall 
     evaluate the activities conducted using funds made available 
     under this section and shall use the results of such 
     evaluation to determine the activities for which funds made 
     available under this section may be used.
       ``(i) Compliance With Applicable Laws.--In order to receive 
     funds under this section, an entity shall comply with all 
     applicable laws, regulations, and guidelines.
       ``(j) Eligible Partnerships.--In subsection (c)(8), the 
     term `eligible partnership' means a multidisciplinary 
     community partnership consisting of eligible entities or 
     appropriate individuals, such as a partnership consisting of 
     representatives in a community of nursing facility providers, 
     State legal assistance developers, advocates for residents of 
     long-term care facilities, State Long-Term Care Ombudsmen, 
     surveyors, the State agency with responsibility for adult 
     protective services, the State agency with responsibility for 
     licensing long-term care facilities, law enforcement 
     agencies, courts, family councils, residents, certified nurse 
     aides, registered nurses, physicians, and other eligible 
     entities and appropriate individuals.
       ``(k) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of fiscal years 2005 
     through 2008.

     ``SEC. 753. COLLECTION OF UNIFORM NATIONAL DATA ON ELDER 
                   ABUSE, NEGLECT, AND EXPLOITATION.

       ``(a) Purpose.--The purpose of this section is to improve, 
     streamline, and promote uniform collection, maintenance, and 
     dissemination of national data relating to the various types 
     of elder abuse, neglect, and exploitation.
       ``(b) Phase I.--
       ``(1) In general.--Not later than the date that is 1 year 
     after the date of enactment of the Older Americans Act 
     Amendments of 2006, the Assistant Secretary, acting through 
     the head of the Office of Elder Abuse Prevention and 
     Services, after consultation with the Attorney General and 
     working with experts in relevant disciplines from the Bureau 
     of Justice Statistics of the Office of Justice Programs of 
     the Department of Justice, shall--
       ``(A) develop a method for collecting national data 
     regarding elder abuse, neglect, and exploitation; and
       ``(B) develop uniform national data reporting forms adapted 
     to each relevant entity or discipline (such as health, public 
     safety, social and protective services, and law enforcement) 
     reflecting--
       ``(i) the distinct manner in which each entity or 
     discipline receives and maintains information; and
       ``(ii) the sequence and history of reports to or 
     involvement of different entities or disciplines, 
     independently, or the sequence and history of reports from 1 
     entity or discipline to another over time.
       ``(2) Forms.--
       ``(A) In general.--Subject to subparagraph (B), the 
     national data reporting forms described in paragraph (1)(B) 
     shall incorporate the definitions of section 751, for use in 
     determining whether an event is reportable.
       ``(B) Protection of privacy.--In pursuing activities under 
     this paragraph, the Secretary shall ensure the protection of 
     individual health privacy consistent with the regulations 
     promulgated under section 264(c) of the Health Insurance 
     Portability and Accountability Act of 1996 and State and 
     local privacy regulations (as applicable).
       ``(c) Phase II.--
       ``(1) In general.--Not later than the date that is 1 year 
     after the date on which the activities described in 
     subsection (b)(1) are completed, the Secretary (or the 
     Secretary's designee) shall ensure that the national data 
     reporting forms and data collection methods developed in 
     accordance with such subsection are pilot tested in 6 States 
     selected by the Secretary.
       ``(2) Adjustments to the form and methods.--The Secretary, 
     after considering the

[[Page 12684]]

     results of the pilot testing described in paragraph (1) and 
     consultation with the Attorney General and relevant experts, 
     shall adjust the national data reporting forms and data 
     collection methods as necessary.
       ``(d) Phase III.--
       ``(1) Distribution of national data reporting forms.--After 
     completion of the adjustment to the national data reporting 
     forms under subsection (c)(2), the Secretary shall submit the 
     national data reporting forms along with instructions to--
       ``(A) the heads of the relevant components of the 
     Department of Health and Human Services, the Department of 
     Justice, and the Department of the Treasury, and such other 
     Federal entities as may be appropriate; and
       ``(B) the Governor's office of each State for collection 
     from all relevant State entities of data, including health 
     care, social services, and law enforcement data.
       ``(2) Data collection grants.--
       ``(A) Authorization.--The Secretary is authorized to award 
     grants to States to improve data collection activities 
     relating to elder abuse, neglect, and exploitation.
       ``(B) Application.--To be eligible to receive a grant under 
     this paragraph, a State shall submit an application to the 
     Secretary at such time, in such manner, and containing such 
     information as the Secretary may require.
       ``(C) Requirements.--Each State receiving a grant under 
     this paragraph for a fiscal year shall report data for the 
     calendar year that begins during that fiscal year, using the 
     national data reporting forms described in paragraph (1).
       ``(D) Funding.--
       ``(i) First year.--For the first fiscal year for which a 
     State receives grant funds under this subsection the 
     Secretary shall initially distribute 50 percent of such 
     funds. The Secretary shall distribute the remaining funds at 
     the end of the calendar year that begins during that fiscal 
     year, if the Secretary determines that the State has properly 
     reported data required under this subsection for the calendar 
     year.
       ``(ii) Subsequent years.--Except as provided in clause (i), 
     the Secretary shall distribute grant funds to a State under 
     this subsection for a fiscal year if the Secretary determines 
     that the State properly reported data required under this 
     subsection for the calendar year that ends during that fiscal 
     year.
       ``(3) Required information.--Each report submitted under 
     this subsection shall--
       ``(A) indicate the State and year in which each event 
     occurred; and
       ``(B) identify the total number of events that occurred in 
     each State during the year and the type of each event.
       ``(e) Report.--Not later than 1 year after the date of 
     enactment of the Older Americans Act Amendments of 2006 and 
     annually thereafter, the Secretary shall prepare and submit 
     to the appropriate committees of Congress, including to the 
     Committee on Health Education, Labor, and Pensions and the 
     Special Committee on Aging of the Senate, a report regarding 
     activities conducted under this section.
       ``(f) Authorization of Appropriations.--There are 
     authorized to be appropriated to carry out this section such 
     sums as may be necessary for each of fiscal years 2007, 2008, 
     2009, 2010, and 2011.''.

     SEC. 54. RULE OF CONSTRUCTION.

       Subtitle C of title VII of the Older Americans Act of 1965 
     (42 U.S.C. 3058 et seq.) is amended by adding at the end the 
     following:

     ``SEC. 765. RULE OF CONSTRUCTION.

       ``Nothing in this title shall be construed to interfere 
     with or abridge the right of an older individual to practice 
     the individual's religion through reliance on prayer alone 
     for healing, in a case in which a decision to so practice the 
     religion--
       ``(1) is contemporaneously expressed by the older 
     individual--
       ``(A) either orally or in writing;
       ``(B) with respect to a specific illness or injury that the 
     older individual has at the time of the decision; and
       ``(C) when the older individual is competent to make the 
     decision;
       ``(2) is set forth prior to the occurrence of the illness 
     or injury in a living will, health care proxy, or other 
     advance directive document that is validly executed and 
     applied under State law; or
       ``(3) may be unambiguously deduced from the older 
     individual's life history.''.

  Mr. KENNEDY. Mr. President, the Older Americans Act has been a 
lifeline for senior citizens across the country for 40 years, and all 
of us want it to continue to fulfill its important role in the years 
ahead.
  Like Social Security, Medicare and Medicaid, the Older Americans Act 
is part of our commitment to care for the nation's seniors in their 
golden years.
  This year, the first of the members of the baby boom generation will 
be eligible for the act's services. One in nine Americans are over age 
65 today. By the year 2030, the number will be one in five.
  It is clear we need to get our priorities right in this 
reauthorization. That means starting now to put the infrastructure in 
place to provide services to baby boomers who retire. This bill takes 
some of the necessary steps. It requires State and local agencies to 
acknowledge the changing demographics and to plan ahead. I hope 
Congress will continue to build on these efforts in the coming years 
and provide increased funds for the important programs in this act.
  Our bill also encourages civic activities by seniors. Numerous 
examples exist of successful volunteer programs involving seniors, such 
as Senior Corps, Experience Corps, and Family Friends, and we need to 
build on these successes.
  The members of the new generation of older Americans obviously want 
to be engaged in their communities after they retire, and it is 
essential to draw on their experience and knowledge in constructive 
ways.
  The bill is also intended to encourage good nutrition, healthy living 
and disease prevention among seniors. The Meals on Wheels program, 
enacted in the 1970s, is one of its greatest successes, and 
Massachusetts has been in the forefront of the effort to provide 
community-based nutrition services to the elderly. Our State program 
coordinates 28 nutrition projects throughout the State to deal with 
poor nutrition and social isolation of seniors. Our bill will expand 
the ability of programs such as Meals on Wheels to reach all older 
individuals who need better nutrition.
  According to the Census Bureau, 6.7 million persons aged 55 or older 
will be living in poverty by 2008, a 22 percent increase since 2000. By 
2015, the number will increase to 9 million if the current trend 
continues.
  The Older Americans Act also provides essential opportunities for 
employment of older Americans through the Senior Community Service 
Employment Program, which offers job training for seniors and involves 
them in the communities which they love, and which also love them. Last 
year, the program supported 61,000 jobs and served 92,000 people.
  Congress created this program to provide older adults with community 
service opportunities. We recognized that senior citizens are 
especially valuable assets to the communities in which they live. 
Through community service, older adults are also provided with the job 
training they need to become self-sufficient in the workforce.
  Unfortunately, in recent years the focus on community service has 
blurred, and many of us are concerned about the administration's lack 
of interest in maintaining this important aspect of the program.
  Older Americans today provide 45 million hours of valuable service to 
their communities, particularly in senior centers, public libraries, 
and nutrition programs.
  Overall, our bill maintains the emphasis on community service and 
enables the program to continue to serve older Americans efficiently 
and well. As this bill moves forward, it is essential that community 
service remain paramount and that any attempts to weaken this program 
be defeated.
  This is a good bipartisan bill and I support its passage.
  Mr. DeWINE. Mr. President, I rise today with my colleagues on the 
Health, Education, Labor, and Pensions Committee--Chairman Enzi, 
Ranking Member Kennedy, and Senator Mikulski--as we join in the 
introduction of the Older Americans Act Amendments of 2006. Senator 
Mikulski and I worked to draft and pass the Older Americans Act 
Amendments of 2000, and I am proud to have worked with her again to 
improve and update these important programs.
  I also thank Senators Enzi and Kennedy for making this 
reauthorization a priority for the HELP Committee. Over the months we 
have negotiated this bipartisan bill, I have greatly appreciated their 
thoughtful and steady work to get the Older Americans Act to this 
point. They understand well, as I do, that the quick passage of this 
reauthorization is the No. 1 recommendation that came out of the White 
House Conference on Aging. As I have mentioned in the hearings I have 
chaired of

[[Page 12685]]

the Subcommittee on Retirement Security and Aging, the passage of the 
Older Americans Act reauthorization is the top priority for the 
subcommittee. Today's bill introduction is an important step forward in 
that process.
  As you know, older Americans are a vital and rapidly growing segment 
of our population. Over 36 million people living in the United States 
are over the age of 65, accounting for about 12 percent of the 
population. The Census Bureau projects that 45 years from now, people 
65 and older will number nearly 90 million in the United States and 
comprise 21 percent of the population.
  The Older Americans Act is an important service provider for these 
Americans. I strongly believe this reauthorization updates and 
strengthens the act in many ways. Changes to this bill include plans 
and means to prepare for changes to the aging demographics. This bill 
creates a Federal interagency council responsible for ensuring 
appropriate planning for baby boomer-related needs and population 
shifts across agencies. Additionally, it will provide for grants and 
technical assistance for local aging service providers to plan for the 
baby boomer population.
  Our bill will also increase the authorization levels of the National 
Family Caregiver Support Program by 25 percent over current 
appropriated levels over the next 5 years. This program is also 
expanded to allow for those caring for loved ones with Alzheimer's--
between the ages of 50 and 60--to become eligible for support services. 
Furthermore, it will clarify that this program will serve elderly 
caregivers who are caring for their adult children with developmental 
disabilities. Lastly, it clarifies that grandparents caring for adopted 
grandchildren are covered under this program, and it lowers the age 
threshold for grandparents to 55 years old. These are important changes 
to this program and will affect the quality of life for so many 
individuals who are struggling with the pressures of caring for loved 
ones.
  This bill also encourages the voluntary contributions related to 
title III services from those individuals with a self-declared income 
at or above 200 percent of the poverty level and based on actual cost 
of service. This will help programs such as Meals-on-Wheels to expand 
their services and enable them to more effectively take contributions 
from those older Americans willing to pay for services. As the number 
of seniors increases, we need to modify our programs to ensure their 
economic sustainability.
  Our amendments will also allow the Department of Health and Human 
Services to award grants related to the improvement of assistive 
technology for older Americans. The goal of this provision is to enable 
older Americans to have the necessary technology to monitor their 
health and help them remain in their homes as they age. We know most 
Americans want to remain independent and in their homes as they age, 
and these grants will help them do just that.
  This bill also creates a new grant program which provides grants to 
create innovative models that allow individuals to remain in community-
based settings. The need for this grant program was discussed at length 
in a hearing I held on models for aging in place--specifically 
naturally occurring retirement communities. As I stated before, 
Americans want to stay in their communities as they age, and this bill 
will help them do just that.
  Further, this bill creates a new grant program, based on 
recommendations in the President's fiscal year '07 budget, to provide 
grants to States to enable consumer-driven choices with respect to 
long-term care. Grants can be used to encourage the planning for long-
term care for older Americans. It will also facilitate access to long-
term care choices and opportunities and advice on choices for care.
  Our bill also updates the title V Senior Community Service Employment 
Program, SCSEP, to allow for a mandatory 4-year competitive grant 
cycle. It provides a sense of the Senate supporting the community 
service aspect of the program. Additionally, it limits the time on the 
program for participants to 3 years, with a 20-percent exemption for 
certain hard-to-serve populations.
  This provision balances the need for limiting the time a person 
spends in this employment program with the recognition that certain 
populations have special needs.
  Of great importance to me, this bill also amends the act to focus 
attention on the mental health needs of older Americans. These changes 
will establish grants for mental health screening of older Americans 
and increased awareness of its effects on the elderly population. Too 
often the mental health needs of older Americans are overlooked; 
however, they can be as serious and life-threatening as any other 
illness. The mental health needs of our seniors must be taken more 
seriously and dealt with more aggressively. I believe this provision 
significantly moves us forward in this struggle.
  Finally, this bill includes the language of the Elder Justice bill 
reported unanimously from the HELP Committee in the 108th Congress to 
create an office of elder abuse prevention in the administration on 
Aging; create grants to the States and tribes to prevent elder abuse, 
neglect, and exploitation; and collect data from States and other 
entities on elder abuse. These are important provisions to improve the 
safety and protect the well-being of our parents, grandparents, and 
other elderly loved ones.
  Again, I thank Senator Enzi, Senator Kennedy, and Senator Mikulski 
for their dedication to the needs of older Americans. I look forward to 
our continuing work together on this bill as we work to bring it to the 
Senate floor and the President's desk.
  Ms. MIKULSKI. Mr. President, I rise today to support older Americans. 
Seniors today are living longer, healthier lives. We must do what we 
can to help them be as independent and active as possible.
  We have worked together on both sides of the aisle and with aging 
organizations, including the organizations that make up the Leadership 
Council on Aging, to introduce S. 3570, the Older Americans Act 
Amendments of 2006, which I believe is a strong bipartisan bill. I 
would like to thank Chairman Enzi, Ranking Member Kennedy, and Senator 
DeWine for their work. I have worked closely with Senator DeWine in the 
past, and this is the second Older Americans Act that we have 
reauthorized together. This bill honors and maintains the commitment we 
made to the nation's seniors through the Older Americans Act.
  The Older Americans Act is one of our most important 
responsibilities. The 1,200 delegates to the December 2005 White House 
Conference on Aging voted reauthorization of the act this year as their 
top priority. I am pleased that we were able to produce this bipartisan 
bill, but we still have work to do before the Older Americans Act is 
reauthorized.
  We need to continue to work on the Community Service Employment 
Program for Older Americans, in title V. Much of our bill is quite 
similar to what the House passed last week, but title V is not. Our 
bill has maintained the strong community service employment aspect of 
the program, which has been an integral component since the beginning. 
The House bill has elements that will minimize and chip away at this 
community service employment element. The Community Service Employment 
Program for Older Americans helps seniors obtain employment at Meals on 
Wheels programs, senior centers, local area agencies on aging, public 
libraries, and many other public organizations that rely heavily on 
these seniors. Through community service employment, community 
organizations receive valuable support while participants receive 
valuable skill training. I am strongly opposed to losing the community 
service aspect of this program, and I am pleased our bill strengthens 
it. I expect that we will continue to protect this as we move to work 
with the House.
  There are several principles that I believe must guide 
reauthorization. First, we must continue and improve the core services 
of this act to meet the vital needs of America's seniors. Secondly, we 
must modernize the act

[[Page 12686]]

to meet the changing needs of America's senior population, including 
the growing number of seniors over 85, the impending senior boom, and 
the growing number of seniors in minority groups. Next, we must look 
for ways to help seniors live more independent and active lives. 
Finally, we must give national, State, and local programs the resources 
they need to carry out these vital responsibilities.
  I believe the 2006 reauthorization bill strengthens current Older 
Americans Act programs and offers innovative ideas that will address 
the needs of our country's aging population. The reauthorization bill 
strengthens information and referral services that are the backbone of 
OAA programs, providing seniors and their family members information 
about supportive services and information needed to prepare for long-
term care. Our bill also strengthens elder abuse programs.
  The reauthorization bill also improves the core services of the Older 
Americans Act. Seniors have come to depend on the information and 
referral services, congregate and home-delivered meals, transportation, 
home care, and other OAA programs to meet their daily needs. Whether it 
is pension counseling or the long-term care ombudsman program--these 
are vital to helping seniors navigate the complex financial and health 
care systems. Not all seniors have family and friends that can assist 
them with complicated decisions, like choosing a long-term care 
insurance plan or a nursing home. These programs put information in 
terms seniors can understand. These programs are a safety net for many.
  I am especially pleased that this bill authorizes programs to 
encourage community innovation to support and enhance the ability of 
seniors to age in place. Seniors will be able to remain in their homes 
and communities, close to family and friends by providing them 
necessary supporting services such as transportation, social work 
services, and health programs to help seniors remain independent and in 
their communities. Grant program will encourage innovation and build on 
the success of naturally occurring retirement communities, NORC, 
programs. NORC programs have been developed at the local level and have 
a proven record of success. We heard from successful programs in 
Maryland, Ohio, and New York at the Subcommittee on Aging hearing on 
NORCs last month. I thank them again for their work and leadership. I 
always say that the best ideas come from the people, and this is one of 
the best I have seen in a long time.
  This bill also improves the National Family Caregiver Support 
Program. With the reauthorization of OAA in 2000, we worked hard to 
create the National Family Caregiver Support Program. In 2003, this 
program provided assistance to nearly 600,000 caregivers. Services 
include respite care, caregiver counseling and training, information 
about available resources, and assistance in locating services. These 
services are invaluable to seniors and their families. We have worked 
with the aging community to expand these services. Upon the advice of 
the Alzheimer's Association our bill lowers the age eligibility for the 
program for individuals with Alzheimer's from 60 to 50, allowing more 
individuals with Alzheimer's to qualify for services. Our bill also 
lowers the age of eligible grandparents to 55. This allows the program 
to target services to those who need it most.
  Our bill also seeks to improve emergency preparedness for seniors. 
During Hurricanes Katrina and Rita, who was left behind? The elderly, 
the sick, the disabled. We must plan for their needs and use the senior 
network that exists in our country to make sure that they are not 
forgotten. Our bill requires States and Area Agencies on Aging to 
coordinate to develop plans and establish guidelines for addressing the 
senior population during a disaster/emergency.
  I believe that this bipartisan reauthorization bill honors and 
maintains the commitment Congress made to our Nation's seniors through 
the Older Americans Act when it was first created in 1965. 
Reauthorization of this program for America's seniors and their 
families is one of our most important responsibilities. I look forward 
to continuing to work to get a bill passed this year. It is an 
important responsibility that we have to our Nation's seniors.
                                 ______
                                 
      By Mr. KOHL (for himself, Mr. Leahy, Mr. Grassley, and Mr. 
        Schumer):
  S. 3852. A bill to prohibit brand name drug companies from 
compensating generic drug companies to delay the entry of a generic 
drug into the market; to the Committee on Commerce, Science, and 
Transportation.
  Mr. KOHL. Mr. President, yesterday, the Supreme Court refused to 
consider an appeal by the Federal Trade Commission to reinstate 
antitrust charges against a brand-name drugmaker. This decision leaves 
the FTC powerless to stop one of the more egregious tactics used by 
brand name drug companies to keep generic competitors off the market, 
leaving consumers with unnecessary high drug prices.
  The way it is done is simple--a drug company that holds a patent on a 
blockbuster brand-name drug, pays a generic drug maker off to delay the 
sale of a competing generic product that might dip into their profits. 
The brand name company profits so much by delaying competition that it 
can easily afford to pay off the generic company, leaving consumers the 
big losers who continue to pay unnecessarily high drug prices.
  Since the appeals court decision, there has been a sharp rise in the 
number of settlements in which brand-name companies payoff generic 
competitors to keep their cheaper drugs off the market. In a report 
issued earlier this year, the FTC found that more than two-thirds of 
the 10 settlement agreements made in 2006 included a pay-off from the 
brand in exchange for a promise by the generic company to delay entry 
into the market.
  Yesterday's decision by the Supreme court is a blow to consumers who 
save billions of dollars on generics every year. Today I am joined by 
Senators Leahy, Grassley, and Schumer, to introduce the Preserve Access 
to Affordable Generics Act. This legislation will prohibit these pay-
off settlement agreements that only serve the drug companies involved 
while denying consumers access to cost-saving generic drugs.
  According to the Congressional Budget Office, generic drugs save 
consumers an estimated $8 to $10 billion every year. And, a recent 
study released earlier this year by Pharmaceutical Care Management 
Association, showed that health plans and consumers could save $26.4 
billion over the next 5 years by using the generic versions of 14 
popular drugs that are scheduled to lose their patent protections 
before 2010.
  Just last week, I was successful in including an additional $10 
million in the fiscal year 2007 Agriculture Appropriations bill for the 
Food and Drug Administration's Office of Generic Drugs, an effort to 
help reduce the growing backlog of generic drug applications. The FDA 
Office of Generic Drugs has reported a backlog of more than 800 generic 
drug applications and more applications for new generics were received 
in December 2005 than ever before and this trend continues to grow.
  But even approval by the FDA doesn't always guarantee that consumers 
will have access to these affordable drugs. Of the six approved first 
generics for popular brand-name drugs taken by seniors over the last 
year, only two have actually reached the market, while the others are 
being kept off of the shelves by patent disputes.
  Mr. President, it is time to stop these drug company payoffs that 
only serve the companies involved and deny consumers to affordable 
generic drugs. I urge my colleagues to join me in this effort. I ask 
unanimous consent that the text of the bill be printed into the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3582

       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 ``Preserve Access to 
     Affordable Generics Act''.

[[Page 12687]]



     SEC. 2. UNFAIR COMPETITION.

       Section 5 of the Federal Trade Commission Act (15 U.S.C. 
     45) is amended by adding at the end the following:
       ``(o)(1) It shall be considered an unfair method of 
     competition affecting commerce under subsection (a)(1) for a 
     person, in connection with the sale of a drug product, to 
     directly or indirectly be a party to any agreement resolving 
     or settling a patent infringement claim in which--
       ``(A) an ANDA filer receives anything of value; and
       ``(B) the ANDA filer agrees not to research, develop, 
     manufacture, market, or sell the ANDA product for any period 
     of time.
       ``(2) Construction.--Nothing in this subsection shall 
     prohibit a resolution or settlement of patent infringement 
     claim in which the value paid by the NDA holder to the ANDA 
     filer as a part of the resolution or settlement of the patent 
     infringement claim includes no more than the right to market 
     the ANDA product prior to the expiration of the patent that 
     is the basis for the patent infringement claim.
       ``(3) In this subsection:
       ``(A) The term `ANDA' means an abbreviated new drug 
     application, as defined under section 505(j) of the Federal 
     Food, Drug, and Cosmetic Act (21 U.S.C. 355(j)).
       ``(B) The term `ANDA filer' means a party who has filed an 
     ANDA with the Federal Drug Administration.
       ``(C) The term `ANDA product' means the product to be 
     manufactured under the ANDA that is the subject of the patent 
     infringement claim.
       ``(D) The term `drug product' means a finished dosage form 
     (e.g., tablet, capsule, or solution) that contains a drug 
     substance, generally, but not necessarily, in association 
     with 1 or more other ingredients, as defined in section 
     314.3(b) of title 21, Code of Federal Regulations.
       ``(E) The term `NDA' means a new drug application, as 
     defined under section 505(b) of the Federal Food, Drug, and 
     Cosmetic Act (21 U.S.C. 355(b)).
       ``(F) The term `NDA holder' means--
       ``(i) the party that received FDA approval to market a drug 
     product pursuant to an NDA;
       ``(ii) a party owning or controlling enforcement of the 
     patent listed in the Approved Drug Products With Therapeutic 
     Equivalence Evaluations (commonly known as the `FDA Orange 
     Book') in connection with the NDA; or
       ``(iii) the predecessors, subsidiaries, divisions, groups, 
     and affiliates controlled by, controlling, or under common 
     control with any of the entities described in subclauses (i) 
     and (ii) (such control to be presumed by direct or indirect 
     share ownership of 50 percent or greater), as well as the 
     licensees, licensors, successors, and assigns of each of the 
     entities.
       ``(G) The term `patent infringement' means infringement of 
     any patent or of any filed patent application, extension, 
     reissue, renewal, division, continuation, continuation in 
     part, reexamination, patent term restoration, patents of 
     addition and extensions thereof.
       ``(H) The term `patent infringement claim' means any 
     allegation made to an ANDA filer, whether or not included in 
     a complaint filed with a court of law, that its ANDA or ANDA 
     product may infringe any patent held by, or exclusively 
     licensed to, the NDA holder of the drug product.''.

  Mr. LEAHY. Mr. President. I am pleased to introduce, with Senators 
Kohl, Grassley, and Schumer, the Preserve Access to Affordable Generics 
Act of 2006, S. 3582. It is no secret that prescription drug prices are 
rapidly increasing and are a source of considerable concern to many 
Americans, especially senior citizens and families. In a marketplace 
free of manipulation, generic drug prices can be as much as 80 percent 
lower than the comparable brand-name version. Unfortunately, there are 
still some companies that may be keeping low-cost, life-saving generic 
drugs off the marketplace, off pharmacy shelves, and out of the hands 
of consumers by carefully crafted anticompetitive agreements between 
drug manufacturers. This bipartisan bill will improve the timely and 
effective introduction of generic pharmaceuticals into the marketplace.
  In 2001, and last Congress, I introduced a related bill, the Drug 
Competition Act. That bill, which is now law, is small in terms of 
length but large in terms of impact. It ensured that law enforcement 
agencies could take quick and decisive action against companies seeking 
to cheat consumers by delaying availability of generic medicines. It 
gave the Federal Trade Commission and the Justice Department access to 
information about secret deals between drug companies that keep generic 
drugs out of the market--a practice that not only hurts American 
families, particularly senior citizens, by denying them access to low-
cost generic drugs but also contributes to rising medical costs.
  The Drug Competition Act, which was incorporated in the Medicare 
Modernization Act, was a bipartisan effort to protect consumers in need 
of patented medicines who were being forced to pay considerably higher 
costs because of collusive secret deals. It is regrettable that we must 
come to the floor again today and take additional action to prevent 
drug companies from continuing to find and exploit loopholes.
  I had faith that we were on the right track. However, two appellate 
court decisions from 2005 overturned the FTC's longstanding role of 
``policing'' these activities and making case-by-case determinations on 
the appropriateness of proposed settlements, especially those that 
involved ``reverse'' payments. That refers to payments from a brand-
name company to a generic company as opposed to payments from a generic 
company to the brand-name company for a license to make a particular 
patented drug.
  The FTC rightfully sought U.S. Supreme Court review of the Schering-
Plough v. FTC Eleventh Circuit decision. Unfortunately, the Supreme 
Court refused to hear that case, leaving in doubt the continuing role 
of the FTC in policing settlements between brand-name drug companies 
and potential generic competitors. Moreover, in an unprecedented move, 
the U.S. Solicitor General opposed the request by the FTC for the 
Supreme Court to hear this case. The inaction of the courts and the 
choice of the administration to side with large drug companies over 
seniors and families has provoked us to take action and introduce this 
important bill.
  This matter arises at the intersection of patent law and antitrust 
law. The drug companies naturally deny that their agreements violate 
the antitrust laws, presenting them as private preliminary settlements 
between companies engaged in patent disputes. The problem is that the 
whole point of the Drug Competition Act is to have an independent body, 
the FTC, review these deals and to advise the companies if terms or 
conditions in the deal need to be changed to comply with existing 
antitrust laws.
  Agreements to delay the production and sale of generic medicines in 
exchange for cash from the brand-name companies need to be carefully 
reviewed by the FTC under standards that give the FTC authority to act 
where necessary to enforce antitrust laws. Companies holding patents on 
medicines should not be permitted to pay millions of dollars to 
potential generic competitors for the purpose of delaying the research, 
development, and sale of competing generic versions of medications when 
those generic companies believe they have the legal right to sell such 
products.
  I remain hopeful that during the process of working on this bill, a 
way can be found to give the FTC some discretion, on a case-by case 
basis, to continue to evaluate these deals. Under this approach, only 
the deals that are consistent with the intent of that law will be 
allowed to stand. There will be some deals that involve the payment of 
money which, on balance, could be good for the companies involved and 
for consumers. The original intent of the Drug Competition Act was to 
provide the FTC and DOJ with an opportunity to provide the companies 
with useful and timely information so the drug companies could conform 
their deals to the law through confidential advice from the law 
enforcement agencies. I want that process to be continued.
  Senators Grassley, Kohl, Schumer, and I are not the only ones who 
share the goal of ensuring effective and timely access to generic 
pharmaceuticals that can lower the cost of prescription drugs for 
seniors, for families, and for all Americans. I sincerely thank my 
colleagues on both sides of the aisle who are working together on that 
goal. We have devoted considerable attention to this matter in recent 
years, and I look forward to passing this important bill.
  In closing, I praise the FTC for spending so much time and energy on

[[Page 12688]]

protecting competition in the pharmaceutical sector. This represents a 
massive workload for the FTC on top of all its other important 
responsibilities to protect consumers and the American enterprise 
system.
  Years ago, the FTC dealt with latter-day robber barons destroying 
smaller companies; now the FTC has to try to restrain corporate drug 
giants from robbing the elderly when these seniors buy prescription 
medicines. I also appreciate the work of the FTC on the authorized 
generics issue and look forward to the report they are preparing for 
the Congress on that matter.
                                 ______
                                 
      By Mr. AKAKA:
  S. 3584. A bill to amend chapter 41 of title 5, United States Code, 
to provide for the establishment and authorization of funding for 
certain training programs for supervisors of Federal employees; to the 
Committee on Homeland Security and Governmental Affairs.
  Mr. AKAKA. Mr. Mr. President, I rise today to introduce the Federal 
Supervisor Training Act, FSTA, which addresses the inconsistencies and 
lack of adequate training for Federal managers and supervisors, 
especially for new supervisors. The effectiveness and efficiency of 
government programs and services depend on well-trained managers. It is 
critical that federal managers receive the support and resources needed 
to do their jobs.
  As new personnel reforms are sought by the administration for Federal 
workers, which in my view are similar to those I opposed for the 
Departments of Defense and Homeland Security, I see a general erosion 
of employee morale. Low employee morale impacts agency performance and 
undermines the public's trust in government. Therefore, we must 
consider the needs of supervisors and employees alike. Enhancing 
supervisory training improves communication, which leads to greater 
understanding of performance expectations and fewer performance 
problems. A trained supervisor is the foundation for the success of any 
personnel system.
  The bill I offer today follows recommendations made by the 
Partnership for Public Service and the newly formed Government Managers 
Coalition, GMC, which represents over 200,000 Federal managers and 
executives who are members of the Senior Executives Association, the 
Federal Managers Association, the Professional Managers Association, 
the Federal Aviation Administration Managers Association, and the 
National Council of Social Security Management Associations.
  FSTA will require new supervisory training for all new supervisors 
within a year of being appointed and mandatory retraining every 3 
years. Current managers would have 3 years in which to receive initial 
training. The legislation also requires training on how to mentor 
employees, a key focus of S. 3476, the Homeland Security Professional 
Development Act, which I introduced earlier this month. A third 
provision requires training every three years on the laws governing and 
the procedures for enforcing whistleblower rights and protections 
against race, gender, age, and disability discrimination.
  Under FSTA, agencies would be required to set standards--based in 
part on guidelines developed by the Office of Personnel Management, 
OPM--that supervisors should meet in order to manage employees 
effectively, assess a manager's ability to meet these standards, and 
provide training to improve areas identified in personnel assessments.
  Supervisors want meaningful training. In my view, such training 
should not be a discretionary option for agencies. Government managers 
and employees work on a broad and complex range of issues that are both 
national and global in scope. From the skilled workers at the Pearl 
Harbor Naval Shipyard performing nuclear submarine battery change outs 
to Internal Revenue Service employees collecting back taxes, these 
Federal workers demonstrate commitment and dedication daily. They 
understand that trained managers empower them, which in turn improves 
programs and saves taxpayers money.
  Mandatory supervisory training is needed to ensure that agencies 
provide this support to their managers. OPM once proposed 40 to 80 
hours of training for new supervisors, but, over the years, this 
function has migrated to agencies, which, as the GMC notes, has 
resulted in inconsistencies in training among Federal agencies, leaving 
a problem in search of a solution.
  As the ranking member of the Senate Federal Workforce Subcommittee, a 
primary goal of mine is to make the Federal Government an employer of 
choice and to ensure the American people are served by a skilled 
workforce. I see FSTA as a means to reach that goal because mandatory 
supervisory training develops good managers who foster positive work 
environments that produce an efficient, effective, and responsive 
government. The Nation's Federal workforce and the American taxpayer 
deserve no less.
  Mr. President, as I stated earlier, supervisors and employees alike 
benefit from well-trained managers. I want to thank the Government 
Managers Coalition; the American Federation of Government Employees; 
the National Treasury Employees Union; the International Federation of 
Professional and Technical Engineers; the AFL-CIO, Metal Trades 
Department; as well as the Partnership for Public Service for their 
support of FSTA and I urge my colleagues to support the federal 
workforce by cosponsoring my bill. I ask unanimous consent that the 
text of the bill be printed in the Record
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows.

                                S. 3584

       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 ``Federal Supervisor Training 
     Act of 2006''.

     SEC. 2. MANDATORY TRAINING PROGRAMS FOR SUPERVISORS.

       (a) In General.--Section 4121 of title 5, United States 
     Code, is amended--
       (1) by inserting before ``In consultation with'' the 
     following:
       ``(a) In this section, the term `supervisor' means--
       ``(1) a supervisor as defined under section 7103(a)(10);
       ``(2) a management official as defined under section 
     7103(a)(11); and
       ``(3) any other employee as the Office of Personnel 
     Management may by regulation prescribe.'';
       (2) by striking ``In consultation with'' and inserting 
     ``(b) Under operating standards promulgated by, and in 
     consultation with,''; and
       (3) by striking paragraph (2) (of the matter redesignated 
     as subsection (b) as a result of the amendment under 
     paragraph (2) of this subsection) and inserting the 
     following:
       ``(2)(A) a program to provide interactive instructor-based 
     training to supervisors on actions, options, and strategies a 
     supervisor may use in--
       ``(i) developing and discussing relevant goals and 
     objectives together with the employee, communicating and 
     discussing progress relative to performance goals and 
     objectives and conducting performance appraisals;
       ``(ii) mentoring and motivating employees and improving 
     employee performance and productivity;
       ``(iii) effectively managing employees with unacceptable 
     performance; and
       ``(iv) otherwise carrying out the duties or 
     responsibilities of a supervisor;
       ``(B) a program to provide interactive instructor-based 
     training to supervisors on the prohibited personnel practices 
     under section 2302 (particularly with respect to such 
     practices described under subsection (b) (1) and (8) of that 
     section) and the procedures and processes used to enforce 
     employee rights; and
       ``(C) a program under which experienced supervisors mentor 
     new supervisors by--
       ``(i) transferring knowledge in areas such as 
     communication, critical thinking, responsibility, 
     flexibility, motivating employees, and teamwork; and
       ``(ii) pointing out strengths and areas for development.
       ``(c)(1) Not later than 1 year after the date on which an 
     individual is appointed to the position of supervisor, that 
     individual shall be required to have completed each program 
     established under subsection (b)(2).
       ``(2) After completion of a program under subsection (b)(2) 
     (A) and (B), each supervisor shall be required to complete a 
     program under subsection (b)(2) (A) and (B) at least once 
     during each 3-year period.
       ``(3) Each program established under subsection (b)(2) 
     shall include provisions under which credit shall be given 
     for periods of similar training previously completed.

[[Page 12689]]

       ``(d) Notwithstanding section 4118(c), the Office of 
     Personnel Management shall prescribe regulations to carry out 
     this section, including the monitoring of agency compliance 
     with this section.''.
       (b) Regulations.--Not later than 180 days after the date of 
     enactment of this Act, the Office of Personnel Management 
     shall prescribe regulations in accordance with subsection (d) 
     of section 4121 of title 5, United States Code, as added by 
     subsection (a) of this section.
       (c) Effective Date and Application.--
       (1) In general.--The amendments made by this section shall 
     take effect 180 days after the date of enactment of this Act 
     and apply to--
       (A) each individual appointed to the position of a 
     supervisor, as defined under section 4121(a) of title 5, 
     United States Code, (as added by subsection (a) of this 
     section) on or after that effective date; and
       (B) each individual who is employed in the position of a 
     supervisor on that effective date as provided under paragraph 
     (2).
       (2) Supervisors on effective date.--Each individual who is 
     employed in the position of a supervisor on the effective 
     date of this section shall be required to--
       (A) complete each program established under section 
     4121(b)(2) of title 5, United States Code (as added by 
     subsection (a) of this section), not later than 3 years after 
     the effective date of this section; and
       (B) complete programs every 3 years thereafter in 
     accordance with section 4121(c) (2) and (3) of such title.

     SEC. 3. MANAGEMENT COMPETENCY STANDARDS.

       (a) In General.--Chapter 43 of title 5, United States Code, 
     is amended--
       (1) by redesignating section 4305 as section 4306; and
       (2) inserting after section 4304 the following:

     ``Sec. 4305. Management competency standards

       ``(a) In this section, the term `supervisor' means--
       ``(1) a supervisor as defined under section 7103(a)(10);
       ``(2) a management official as defined under section 
     7103(a)(11); and
       ``(3) any other employee as the Office of Personnel 
     Management may by regulation prescribe.
       ``(b) The Office of Personnel Management shall issue 
     guidance to agencies on standards supervisors are expected to 
     meet in order to effectively manage, and be accountable for 
     managing, the performance of employees.
       ``(c) Each agency shall--
       ``(1) develop standards to assess the performance of each 
     supervisor and in developing such standards shall consider 
     the guidance developed by the Office of Personnel Management 
     under subsection (b) and any other qualifications or factors 
     determined by the agency;
       ``(2) assess the overall capacity of the supervisors in the 
     agency to meet the guidance developed by the Office of 
     Personnel Management issued under subsection (b); and
       ``(3) develop and implement a supervisor training program 
     to strengthen issues identified during such assessment.
       ``(d) Every year, or on any basis requested by the Director 
     of the Office of Personnel Management, each agency shall 
     submit a report to the Office on the progress of the agency 
     in implementing this section.''.
       (b) Technical and Conforming Amendments.--
       (1) Table of sections.--The table of sections for chapter 
     43 of title 5, United States Code, is amended by striking the 
     item relating to section 4305 and inserting the following:

``4305. Management competency standards.
``4306. Regulations.''.

       (2) Reference.--Section 4304(b)(3) of title 5, United 
     States Code, is amended by striking ``section 4305'' and 
     inserting ``section 4306''.
                                 ______
                                 
      By Mr. HATCH:
  S. 3585. A bill to amend the Internal Revenue Code of 1986 to improve 
and expand the availability of health savings accounts, and for other 
purposes; to the Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce the Health 
Savings Accounts Improvement and Expansion Act of 2006. This bill will 
make it easier for businesses to provide the option of an HSA to their 
employees and for Americans to elect these plans.
  In short, this bill will make it more likely that Americans will have 
an HSA plan available when they are making their health care choices. 
This would be a good development for the individual consumer and the 
for nation's health care system as a whole.
  There is one thing on which we can all agree: our current health care 
system is broken. Health care expenses are far outpacing inflation. 
These escalating costs are pricing more and more Americans and small 
businesses out of the health insurance market. Unless we act, our 
health care costs are on pace to bankrupt the Federal Treasury.
  We need to do something.
  The American people want us to do something.
  Some favor an option that would give the Federal Government more 
control of the health care system. In my opinion, that doesn't really 
fix the problem, it only makes the problem worse--leading to higher 
costs, higher taxes, and decreased quality and availability.
  I believe the answer lies in bringing down costs by helping Americans 
to take control of their health care.
  Recognizing that a federally controlled universal system is a 
nonstarter, the House of Representatives has aggressively pursued the 
expansion and development of Health Savings Accounts. In particular, 
Congressmen Eric Cantor and Bill Shuster have taken laudable steps 
toward making these plans more readily available for American workers.
  Congressman Bill Thomas, chairman of the Ways and Means Committee, is 
demonstrating his and the House's commitment to these plans by holding 
a hearing tomorrow to discuss the development of health savings 
accounts.
  I am also proud to see that several of our Senate colleagues have 
introduced legislation that would expand consumer driven health care. 
Senators Santorum, Allen, DeMint, Ensign, and Coburn have introduced 
legislation to fuel the growth of health savings accounts.
  My bill complements these plans by encouraging employers to offer HSA 
accounts and by making it easier for workers to use them.
  Since Congress established HSAs in 2004, American workers have turned 
to them as an affordable health care alternative. Already, more than 
three million people have enrolled in HSAs. Without any changes to the 
law, it is estimated that by 2008 there will be six million HSA owners 
with almost $5 billion in assets.
  HSAs are popular. And they are popular because they work.
  HSAs are a different type of health insurance. They are more like car 
insurance than traditional health insurance: You pay for the dents and 
dings yourself, and your insurance only kicks in for major events. This 
makes sense. Think of how expensive your car insurance would be if 
every scratch on every bumper had to be paid for by insurance companies 
with no owner contribution.
  Yet critics allege that promoting this type of insurance unfairly 
burdens older Americans and the chronically ill--those with the most 
health care needs. I would note that the premise of this argument is 
off the mark. For many Americans and businesses, the cost of health 
insurance premiums are rising so astronomically that the choice is not 
between traditional first-dollar coverage or an HSA plan, but between 
an HSA plan and no insurance at all.
  As the Galen Institute--a research institute that has done excellent 
work reviewing the development of consumer-driven health care--has 
shown, HSAs are not only for the young and the healthy, but also for 
all health consumers along the age and income spectrum. In a survey by 
eHealthInsurance--an on-line health insurance broker representing more 
than 140 major health insurance companies--40 percent of HSA-eligible 
plan purchasers made less than $50,000. Forty-five percent of 
purchasers are over age 40 and 19 percent are 50 or older.
  Some argue that the healthy will migrate from traditional plans, 
leaving only the chronically ill in full coverage plans and driving up 
costs by shrinking the insurance pool. This argument ignores a critical 
fact. Younger workers aged 25-34 are currently the largest segment of 
the uninsured, in large part because insurance coverage is so 
expensive. They represent 23 percent of the total uninsured population. 
By bringing them into HSA plans, they will only bring premium costs 
down further for the chronically ill who establish an HSA.
  According to America's health insurance plans, AHIP, 37 percent of 
those purchasing plans were previously uninsured. Twenty-seven percent 
of policies sold in the small group market were sold to employers who 
did not previously offer coverage. According to Assurant Health, the 
leading health insurer for individuals and small groups,

[[Page 12690]]

40 percent of those purchasing HSAs were previously uninsured.
  Finally, it seems that American workers, and the chronically ill, are 
responding to the incentives provided by these consumer-driven plans. 
McKinsey & Company conducted an extensive survey of these plans. They 
held focus groups, performed one-on-one interviews, and produced an in-
depth study of more than 2,500 Americans regarding their health 
insurance arrangements. They concluded that these plans have a lot of 
potential. In fact, some of their conclusions were remarkable. Fifty 
percent were more likely to ask about costs and three times more likely 
to choose a less extensive and expensive treatment option. HSA owners 
are also more likely to visit an urgent care center for treatment 
rather than a hospital emergency room.
  In addition, HSA consumers were more likely to be attentive to their 
health. Twenty-five percent were more likely to engage in healthy 
behavior and 30 percent were more likely to get an annual physical. 
These educated consumers understand that prevention will save them 
money in the long run. They were more likely to identify treatment 
options and they were 20 percent more likely to comply with treatment 
for chronic conditions.
  It is no surprise that people are enjoying their HSA plans. According 
to a survey by eHealthInsurance, premiums for HSA-eligible insurance 
actually dropped between the introduction of these plans in 2004 and 
the first half of 2005. Nearly two-thirds of HSA purchasers paid $100 a 
month or less for their plans. And these plans are comprehensive. Most 
cover 100 percent of the costs of hospitalization, lab tests, emergency 
room visits, prescription drugs and doctors' visits after the 
deductible is met.
  The continued expansion of HSAs will have a twofold effect. For those 
with insurance, the high deductible encourages more responsible, and 
less wasteful, health care decisions. For those without insurance, the 
wider availability and lower premiums makes it more affordable for 
individuals to purchase these plans in the nongroup market and for 
companies to provide insurance for their employees. The bottom line is 
that the expansion of these plans will create downward pressure on 
escalating health care costs.
  My proposal aims to make HSAs more attractive to employees, more 
attractive to employers, and more attractive to older workers. And the 
bill provides innovative ways for younger workers to contribute seed 
money to fund an account for their family.
  For employees, the primary benefits are increased contribution 
limits, and the ability to pay their health insurance premiums from the 
HSA--with pre-tax dollars. Presently, the portion of premiums paid out-
of-pocket is paid with after-tax dollars. This feature will make HSAs 
affordable for more low and moderate income individuals.
  For employers, the bill provides incentives to move into low-cost 
premium arrangements. The health care costs of self-employed 
individuals and small employers who purchase plans in the non-group 
market should go down for those who avail themselves of these improved 
HSAs.
  For older Americans, this bill will permit contributions to an HSA as 
long as they continue to work. Today, more and more Americans are 
working past the age of 65. This is a trend we should encourage, 
because the labor force of the future will need more of these 
experienced workers. Senior citizens contribute a great deal to the 
workplace and our economy. I know that they are in Utah. Yet I hear 
from many of our older workers that because they are eligible for 
Medicare, they are ineligible for HSAs. Expanding contributions to a 
population that generally has more medical expenses makes sense.
  The cornerstone of my bill is a provision that allows HSAs to be 
funded with tax-free transfers of balances from other health or 
retirement plans. Participation in certain employer-sponsored health 
plans makes it impossible for employees to contribute to an HSA. For 
example, health reimbursement arrangements--HRAs--are plans that allow 
employers to reimburse substantiated employee medical expenses up to a 
maximum amount. Under current law, participation in an HRA disqualifies 
an individual from contributing to an HSA and remaining balances are 
subject to forfeiture.
  I believe that employers that have adopted HRAs would be more likely 
to offer HSAs if they are allowed a one-time opportunity to transfer 
individual HRA balances into HSAs. Allowing a one-time conversion 
opportunity would be very valuable for employees because the balances 
currently in HRAs would become employee-owned. Not only will this 
encourage responsible spending on health care, but it will also help to 
make health insurance more portable, a goal that discourages job lock 
and creates more freedom and opportunity for American workers.
  The bill provides for a tax-free transfer of IRA funds, originally 
allocated for retirement, to an HSA, with the money reallocated for 
health care expenses. This will be particularly helpful for those in 
need of initial seed money to open an HSA and for those who anticipate 
high medical expenses for which they are currently unable to tap IRA 
funds without penalty.
  My proposal will make it easier for veterans to participate in an 
HSA. According to Treasury Department guidance, a veteran may not 
contribute to an HSA if he or she has actually received medical 
benefits from the VA at any time during the previous 3 months. This 
bill would allow a veteran who receives VA medical benefits for a 
service-connected disability to be eligible for an HSA.
  I am pleased to tell my colleagues that the changes proposed by the 
Health Savings Accounts Improvement and Expansion Act of 2006 have been 
endorsed by a broad cross-section of major health care organizations. I 
am proud that the National Association of Health Underwriters, the 
American Benefits Council, the Council of Insurance Agents and Brokers, 
Assurant Health, the Chamber of Commerce, the National Business Group 
on Health, the Business Roundtable, and the Financial Services 
Roundtable have all endorsed my attempt to expand the availability of 
Health Savings Accounts. These groups know how important HSAs are in 
giving employees and employers the flexibility to meet their health 
care needs.
  Mr. President, I expect the popularity of HSAs will one day elevate 
the acronym to the level of IRAs, where no further clarification is 
required. Today, I ask my colleagues to join me in a bipartisan effort 
to accelerate that process by enacting this important legislation.
  I ask unanimous consent that a section-by-section description of the 
bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows.

                                S. 3585

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

     SECTION 1. SHORT TITLE; AMENDMENT OF 1986 CODE.

       (a) Short Title.--This Act may be cited as the ``HSA 
     Improvement and Expansion Act of 2006''.
       (b) Amendment of 1986 Code.--Except as otherwise expressly 
     provided, whenever in this Act an amendment or repeal is 
     expressed in terms of an amendment to, or repeal of, a 
     section or other provision, the reference shall be considered 
     to be made to a section or other provision of the Internal 
     Revenue Code of 1986.

     SEC. 2. FINDINGS.

       The Congress finds the following:
       (1) The Medicare Prescription Drug, Improvement, and 
     Modernization Act of 2003 (Public Law 108-173) authorizes 
     health savings accounts (referred to in this section as 
     ``HSAs'') into which individuals may make annual 
     contributions of not more than $2,700, and families may make 
     annual contributions of not more than $5,450, to permit 
     spending by individuals for their health care needs.
       (2) Federal law provides for obtaining health insurance 
     coverage through a low premium health plan offered with a 
     tax-favored HSA that typically costs substantially less than 
     traditional health insurance.
       (3) Giving individuals more direct control over their 
     health care spending will encourage more prudent use of 
     health care services, help make the health care system more 
     responsive to the needs of consumers, and improve access to 
     health coverage for the uninsured.

[[Page 12691]]

       (4) A broad range of improvements to the Federal laws 
     governing HSAs are necessary to make them more attractive to 
     consumers and employers.
       (5) The number of people covered in January 2006 by 
     products combining an HSA with a low premium health plan was 
     3,168,000, more than triple the 1,031,000 reported in March 
     2005.
       (6) HSAs have become an important option for consumers and 
     employers who have struggled to afford health insurance 
     coverage.
       (7) According to a January 2006 census, 31 percent of new 
     enrollees in HSAs and low premium health plans in the 
     individual market were previously uninsured.
       (8) HSAs combined with low premium health plans can provide 
     an affordable and accessible health insurance option for 
     individuals of all ages.
       (9) 50 percent of all people covered by HSAs and low 
     premium health plans in the individual market, including 
     dependents covered under family plans, are 40 years of age or 
     older.
       (10) Many States currently have in effect laws and 
     regulations that require insurers to provide specific benefit 
     coverage in the health insurance plans they offer, preventing 
     individuals and small business from enrolling in low premium 
     health plans and making them ineligible for HSAs.

     SEC. 3. ACCELERATED FUNDING FOR HSAS THROUGH DISTRIBUTIONS 
                   FROM BALANCES IN HEALTH REIMBURSEMENT AND 
                   FLEXIBLE SPENDING ARRANGEMENTS AND FROM 
                   INDIVIDUAL RETIREMENT PLANS.

       (a) One-Time FSA and HRA Rollovers to HSAs.--
       (1) In general.--A plan shall not fail to be treated as a 
     flexible spending arrangement or health reimbursement 
     arrangement under section 105 or 106 of the Internal Revenue 
     Code of 1986 merely because--
       (A) such plan provides for a contribution to the health 
     savings account (as defined in section 223 of such Code) of 
     the employee which meets the requirements of paragraph (2), 
     and
       (B) such plan thereafter terminates with respect to such 
     employee.
       (2) Requirements.--A contribution meets the requirements of 
     this paragraph if--
       (A) in the case of a flexible spending arrangement (as 
     defined in section 106(c)(2) of such Code) in existence on 
     June 1, 2006, such contribution is the remaining balance in 
     such arrangement as of the last day of the plan year ending 
     in or before the taxable year in which such contribution is 
     made,
       (B) in the case of a health reimbursement arrangement in 
     existence on June 1, 2006, such contribution is the remaining 
     balance of the amount to be received in reimbursements under 
     such arrangement as of the last day of the plan year ending 
     in or before the taxable year in which such contribution is 
     made, and
       (C) such contribution is made by the employer directly to 
     the health savings account of the employee not later than 60 
     days after the end of the plan year of such flexible spending 
     arrangement or health reimbursement arrangement.
       (3) Treatment as rollover contribution.--For purposes of 
     sections 223 and 4973 of such Code, a contribution which 
     meets the requirements of paragraph (2) shall be treated as a 
     rollover contribution described in section 223(f)(5) of such 
     Code.
       (4) Tax treatment relating to contributions.--For purposes 
     of this title--
       (A) Income tax.--Gross income shall not include the amount 
     of any contribution under this subsection.
       (B) Employment taxes.--Amounts contributed to a health 
     savings account under this subsection shall be treated as a 
     payment described in section 106(d) of such Code.
       (C) Comparability excise tax.--Section 4980G of such Code 
     shall not apply to contributions made under this subsection.
       (5) Termination.--This paragraph shall not apply to any 
     taxable year beginning after December 31, 2011.
       (b) One-Time Distribution From Individual Retirement Plans 
     to Fund HSAs.--
       (1) In general.--Section 402 (relating to taxability of 
     beneficiary of employees' trust) is amended by adding at the 
     end the following new subsection:
       ``(l) Health Savings Account Funding Distribution From 
     Individual Retirement Plans.--
       ``(1) In general.--In the case of an employee who is an 
     eligible individual and who elects the application of this 
     subsection for a taxable year, gross income of the employee 
     for the taxable year does not include a qualified HSA funding 
     distribution to the extent such distribution is otherwise 
     includible in gross income (determined after the application 
     of paragraph (4)).
       ``(2) Qualified hsa funding distribution.--For purposes of 
     this subsection, the term `qualified HSA funding 
     distribution' means a distribution from an individual 
     retirement plan of the employee to the extent that such 
     distribution is contributed to the health savings account of 
     the employee not later than the 60th day after the day on 
     which the employee receives such distribution or in a direct 
     trustee-to-trustee transfer.
       ``(3) Limitations.--
       ``(A) Maximum dollar limitations based on out-of pocket 
     limits in effect at time of contribution.--The amount 
     excluded from gross income by paragraph (1) shall not 
     exceed--
       ``(i) in the case of an individual who has self-only 
     coverage under a high deductible health plan as of the first 
     day of the month in which the qualified HSA funding 
     distribution is contributed to the health savings account of 
     the employee, the amount in effect for the taxable year under 
     subclause (I) of section 223(c)(2)(A)(ii), and
       ``(ii) in the case of an individual who has family coverage 
     under a high deductible health plan as of the first day of 
     the month in which the qualified HSA funding distribution is 
     contributed to the health savings account of the employee, 
     the amount in effect for the taxable year under subclause 
     (II) of section 223(c)(2)(A)(ii).
       ``(B) One-time transfer.--
       ``(i) In general.--Except as provided in clause (ii), an 
     individual may make an election under paragraph (1) only for 
     one qualified HSA funding distribution during the lifetime of 
     the individual. Such an election, once made, shall be 
     irrevocable.
       ``(ii) Conversion from self-only to family coverage.--If a 
     qualified HSA funding distribution is made during a month 
     during which an individual has self-only coverage under a 
     high deductible health plan as of the first day of the month, 
     the individual may elect to make an additional qualified HSA 
     funding distribution during a subsequent month during which 
     the individual has family coverage under a high deductible 
     health plan as of the first day of the subsequent month, 
     except that the limitation otherwise applicable under 
     subparagraph (A)(ii) to the distribution during such 
     subsequent month shall be reduced by the amount of the 
     earlier qualified HSA funding distribution.
       ``(4) Application of section 72.--Notwithstanding section 
     72, in determining the extent to which an amount is treated 
     as includible in gross income for purposes of paragraph (1), 
     the aggregate amount distributed from an eligible retirement 
     plan in a taxable year shall be treated as includible in 
     gross income to the extent that such amount does not exceed 
     the aggregate amount which would have been so includible if 
     all amounts distributed from all eligible retirement plans 
     were treated as 1 contract for purposes of determining the 
     inclusion of such distribution under section 72. Proper 
     adjustments shall be made in applying section 72 to other 
     distributions in such taxable year and subsequent taxable 
     years.
       ``(5) Definitions.--For purposes of this subsection--
       ``(A) Eligible retirement plan.--The term `eligible 
     retirement plan' means an individual retirement plan (as 
     defined in section 7701(a)(37)), including an individual 
     retirement plan which is designated as a Roth IRA.
       ``(B) Eligible individual.--The term `eligible individual' 
     has the meaning given such term by section 223(c)(1).
       ``(6) Related plans treated as 1.--For purposes of this 
     subsection, all eligible retirement plans of an employer 
     shall be treated as a single plan.''.
       (2) Coordination with limitation on contributions to 
     hsas.--Section 223(b)(4) (relating to coordination with other 
     contributions) is amended by striking ``and'' at the end of 
     subparagraph (A), by striking the period at the end of 
     subparagraph (B) and inserting ``, and'', and by inserting 
     after subparagraph (B) the following new subparagraph:
       ``(C) the aggregate amount contributed to health savings 
     accounts of such individual for such taxable year under 
     section 402(l) (and such amount shall not be allowed as a 
     deduction under subsection (a)).''.
       (3) 10-percent penalty on early distributions not to 
     apply.--Section 72(t)(2)(A) of such Code (relating to 
     subsection not to apply to certain distributions) is amended 
     by striking ``or'' at the end of clause (vi), by striking the 
     period at the end of clause (vii) and inserting ``, or'', and 
     by inserting after clause (vii) the following new clause:
       ``(viii) a qualified HSA funding distribution (as defined 
     by section 402(l)).''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 4. PROVISIONS RELATING TO ELIGIBILITY TO CONTRIBUTE TO 
                   HSAS.

       (a) Individuals Eligible for Reimbursement Under Spouse's 
     Flexible Spending Arrangement.--Section 223(c)(1) (defining 
     eligible individual) is amended by adding at the end the 
     following new subparagraph:
       ``(C) Special rule for certain flexible spending 
     arrangements.--For purposes of subparagraph (A)(ii), an 
     individual shall not be treated as covered under a health 
     plan described in such subparagraph merely because the 
     individual is covered under a flexible spending arrangement 
     (within the meaning of section 106(c)(2)) which is maintained 
     by an employer of the spouse of the individual, but only if--
       ``(i) the employer is not also the employer of the 
     individual, and
       ``(ii) the individual certifies to the employer and to the 
     Secretary (in such form and manner as the Secretary may 
     prescribe)

[[Page 12692]]

     that the individual and the individual's spouse will not 
     accept reimbursement under the arrangement for any expenses 
     for medical care provided to the individual.''.
       (b) Individuals Over Age 65 Automatically Enrolled in 
     Medicare Part A.--Section 223(b)(7) (relating to contribution 
     limitation on medicare eligible individuals) is amended by 
     adding at the end the following new sentence: ``This 
     paragraph shall not apply to any individual during any period 
     the individual's only entitlement to such benefits is an 
     entitlement to hospital insurance benefits under part A of 
     title XVIII of such Act pursuant to an automatic enrollment 
     for such hospital insurance benefits under the regulations 
     under section 226(a)(1) of such Act.''
       (c) Individuals Eligible for Certain Veterans Benefits.--
     Section 223(c)(1) (defining eligible individual), as amended 
     by subsection (a), is amended by adding at the end the 
     following new subparagraph:
       ``(D) Special rule for individuals eligible for certain 
     veterans benefits.--For purposes of subparagraph (A)(ii), an 
     individual shall not be treated as covered under a health 
     plan described in such subparagraph merely because the 
     individual receives periodic hospital care or medical 
     services for a service-connected disability under any law 
     administered by the Secretary of Veterans Affairs but only if 
     the individual is not eligible to receive such care or 
     services for any condition other than a service-connected 
     disability.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 5. PROVISIONS RELATING TO CONTRIBUTION AND LOW PREMIUM 
                   HEALTH PLAN LIMITS.

       (a) Increase in Contribution Limits for HSAs.--
       (1) Increase in monthly limit.--
       (A) In general.--Paragraph (2) of section 223(b) (relating 
     to monthly limitation) is amended to read as follows:
       ``(2) Monthly limitation.--In the case of an eligible 
     individual who has coverage under a high deductible health 
     plan, the monthly limitation for any month of such coverage 
     is \1/12\ of--
       ``(A) in the case of an eligible individual who has self-
     only coverage under a high deductible health plan as of the 
     first day of such month, $2,700, and
       ``(B) in the case of an eligible individual who has family 
     coverage under a high deductible health plan as of the first 
     day of such month, $5,450.''.
       (B) Conforming amendments.--
       (i) Section 223(d)(1)(A)(ii)(I) is amended by striking 
     ``subsection (b)(2)(B)(ii)'' and inserting ``subsection 
     (b)(2)(B)''.
       (ii) Section 223(c)(2)(D) is amended to read as follows:
       ``(D) Special rule for network plans.--In the case of a 
     plan using a network of providers, such plan shall not fail 
     to be treated as a high deductible health plan by reason of 
     having an out-of-pocket limitation for services provided 
     outside of such network which exceeds the applicable 
     limitation under subparagraph (A)(ii).''.
       (2) Increase in limit for individuals becoming eligible 
     individuals after the beginning of the year.--Section 223(b) 
     (relating to limitations) is amended by adding at the end the 
     following new paragraph:
       ``(8) Increase in limit for individuals becoming eligible 
     individuals after the beginning of the year.--An individual 
     who first becomes an eligible individual during a calendar 
     year in a month after January of the calendar year shall, for 
     purposes of computing the limitation under paragraph (1) for 
     any taxable year, be treated as having been an eligible 
     individual during each of the months in such calendar year 
     preceding such first month (and as having been enrolled in 
     each of those months in the same high deductible health plan 
     the individual was enrolled in for such first month).''.
       (3) Application of special rules for married individuals.--
     Paragraph (5) of section 223(b) (relating to special rule for 
     married individuals) is amended to read as follows:
       ``(5) Special rules for married individuals.--
       ``(A) In general.--In the case of individuals who are 
     married to each other and who are both eligible individuals, 
     the limitation under paragraph (1) for each spouse shall be 
     equal to the spouse's applicable share of the excess (if any) 
     of--
       ``(i) the dollar amount in effect under paragraph (2)(B) 
     (without regard to any additional contribution amounts under 
     paragraph (3)), over
       ``(ii) the aggregate amount paid to Archer MSAs of such 
     spouses for the taxable year.
       ``(B) Applicable share.--For purposes of subparagraph (A), 
     a spouse's applicable share is one-half of the limitation 
     under subparagraph (A) unless both spouses agree on a 
     different division.''
       (4) Self-only coverage.--Section 223(c)(4) (defining family 
     coverage) is amended to read as follows:
       ``(4) Coverage.--
       ``(A) Family coverage.--The term `family coverage' means 
     any coverage other than self-only coverage.
       ``(B) Self-only coverage.--If more than 1 individual is 
     covered by a high deductible health plan but only 1 of the 
     individuals is an eligible individual, the coverage shall be 
     treated as self-only coverage.''.
       (b) Family Plan May Have Individual Annual Deductible 
     Limit.--Section 223(c)(2) (defining high deductible health 
     plan) is amended by adding at the end the following new 
     subparagraph:
       ``(E) Special rule for family coverage.--A health plan 
     providing family coverage shall not fail to meet the 
     requirements of subparagraph (A)(i)(II) merely because the 
     plan elects to provide both--
       ``(i) an aggregate annual deductible limit for all 
     individuals covered by the plan which is not less than the 
     amount in effect under subparagraph (A)(i)(II), and
       ``(ii) an annual deductible limit for each individual 
     covered by the plan which is not less than the amount in 
     effect under subparagraph (A)(i)(I).''.
       (c) Cost-of-Living Adjustments Computed Earlier in the 
     Calendar Year.--Paragraph (1) of section 223(g) (relating to 
     cost-of-living adjustment) is amended by adding at the end 
     the following new flush sentence:
     ``In the case of any taxable year beginning after 2006, 
     section 1(f)(4) shall be applied for purposes of this 
     paragraph by substituting `March 31' for `August 31' and the 
     Secretary shall publish the adjusted amounts under 
     subsections (b)(2) and (c)(2)(A) for taxable years beginning 
     in any calendar year no later than June 1 of the preceding 
     calendar year.''.
       (d) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.

     SEC. 6. DEFINITION OF QUALIFIED MEDICAL EXPENSES.

       (a) Premiums for Low Premium Health Plans Treated as 
     Qualified Medical Expenses.--Subparagraph (C) of section 
     223(d)(2) is amended by striking ``or'' at the end of clause 
     (iii), by striking the period at the end of clause (iv) and 
     inserting ``, or'', and by adding at the end the following 
     new clause:
       ``(v) a high deductible health plan, but only if the 
     expenses are for coverage for a month with respect to which 
     the account beneficiary is an eligible individual by reason 
     of the coverage under the plan.''.
       (b) Special Rule for Certain Medical Expenses Incurred 
     Before Establishment of Account.--Paragraph (2) of section 
     223(d) is amended by adding at the end the following new 
     subparagraph:
       ``(D) Certain medical expenses incurred before 
     establishment of account treated as qualified.--An expense 
     shall not fail to be treated as a qualified medical expense 
     solely because such expense was incurred before the 
     establishment of the health savings account if such expense 
     was incurred--
       ``(i) during either--

       ``(I) the taxable year in which the health savings account 
     was established, or
       ``(II) the preceding taxable year in the case of a health 
     savings account established after the taxable year in which 
     such expense was incurred but before the time prescribed by 
     law for filing the return for such taxable year (not 
     including extensions thereof), and

       ``(ii) for medical care of an individual during a period 
     that such individual was an eligible individual.
     For purposes of clause (ii), an individual shall be treated 
     as an eligible individual for any portion of a month the 
     individual is described in subsection (c)(1), determined 
     without regard to whether the individual is covered under a 
     high deductible health plan on the 1st day of such month.''.
       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2006.
                                  ____

  There being no objection, the material was ordered to be printed in 
the Record, as follows:

   The Health Savings Accounts Improvement and Expansion Act of 2006


                           Section-by-Section

     I. Distributions to HSAs from existing health and retirement 
         accounts
       HRA/FSA Rollover--Section 3(a): Health Reimbursement 
     Arrangements (HRAs) are employer-sponsored plans which allow 
     employers to reimburse substantiated employee medical 
     expenses up to a maximum amount. Flexible Spending 
     Arrangements (FSAs) are employer-sponsored plans that are 
     usually funded through voluntary salary reduction agreements 
     with an employee. Participation in these plans disqualifies 
     individuals from contributing to Health Savings Accounts 
     (HSAs) except in limited situations. The disqualification 
     from HSA contributions applies regardless of whether the 
     coverage is provided by the employer of the individual or 
     spouse of the individual.
       Employers with existing FSAs or HSAs might be more likely 
     to offer health savings accounts if they were allowed a one-
     time opportunity to transfer individual balances into HSAs. 
     FSA balances are subject to forfeiture when an individual 
     leaves employment and HRA balances generally revert to the 
     employer. Allowing a one-time conversion opportunity would be 
     very valuable for employees because the balances currently in 
     their employer-sponsored accounts would become employee-owned 
     funds to which they could also contribute in the future and 
     could keep as they change employment.

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       Seeding an HSA Through an IRA Rollover--Section 3(b): HSAs 
     work in combination with High Deductible Health Plans 
     (HDHPs). Because the maximum deductible with an HDHP can be 
     as high as $5,250 for a family plan, with maximum out-of-
     pocket expenses as high as $10,500, these plans can be 
     intimidating for young families or the chronically ill who 
     anticipate substantial medical expenses. To alleviate these 
     concerns and to allow an individual to ``seed'' an HSA with a 
     substantial amount of money, the Act would authorize a one-
     time distribution from an IRA to an HSA, up to the amount of 
     the statutory out-of-pocket maximum. To accommodate a person 
     who elects this distribution while covered by an individual 
     plan, but who later has family coverage, the measure would 
     allow a one-time catch-up contribution of the difference 
     between the original contribution and the statutory limit on 
     out-of-pocket expenses for a family plan. These distributions 
     would not be subject to the ordinary 10% penalty for early 
     IRA distributions.
     II. Eligibility to contribute to HSAs
       Employee Who Has a Spouse with an FSA--Section 4(a): Under 
     current law, an individual may not contribute to an HSA if 
     his spouse has an FSA, even if the individual never seeks to 
     be reimbursed for any medical expenses from the spouse's FSA. 
     The proposal would allow contributions to an HSA provided 
     that the individual certifies that he will not receive 
     reimbursement for any health expenses from his spouse's FSA.
       Older Employees--Section 4(b): Active employees over age 65 
     are permitted to contribute to an HSA so long as the 
     individual is not enrolled in Medicare. However, individuals 
     are automatically enrolled in Medicare Part A (which covers 
     hospital expenses) upon reaching age 65 even though their 
     plan through their employer will typically continue to cover 
     their medical expenses until they retire. The Act would allow 
     older workers who participate in HSAs to be allowed to 
     continue to contribute to their accounts until they retire 
     despite the fact they were automatically enrolled in Medicare 
     Part A at age 65.
       Veterans--Section 4(c): Under current law, a combat wounded 
     veteran who is eligible for medical benefits through the 
     Department of Veterans Affairs (VA) is also HSA eligible. 
     According to Treasury Department guidance, however, the 
     veteran may not contribute to an HSA, if he or she has 
     actually received medical benefits from the VA at any time 
     during the previous three months. The Act would also allow a 
     veteran who actually receives VA medical benefits for a 
     service-connected disability to be eligible for an HSA.
     III. Increasing value in HSAs
       Increasing Contribution Limits--Section 5(a): Under current 
     law HSA contributions are limited to the lesser of the actual 
     deductible or the statutory contribution limit ($2,700 
     individual/$5,450 family for 2006). The President has 
     proposed raising the contribution limit to the statutory out-
     of-pocket maximum for HSAs ($5,250 individual/$10,500 
     family). The proposal would permit mid-year enrollment and 
     allow individuals and families to contribute up to the 
     contribution limit, regardless of the actual deductible of 
     the plan.
       Permitting Individual Family Members to Satisfy Individual 
     Rather than Family Deductible--Section 5(b): Most employer-
     sponsored health plans begin providing coverage as soon as a 
     family member meets the individual deductible for the plan 
     rather than the full family deductible. Current HSA guidance 
     only allows this practice if the individual deductible is at 
     least the minimum deductible for family coverage ($2,000). 
     Allowing coverage to begin after a family member satisfies 
     the individual deductible amount would help to encourage more 
     employees to elect HSAs for themselves and their families.
       Earlier Indexing of Cost of Living Adjustments--Section 
     5(c): The HSA statute directs Treasury to index deductible 
     amounts, out-of-pocket expense limits, and limits on 
     contributions to HSAs. Treasury is required to use third 
     quarter economic data when making these annual updates, which 
     means the new figures are typically issued in December, too 
     late for many employers who need to make these updates much 
     sooner in the year. Directing Treasury to complete the 
     indexing of these amounts by June 1, using first quarter 
     economic data, will give employers the information they need 
     in enough time to modify their plan offerings that take 
     effect the following January.
     IV. Expanding the definition of qualified medical expenses
       Premiums--Section 6(a): A large part of a family's annual 
     medical expenses is the cost of premiums for health 
     insurance. Under current law, high deductible health plan 
     premiums cannot be paid from an HSA. As a result, individuals 
     must pay their premiums with after-tax dollars. Employees 
     must use after-tax dollars to pay their share of premiums for 
     employer-sponsored coverage, unless their employer provides a 
     premium conversion plan under Section 125 of the Internal 
     Revenue Code. The proposal would allow high deductible health 
     plan premiums to be paid with pre-tax dollars from an HSA. 
     This provision will primarily help self-employed individuals 
     and others who purchase plans in the non-group market. 
     Further, it would provide an incentive for employers not 
     currently offering health insurance to make available a low-
     cost high-deductible plan.
       Medical Expenses Incurred Before Establishment of Account--
     Section 6(b): Under current law, only qualified expenses that 
     are incurred after an HSA is established can be distributed 
     tax-free from the account. The Act would allow certain 
     medical expenses incurred before establishment of the HSA to 
     qualify as well. Generally, expenses incurred during the 
     taxable year in which the HSA was established or during the 
     preceding taxable year could be paid from the account without 
     penalty.
                                 ______
                                 
      By Mr. HATCH:
  S. 3586. A bill to amend the Internal Revenue Code of 1986 to repeal 
the dollar limitation on contributions to funeral trusts; to the 
Committee on Finance.
  Mr. HATCH. Mr. President, I rise today to introduce a bill that will 
eliminate the current limit on the amount individuals can place into a 
trust to provide for funeral expenses. Given the rising costs of 
funeral expenses, this change would have a positive impact on the lives 
of older Americans and on their families. In addition, according to the 
Joint Committee on Taxation, it would have a slight, but positive, 
impact on the Federal Treasury.
  Current law limits a funeral trust to $8,500, but this is generally 
no longer sufficient to cover a family's funeral expenses. In Utah, the 
average cost of a full funeral and burial is $12,685. I am sure that in 
many other States it is even higher. Because of this contribution 
limit, even those who preplan their own funerals too often leave their 
heirs with substantial expenses. Even those who attempt to cover the 
entire expense may not have enough to cover all costs after 
administrative fees and taxes are deducted.
  This proposal would make qualified funeral trusts more effective. The 
principal reason individuals set up qualified funeral trust plans is to 
lift a financial burden from their children.
  I recall the case of one constituent who wrote to me about this 3 
years ago. He was suffering from Parkinson's disease began preplanning 
his own funeral so these decisions and this burden would be lifted from 
his children. Because of the ``QFT Cap'' which at the time was $7,800, 
this Utahn was not able to preplan completely the funeral services he 
desired. It became necessary to have one of his sons complete this 
preplanning for him by opening up his own trust that would help to 
cover all expenses. It seems silly to make families go to these extra 
steps when they are attempting to make responsible decisions, well in 
advance of need, for themselves and their families.
  For older Americans, the primary benefits of this legislation are the 
ability to have all the money they have saved in the trust to be 
applied to final expenses, instead of taxes, and the incentive to 
increase the amount of their contribution. Sixty percent of pre-
funded funerals were funded by trusts and elimination of the cap should 
raise this percentage. For funeral directors, this change would 
eliminate the burden and expense of issuing information documents to 
report income earned from the trust.
  I think we can all agree that we should make it easier for those who 
are willing to provide for these necessary expenses in advance. Today, 
I ask my colleagues to join me in an effort to enact this important 
measure.
  I ask unanimous consent that the text of the bill be printed in the 
Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 3586

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

     SECTION 1. REPEAL OF DOLLAR LIMITATION ON CONTRIBUTIONS TO 
                   FUNERAL TRUSTS.

       (a) In General.--Subsection (c) of section 685 of the 
     Internal Revenue Code of 1986 (relating to treatment of 
     funeral trusts) is repealed.
       (b) Conforming Amendment.--Subsections (d), (e), and (f) of 
     such section are redesignated as subsections (c), (d), and 
     (e), respectively.

[[Page 12694]]

       (c) Effective Date.--The amendments made by this section 
     shall apply to taxable years beginning after December 31, 
     2005.

                          ____________________