[House Report 109-493]
[From the U.S. Government Publishing Office]



109th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     109-493

======================================================================



 
                    SENIOR INDEPENDENCE ACT OF 2006

                                _______
                                

  June 8, 2006.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

    Mr. McKeon, from the Committee on Education and the Workforce, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 5293]

      [Including cost estimate of the Congressional Budget Office]

  The Committee on Education and the Workforce, to whom was 
referred the bill (H.R. 5293) to amend the Older Americans Act 
of 1965 to authorize appropriations for fiscal years 2007 
through 2011, and for other purposes, having considered the 
same, report favorably thereon with an amendment and recommend 
that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose..........................................................    31
Committee Action.................................................    31
Summary..........................................................    34
Committee Statement and Views....................................    40
References.......................................................    65
Section-by-Section Analysis......................................    66
Explanation of Amendments........................................    70
Rollcall Votes...................................................    71
Correspondence...................................................    73
Application of Law to the Legislative Branch.....................    74
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    74
Statement of General Performance Goals and Objectives............    74
Constitutional Authority Statement...............................    74
Federal Advisory Committee Act...................................    74
Unfunded Mandate Statement.......................................    74
Committee Estimate...............................................    74
Budget Authority and Congressional Budget Office Cost Estimate...    75
Changes in Existing Law Made by the Bill as Reported.............    77

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Senior Independence 
Act of 2006''.
  (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Establishment of Administration on Aging.
Sec. 4. Functions of the Assistant Secretary.
Sec. 5. Federal agency consultation.
Sec. 6. Administration.
Sec. 7. Evaluation.
Sec. 8. Reports.
Sec. 9. Contractual, commercial and private pay relationships; 
appropriate use of Act funds.
Sec. 10. Nutrition education.
Sec. 11. Pension counseling and information programs.
Sec. 12. Authorization of appropriations.
Sec. 13. Purpose; administration.
Sec. 14. Authorization of appropriations; uses of funds.
Sec. 15. Organization.
Sec. 16. Area plans.
Sec. 17. State plans.
Sec. 18. Payments.
Sec. 19. Nutrition services incentive program.
Sec. 20. Consumer contributions.
Sec. 21. Supportive services and senior centers program.
Sec. 22. Nutrition service.
Sec. 23. Congregate nutrition program.
Sec. 24. Home delivered nutrition services.
Sec. 25. Criteria.
Sec. 26. Nutrition.
Sec. 27. Evaluation of nutrition projects.
Sec. 28. Improving indoor air quality to buildings where seniors 
congregate.
Sec. 29. Caregiver support program definitions.
Sec. 30. Caregiver support program.
Sec. 31. Activities of national significance.
Sec. 32. Title IV grant programs.
Sec. 33. Career preparation for the field of aging.
Sec. 34. Health care service demonstration projects in rural areas.
Sec. 35. Demonstration projects for multigenerational activities.
Sec. 36. Native American programs.
Sec. 37.Responsibilities of Assistant Secretary.
Sec. 38. Community service employment-based training for older 
Americans.
Sec. 39. Native Americans caregiver support program.
Sec. 40. Vulnerable elder rights protection activities.
Sec. 41. Native American organization provisions.
Sec. 42. Elder abuse, neglect, and exploitation prevention.
Sec. 43. Technical amendments.

SEC. 2. DEFINITIONS.

  Section 102 of the Older Americans Act of 1965 (42 U.S.C. 3002) is 
amended--
          (1) by amending paragraph (10) to read as follows:
          ``(10) The terms `assistive device', `assistive technology', 
        and `assistive technology service' have the meanings given such 
        terms in section 3 of the Assistive Technology Act of 1998 (29 
        U.S.C. 3002).''.
          (2) by amending paragraph (12)(D) to read as follows:
                  ``(D) evidence-based health promotion programs, 
                including programs related to the prevention and 
                mitigation of the effects of chronic disease (including 
                osteoporosis, hypertension, obesity, diabetes, and 
                cardiovascular disease), alcohol and substance abuse 
                reduction, smoking cessation, weight loss and control, 
                stress management, falls prevention, physical activity, 
                and improved nutrition through the consumption of a 
                healthful diet and multivitamin-mineral 
                supplementation;'',
          (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) by amending paragraph (24) to read as follows:
          ``(24) The term `exploitation' means the fraudulent or 
        otherwise illegal, unauthorized, or improper act or process of 
        an individual 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.'',
          (5) by amending paragraph (34) to read as follows:
          ``(34) The term `neglect' means--
                  ``(A) the failure of a caregiver or fiduciary to 
                provide goods or services that are necessary to 
                maintain the health or safety of an elder; or
                  ``(B) self neglect.''.
          (6) by redesignating paragraphs (1) through (43) as 
        paragraphs (43), (7), (48), (37), (25), (26), (52), (13), (46), 
        (8), (28), (12), (1), (2), (3), (5), (6), (10), (24), (35), 
        (11), (14), (15), (17), (19), (20), (21), (22), (27), (29), 
        (30), (32) (33), (36), (38), (39), (40), (41), (42), (49), 
        (51), (18), and (47), respectively,
          (7) by transferring such paragraphs so as to arrange them in 
        numerical order as so redesignated,
          (8) by inserting after paragraph (3), as so redesignated the 
        following:
          ``(4) The term `Aging and Disability Resource Center' means a 
        program established by a State as part of the State's system of 
        long-term care, to provide a coordinated system for providing--
                  ``(A) comprehensive information on available public 
                and private long-term care programs, options, and 
                resources;
                  ``(B) personal counseling to assist individuals in 
                assessing their existing or anticipated long-term care 
                needs, and developing and implementing a plan for long-
                term care designed to meet their specific needs and 
                circumstances; and
                  ``(C) consumer access to the range of publicly-
                supported long-term care programs for which they may be 
                eligible, by serving as a convenient point of entry for 
                such programs.'',
          (9) by inserting after paragraph (8), as so redesignated, the 
        following:
          ``(9) The term `at risk for institutional placement' means, 
        with respect to an older individual, that such individual is 
        unable to perform at least two activities of daily living 
        without substantial human assistance (including verbal 
        reminding, physical cuing, or supervision) and is determined by 
        the State to be in need of placement in a long-term care 
        facility.'',
          (10) by inserting after paragraph (15), as so redesignated, 
        the following:
          ``(16) The term `elder justice' means 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.'',
          (11) by inserting after paragraph (22), as so redesignated, 
        the following:
          ``(23) The term `Hispanic serving institution' has the 
        meaning as defined in section 502 of the Higher Education Act 
        of 1965 (20 U.S.C. 1101A).'',
          (12) by inserting after paragraph (30), as so redesignated, 
        the following:
          ``(31) The term `long-term care' means any services, care, or 
        items (including assistive devices), including disease 
        prevention and health promotion services, in-home services, and 
        case management service--
                  ``(A) intended to assist individuals in coping with, 
                and to the extent practicable compensate for, 
                functional impairments in carrying out activities of 
                daily living;
                  ``(B) furnished at home, in a community care setting 
                (including a small community care setting as defined in 
                subsection (g)(1), and a large community care setting 
                as defined in subsection (h)(1), of section 1929 of the 
                Social Security Act (42 U.S.C. 1396t)), or in a long-
                term care facility; and
                  ``(C) not furnished to prevent, diagnose, treat, or 
                cure a medical disease or condition.'',
          (13) by inserting after paragraph (33), as so redesignated, 
        the following:
          ``(34) The term `multivitamin-mineral supplement' means a 
        dietary supplement that provides at least two-third's of the 
        essential vitamins and minerals at 100 percent of the daily 
        value levels as determined by the Food and Drug 
        Administration.'',
          (14) by inserting after paragraph (43), as so redesignated, 
        the following:
          ``(44) The term `self-directed care' means an approach to 
        providing services (including programs, benefits, supports, and 
        technology) under this Act intended to an older individual to 
        assist such individual with activities of daily living, in 
        which
                  ``(A) such services (including the amount, duration, 
                scope, provider, and location of such services) are 
                planned, budgeted, and purchased under the direction 
                and control of such individual;
                  ``(B) such individual is provided with such 
                information and assistance as necessary and appropriate 
                to enable such individual to make informed decisions 
                about his or her care options;
                  ``(C) the needs, capabilities, and preferences of 
                such individual with respect to such services, and such 
                individual's ability to direct and control his or her 
                receipt of such services, are assessed by the area 
                agency on aging (or other agency designated by the area 
                agency on aging);
                  ``(D) based on the assessment made under subparagraph 
                (C), the area agency on aging (or other agency 
                designated by the area agency on aging) develops 
                together with such individual and his or her family, 
                caregiver, or legal representative--
                          ``(i) a plan of services for such individual 
                        that specifies which services such individual 
                        will be responsible for directing;
                          ``(ii) a determination of the role of family 
                        members (and others whose participation is 
                        sought by such individual) in providing 
                        services under such plan; and
                          ``(iii) a budget for such services; and
                  ``(E) the area agency on aging or State agency 
                provides for oversight of such individual's self-
                directed receipt of services, including steps to ensure 
                the quality of services provided and the appropriate 
                use of funds under this Act.
          ``(45) 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--
                  ``(A) obtaining essential food, clothing, shelter, 
                and medical care;
                  ``(B) obtaining goods and services necessary to 
                maintain physical health, mental health, or general 
                safety; or
                  ``(C) managing one's own financial affairs.'', and
          (15) by inserting after paragraph (49), as so redesignated, 
        the following:
          ``(50) 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. ESTABLISHMENT OF ADMINISTRATION ON AGING.

  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) The Assistant Secretary may designate within the 
Administration responsibility for elder abuse prevention and services.
  ``(2) It shall be the duty of the assistant secretary, acting through 
the person designated with responsibility for elder abuse prevention 
and services, to develop objectives, priorities, policy, and a long-
term plan for--
          ``(A) 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 clause (i); and
                  ``(iii) the improvement of the elder justice system 
                in the United States;
          ``(B) collecting and disseminating data relating to the 
        abuse, neglect, and exploitation of older individuals;
          ``(C) disseminating information concerning best practices 
        regarding, and providing training on, carrying out activities 
        related to abuse, neglect, and exploitation of older 
        individuals;
          ``(D) conducting research related to abuse, neglect, and 
        exploitation of older individuals;
          ``(E) providing technical assistance to States and other 
        eligible entities under title VII;
          ``(F) assisting States and other eligible entities under 
        title VII to develop strategic plans to better coordinate elder 
        justice activities, research, and training; and
          ``(G) promoting collaborative efforts and diminishing 
        duplicative efforts in the development and carrying out of 
        elder justice programs at the Federal, State, and local 
        levels.''.

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 (5) by inserting ``assistive 
                technology,'' after ``housing,'',
                  (B) in paragraph (12)--
                          (i) by striking ``(12)'' and inserting the 
                        following:
          ``(12)(A) consult and coordinate activities with the Centers 
        for Medicare & Medicaid Services and other federal entities to 
        implement and build awareness of programs providing benefits 
        affecting older individuals; and
          ``(B)'',
                  (C) in paragraph (20)--
                          (i) by striking ``and area agencies on 
                        aging'' and inserting ``, area agencies on 
                        aging, and service providers'',
                          (ii) by striking ``and benefits'' and 
                        inserting ``benefits'',
                          (iii) by inserting ``benefits under any other 
                        applicable Federal program, or any other 
                        service (including technology and internet-
                        based decision support tools) to assist 
                        consumers to learn about, to receive benefits 
                        under, and to participate in programs for which 
                        they may be eligible'' after ``(7 U.S.C. 2011 
                        et seq.),'',
                          (iv) by inserting ``(A)'' after ``(20)'', and
                          (v) by adding at the end the following:
          ``(B) provide technical assistance and support for benefits 
        enrollment assistance and outreach to support existing efforts 
        to inform and enroll older individuals who may be eligible to 
        participate, but who are not participating, in programs for 
        which they are eligible, and may in cooperation with Federal 
        partners, establish a National Center on Senior Benefits 
        Outreach and Enrollment, which shall--
                  ``(i) develop, maintain, and update web-based 
                decision supports and enrollment tools and integrated, 
                person-centered systems designed to inform older 
                individuals about the full range of benefits for which 
                they may be eligible;
                  ``(ii) utilize strategies to find and enroll those 
                with greatest economic need;
                  ``(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, to serve as 
                enrollment benefit centers;
                  ``(iv) develop and maintain an information 
                clearinghouse on best practices and cost-effective 
                methods for enrolling limited income older Americans in 
                benefits for which they are eligible; and
                  ``(v) provide, in collaboration with Federal partners 
                administering programs, training and technical 
                assistance on effective outreach, screening, enrollment 
                and follow-up strategies.'',
                  (D) in paragraph (26)--
                          (i) in subsection (D)--
                                  (I) by striking ``gaps in'', and
                                  (II) by inserting ``(including 
                                services that would permit such 
                                individuals to receive long-term care 
                                in home and community-based settings)'' 
                                after ``individuals'', and
                          (ii) in subsection (E) by striking ``and'' at 
                        the end,
                  (E) in paragraph (27)--
                          (i) in subparagraph (B) by adding ``and'' at 
                        the end,
                          (ii) in subparagraph (C) by striking the 
                        semicolon and inserting a period, and
                          (iii) by striking subparagraph (D), and
                  (F) 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 subsections (b) and (c), 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 responsible for formulating and 
        implementing programs, benefits, and services related to 
        providing long-term care, and may make grants, contracts, and 
        cooperative agreements with funds received from other Federal 
        entities;
          ``(2) conduct research and demonstration projects to identify 
        innovative, cost-effective strategies for modifying State 
        systems of long-term care to--
                  ``(A) respond to the needs and preferences of older 
                individuals and family caregivers; and
                  ``(B) target services to individuals at risk for 
                institutional placement, to permit such individuals to 
                remain in home and community-based care settings;
          ``(3) establish criteria 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;
          ``(4) facilitate, in coordination with the Centers for 
        Medicare & Medicaid Services, the provision of long-term care 
        in home and community-based settings, including the provision 
        of 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 
                nursing home placement and depletion of income and 
                assets to qualify for Medicaid eligibility;
                  ``(B) respond to the needs and preferences of such 
                individual and provide the option for the individual 
                (or representative, as appropriate) to direct and 
                control the receipt of support services provided;
                  ``(C) assist an older individual (or a 
                representative, as appropriate) develop a plan for 
                long-term support, including the selecting, budgeting, 
                and purchasing of home and community-based long-term 
                care and supportive services;
        (for purposes of this paragraph, the term `representative' 
        means a person appointed by the eligible individual, or legally 
        acting on the individual's behalf, to represent or advise the 
        individual in financial or service coordination matters);
          ``(5) provide for the Administration to play a lead role with 
        respect to issues concerning home and community-based long-term 
        care, including--
                  ``(A) directing (as the Secretary or the President 
                determines to be appropriate) or otherwise 
                participating in departmental and interdepartmental 
                activities concerning long-term care;
                  ``(B) reviewing and commenting on departmental rules, 
                regulations, and policies related to providing long-
                term care; and
                  ``(C) making recommendations to the Secretary with 
                respect to home and community-based long-term care, 
                including recommendations based on findings made 
                through projects conducted under paragraph (2);
          ``(6) promote, in coordination with other appropriate Federal 
        agencies, enhanced awareness by the public of the importance of 
        planning in advance for long-term care and the availability of 
        information and resources to assist in such planning;
          ``(7) implement in all states Aging and Disability Resource 
        Centers--
                  ``(A) to serve as visible and trusted sources of 
                information on the full range of long-term care options 
                that are available in the community, including both 
                institutional and home and community-based care;
                  ``(B) to provide personalized and consumer friendly 
                assistance to empower people to make informed decisions 
                about their care options;
                  ``(C) to provide coordinated and streamlined access 
                to all publicly supported long-term care options so 
                that consumers can obtain the care they need though a 
                single intake, assessment and eligibility determination 
                process;
                  ``(D) to help people to plan ahead for their future 
                long-term care needs; and
                  ``(E) to assist, in coordination with the State 
                Health Insurance Assistance Program, Medicare 
                beneficiaries in understanding and accessing the 
                Prescription Drug Coverage and preventative health 
                benefits available under the Medicare Modernization 
                Act;
          ``(8) establish, either directly or through grants or 
        contracts, a national technical assistance program to assist 
        State agencies, area agencies on aging, and community-based 
        service providers funded under this Act in implementing such 
        home and community-based long-term care systems including 
        evidence-based programs;
          ``(9) 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
          ``(10) conduct such other activities as the Assistant 
        Secretary determines to be appropriate.
  ``(c) The Assistant Secretary, in consultation with the Corporation 
for National and Community Service, shall--
          ``(1) encourage and permit voluntary groups active in 
        supportive services, including youth organizations active at 
        the secondary or postsecondary levels, to participate and be 
        involved individually or through representative groups, in such 
        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) 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
          (2) in subsection (b)--
                  (A) in paragraph (17) by striking ``and'' at the end,
                  (B) in paragraph (18) by striking the period at the 
                end and inserting ``; and'', and
                  (C) 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).''.

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 the 
                        semicolon 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 jointly by the Secretary and 
        the Secretary of Agriculture, and advances in nutrition 
        science;'',
                                  (III) in clause (vii) by striking 
                                ``and'' at the end, and
                                  (IV) by striking clause (viii) and 
                                inserting the following:
          ``(viii) disseminating guidance that describes strategies for 
        improving the nutritional quality of meals provided under title 
        III, particularly strategies for increasing the consumption of 
        whole grains, lowfat dairy products, fruits and vegetables;
          ``(ix) developing and disseminating guidelines for conducting 
        nutrient analyses of meals provided in subparts 1 and 2 of part 
        C, including guidelines for averaging key nutrients over an 
        appropriate period of time; and
          ``(x) providing technical assistance to the regional offices 
        of the Administration with respect to each duty described in 
        clauses (i) through (viii).'', and
                          (ii) by amending subparagraph (C)(i) to read 
                        as follows:
          ``(i) have expertise in nutrition, energy balance, and meal 
        planning; and''.

SEC. 7. EVALUATION.

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

SEC. 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 of 1965 (42 U.S.C. 3020c) is amended to 
read as follows:

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

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

SEC. 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 are designed for older individuals and 
that include nutrition education, physical activity, and other 
activities to modify behavior and to improve health literacy (including 
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 
        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 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 subsection (a)(1), (b), and (d) by striking ``year 
        2001'' and all that follows through ``years'' each place it 
        appears, and inserting ``years 2007, 2008, 2009, 2010, and 
        2011'', and
          (2) in subsection (e)(1) by striking ``2001'' each place it 
        appears and inserting ``2007''.

SEC. 15. ORGANIZATION.

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

SEC. 16. AREA PLANS.

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

SEC. 17. STATE PLANS.

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

SEC. 18. PAYMENTS.

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

SEC. 19. NUTRITION SERVICES INCENTIVE PROGRAM.

  (a) Cash Only Program; Authority to Use Program Funds to Purchase 
Food Through School Food Authorities.--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 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 ``commodities'',
                  (B) in paragraph (2) by inserting ``(including bonus 
                commodities)'' after ``commodities'',
                  (C) in paragraph (3) by inserting ``(including bonus 
                commodities)'' after ``products'', and
                  (D) by adding at the end the following:
  ``(4) Among the commodities delivered under this subsection, the 
Secretary of Agriculture shall give special emphasis to high protein 
foods. The Secretary of Agriculture, in consultation with the Assistant 
Secretary, is authorized to prescribe the terms and conditions 
respecting the donation of commodities under this subsection.'',
          (3) by amending subsection (d) to read as follows:
  ``(d)(1) Amounts provided under subsection (b) to State grantees and 
contractors, and to title VI grantees, shall be available only for the 
purchase by such entities of United States agricultural commodities and 
other foods for their respective nutrition projects, subject to 
paragraph (2).
  ``(2) Part or all of the amounts received by an entity specified in 
paragraph (1) may be used to pay a school food authority (as referred 
to under the Richard B. Russell National School Lunch Act (42 
U.S.C.1751 et seq.) to obtain United States agricultural commodities 
for such entity's nutrition projects, in accordance with an agreement 
between the entity and the school food authority, under which such 
payments--
          ``(A) shall cover the cost of such commodities; and
          ``(B) may cover related expenses incurred by the school food 
        authority, including the cost of transporting, distributing, 
        processing, storing, and handling such commodities.'',
          (4) in subsection (e) by striking ``2001'' and inserting 
        ``2007'',
          (5) in subsection (f)--
                  (A) in the matter preceding paragraph (1) by striking 
                ``the Secretary of Agriculture and the Secretary of 
                Health and Human Services'' and inserting ``the 
                Assistant Secretary and the Secretary of Agriculture'', 
                and
                  (B) by amending paragraphs (1) and (2) to read as 
                follows:
          ``(1) school food authorities participating in programs 
        authorized under the Richard B. Russell National School Lunch 
        Act within the geographic area served by each such State 
        agency; and
          ``(2) the donated foods available to such State agencies, 
        area agencies on aging, and providers under subsection (c).''.

SEC. 20. CONSUMER CONTRIBUTIONS.

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

SEC. 21. SUPPORTIVE SERVICES AND SENIOR CENTERS PROGRAM.

  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 inserting ``(including assistive 
        technology devices and assistive technology services)'' after 
        ``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 carry out and coordinate, 
        with respect to mental health services, activities including 
        outreach, education, screening, and referral for treatment of 
        older individuals; and''.

SEC. 22. NUTRITION SERVICE.

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

``SEC. 330. PURPOSE.

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

SEC. 23. CONGREGATE NUTRITION PROGRAM.

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

SEC. 24. HOME DELIVERED NUTRITION SERVICES.

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

``SEC. 336. PROGRAM AUTHORIZED.

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

SEC. 25. CRITERIA.

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

``SEC. 337. CRITERIA.

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

SEC. 26. NUTRITION.

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

SEC. 27. EVALUATION OF NUTRITION PROJECTS.

  (a) Study.--The Assistant Secretary for Aging shall use funds 
allocated in section 206(g) of the Older Americans Act of 1965 to enter 
into a contract with the Food and Nutrition Board of the Institute of 
Medicine, for the purpose of establishing an independent panel of 
experts that will conduct an evidence-based evaluation of the nutrition 
projects authorized in such Act. Such study shall, to the extent data 
are available, include--
          (1) an evaluation of the effect of nutrition projects 
        authorized by such Act on--
                  (A) health status of participants, including 
                nutritional status,
                  (B) prevention of participant hunger and food 
                insecurity, and
                  (C) ability of participants to remain living 
                independently,
          (2) a cost-benefit analysis of nutrition projects authorized 
        by such Act, including the potential to affect costs of Federal 
        programs under title XIX of the Social Security Act, and
          (3) recommendations for how nutrition projects authorized by 
        such Act may be modified to improve the outcomes described in 
        paragraph (1), including recommendations for improving the 
        nutritional quality of meals and other potential strategies to 
        improve the nutritional status of participants, including 
        vitamin-mineral supplementation.
  (b) Timing.--The Institute of Medicine shall establish an independent 
panel of experts not later than 90 days after the date of the enactment 
of this Act. The panel shall submit to the Assistant Secretary the 
report described in subsection (a) not later than 24 months after the 
date of the enactment of this Act. The Assistant Secretary shall submit 
a report on the findings of the evidence-based study described in such 
subsection 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.

SEC. 28. IMPROVING INDOOR AIR QUALITY IN BUILDINGS WHERE SENIORS 
                    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 seniors congregate.''.

SEC. 29. CAREGIVER SUPPORT PROGRAM DEFINITIONS.

  Section 372 of the National Family Caregiver Support Act (42 U.S.C. 
3030s) is amended--
          (1) in paragraph (1) by inserting ``or who is an individual 
        with a disability'' after ``age'',
          (2) in paragraph (2) by inserting ``or an individual with 
        Alzheimer's disease or a related disorder with neurological and 
        organic brain dysfunction'' before the period at the end, and
          (3) in paragraph (3) by striking ``60'' and inserting ``55''.

SEC. 30. CAREGIVER SUPPORT PROGRAM.

  Section 373 of the National Family Caregiver Support Act (42 U.S.C. 
3030s-1) is amended--
          (1) in subsection by (b)(3) by striking ``caregivers to 
        assist'' and all that follows through the end and inserting the 
        following: ``assist the caregivers in addressing caregiver 
        issues related to the areas of health, nutrition, and financial 
        literacy, and in making decisions and solving problems relating 
        to their caregiving roles;'',
          (2) by amending subsection (d) to read as follows:
  ``(d) Use of Volunteers.--In carrying out this subpart, each area 
agency on aging shall encourage the use of trained volunteers to expand 
the available services described in subsection (b) and shall, if 
possible, coordinate with volunteer programs (including programs 
administered by the Corporation for National Service) designed to 
provide training, placement, and stipends for volunteers in community 
service settings.'',
          (3) in subsection (e)(3) by adding at the end the following: 
        ``The reports shall describe any mechanisms used in the State 
        to provide family caregivers of an older individual and 
        relative caregivers of a child or an adult child with a 
        disability, information about and access to various services so 
        that caregivers can better carry out their care 
        responsibilities.'', and
          (4) in subsection (f)(1) by striking ``2001 through 2005'' 
        and inserting ``2007, 2008, 2009, 2010, and 2011''.

SEC. 31. ACTIVITIES OF NATIONAL SIGNIFICANCE.

  Section 376(a) of the National Family Caregiver Support Act (42 
U.S.C. 3030s-12(a)) is amended--
          (1) by striking ``(a) In General.--'',
          (2) by striking ``shall'' and inserting ``may'',
          (3) by striking ``program'' and inserting ``programs that 
        include'',
          (4) by striking ``research.'' and inserting ``research, 
        including--
          ``(1) intergenerational programs, including supports for 
        grandparents and other older relatives raising children (such 
        as kinship navigator programs), and sustaining and replicating 
        innovative intergenerational family support programs that 
        involve senior volunteers;
          ``(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 such family support programs;
          ``(3) programs addressing unique issues faced by rural 
        caregivers;
          ``(4) programs focusing on the needs of older persons with 
        Alzheimer's disease and related dementia and their caregivers; 
        and
          ``(5) programs supporting caregivers in the role they play in 
        health promotion and disease prevention.'', and
          (5) by striking subsection (b).

SEC. 32. TITLE IV 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 include--
                  ``(A) efforts to assess the aging population;
                  ``(B) activities to coordinate 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 a grant under title VI, engage 
                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 elderly residing in home- and community-
        based settings or rural areas; and'', and
          (2) in subsection (b) by striking ``year'' and all that 
        follows through ``years'', and inserting ``years 2007, 2008, 
        2009, 2010, and 2011''.

SEC. 33. CAREER PREPARATION FOR THE FIELD OF AGING.

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

SEC. 34. HEALTH CARE SERVICE DEMONSTRATION PROJECTS IN RURAL AREAS.

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

SEC. 35. DEMONSTRATION PROJECTS FOR MULTIGENERATIONAL ACTIVITIES.

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

SEC. 36. 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 ``problems''.

SEC. 37. 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 ``, 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'' before the 
period at the end.

SEC. 38. COMMUNITY SERVICE EMPLOYMENT-BASED TRAINING FOR OLDER 
                    AMERICANS.

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

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

``SEC. 501. SHORT TITLE.

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

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

  ``(a) To foster individual economic self-sufficiency and to increase 
the number of individuals who may enjoy the benefits of unsubsidized 
employment in both the public and private sectors, the Secretary of 
Labor (hereafter in this title referred to as the `Secretary') may 
establish an older American community service employment-based training 
program to foster and promote useful part-time public and private-
sector employment-based training opportunities for unemployed low-
income eligible individuals who have poor employment prospects and to 
provide vital social and human services to communities by providing 
work experience to eligible individuals in public agencies, community-
based and faith-based organizations.
  ``(b)(1) To carry out this title, the Secretary may make grants to 
public and nonprofit agencies and organizations, agencies of a State, 
and tribal organizations to carry out the program established under 
subsection (a). Such grants may provide for the payment of costs, as 
provided in subsection (c), of projects developed by such organizations 
and agencies in cooperation with the Secretary in order to make such 
program effective or to supplement such program. No payment shall be 
made by the Secretary toward the cost of any project established or 
administered by any organization or agency unless the Secretary 
determines that such project--
          ``(A) shall provide authorized activities only for eligible 
        individuals, and that not less than 50 percent of hours worked 
        (in the aggregate) shall be in community service employment-
        based training provided by a grantee in a program year;
          ``(B)(i) shall provide authorized activities for eligible 
        individuals in the community in which such individuals reside, 
        or in nearby communities, and that not less than 50 percent of 
        hours worked (in the aggregate) shall be in community service 
        employment-based training provided by a grantee in a program 
        year; or
          ``(ii) if such project is carried out by a tribal 
        organization that receives a grant under this subsection or 
        receives assistance from a State that receives a grant under 
        this subsection, will provide authorized activities, including 
        community service employment-based training for such 
        individuals, including those who are Indians residing on an 
        Indian reservation, as defined in section 2601(2) of the Energy 
        Policy Act of 1992 (25 U.S.C. 3501(2));
          ``(C) together with all the projects carried out under this 
        title in each program year by a grantee, will not provide for 
        participation under this title by eligible individuals (in the 
        aggregate) for an average period per capita that exceeds 24 
        months (whether or not consecutive) during the period including 
        the program year for which the determination under this 
        subparagraph is made and the previous program years in which 
        such grantee carried out projects under this title;
          ``(D) will provide employment-based training to eligible 
        individuals in service related to publicly owned and operated 
        facilities and projects, or projects sponsored by profitmaking 
        or nonprofit organizations (excluding political parties exempt 
        from taxation under section 501(c)(3) of the Internal Revenue 
        Code of 1986), but excluding projects involving the 
        construction, operation, or maintenance of any facility used or 
        to be used as a place for sectarian religious instruction or 
        worship;
          ``(E) will contribute to the general welfare of the 
        community, which may include support for children, youth, and 
        families;
          ``(F) is intended to result in unsubsidized employment for 
        eligible individuals after completion of such program;
          ``(G)(i) will not reduce the number of job opportunities or 
        vacancies that would otherwise be available to individuals not 
        participating in such program;
          ``(ii) will not displace currently employed workers 
        (including partial displacement, such as a reduction in the 
        hours of non-overtime work, wages, or employment benefits);
          ``(iii) will not impair existing contracts or result in the 
        substitution of Federal funds for other funds in connection 
        with work that would otherwise be performed; and
          ``(iv) will not place an eligible individual in employment-
        based training to perform work the same or substantially the 
        same work as that performed by any other individual who is on 
        layoff;
          ``(H) will coordinate with training and other services 
        provided under title I of the Workforce Investment Act, 
        including utilizing the One-Stop delivery system to recruit 
        eligible individuals to ensure that the maximum number of 
        eligible individuals will have an opportunity to participate in 
        the project;
          ``(I) will include such training (such as community service 
        employment-based training, work experience, on-the-job 
        training, and classroom training) as may be necessary to make 
        the most effective use of the skills and talents of those 
        individuals who are participating;
          ``(J) will ensure that safe and healthy conditions of the 
        employment-based training facility or other training facility 
        will be provided, and will ensure that individuals employed in 
        community service and other jobs assisted under this title 
        shall be paid wages that shall not be lower than whichever is 
        the highest of--
                  ``(i) the minimum wage that would be applicable to 
                the employee under the Fair Labor Standards Act of 
                1938, if section 6(a)(1) of such Act applied to the 
                participant and if the participant were not exempt 
                under section 13 thereof;
                  ``(ii) the State or local minimum wage for the most 
                nearly comparable covered employment; or
                  ``(iii) the prevailing rates of pay for individuals 
                employed in similar occupations by the same employer;
          ``(K) will be established or administered with the advice of 
        persons competent in the field of service in which job training 
        is being provided, and of persons who are knowledgeable about 
        the needs of older individuals;
          ``(L) will authorize payment for necessary supportive 
        services costs, (including transportation costs) of eligible 
        individuals that may be incurred in training in any project 
        funded under this title, in accordance with rules issued by the 
        Secretary;
          ``(M) will ensure that, to the extent feasible, such project 
        will serve the needs of minority, limited English-speaking, and 
        Indian eligible individuals, and eligible individuals who have 
        the greatest economic need, at least in proportion to their 
        numbers in the State and take into consideration their rates of 
        poverty and unemployment;
          ``(N)(i) will prepare an assessment of the participants' 
        skills and talents and their needs for services, except to the 
        extent such project has, for the participant involved, recently 
        prepared an assessment of such skills and talents, and such 
        needs, pursuant to another employment or training program (such 
        as a program under the Workforce Investment Act of 1998 (29 
        U.S.C. 2801 et seq.), the Carl D. Perkins Vocational and 
        Technical Education Act of 1998 (20 U.S.C. 2301 et seq.), or 
        part A of title IV of the Social Security Act (42 U.S.C. 601 et 
        seq.));
          ``(ii) will provide training and employment counseling to 
        eligible individuals based on strategies that identify 
        appropriate employment objectives and the need for supportive 
        services, developed as a result of the assessment and service 
        strategy provided for in clause (i), and provide other 
        appropriate information regarding such program; and
          ``(iii) will provide counseling to participants on their 
        progress in meeting such objectives and satisfying their need 
        for supportive services;
          ``(O) will provide appropriate services for participants 
        through the One-Stop delivery system as established under 
        section 134(c) of the Workforce Investment Act of 1998 (29 
        U.S.C. 2864(c)), and will be involved in the planning and 
        operations of such system pursuant to a memorandum of 
        understanding with the local workforce investment board in 
        accordance with section 121(c) of such Act (29 U.S.C. 2841(c));
          ``(P) will post in such project workplace a notice, and will 
        make available to each person associated with such project a 
        written explanation--
                  ``(i) clarifying the law with respect to political 
                activities allowable and unallowable under chapter 15 
                of title 5, United States Code, applicable to the 
                project and to each category of individuals associated 
                with such project; and
                  ``(ii) containing the address and telephone number of 
                the Inspector General of the Department of Labor, to 
                whom questions regarding the application of such 
                chapter may be addressed;
          ``(Q) will provide to the Secretary the description and 
        information described in--
                  ``(i) paragraph (8), relating to coordination with 
                other Federal programs, of section 112(b) of the 
                Workforce and Investment Act of 1998; and
                  ``(ii) paragraph (14), relating to implementation of 
                One-Stop delivery systems, of section 112(b) of the 
                Workforce Investment Act of 1998; and
          ``(R) will ensure that entities that carry out activities 
        under the project (including State agencies, local entities, 
        subgrantees, subcontractors) and affiliates of such entities 
        receive an amount of the administrative cost allocation 
        determined by the Secretary to be sufficient.
  ``(2) The Secretary may establish, issue, and amend such regulations 
as may be necessary to effectively carry out this title.
  ``(3)(A) An assessment and service strategy required by paragraph (1) 
to be prepared for an eligible individual shall satisfy any condition 
for an assessment and service strategy or individual employment plan 
for an adult participant under subtitle B of title I of the Workforce 
Investment Act of 1998 (29 U.S.C. 2811 et seq.), in order to determine 
whether such eligible individual also qualifies for intensive or 
training services described in section 134(d) of such Act (29 U.S.C. 
2864(d)).
  ``(B) An assessment and service strategy or individual employment 
plan prepared under subtitle B of title I of the Workforce Investment 
Act of 1998 (29 U.S.C. 2811 et seq.) for an eligible individual may be 
used to comply with the requirement specified in subparagraph (A).
  ``(c)(1) The Secretary may pay a share not to exceed 90 percent of 
the cost of any project for which a grant is made under subsection (b), 
except that the Secretary may pay all of such cost if such project is--
          ``(A) an emergency or disaster project; or
          ``(B) a project located in an economically depressed area, as 
        determined by the Secretary in consultation with the Secretary 
        of Commerce and the Secretary of Health and Human Services.
  ``(2) The non-Federal share shall be in cash or in kind. In 
determining the amount of the non-Federal share, the Secretary may 
attribute fair market value to services and facilities contributed from 
non-Federal sources.
  ``(3) Of the amount to be paid under this subsection by the Secretary 
for a project, not to exceed 13.5 percent shall be available for any 
fiscal year to pay the administrative costs of such project, except 
that--
          ``(A) the Secretary may increase the amount available to pay 
        administrative costs to an amount not to exceed 15 percent of 
        the cost of such project if the Secretary determines, based on 
        information submitted by the grantee under subsection (b), that 
        such increase is necessary to carry out such project; and
          ``(B) if the grantee under subsection (b) demonstrates to the 
        Secretary that--
                  ``(i) major administrative cost increases are being 
                incurred in necessary program components, including 
                liability insurance, payments for workers' 
                compensation, costs associated with achieving 
                unsubsidized placement goals, and other operation 
                requirements imposed by the Secretary;
                  ``(ii) the number of positions in the project or the 
                number of minority eligible individuals participating 
                in the project will decline if the amount available to 
                pay administrative costs is not increased; or
                  ``(iii) the size of the project is so small that the 
                amount of administrative costs incurred to carry out 
                the project necessarily exceeds 13.5 percent of the 
                cost of such project;
        the Secretary shall increase the amount available for such 
        fiscal year to pay administrative costs to an amount not to 
        exceed 15 percent of the cost of such project.
  ``(4) Administrative costs are the costs, both personnel and non-
personnel and both direct and indirect, associated with the following:
          ``(A) The costs of performing general administrative 
        functions and of providing for the coordination of functions, 
        such as--
                  ``(i) accounting, budgeting, financial, cash 
                management and related data processing;
                  ``(ii) quality assurance;
                  ``(iii) preparing program plans;
                  ``(iv) procurement and purchasing;
                  ``(v) property management;
                  ``(vi) personnel management, including personnel 
                administration, administration of affirmative action 
                plans, and training and staff development;
                  ``(vii) administrative salaries, including clerical 
                and other support staff salaries;
                  ``(viii) payroll functions;
                  ``(ix) coordinating the resolution of findings 
                arising from audits, reviews, investigations, and 
                incident reports;
                  ``(x) audit;
                  ``(xi) general legal services;
                  ``(xii) developing systems and procedures, including 
                information systems, required for administrative 
                functions;
                  ``(xiii) preparing reports; and
                  ``(xiv) other activities necessary for the general 
                administration of government funds and associated 
                programs.
          ``(B) The costs of performing oversight and monitoring 
        responsibilities.
          ``(C) The costs of goods and services required for 
        administrative functions of such program, including goods and 
        services such as rental or purchase of equipment, utilities, 
        office supplies, postage, and rental and maintenance of office 
        space.
          ``(D) The travel costs incurred for official business in 
        carrying out such program, excluding travel costs related to 
        providing services.
          ``(E) The costs of information systems related to personnel, 
        procurement, purchasing, property management, accounting, and 
        payroll systems), including the purchase, systems development, 
        and operating costs of such systems.
          ``(F) The costs of technical assistance, professional 
        organization membership dues, removal of architectural 
        barriers, operating and maintaining assistive technology, and 
        evaluating program results against stated objectives.
  ``(5) To the extent practicable, an entity that carries out a project 
under this title shall provide for the payment of the expenses 
described in paragraph (4) from non-Federal sources.
  ``(6)(A) Amounts made available for a project under this title that 
are not used to pay for the administrative costs shall be used to pay 
for the costs of programmatic activities, including--
          ``(i) participant wages, such benefits as are required by law 
        (such as workers compensation or unemployment compensation) the 
        costs of physical examinations, compensation for scheduled work 
        hours during which an employer is closed for a Federal holiday, 
        and necessary sick leave that is not part of an accumulated 
        sick leave program, except that no amounts provided under this 
        title may be used to pay the cost of pension benefits, annual 
        leave, accumulated sick leave, or bonuses;
          ``(ii) participant training (including the payment of 
        reasonable costs of instructors, classroom rental, training 
        supplies, materials, equipment, and tuition) which may be 
        provided prior to or subsequent to placement and which may be 
        provided on the job, in a classroom setting or pursuant to 
        other appropriate arrangements;
          ``(iii) job placement assistance, including job development 
        and job search assistance;
          ``(iv) participant supportive services to enable a 
        participant to successfully participate in a project under this 
        title, which may include the payment of reasonable costs of 
        transportation, special job-related or personal counseling, 
        incidentals (such as work shoes, badges, uniforms, eyeglasses, 
        and tools), child and adult care, temporary shelter, and 
        follow-up services; and
          ``(v) outreach, recruitment, and selection, intake, 
        orientation, and assessments.
  ``(B) Not less than 65 percent of the funds made available under a 
grant made under this title (excluding a grant made under subsection 
(d)) shall be used to pay wages and benefits for eligible individuals 
who are employed under projects carried out under this title.
  ``(d) Pilot, Demonstration, and Evaluation Projects.--The Secretary 
shall use funds reserved under section 506(a)(1) to carry out 
demonstration projects, pilot projects, and evaluation projects, for 
the purpose of developing and implementing techniques and approaches, 
and demonstrating the effectiveness of the specialized methods, in 
addressing the employment and training needs of eligible individuals. 
Such projects may include--
          ``(1) activities linking businesses and eligible individuals, 
        including assistance to participants transitioning from 
        subsidized activities to private-sector employment; and
          ``(2) demonstration projects and pilot projects designed to--
                  ``(A) attract more eligible individuals into the 
                labor force;
                  ``(B) improve the provision of services to eligible 
                individuals under the One-Stop delivery system 
                established in accordance with title I of the Workforce 
                Investment Act of 1998;
                  ``(C) enhance the technological skills of eligible 
                individuals; and
                  ``(D) provide incentives to grantees under this title 
                for exemplary performance and incentives to businesses 
                to promote their participation in the program under 
                this title;
          ``(3) demonstration projects and pilot projects, as described 
        in paragraph (2), for older workers only if such demonstration 
        projects and pilot projects are designed to assist in 
        developing and implementing techniques and approaches in 
        addressing the employment and training needs of eligible 
        individuals;
          ``(4) training and technical assistance to support any 
        project funded under this title;
          ``(5) dissemination of best practices; and
          ``(6) evaluation of the activities authorized under this 
        title.

``SEC. 503. ADMINISTRATION.

  ``(a) State Plan.--
          ``(1) Chief executive officer submits plan.--For a State to 
        be eligible to receive an allotment under section, 506, the 
        chief executive officer of the State shall submit to the 
        Secretary for consideration and approval, a single State plan 
        (referred to in this title as the `State plan') that outlines a 
        3-year strategy for the statewide provision of training and 
        related activities for eligible individuals under this title. 
        The plan shall contain such provisions as the Secretary may 
        require, consistent with this title, including a description of 
        the process used to ensure the participation of individuals 
        described in paragraph (2).
          ``(2) Recommendations.--In developing the State plan prior to 
        its submission to the Secretary, the chief executive officer of 
        the State shall seek the advice and recommendations of--
                  ``(A) individuals representing the State agency and 
                the area agencies on aging in the State, and the State 
                and local workforce investment boards established under 
                title I of the Workforce Investment Act of 1998 (29 
                U.S.C. 2801 et seq.);
                  ``(B) individuals representing public and nonprofit 
                private agencies and organizations providing employment 
                services, including each grantee operating a project 
                under this title in the State; and
                  ``(C) individuals representing social service 
                organizations providing services to older individuals, 
                grantees under title III of this Act, affected 
                communities, unemployed older individuals, community-
                based organizations serving the needs of older 
                individuals, business organizations, and labor 
                organizations.
          ``(D) Comments.--Any State plan submitted by the chief 
        executive officer in accordance with paragraph (1) shall be 
        accompanied by copies of public comments relating to the plan 
        received pursuant to paragraph (4) and a summary thereof.
          ``(4) Plan provisions.--The State plan shall identify and 
        address--
                  ``(A) the relationship that the number of eligible 
                individuals in each area bears to the total number of 
                eligible individuals, respectively, in the State;
                  ``(B) the relative distribution of eligible 
                individuals residing in rural and urban areas in the 
                State; and
                  ``(C) the relative distribution of--
                          ``(i) eligible individuals who are 
                        individuals with greatest economic need;
                          ``(ii) eligible individuals who are minority 
                        individuals, including individuals who are 
                        limited English proficient; and
                          ``(iii) eligible individuals who are 
                        individuals with greatest social need;
                  ``(D) the current and projected employment 
                opportunities in the State, by occupation, and the type 
                of skills possessed by local eligible individuals;
                  ``(E) the localities and populations for which 
                projects of the type authorized by this title are most 
                needed; and
                  ``(F) plans for facilitating the coordination of 
                activities of grantees in the State under this title 
                with activities carried out in the State under title I 
                of the Workforce Investment Act of 1998.
          ``(5) Chief executive officer's recommendations on grant 
        proposals.--Before a proposal for a grant under this title for 
        any fiscal year is submitted to the Secretary, the chief 
        executive officer of each State in which projects are proposed 
        to be conducted under such grant shall be afforded a reasonable 
        opportunity to submit recommendations to the Secretary--
                  ``(A) regarding the anticipated effect of each such 
                proposal upon the overall distribution of enrollment 
                positions under this title in the State (including such 
                distribution among urban and rural areas), taking into 
                account the total number of positions to be provided by 
                all grantees in the State;
                  ``(B) any recommendations for redistribution of 
                positions to under served areas as vacancies occur in 
                previously encumbered positions in other areas; and
                  ``(C) in the case of any increase in funding that may 
                be available for use in the State under this title for 
                any fiscal year, any recommendations for distribution 
                of newly available positions in excess of those 
                available during the preceding year to underserved 
                areas.
          ``(6) Disruptions.--In developing plans and considering 
        recommendations under this subsection, disruptions in the 
        provision of services for current participants shall be avoided 
        to the greatest possible extent.
          ``(7) Determination; review.--
                  ``(A) Determination.--In order to effectively carry 
                out this title, each State shall make the State plan 
                available for public comment. The Secretary, in 
                consultation with the Assistant Secretary, shall review 
                the plan and make a written determination with findings 
                and a decision regarding the plan.
                  ``(B) Review.--The Secretary may review, on the 
                Secretary's own initiative or at the request of any 
                public or private agency or organization or of any 
                agency of the State, the distribution of projects and 
                services under this title in the State including the 
                distribution between urban and rural areas in the 
                State. For each proposed reallocation of projects or 
                services in a State, the Secretary shall give notice 
                and opportunity for public comment.
          ``(8) Exemption.--The grantees that serve eligible 
        individuals who are older Indians with funds reserved under 
        section 506(a)(3) may not be required to participate in the 
        State planning processes described in this section but will 
        collaborate with the Secretary to develop a plan for projects 
        and services to eligible individuals who are Indians.
  ``(b) Coordination With Other Federal Programs.--
          ``(1) The Secretary and the Assistant Secretary shall 
        coordinate the program carried out under this title with 
        programs carried out under other titles of this Act, to 
        increase job opportunities available to older individuals.
          ``(2) The Secretary shall coordinate programs carried out 
        under this title with the program carried out under the 
        Workforce Investment Act of 1998, the Community Services Block 
        Grant Act, the Rehabilitation Act of 1973, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 U.S.C. 2301 
        et seq.), the National and Community Service Act of 1990 (42 
        U.S.C. 12501 et seq.), and the Domestic Volunteer Service Act 
        of 1973 (42 U.S.C. 4950 et seq.). The Secretary shall 
        coordinate the administration of this title with the 
        administration of other titles of this Act by the Assistant 
        Secretary to increase the likelihood that eligible individuals 
        for whom employment opportunities under this title are 
        available and who need services under such titles receive such 
        services. Funds appropriated to carry out this title may not be 
        used to carry out any program under the Workforce Investment 
        Act of 1998, the Community Services Block Grant Act, the 
        Rehabilitation Act of 1973, the Carl D. Perkins Vocational and 
        Technical Education Act of 1998, the National and Community 
        Service Act of 1990, or the Domestic Volunteer Service Act of 
        1973. The preceding sentence shall not be construed to prohibit 
        carrying out projects under this title jointly with programs, 
        projects, or activities under any Act specified in such 
        sentence, or from carrying out section 512.
          ``(3) The Secretary shall distribute to grantees under this 
        title, for distribution to program participants, and at no cost 
        to grantees or participants, informational materials developed 
        and supplied by the Equal Employment Opportunity Commission and 
        other appropriate Federal agencies that the Secretary 
        determines are designed to help participants identify age 
        discrimination and to understand their rights under the Age 
        Discrimination in Employment Act of 1967.
  ``(c) In carrying out this title, the Secretary may use, with their 
consent, the services, equipment, personnel, and facilities of Federal 
and other agencies with or without reimbursement, and on a similar 
basis to cooperate with other public and private agencies and 
instrumentalities in the use of services, equipment, and facilities.
  ``(d) Payments under this title may be made in advance or by way of 
reimbursement and in such installments as the Secretary may determine.
  ``(e) The Secretary shall not delegate any function of the Secretary 
under this title to any other Federal officer or entity.
  ``(f)(1) The Secretary shall monitor projects for which grants are 
made under this title to determine whether the grantees are complying 
with rules and regulations issued to carry out this title (including 
the statewide planning, consultation, and coordination requirements of 
this title).
  ``(2) Each grantee that receives funds under this title shall comply 
with the applicable uniform cost principles and appropriate 
administrative requirements for grants and contracts that are 
applicable to the type of entity that receives funds, as issued as 
circulars or rules of the Office of Management and Budget.
  ``(3) Each grantee described in paragraph (2) shall prepare and 
submit a report in such manner and containing such information as the 
Secretary may require regarding activities carried out under this 
title.
  ``(4) Each grantee described in paragraph (2) shall keep records 
that--
          ``(A) are sufficient to permit the preparation of reports 
        required by this title;
          ``(B) are sufficient to permit the tracing of funds to a 
        level of expenditure adequate to ensure that the funds have not 
        been spent unlawfully; and
          ``(C) contain any other information that the Secretary 
        determines to be appropriate.
  ``(g) The Secretary shall establish by rule and implement a process 
to evaluate, in accordance with section 513, the performance of 
projects and services carried out under this title. The Secretary shall 
report to the Congress, and make available to the public, the results 
of each such evaluation and shall use such evaluation to improve 
services delivered by, or the operation of, projects carried out under 
this title.

``SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES.

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

``SEC. 505. INTERAGENCY COOPERATION.

  ``(a) The Secretary shall consult with and obtain the written views 
of the Assistant Secretary before issuing rules and before establishing 
general policy in the administration of this title.
  ``(b) The Secretary shall consult and cooperate with the Director of 
the Office of Community Services, the Secretary of Health and Human 
Services, and the heads of other Federal agencies that carry out 
related programs, in order to achieve optimal coordination with such 
other programs. In carrying out this section, the Secretary shall 
promote programs or projects of a similar nature. Each Federal agency 
shall cooperate with the Secretary in disseminating information 
relating to the availability of assistance under this title and in 
promoting the identification and interests of individuals eligible for 
employment in projects assisted under this title.
  ``(c)(1) The Secretary shall promote and coordinate carrying out 
projects under this title jointly with programs, projects, or 
activities carried out under other Acts, especially activities provided 
under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.), 
including activities provided through One-Stop delivery systems 
established under section 134(c)) of such Act (29 U.S.C. 2864(c)), that 
provide training and employment opportunities to eligible individuals.
  ``(2) The Secretary shall consult with the Secretary of Education to 
promote and coordinate carrying out projects under this title jointly 
with workforce investment activities in which eligible individuals may 
participate that are carried out under the Carl D. Perkins Vocational 
and Technical Education Act of 1998.

``SEC. 506. DISTRIBUTION OF ASSISTANCE.

  ``(a) Reservations.--
          ``(1) Reservation for national activities.--Of the funds 
        appropriated to carry out this title for each fiscal year, the 
        Secretary may first reserve up to 1.5 percent to carry out 
        demonstration projects, pilot projects, and evaluation projects 
        under section 502(d).
          ``(2) Reservation for territories.--Of the funds appropriated 
        to carry out this title for each fiscal year, the Secretary 
        shall reserve up to 0.75 percent, of which--
                  ``(A) Guam, American Samoa, and the United States 
                Virgin Islands shall each receive 30 percent of the 
                funds so reserved; and
                  ``(B) the Commonwealth of the Northern Mariana 
                Islands shall receive 10 percent of the funds so 
                reserved.
          ``(3) Reservation for organizations.--Of the funds 
        appropriated to carry out this title for each fiscal year, the 
        Secretary shall reserve such amount as may be necessary to make 
        national grants to public or nonprofit national Indian aging 
        organizations with the ability to provide authorized activities 
        for eligible individuals who are Indians and to national public 
        or nonprofit Pacific Island and Asian American aging 
        organizations with the ability to provide authorized activities 
        for eligible individuals who are Pacific Island and Asian 
        Americans.
  ``(b) State Allotments.--The allotment for each State shall be the 
sum of the amounts allotted for national grants in such State under 
subsection (d) and for the grant to such State under subsection (e).
  ``(c) Division Between National Grants and Grants to States.--The 
funds appropriated to carry out this title for any fiscal year that 
remain after amounts are reserved under paragraphs (1), (2), and (3) of 
subsection (a), shall be divided by the Secretary between national 
grants and grants to States as follows:
          ``(1) Reservation of funds for fiscal year 2006 level of 
        activities.--
                  ``(A) The Secretary shall reserve the amount of funds 
                necessary to maintain the fiscal year 2006 level of 
                activities supported by grantees that operate under 
                this title under national grants from the Secretary, 
                and the fiscal year 2006 level of activities supported 
                by State grantees under this title, in proportion to 
                their respective fiscal year 2006 levels of activities.
                  ``(B) If in any fiscal year for which the funds 
                appropriated to carry out this title are insufficient 
                to satisfy the requirement specified in subparagraph 
                (A), then the amount described in subparagraph (A) 
                shall be reduced proportionally.
          ``(2) Funding in excess of fiscal year 2006 level of 
        activities.--
                  ``(A) Up to $35,000,000.--The amount of funds 
                remaining after the application of paragraph (1), but 
                not to exceed $35,000,000, shall be divided so that 75 
                percent shall be provided to State grantees and 25 
                percent shall be provided to grantees that operate 
                under this title under national grants from the 
                Secretary.
                  ``(B) Over $35,000,000.--The amount of funds 
                remaining (if any) after the application of 
                subparagraph (A) shall be divided so that 50 percent 
                shall be provided to State grantees and 50 percent 
                shall be provided to grantees that operate under this 
                title under national grants from the Secretary.
  ``(d) Allotments for National Grants.--From funds available under 
subsection (c) for national grants, the Secretary shall allot for 
public and nonprofit private agency and organization grantees that 
operate under this title under national grants from the Secretary in 
each State, an amount that bears the same ratio to such funds as the 
product of the number of individuals 55 years of age or older in the 
State and the allotment percentage of such State bears to the sum of 
the corresponding products for all States, except as follows:
          ``(1) Minimum allotment.--No State shall be provided an 
        amount under this subsection that is less than \1/2\ of 1 
        percent of the amount provided under subsection (c) for public 
        and nonprofit private agency and organization grantees that 
        operate under this title under national grants from the 
        Secretary in all of the States.
          ``(2) Hold harmless.--If the amount provided under subsection 
        (c) is--
                  ``(A) equal to or less than the amount necessary to 
                maintain the fiscal year 2006 level of activities, 
                allotments for grantees that operate under this title 
                under national grants from the Secretary in each State 
                shall be proportional to their fiscal year 2006 level 
                of activities; or
                  ``(B) greater than the amount necessary to maintain 
                the fiscal year 2006 level of activities, no State 
                shall be provided a percentage increase above the 
                fiscal year 2006 level of activities for grantees that 
                operate under this title under national grants from the 
                Secretary in the State that is less than 30 percent of 
                such percentage increase above the fiscal year 2006 
                level of activities for public and nonprofit private 
                agency and organization grantees that operate under 
                this title under national grants from the Secretary in 
                all of the States.
          ``(3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be reduced 
        proportionally to satisfy the conditions in such paragraphs.
  ``(e) Allotments for Grants to States.--From the amount provided for 
grants to States under subsection (c), the Secretary shall allot for 
the State grantee in each State an amount that bears the same ratio to 
such amount as the product of the number of individuals 55 years of age 
or older in the State and the allotment percentage of such State bears 
to the sum of the corresponding product for all States, except as 
follows:
          ``(1) Minimum allotment.--No State shall be provided an 
        amount under this subsection that is less than \1/2\ of 1 
        percent of the amount provided under subsection (c) for State 
        grantees in all of the States.
          ``(2) Hold harmless.--If the amount provided under subsection 
        (c) is--
                  ``(A) equal to or less than the amount necessary to 
                maintain the fiscal year 2006 level of activities, 
                allotments for State grantees in each State shall be 
                proportional to their fiscal year 2006 level of 
                activities; or
                  ``(B) greater than the amount necessary to maintain 
                the fiscal year 2006 level of activities, no State 
                shall be provided a percentage increase above the 
                fiscal year 2006 level of activities for State grantees 
                in the State that is less than 30 percent of such 
                percentage increase above the fiscal year 2006 level of 
                activities for State grantees in all of the States.
          ``(3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be reduced 
        proportionally to satisfy the conditions in such paragraphs.
  ``(f) Allotment Percentage.--For purposes of subsections (d) and 
(e)--
          ``(1) the allotment percentage of each State shall be 100 
        percent less that percentage that bears the same ratio to 50 
        percent as the per capita income of such State bears to the per 
        capita income of the United States, except that--
                  ``(A) the allotment percentage shall be not more than 
                75 percent and not less than 33 percent; and
                  ``(B) the allotment percentage for the District of 
                Columbia and the Commonwealth of Puerto Rico shall be 
                75 percent;
          ``(2) the number of individuals 55 years of age or older in 
        any State and in all States, and the per capita income in any 
        State and in all States, shall be determined by the Secretary 
        on the basis of the most satisfactory data available to the 
        Secretary; and
          ``(3) for the purpose of determining the allotment 
        percentage, the term `United States' means the 50 States and 
        the District of Columbia.
  ``(g) Definitions.--For purposes of this section:
          ``(1) Cost per authorized position.--The term `cost per 
        authorized position' means the sum of--
                  ``(A) the hourly minimum wage rate specified in 
                section 6(a)(1) of the Fair Labor Standards Act of 1938 
                (29 U.S.C. 206(a)(1)), multiplied by the number of 
                hours equal to the product of 21 hours and 52 weeks;
                  ``(B) an amount equal to 11 percent of the amount 
                specified under subparagraph (A), for the purpose of 
                covering Federal payments for fringe benefits; and
                  ``(C) an amount determined by the Secretary, for the 
                purpose of covering Federal payments for the remainder 
                of all other program and administrative costs.
          ``(2) Fiscal year 2006 level of activities.--The term `fiscal 
        year 2006 level of activities' means--
                  ``(A) with respect to public and nonprofit private 
                agency and organization grantees that operate under 
                this title under national grants from the Secretary, 
                their level of activities for fiscal year 2006; and
                  ``(B) with respect to State grantees, their level of 
                activities for fiscal year 2006.
          ``(3) Grants to states.--The term `grants to States' means 
        grants made under this title by the Secretary to the States.
          ``(4) Level of activities.--The term `level of activities' 
        means the number of authorized positions multiplied by the cost 
        per authorized position.
          ``(5) National grants.--The term `national grants' means 
        grants made under this title by the Secretary to public and 
        nonprofit private agency and organization grantees that operate 
        under this title under national grants from the Secretary.
          ``(6) State.--The term `State' does not include Guam, 
        American Samoa, the Commonwealth of the Northern Mariana 
        Islands, and the United States Virgin Islands.

``SEC. 507. EQUITABLE DISTRIBUTION.

  ``(a) Interstate Allocation.--In making grants under section 506, the 
Secretary shall ensure, to the extent feasible, an equitable 
distribution of activities under such grants, in the aggregate, among 
the States, taking into account the needs of underserved States.
  ``(b) Intrastate Allocation.--The amount allocated for projects 
within each State under section 506 shall be allocated among areas in 
the State in an equitable manner, taking into consideration the State 
priorities set out in the State plan in effect under section 503(a).

``SEC. 508. REPORT.

  ``To carry out the Secretary's responsibilities for reporting in 
section 503(g), the Secretary shall require the State agency for each 
State that receives funds under this title to prepare and submit a 
report at the beginning of each fiscal year on such State's compliance 
with section 507(b). Such report shall include the names and geographic 
location of all projects assisted under this title and carried out in 
the State and the amount allocated to each such project under section 
506.

``SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND FOOD STAMP 
                    PROGRAMS.

  ``Funds received by eligible individuals from projects carried out 
under the program established in this title shall not be considered to 
be income of such individuals for purposes of determining the 
eligibility of such individuals, or of any other individuals, to 
participate in any housing program for which Federal funds may be 
available or for any income determination under the Food Stamp Act of 
1977.

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

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

``SEC. 511. TREATMENT OF ASSISTANCE.

  ``Assistance provided under this title shall not be considered to be 
financial assistance described in section 245A(h)(1)(A) of the 
Immigration and Nationality Act (8 U.S.C. 1255A(h)(1)(A)).

``SEC. 512. COORDINATION WITH THE WORKFORCE INVESTMENT ACT OF 1998.

  ``(a) Partners.--Grantees under this title shall be One-Stop partners 
as described in subparagraphs (A) and (B)(vi) of section 121(b)(1) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2841(b)(1)) in the One-
Stop delivery system established under section 134(c)) of such Act (29 
U.S.C. 2864(c))) for the appropriate local workforce investment areas, 
and shall carry out the responsibilities relating to such partners.
  ``(b) Coordination.--In local workforce investment areas where more 
than 1 grantee under this title provides services, the grantees shall--
          ``(1) coordinate their activities related to the One-Stop 
        delivery system; and
          ``(2) shall be signatories of the memorandum of understanding 
        established under section 121(c) of the Workforce Investment 
        Act of 1998 (29 U.S.C. 2841(c)).

``SEC. 513. PERFORMANCE.

  ``(a) Measures.--
          ``(1) Establishment of measures.--The Secretary shall 
        establish, in consultation with grantees, subgrantees, and host 
        agencies under this title, States, older individuals, area 
        agencies on aging, and other organizations serving older 
        individuals, performance measures for each grantee for projects 
        and services carried out under this title.
          ``(2) Content.--
                  ``(A) Composition of measures.--The performance 
                measures established by the Secretary in accordance 
                with paragraph (1) shall consist of--
                          ``(i) core indicators of performance 
                        specified in subsection (b)(1) and the expected 
                        levels of performance applicable to each core 
                        indicator of performance, and
                          ``(ii) additional indicators of performance 
                        specified in subsection (b)(2)
                  ``(B) Continuous improvement.--The measures described 
                in subparagraph (A)(i) shall be designed to promote 
                continuous improvement in performance.
                  ``(C) Expected levels of performance.--The Secretary 
                and each grantee shall reach agreement on the expected 
                levels of performance for each program year for each of 
                the core indicators of performance specified in 
                subsection (b)(1). The agreement shall take into 
                account the factors described in subparagraphs (B) and 
                (D) and other appropriate factors as determined by the 
                Secretary, and shall be consistent with the 
                requirements of subparagraph (E). Funds under the grant 
                may not be awarded until such agreement is reached.
                  ``(D) Adjustment.--The expected levels of performance 
                described in subparagraph (C) applicable to a grantee 
                shall be adjusted after the agreement under 
                subparagraph (C) has been reached only with respect to 
                the following factors:
                          ``(i) High rates of unemployment or of 
                        poverty or welfare participation, in the areas 
                        served by a grantee, relative to other areas of 
                        the State or Nation.
                          ``(ii) Significant downturns in the areas 
                        served by the grantee or in the national 
                        economy.
                          ``(iii) Significant numbers or proportions of 
                        participants with 1 or more barriers to 
                        employment served by a grantee relative to 
                        grantees serving other areas of the State or 
                        Nation.
                          ``(iv) Changes in Federal, State, or local 
                        minimum wage requirements.
                  ``(E) Placement.--
                          ``(i) Level of performance.--For all 
                        grantees, the Secretary shall establish a level 
                        of performance of not less than the percentage 
                        specified in clause (ii) (adjusted in 
                        accordance with subparagraph (D)) for the entry 
                        into unsubsidized employment core indicator of 
                        performance described in subsection (b)(1)(A). 
                        If a grantee achieved a level of performance 
                        less than the percentage specified in such 
                        clause for the preceding fiscal year for which 
                        results are available before the enactment of 
                        the Senior Independence Act of 2006, the 
                        Secretary shall provide technical assistance to 
                        assist such grantee to achieve the applicable 
                        percentage specified in such clause.
                          ``(ii) Required placement percentages.--The 
                        minimum percentage for the entry into 
                        unsubsidized employment described in subsection 
                        (b)(1)(A) is--
                                  ``(I) 22 percent in fiscal year 2007;
                                  ``(II) 24 percent in fiscal year 
                                2008;
                                  ``(III) 26 percent in fiscal year 
                                2009;
                                  ``(IV) 28 percent in fiscal year 
                                2010; and
                                  ``(V) 30 percent in fiscal year 2011.
          ``(3) Performance evaluation of grantees.--The Secretary 
        shall annually establish national performance measures for each 
        grantee under this title, which shall be applicable to the 
        grantee without regard to whether such grantee operates such 
        program directly or through contracts, grants, or agreements 
        with other entities. The measures shall include the core 
        indicators of performance and expected level of performance for 
        each such indicator, and the additional indicators of 
        performance. In addition, the Secretary shall annually publish 
        the actual performance of each grantee with respect to--
                  ``(A) the levels achieved for each of the core 
                indicators of performance, compared to expected levels 
                of performance under paragraph (2)(C) (including any 
                adjustments to such levels made in accordance with to 
                paragraph (2)(D)); and
                  ``(B) the levels achieved for each of the additional 
                indicators of performance.
          ``(4) Limitation.--An agreement to be evaluated on the 
        performance measures shall be a requirement for application 
        for, and a condition of, all grants authorized by this title.
  ``(b) Indicators of Performance.--
          ``(1) Core indicators.--The core indicators of performance 
        described in subsection (a)(2)(A)(i) shall consist of--
                  ``(A) entry into unsubsidized employment;
                  ``(B) retention in unsubsidized employment for 6 
                months;
                  ``(C) earnings; and
                  ``(D) hours (in the aggregate) of community service 
                employment-based training pursuant to subparagraphs (A) 
                and (B)(I) of section 502(b)(1); and
          ``(2) Additional indicators.--The additional indicators of 
        performance described in subsection (a)(2)(A)(ii) shall consist 
        of--
                  ``(A) retention in unsubsidized employment for 1 
                year;
                  ``(B) the number of eligible individuals served, 
                including the number of participating individuals 
                described in section 516(2)(A)(ii), and
                  ``(C) any other indicators of performance that the 
                Secretary determines to be appropriate to evaluate 
                services and performance.
  ``(c) Definitions of Indicators.--The Secretary, after consultation 
with national and State grantees, representatives of business and labor 
organizations, and providers of services, shall issue rules that define 
the indicators of performance described in subsection (b).
  ``(d) Corrective Efforts.--
          ``(1) National grantees.--
                  ``(A) In general.--Not later than 120 days after the 
                end of each program year, the Secretary shall determine 
                if a national grantee awarded a grant under section 514 
                has met the expected levels of performance established 
                under subsection (a)(2)(c) (including any adjustments 
                to such levels made in accordance with to subsection 
                (a)(2)(D)) for the core indicators of performance 
                described in subsection (b)(1).
                  ``(B) Technical assistance and corrective action 
                plan.--
                          ``(i) In general.--If the Secretary 
                        determines that a grantee fails to meet the 
                        expected levels of performance described in 
                        paragraph (1), the Secretary shall provide 
                        technical assistance and require such grantee 
                        to submit a corrective action plan not later 
                        than 160 days after the end of the program 
                        year.
                          ``(ii) Content.--The plan submitted under 
                        subparagraph (A) shall detail the steps the 
                        grantee will take to meet the national 
                        performance measures in the next program year.
          ``(2) State grantees.--
                  ``(A) In general.--Not later than 120 days after the 
                end of the program year, the Secretary shall determine 
                if a State grantee allotted funds under section 506(e) 
                has met the expected levels of performance established 
                under subsection (a)(2)(C) (including any adjustments 
                to such levels made in accordance with to subsection 
                (a)(2)(D)) for the core indicators of performance 
                described in subsection (b)(1).
                  ``(B) Technical assistance and corrective action 
                plan.--If a State fails to meet the levels of 
                performance described in subparagraph (A), the 
                Secretary shall provide technical assistance and 
                require the State to submit a corrective action plan 
                not later than 160 days after the end of the program 
                year.
                  ``(C) Content.--The plan described in subparagraph 
                (B) shall detail the steps the State will take to meet 
                the standards.
                  ``(D) Failure to meet performance measures for second 
                and third years.--
                          ``(i) After second year of failure.--If a 
                        State fails to meet the levels of performance 
                        described in subparagraph (A) for a second 
                        consecutive program year, the Secretary shall 
                        provide for the conduct by the State of a 
                        competition to award, for the first full 
                        program year following the determination 
                        (minimizing, to the extent possible, the 
                        disruption of services provided to 
                        participants), an amount equal to 25 percent of 
                        the funds available to the State for such year.
                          ``(ii) After third year of failure.--If the 
                        State fails to meet the levels of performance 
                        described in subparagraph (A) for a third 
                        consecutive program year, the Secretary shall 
                        provide for the conduct by the State of a 
                        competition to award the funds allocated to the 
                        State for the first full program year following 
                        the Secretary's determination that the State 
                        has not met the performance measures.

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

  ``(a) Program Authorized.--From the funds available for national 
grants under section 506(d), the Secretary shall award grants to 
eligible applicants to carry out projects under this title through a 
competitive process that is conducted every 3 years.
  ``(b) Eligible Applicants.--An applicant shall be eligible to receive 
a grant under subsection (a) in accordance with section 502(b)(1), and 
subsections (c) and (d).
  ``(c) Criteria.--The Secretary shall select the eligible applicants 
to receive grants under subsection (a) based on the following:
          ``(1) The applicant's ability to administer a program that 
        serves the greatest number of eligible individuals, giving 
        particular consideration to individuals with greatest economic 
        need, greatest social need, poor employment history or 
        prospects, and over the age of 65.
          ``(2) The applicant's ability to administer a program that 
        provides employment for eligible individuals in the communities 
        in which such individuals reside, or in nearby communities, 
        that will contribute to the general welfare of the community.
          ``(3) The applicant's ability to administer a program that 
        moves eligible individuals into unsubsidized employment.
          ``(4) The applicant's prior performance, if any, in meeting 
        performance measures under this title and under other Federal 
        or State programs.
          ``(5) The applicant's ability to move individuals with 
        multiple barriers to employment into unsubsidized employment.
          ``(6) The applicant's ability to coordinate with other 
        organizations at the State and local level.
          ``(7) The applicant's plan for fiscal management of the 
        program to be administered with funds received under this 
        section.
          ``(8) Any additional criteria that the Secretary considers to 
        be appropriate in order to minimize disruption for current 
        participants.
  ``(d) Responsibility Tests.--
          ``(1) In general.--Before final selection of a grantee, the 
        Secretary shall conduct a review of available records to assess 
        the applicant's overall responsibility to administer Federal 
        funds.
          ``(2) Review.--As part of the review described in paragraph 
        (1), the Secretary may consider any information, including the 
        organization's history with regard to the management of other 
        grants.
          ``(3) Failure to satisfy test.--The failure to satisfy any 1 
        responsibility test that is listed in paragraph (4), excluding 
        those listed in subparagraphs (A) and (B), does not establish 
        that the organization is not responsible unless such failure is 
        substantial or persists for 2 or more consecutive years.
          ``(4) Test.--The responsibility tests include review of the 
        following factors:
                  ``(A) Unsuccessful efforts by the organization to 
                recover debts, after 3 demand letters have been sent, 
                that are established by final agency action, or a 
                failure to comply with an approved repayment plan.
                  ``(B) Established fraud or criminal activity of a 
                significant nature within the organization.
                  ``(C) Serious administrative deficiencies identified 
                by the Secretary, such as failure to maintain a 
                financial management system as required by Federal 
                rules or regulations.
                  ``(D) Willful obstruction of the audit process.
                  ``(E) Failure to provide services to applicants as 
                agreed to in a current or recent grant or to meet 
                applicable performance measures.
                  ``(F) Failure to correct deficiencies brought to the 
                grantee's attention in writing as a result of 
                monitoring activities, reviews, assessments, or other 
                activities.
                  ``(G) Failure to return a grant closeout package or 
                outstanding advances within 90 days of the grant 
                expiration date or receipt of closeout package, 
                whichever is later, unless an extension has been 
                requested and granted.
                  ``(H) Failure to submit required reports.
                  ``(I) Failure to properly report and dispose of 
                Government property as instructed by the Secretary.
                  ``(J) Failure to have maintained effective cash 
                management or cost controls resulting in excess cash on 
                hand.
                  ``(K) Failure to ensure that a subrecipient complies 
                with its Office of Management and Budget Circular A-133 
                audit requirements specified at section 667.200(b) of 
                title 20, Code of Federal Regulations.
                  ``(L) Failure to audit a subrecipient within the 
                required period.
                  ``(M) Final disallowed costs in excess of 5 percent 
                of the grant or contract award if, in the judgment of 
                the grant officer, the disallowances are egregious 
                findings.
                  ``(N) Failure to establish a mechanism to resolve a 
                subrecipient's audit in a timely fashion.
          ``(5) Determination.--Applicants that are determined to be 
        not responsible shall not be selected as grantees.
          ``(6) Disallowed costs.--Interest on disallowed costs shall 
        accrue in accordance with the Debt Collection Improvement Act 
        of 1996.

``SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) There is authorized to be appropriated to carry out this title 
such sums as may be necessary for fiscal years 2007, 2008, 2009, 2010, 
and 2011.
  ``(b) Amounts appropriated under this section for any fiscal year 
shall be available for obligation during the annual period that begins 
on July 1 of the calendar year immediately following the beginning of 
such fiscal year and that ends on June 30 of the following calendar 
year. The Secretary may extend the period during which such amounts may 
be obligated or expended in the case of a particular organization or 
agency that receives funds under this title if the Secretary determines 
that such extension is necessary to ensure the effective use of such 
funds by such organization or agency.
  ``(c) At the end of the program year, the Secretary may recapture any 
unexpended funds for the program year, and reobligate such funds within 
the 2 succeeding program years for--
          ``(1) technical assistance; or
          ``(2) grants or contracts for any other program under this 
        title.

``SEC. 516. DEFINITIONS.

  ``For purposes of this title:
          ``(1) Community service employment-based training.--The term 
        `community service employment-based training' means work 
        experience that is related to providing social, health, 
        welfare, and educational services (including literacy 
        tutoring), legal and other counseling services and assistance, 
        including tax counseling and assistance and financial 
        counseling, and library, recreational, and other similar 
        services; conservation, maintenance, or restoration of natural 
        resources; community betterment or beautification; 
        antipollution and environmental quality efforts; weatherization 
        activities; economic development; and such other services 
        essential and necessary to the community as the Secretary 
        determines by rule.
          ``(2) Eligible individual.--The term `eligible individual' 
        means an individual who is 55 years of age or older and who has 
        a low income (including any such individual whose income is not 
        more that 125 percent of the poverty line), excluding any 
        income that is unemployment compensation, benefits received 
        under title XVI of the Social Security Act, veterans payments, 
        or 25 percent of the benefits received under title II of the 
        Social Security Act, but--
                  ``(A) pursuant to regulations prescribed by the 
                Secretary, any such individual who meets one or more of 
                the following criteria shall have priority for the work 
                opportunities provided under this title--
                          ``(i) is 65 years of age or older; or
                          ``(ii) has one or more of the following 
                        barriers to employment:
                                  ``(I) has a disability;
                                  ``(II) has limited English 
                                proficiency or low literacy skills;
                                  ``(III) resides in a rural area;
                                  ``(IV) is a veteran;
                                  ``(V) has low employment prospects; 
                                or
                                  ``(VI) has failed to find employment 
                                after utilizing services provided under 
                                title I of the Workforce Investment Act 
                                of 1998; and
                  ``(B) notwithstanding any other provision of this 
                paragraph, excludes--
                          ``(i) an individual who has participated in 
                        projects under this title for a period of 48 
                        months in the aggregate (whether or not 
                        consecutive) after the date of the enactment of 
                        the Senior Independence Act of 2006; and
                          ``(ii) an individual who has participated in 
                        projects under this title for a period of 24 
                        months in the aggregate (whether or not 
                        consecutive) after the date of the enactment of 
                        the Senior Independence Act of 2006 if such 
                        individual participated more than 24 months in 
                        the aggregate (whether or not consecutive) 
                        under title V of this Act, as in effect before 
                        the date of the enactment of the Senior 
                        Independence Act of 2006.
          ``(3) Low income.--The term `low income' means income 
        received during the 12-month period (or, at the option of the 
        grantee involved, the 6-month period that is not multiplied) 
        ending on the date an eligible individual submits an 
        application to participate in the project carried out under 
        this title by such grantee.
          ``(4) Pacific island and asian americans.--The term `Pacific 
        Island and Asian Americans' means Americans having origins in 
        any of the original peoples of the Far East, Southeast Asia, 
        the Indian Subcontinent, or the Pacific Islands.
          ``(5) Program.--The term `program' means the older American 
        community service employment-based training program established 
        under this title.
          ``(6) Supportive services.--The term `supportive services' 
        means services such as transportation, child care, dependent 
        care, housing, and needs-related payments, that are necessary 
        to enable an individual to participate in activities authorized 
        under this title, consistent with the provisions of this title.
          ``(7) Unemployed individual.--The term `unemployed 
        individual' means an individual who is without a job and who 
        wants and is available for work, including an individual who 
        may have occasional employment that does not result in a 
        constant source of income.''.

SEC. 39. NATIVE AMERICANS CAREGIVER SUPPORT PROGRAM.

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

SEC. 40. 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. 41. NATIVE AMERICAN ORGANIZATION PROVISIONS.

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

SEC. 42. ELDER ABUSE, NEGLECT, AND EXPLOITATION PREVENTION.

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

SEC. 43. TECHNICAL AMENDMENTS.

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

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

                                Purpose

    H.R. 5293, the Senior Independence Act of 2006, amends the 
Older Americans Act to authorize appropriations for fiscal 
years 2007 through 2011; and for other purposes.

                            Committee Action


                           COMMITTEE HEARINGS

    On May 25, 2005, the Subcommittee on Select Education held 
a hearing entitled An Examination of the Older Americans Act. 
The hearing was the first in a series of hearings to review the 
implementation of the amendments to the law enacted in 2000, 
explore issues facing today's seniors, and to begin debating 
the appropriate federal response to these circumstances. The 
witnesses who testified before the Subcommittee included: Joan 
Lawrence, Director of the Ohio Department of Aging, Columbus, 
OH; Michael O'Donnell, Executive Director of the East Central 
Illinois Area Agency on Aging (AAA), Bloomington, IL; Jane 
Metzger, President Elect of the Meals on Wheels Association of 
America, Topeka, KS; and Jesse Leos, National Director of the 
Senior Community Service Employment Program (SCSEP) Program of 
SER-Jobs for Progress, Inc., Irving, TX.
    On April 3, 2006 the Subcommittee on Education Reform held 
a field hearing entitled The Older Americans Act: Strengthening 
Communities to Support the Next Generation of Older Americans 
at the University of Texas Pan-American in Edinburg, TX. The 
hearing allowed Members to gain a local perspective on issues 
involved in the Older Americans Act. The witnesses included: 
Karl Urban, Manager of Policy Analysis and Support at the Texas 
Department of Aging and Disability, Austin, TX; Armondo 
Dominguez, Assistant Director of the Center on Aging and Health 
at the University of Texas-Pan American, Edinburg, TX; Marlon 
Sullivan, Senior Director of Staffing of The Home Depot, 
Atlanta, GA; Jose Perez, Executive Director of the Senior 
Community Outreach Services, Inc., Donna, TX; and Rosa 
Anzaldua, program participant at Amigos del Valle, Mission, TX.
    On April 28, 2006, the Subcommittee on Select Education 
held a second field hearing, entitled The Older Americans Act: 
Improving Quality of Life for Aging Americans, at the 
Westerville Senior Center in Westerville, OH. The field hearing 
allowed Members to gain more information and recommendations 
for reauthorization at the local level. The Witnesses included: 
Elise Geig, Legislative Liaison at the Ohio Department of 
Aging, Columbus, OH; David Bibler, Executive Director of the 
Licking County Aging Program, Newark, OH; Charles Gehring, 
President and CEO of Lifecare Alliance, Columbus, OH; Bob 
Horrocks, Executive Director of the Council for Older Adults of 
Delaware County, Columbus, OH; and Virginia Ragan, community 
representative for Westerville, OH.
    On May 2, 2006, the Subcommittee on Select Education held a 
hearing entitled The Senior Independence Act of 2006. The 
hearing was held to hear comments and recommendations on a 
discussion draft of the bill. The Witnesses included: Josefina 
Carbonell, Assistant Secretary for Aging at the Department of 
Health and Human Services, Washington, DC; Mason Bishop, Deputy 
Assistant Secretary for the Employment Training Administration 
at the Department of Labor, Washington, DC; Andre Bauer, 
Lieutenant Governor, SC; Vinsen Faris, Executive Director of 
Meals on Wheels of Johnson and Ellis Counties, Cleburne, TX; 
Ling Cheung, President of the Chinese American Senior Service 
Association, Montgomery County, MD; and Richard Browdie, 
President and CEO of the Benjamin Rose Institute, Cleveland, 
OH.

                           LEGISLATIVE ACTION

    On Thursday, May 4, 2006, Mr. Patrick J. Tiberi, along with 
Mr. Ruben Hinojosa, introduced H.R. 5293, the Senior 
Independence Act of 2006, a bill to reauthorize the Older 
Americans Act through 2011.
    On Wednesday, May 10, 2006, the Subcommittee on Education 
Reform considered H.R. 5293 in a legislative session and 
reported it favorably, as amended, to the Committee on 
Education and the Workforce by voice vote. The Subcommittee 
adopted the following amendments:
    An amendment in the nature of a substitute offered by Mr. 
Patrick J. Tiberi, adopted by voice vote. The substitute 
amendment contained changes to H.R. 5293 to:
           Make technical and clarifying amendments to 
        the legislation;
           Authorize caregivers of persons of any age 
        with Alzheimer's Disease to receive services under the 
        National Family Caregiver Support Program;
           Allow a grandparent caregiver who is 55 
        years of age or older to participate in the National 
        Family Caregiver Support program--an amendment of 
        particular interest to Mr. Danny K. Davis;
           Authorize additional activities to promote 
        the civic engagement of older Americans;
           Support the development, implementation, and 
        assessment of technologies that enable family and 
        professional caregivers to remotely monitor the health 
        status of older individuals residing in home and 
        community-based settings; and
           Reauthorize and make permanent activities of 
        national significance to support issues facing 
        caregivers, including: intergenerational family 
        support, the needs of persons with Alzheimer's disease, 
        and assistance to caregivers of a family member with a 
        disability.
    An amendment offered by Mr. Luis G. Fortuno, adopted by 
voice vote. Mr. Fortuno's amendment adds ``or who is an 
individual with a disability'' to the definition of a child 
under the Caregiver Support Program.
    On May 17, 2006 the Committee on Education and the 
Workforce considered H.R. 5293 in legislative session, and 
reported the bill favorably, as amended, to the House of 
Representatives by voice vote. The Committee adopted the 
following amendments:
    An amendment in the nature of a substitute offered by Mr. 
Howard P. ``Buck'' McKeon, adopted by voice vote. The 
substitute amendment contained the following technical and 
clarifying changes to H.R. 5293 to:
           Require the Assistant Secretary to make 
        available to States information and technical 
        assistance to support the provision of evidence-based 
        disease prevention and health promotion services;
           Encourage States, at their discretion, to 
        include information about the State's preparedness for 
        a change in the number of older individuals residing in 
        the State as part of their State plan;
           Reauthorize the Nutrition Services Incentive 
        Program and provide cash to all states for the 
        operation of nutrition programs authorized under the 
        Act. State Units on Aging could continue to purchase 
        and distribute commodities through another State 
        agency, or local meal providers could purchase 
        commodities through school food authorities within the 
        planning and service area;
           Recognize that older individuals with 
        disabilities may need access to assistive technologies 
        and other supportive services that may be provided 
        under the Act;
           Recognize the need for older individuals to 
        have access to mental health screening and, if 
        necessary, referrals for treatment;
           Require the Assistant Secretary, as part of 
        the program evaluation process, to prepare an analysis 
        of how the evaluation will be used to improve programs 
        and influence the Administration's strategic planning 
        process;
           Include ``hours of community service 
        employment-based training'' as a core indicator of 
        performance under the SCSEP program;
           Reinsert a current law requirement that 
        states include public comments as part of their SCSEP 
        plan submission;
           Clarify what constitutes barriers to 
        employment for purposes of adjusting the performance 
        measures;
           Specify that each SCSEP national grant will 
        last 3 years, as in current law;
           Allow current SCSEP participants to have at 
        least 24 months from date of enactment to transition to 
        unsubsidized employment;
           Ensure that individuals who have occasional 
        employment, such as lawn mowing or babysitting, still 
        could be eligible for the SCSEP program; and
           Include additional technical and clarifying 
        amendments.
    An Amendment offered by Mr. Mark E. Souder, adopted by 
voice vote. This amendment authorizes the Assistant Secretary 
to conduct an evidence-based evaluation of the nutrition 
programs included in the Act.
    An Amendment offered by Mr. John R. ``Randy'' Kuhl, adopted 
by voice vote. Mr. Kuhl's amendment authorizes federal entities 
to implement and build awareness of programs providing benefits 
to older Americans.
    An Amendment offered by Mr. Jon C. Porter and Mr. Danny K. 
Davis, adopted by voice vote. This Amendment strengthens 
efforts to prevent elder abuse and neglect and improves 
coordination of elder justice activities at the Federal, State, 
and local levels.
    An Amendment offered by Mr. Rush D. Holt, adopted by voice 
vote. This Amendment excludes certain sources of income for the 
purpose of determining eligibility for Title V. The amendment 
excludes SSDI, 25 percent of Social Security, veterans' 
payments, and unemployment compensation--all of which were 
previously not counted as income.
    An Amendment offered by Mr. Danny K. Davis and Mr. Jon C. 
Porter, adopted by voice vote. This Amendment supports 
consumer-driven models of home and community-based care and 
helps prevent high-risk individuals from spending down their 
savings to receive Medicaid.
    An Amendment offered by Mr. Raul M. Grijalva, adopted by 
voice vote. This Amendment changes the look-back period for 
determining an individual's income for purposes of SCSEP 
eligibility to allow grantees to either annualize six months of 
income or the individual's previous 12 months of income.
    An Amendment offered by Mr. Robert E. Andrews, adopted by 
voice vote. This Amendment encourages professionals who provide 
nutrition services under the Act to also provide information 
about the availability of flu shots.
    An Amendment offered by Mr. Robert E. Andrews, adopted by 
voice vote. This Amendment authorizes the Assistant Secretary 
to work in consultation with qualified experts to provide 
information on methods of improving indoor air quality to 
buildings where seniors congregate.

                                Summary

    H.R. 5293, the Senior Independence Act of 2006, 
reauthorizes all titles of the Older Americans Act through 2011 
and authorizes such sums as may be necessary to carry out 
programs and services under the Act.
    Title II of the Act stipulates functions of the Assistant 
Secretary in administering the Older Americans Act. The 
legislation strengthens the roles and responsibilities of the 
Secretary on Aging to assist states, area agencies on aging, 
and service providers to better serve older Americans.
    The Senior Independence Act seeks to improve coordination 
and cooperation among multiple federal agencies involved in 
programs and services for older Americans. The legislation 
requires the Assistant Secretary to coordinate federal elder 
justice activities, including elder abuse prevention, 
detection, intervention, and response; to consult and 
coordinate with the Centers for Medicare & Medicaid to assist 
in benefit enrollment and outreach; and to strengthen 
coordination at the federal, state, and local levels for long-
term care provided in home and community-based settings.
    H.R. 5293 encourages the Assistant Secretary to provide 
outreach and technical assistance to promote evidence-based 
health promotion and prevent disease prevention initiatives. 
Additionally, it requires the Assistant Secretary to provide 
information on methods to improve indoor air quality in 
buildings where seniors congregate.
    Title III of the Act authorizes grants and stipulates state 
requirements and conditions for receiving grants to operate 
state units on aging and fund local area agencies on aging 
within a state.
    Under the legislation, states and area agencies on aging 
are required to develop and implement a comprehensive, 
coordinated system for providing long-term care in home- and 
community-based settings. Additionally, it requires states to 
provide assurances to the Assistant Secretary that area 
agencies on aging will advance state efforts to furnish long-
term care services in a manner consistent with consumer focused 
self-directed care models.
    H.R. 5293 encourages both states and area agencies on aging 
to plan for demographic shifts that are expected to increase 
the population of older Americans. The legislation encourages 
states and area agencies on aging to conduct an assessment of 
anticipated change in the number of older individuals within 
the state or planning and service area, and to work in 
cooperation with public agencies and other state and community 
partners to prepare for an increased number of older Americans.
    H.R. 5293 also clarifies that service providers may enter 
into contractual, commercial, or private pay relationships 
provided that such provider operate in a manner consistent with 
the public purpose mission and targeting provision under the 
Act.
    The Senior Independence Act encourages efforts by states, 
area agencies on aging, and local providers to improve access 
to supportive services that help foster independence and 
maintain a good quality of life. The legislation encourages the 
creation of opportunities for civic engagement and seeks to 
enhance the coordination of senior volunteer programs. H.R. 
5293 requires public outreach to facilitate program access for 
eligible individuals with limited English proficiency, and 
promotes financial literacy and pension counseling for older 
Americans who may need assistance in planning for future 
financial needs, including budgeting for long-term care 
expenses. States and local providers also are encouraged to 
promote evidence-based preventive care, including screenings 
for nutritional deficiencies or impaired mental health, and 
access to assistive technology devices for older adults with 
disabilities.
    Title III of the Act authorizes the provision of home 
delivered and congregate meals to older individuals. H.R. 5293 
updates nutrition program requirements consistent with current 
science and the most recent Dietary Guidelines for Americans. 
To support this effort, the bill requires the Assistant 
Secretary to consult with experts in the field of nutrition 
science, dietetics, meal planning, food service, and aging, and 
to establish guidelines for the efficiency and quality of home 
delivered meals. The legislation simplifies nutrition 
requirements by allowing providers to average key nutrients 
over time.
    H.R. 5293 maintains the dual purpose of OAA nutrition 
programs to ensure the effective delivery of nutritious meals 
to older adults, and to provide opportunities for socialization 
and assistance in accessing other health and social services 
provided in and outside the aging network. The bill encourages 
local meal providers to provide information to homebound 
seniors on how to obtain an influenza vaccine in their area, 
and allows but does not require congregate meal providers to 
offer a single multivitamin-mineral supplement to seniors who 
also receive a meal. Older individuals participating in meal 
programs under the Act also are eligible to receive nutrition 
screening, nutrition education or counseling as needed to 
support the health of participants.
    The Senior Independence Act strengthens a current law 
provision allowing service providers to solicit voluntary 
contributions from eligible individuals who receive services. 
H.R. 5293 clarifies that service providers, including nutrition 
service providers may encourage voluntary contributions from 
clients. Providers are required to encourage such contributions 
for services provided to individuals with self-declared incomes 
at or above 125 percent of poverty.
    H.R. 5293 also reauthorizes the Nutrition Services 
Incentive Program, which provides commodity support to states 
and tribal organization operating senior nutrition programs. 
The legislation streamlines access to commodity foods by 
providing cash to purchase commodities through school food 
authorities.
    To ensure that nutrition services are effectively 
supporting the nutritional needs of program participants, H.R. 
5293 authorizes a study by the Institute of Medicine to 
evaluate the effectiveness of program, including the value of 
the investment in nutrition services funded under the Act.
    Title III of the Act also authorizes the National Family 
Caregiver Support Act. Under current law, this program provides 
caregiver support to relative caregivers of individuals age 60 
and over, and to grandparents who are the primary caregiver of 
grandchildren up to age 18. H.R. 5293 modifies eligibility for 
caregiver support by decreasing from 60 to 55 the age of 
eligibility for grandparent participation. The legislation also 
provides support to grandparents who care for an adult child 
with a disability. H.R. 5293 also authorizes caregiver support 
for relatives responsible for the care of an individual of any 
age who is diagnosed with Alzheimer's disease or a related 
neurological disorder.
    H.R. 5293 continues ongoing research and demonstration 
grants awarded competitively by the Assistant Secretary to 
support intergenerational programs, families who have a child 
with a disability, programs unique to rural areas, Alzheimer's 
programs, and family caregiver support programs.
    Under current law, the Assistant Secretary may use a 
limited amount of funds to conduct evaluations of programs and 
services funded by the Act. H.R. 5293 limits the total amount 
of funding that may be used for evaluation to an amount that 
does not exceed \1/2\ of 1 percent of title III appropriations.
    Title IV of the Act provides technical assistance and 
supports a range of ongoing research and demonstration 
activities designed to spur innovation and identify best 
practices in the field of aging. These activities as authorized 
under current law include career preparation in the field of 
aging, protection from violence projects, and grants to improve 
the delivery of health care services to older individuals 
residing in rural areas. H.R. 5293 authorizes the Secretary to 
use these funds, in part, to develop and assess technology-
based service models and best practices. The bill revises 
eligibility criteria for Career Preparation in the Field of 
Aging grants to include Hispanic serving organizations among 
the entities eligible to receive a grant.
    Title V of the Act authorizes community service employment 
and training for older Americans. H.R. 5293 revises the name of 
title V of the Act to the Older American Community Service 
Employment-Based Training Act. In addition, the bill revises 
the purposes of the program commonly called the Senior 
Community Service Employment Program (SCSEP). The bill 
authorizes the Secretary of Labor to establish an older 
American community service employment-based training program to 
foster and promote useful part-time public and private-sector 
employment-based training opportunities for unemployed low-
income eligible individuals who have poor employment prospects 
and to provide vital social and human services to communities 
by providing work experience to eligible individuals in public 
agencies, community-based and faith-based organizations.
    The bill requires that not less than 50 percent of hours 
are worked in authorized activities to be in community-service 
employment-based training provided by a grantee in a program 
year.
    Current law does not limit the duration of participation in 
SCSEP. The bill requires grantees to have an average period per 
capita that does not exceed 24 months (whether or not 
consecutive) during each program year in which the grantee has 
participated in the program.
    Current law permits work placements in publicly owned and 
operated facilities or in nonprofit organizations. In addition 
to these placements, H.R. 5293 also allows placements in for-
profit organizations.
    The bill allows grantees to provide payment for necessary 
supportive services costs to allow participants to participate 
in the program. The bill defines supportive services as 
services such as transportation, child care, dependent care, 
housing, and needs-related payments, which are necessary to 
enable an individual to participate in authorized activities 
under the program.
    Under current law, the administrative costs are costs both 
personnel and non-personnel and both direct and indirect 
associated with the following: (1) the costs of performing 
overall general administrative functions such as accounting, 
budgeting, financial, and cash management functions; 
procurement and purchasing functions; property management 
functions; personnel management functions; payroll functions; 
coordinating the resolution of findings arising from audits, 
reviews, investigations, and incident reports; audit functions; 
general legal services functions; and developing systems and 
procedures; (2) the costs of performing oversight and 
monitoring responsibilities related to administrative 
functions; (3) the costs of goods and services required for 
administrative functions; (4) travel costs incurred for 
official business in carrying out administrative activities or 
overall management; and (5) the costs of information systems 
related to administrative functions. Under the bill, the 
following additional items are classified as administrative 
costs: quality assurance; preparing program plans; 
administrative salaries; preparing reports; all travel costs 
other than travel costs related to the provision of services; 
and the costs of technical assistance, professional 
organization membership dues, removal of architectural barriers 
and operating and maintaining assistive technology, public 
information, and evaluating program results.
    Under current law grants may be used to pay for enrollee 
wages and fringe benefits. H.R. 5293 clarifies what benefits 
may be included, which are those required by law (such as 
workers compensation or unemployment compensation), the costs 
of physical examinations, compensation for scheduled work hours 
during which an employer is closed for a federal holiday, and 
necessary sick leave that is not part of an accumulated sick 
leave program. No amounts provided under the program may be 
used to pay the cost of pension benefits, annual leave, 
accumulated sick leave or bonuses.
    Currently, not less than 75 percent of the funds made 
available under a grant to operate a SCSEP program shall be 
used to pay wages and benefits for eligible individuals who are 
employed to carry out projects. The bill requires grantees to 
spend not less than 65 percent of their funds on wages and 
benefits to allow additional flexibility and resources for 
classroom or on-the-job training opportunities.
    Under current law, the Secretary may use monies reserved 
under section 506(a)(1) to fund special projects designed to 
assure second career training and the placement of eligible 
individuals in employment opportunities with private business 
concerns. H.R. 5293 replaces this authority with new authority 
for the Secretary to conduct pilot, demonstration, and 
evaluation projects. Projects may include activities linking 
businesses and eligible individuals; demonstration projects and 
pilot projects designed to attract more eligible individuals 
into the labor force, improve the provision of services to 
eligible individuals under the One-Stop delivery system 
established under the Workforce Investment Act (WIA), enhance 
the technological skills of eligible individuals, and provide 
incentives to grantees for exemplary performance; demonstration 
and pilot projects for older workers if the projects are 
designed to assist in developing and implementing techniques 
and approaches in addressing the employment and training needs 
of eligible individuals; training and technical assistance to 
support the projects; dissemination of best practices; and 
evaluation of activities authorized.
    Currently funds under the program are distributed to states 
and national organizations according to a set of requirements 
that include a fiscal year 2000 hold harmless amount so that 
funds are distributed to state agencies and national 
organizations at their fiscal year 2000 level of activities. 
Additional funds are distributed based on relative state 
population 55 years of age or older and the relative state per 
capital income. The bill updates the hold harmless provision so 
that the distribution of funds between states and national 
organizations will be based on fiscal year 2006 distribution.
    Currently, states and national grantees are measured on the 
following performance indicators: (1) the number of 
participants served, with particular consideration given to 
individuals with greatest economic need, greatest social need, 
or poor employment history or prospects, and individuals who 
are over the age of 60; (2) community services provided; (3) 
placement into and retention in unsubsidized public or private 
employment; (4) satisfaction of the enrollees, employers, and 
their host agencies with their experiences and the services 
provided; and (5) additional indicators that the Secretary 
determines to be appropriate. H.R. 5293 establishes four core 
performance measures: entry into unsubsidized employment; 
retention in unsubsidized employment for six months; earnings; 
and hours (in the aggregate) of community services employment 
based training pursuant to subparagraphs (A) and (B)(i) or 
section 502(b)(1) (which requires at least 50 percent of 
placement in community service positions). States and national 
grantees also will report on retention in unsubsidized 
employment for one year; the number of eligible individuals 
served, including the number of participating individuals age 
65 and older or who have barriers to employment; and any other 
indicators of performance that the Secretary determines to be 
appropriate.
    Under current law states and national grantees negotiate 
expected levels of performance. H.R. 5293 continues this 
practice and requires adjustment for significant numbers or 
proportions of participants with barriers to employment.
    Current law requires the minimum percentage for the entry 
into unsubsidized employment to be 20 percent. The bill 
incrementally increases this requirement by two percentage 
points each year so that the required placement rate is 22 
percent in fiscal year 2007, 24 percent in fiscal year 2008, 26 
percent in fiscal year 2009, 28 percent in fiscal year 2010, 
and 30 percent in fiscal year 2011.
    States and national grantees both now face sanctions for 
failure to meet expected levels of performance. H.R. 5293 
maintains this structure for states. However, national grantees 
that fail to attain expected levels of performance now only 
will receive technical assistance. Each such grantee also will 
submit a corrective action plan not later than 160 days after 
the end of the program year. The plan shall detail the steps 
the grantee will take to meet the national performances 
measures in the next program year.
    Under current law, the Secretary shall award grants to 
national organizations for a period not to exceed three years. 
In addition, the Secretary shall hold a competition for program 
funds when a state or national grantee fails to meet its 
performance measures for at least two consecutive years. The 
bill maintains this structure for states. The bill replaces 
current requirements to compete the funds of national grantees 
that fail to meet performance with a requirement that all 
grants be competed every three years. The bill maintains 
current law's criteria for selection of grantees and has added 
as an additional criterion review of the applicant's prior 
performance, if any, in meeting performance measures under this 
program and under other federal or state programs.
    The bill changes the term ``community service'' to 
``community service employment-based training'' and defines the 
term as work experience that is related to providing social, 
health, welfare, and educational services (including literacy 
tutoring), legal and other counseling services and assistance, 
including tax counseling and assistance and financial 
counseling, and library, recreational, and other similar 
services; conservation, maintenance, or restoration of natural 
resources; community betterment or beautification; 
antipollution and environmental quality efforts; weatherization 
activities; economic development; and such other services 
essential and necessary to the community as the Secretary 
determines by rule.
    Current law allows services to be provided to individuals 
55 years of age or older who have a low income (including those 
with incomes not more than 125 percent of the federal poverty 
guidelines). In addition, current law includes a priority for 
those individuals over 60 years of age. H.R. 5293 continues to 
allow low-income individuals 55 years of age or older to be 
eligible for SCSEP, but the bill creates a new priority of 
service for older individuals or those with barriers to 
employment. Under the bill, an individual who is 65 years of 
age or older, has a disability, has limited English 
proficiency, resides in a rural area, is a veteran, has low 
employment prospects, or has failed to find employment after 
utilizing services provided under title I of WIA shall have 
priority for the work opportunities provided under the program.
    States and grantees shall exclude any income that is 
unemployment compensation, Supplemental Security Income (SSI) 
benefits received under Title XVI of the Social Security Act, 
or veterans' payments and 25 percent of benefits received under 
title II of the Social Security Act (Old-Age, Survivors and 
Disability Insurance [OASDI] payments). In addition, H.R. 5293 
provides state and national grantees operating SCSEP the 
flexibility to use either the income for the 12 months 
preceding an individual's application or an individual's income 
for the six months preceding one's application when determining 
eligibility.
    The bill excludes an individual who has participated in the 
program for a period of 48 months in the aggregate (whether or 
not consecutive) from participation in the program. However, to 
create a transition period for those already participating in 
the program, the bill allows individuals who have already 
participated in the program for at least 24 months to have an 
additional 24 months of eligibility. Anyone who has been 
participating in the program for 24 months or less at the time 
of enactment will have a four year time limit, inclusive of 
time already spent in the program.
    H.R. 5293 makes no additional substantive amendments to 
titles VI and VII of the Older Americans Act.

                     Committee Statement and Views


                                OVERVIEW

    The Older Americans Act of 1965 (OAA) is the major federal 
statute governing the delivery of social services for elderly 
Americans and their family caregivers. The Act provides a wide 
range of supports such as information and personal assistance, 
transportation, nutritional services, personal care, chore 
services, and adult day care. Nutrition services include the 
``Meals on Wheels'' home delivery meal program and congregate 
meal programs. The OAA also funds research, demonstration 
projects, and elder rights protection activities.
    The OAA, first enacted in the 89th Congress, created a 
series of federal programs specifically designed to meet the 
service needs of older persons. Although older persons may 
receive services under other federal programs, this Act is the 
major vehicle for the organization and delivery of services to 
senior citizens. It authorizes a wide array of programs through 
a network of 56 state agencies on aging, 655 area agencies on 
aging, 238 tribal organizations, 29,000 local service 
organizations, and a cadre of 500,000 volunteers.
    The Administration on Aging (AoA) within the Department of 
Health and Human Services is the primary federal entity charged 
with serving the needs of older Americans and coordinating the 
development of a comprehensive, nationwide system of services 
that will enable older adults to remain in their own homes and 
communities as long as possible. OAA programs administered by 
the AoA received $1.366 billion for fiscal year 2006.
    The OAA also authorizes the Senior Community Service 
Employment Program (SCSEP) administered by the Department of 
Labor (DoL). The principal purpose of SCSEP is to help low-
income older workers gain employment skills and job training 
through temporary subsidized community service activities or 
unsubsidized employment. SCSEP serves low-income older workers 
beginning at age 55. Most participants are initially placed in 
government subsidized, part-time community service activities, 
with the goal of gaining skills that lead to unsubsidized 
employment. Subsidized participants are paid no less than the 
federal or state minimum wage or the local prevailing rate of 
pay for similar employment, whichever is higher.
    Funds are distributed to states and national organizations 
to operate the program, and since 2002, DoL has distributed 
funds to national organizations through a competitive grant 
process. There are currently 13 participating national non-
profit organizations. SCSEP received $432.3 million for fiscal 
year 2006.
    Since its enactment in 1965, the Act has been reauthorized 
14 times. The 1969 amendments strengthened the community 
service programs and charged state agencies on aging with 
statewide responsibilities for planning, coordination, and 
evaluation of programs for older persons. Major amendments to 
the Act occurred in the early 1970s, including the enactment of 
the nutrition component, which evolved from nutrition 
demonstration projects first funded in 1968.
    The 1972 amendments authorized grants to public and 
nonprofit sponsors for the development of congregate meal 
services to meet the nutrition and social services needs of 
older persons. In addition to providing meals, Congress 
envisioned the program to serve as an important vehicle for 
fostering social interaction among participants and to 
facilitate social service delivery. The program's dual purposes 
of maintaining health through good nutrition and by providing 
opportunities for social interaction continue today.
    The 1973 amendments significantly restructured the Act with 
the aim of improving the planning and organization of services 
for older persons at the state and local levels. State agencies 
were required to divide the state into geographic areas, or 
planning and service areas, and to establish area agencies on 
aging at the community level for the purpose of developing 
area-wide social service delivery systems for older persons. 
Area agencies were given responsibility for planning and 
coordinating of programs for older persons within defined 
planning and service areas designated by the state agencies on 
aging. In addition, area agencies were responsible for 
advocating on behalf of older persons.
    The 1978 amendments represented a major change in the 
structure of the program when the separately authorized 
supportive, nutrition and multipurpose senior center programs 
were folded into the title III administrative structure. 
Another major change was the addition of a separate 
authorization of appropriations for home-delivered nutrition 
services, which were previously an allowable service under the 
congregate nutrition program. These amendments also established 
the state long-term care ombudsman program to investigate and 
resolve complaints of nursing home and board and care home 
residents, and a new title VI authorizing grants to Indian 
tribal organizations for supportive and nutrition services to 
older Indians. The amendments also incorporated the community 
service employment program as title V of the Act.
    Amendments in 1981 and 1984 gave states greater flexibility 
in the administration of the nutrition and supportive services 
programs. The 1987 amendments created new separately authorized 
service components under the state and area agency on aging 
program, including in-home services for the frail elderly, and 
health promotion and disease prevention programs. These 
amendments also incorporated a grant program for older Native 
Hawaiians under title VI. The amendments in 1992 again 
restructured some of the Act's programs by shifting some of the 
title III service responsibilities to title VII for elder 
rights protection activities.
    The 2000 amendments consolidated several funding 
authorities and increased state and local flexibility in 
program administration. The 2000 amendments also established 
the National Family Caregiver Support Program and required the 
Secretary of Labor to establish performance measures and award 
grants competitively for the Senior Community Service 
Employment Program.
    In 2005, authorization for the Act expired. However, OAA 
programs continue to receive funding through the appropriations 
process. For fiscal year 2006, $1.78 billion was appropriated 
for these programs.
    Since its creation, the OAA has grown to be one of the most 
visible service programs for older persons. In fiscal year 
2005, the largest component of the Act, the title III nutrition 
program, provided 250 million meals to about 2.6 million older 
persons. About 50 percent of the meals were provided in 
congregate settings, such as senior centers and community 
centers, and 50 percent were delivered to frail older persons 
in their homes. The supportive services program provides funds 
to states for a host of social services and activities. The 
most frequently used services are transportation, information 
and referral, senior centers, outreach services, home care, and 
recreation. In fiscal year 2005, the program funded 
approximately 6,400 senior centers, 36 million rides, 13 
million responses to request for information and assistance, 
and 20 million home care services. The Senior Community Service 
Employment Program accounted for about 25 percent of the OAA 
funds in fiscal year 2006. The program supports about 61,000 
employment positions for approximately 91,500 low-income 
individuals age 55 and older. Funds are provided to State 
agencies and, through competitive grant awards, to non-profit 
national organizations. Enrollees work in a variety of 
community service activities including social services, 
education, nutrition services, senior centers, home care 
services, and parks and recreation.
    The Senior Independence Act of 2006 is specifically 
designed to modernize the Older Americans Act in preparation 
for a growing number of Americans age 60 and older. The U.S. is 
facing the aging of the largest demographic cohort in its 
history. In 2006, the first children of the ``baby boom'' 
generation will turn age 60, adding to the 49 million Americans 
who already are age 60 or older, including over 5 million who 
are older than age 85.
    By 2030, 70 million Americans--twice their number in 2000--
will be 65 and over and comprise 20 percent of the U.S. 
population, representing one in every five Americans. With life 
expectancy also rising, older adults will collectively live 
longer than their predecessors. With a high percentage of baby 
boomers expected to live beyond 85, experts predict a 60 
percent surge in the population of Americans age 85 and older 
between 2030 and 2040.
    The Senior Independence Act aims to ensure flexibility, 
streamline services, target resources to individuals with the 
greatest need, foster consumer choice, improve nutrition 
services, support family caregivers, and enhance the 
performance of senior employment programs, so that seniors can 
live healthier, productive, and longer lives independently in 
their communities.
    Additionally, H.R. 5293 establishes a clear role for the 
aging network in providing information to assist older 
Americans make decisions about home and community-based long-
term care options, and to gain access to long-term care and 
other support services when they are needed. The services 
provided by the OAA are helping older Americans avoid 
institutional care and have the potential to save billions in 
federal entitlement spending on Medicare and Medicaid. By the 
year 2020, CBO projects that total public and private 
expenditures will reach well over $207 billion.

                      STATE AND COMMUNITY PLANNING

    The first baby boomers have begun turning 60 this year, yet 
most communities are unprepared to handle the increased demands 
that this population shift will create. According to Mr. 
Michael O'Donnell, Executive Director, East Central Illinois 
Area Agency on Aging, who testified May 24, 2005 before the 
Select Education Subcommittee:

          Over the course of the next three decades, the aging 
        of the baby boomers will have a direct and dramatic 
        impact on the social, physical and fiscal fabric of our 
        nation's cities and counties. The aging of our nation's 
        population will not only impact traditional aging 
        services, it will also affect every aspect of local 
        government programs, policies and services in the areas 
        of health, human services, land use, housing, 
        transportation, public safety, workforce development, 
        economic development, recreation, education/lifelong 
        learning, and volunteerism/civic engagement.

    Despite the demographic forecast, few communities have 
begun to prepare for an aging population . . . AAAs and title 
VI Native American aging programs are uniquely positioned to 
serve as a liaison to local agencies to help them prepare to 
address the challenges and opportunities posed by aging 
population.
    The Committee recognizes that the rise in the number of 
aging citizens will impact our Nation's cities and counties. 
H.R. 5293 encourages state and local aging agencies to help 
communities plan and prepare for the impact of the aging 
population. The Senior Independence Act authorizes the AoA to 
support planning activities that include assessment, 
coordination, and training and technical assistance. The Senior 
Independence Act also encourages state units on aging and area 
agencies on aging to incorporate into their state and area 
plans an assessment of how prepared the state or planning and 
service area is for the anticipated change in the number of 
older individuals over the next ten years.

                        CHOICES FOR INDEPENDENCE

    The Committee finds that the United States can best meet 
the challenges associated with the aging of the baby boom 
generation by strengthening the Nation's capacity to foster the 
independence of older people. Consistent with the Choices for 
Independence plan proposed by President George W. Bush, the 
Committee is committed to strengthening the Act's role in 
promoting consumer choice, control, and the independence of 
older Americans as they age.
    Choices for Independence was developed to supplement the 
President's New Freedom Initiative and the Administration's 
policy for modernizing Medicare and Medicaid. Choices for 
Independence integrates best practices to promote consumer 
choice, access to information, and health promotion. Research 
shows that by empowering individuals to make informed decisions 
about their long-term support options; providing more choices 
for individuals at high-risk of nursing home placement; and 
enabling older people to make behavioral changes that will 
reduce their risk of disease, disability, and injury, older 
individuals can maintain a good quality of life and reduce 
health care costs.
    Assistant Secretary on Aging, Josefina Carbonell, best 
described the Administration's Choices for Independence plan at 
the May 2, 2006 hearing of the Subcommittee on Select 
Education:

          Choices embodies three interrelated strategies for 
        advancing systems change at the State and community 
        level and is intended to test the effectiveness of this 
        combined set of strategies. The demonstration builds on 
        the unique assets of the aging network, its core 
        programs and the best practices that have come from 
        AoA's strategic investments since the last 
        reauthorization.

    The Committee commends the Administration for its 
leadership role in advancing long-term care systems change and 
strongly supports its recent efforts to help move states toward 
consumer-directed models of care. The Committee recognizes the 
success of several recent HHS initiatives rooted in the 
principles of consumer choice, access to information, and 
preventive health care, such as the Aging and Disability 
Resource Center Initiative; the Own Your Future Long Term Care 
Awareness Campaign; the Cash and Counseling Demonstration 
Program; and the Evidence-Based Disease Prevention for the 
Elderly Program.
    These initiatives, which are part of the larger Choices for 
Independence plan, build on the mission and success of the OAA 
and support the Committee's goal of modernizing the Act. The 
OAA is uniquely positioned to advance these changes; it has a 
statutory focus on keeping older people independent and living 
in their own homes and communities for as long as possible, and 
a successful history of providing low-cost, non-medical 
supports through federal, state and local partnerships.
    The Committee is confident that the core principles of 
Choices for Independence are elements essential to the 
strengthening of our Nation's long-term care systems. These 
principles will make the system more consumer driven and more 
cost-effective, and should be implemented nationwide. 
Accordingly, the Committee has embedded the principles of 
Choices into the core structure of the Act. The Committee also 
believes Choices for Independence has the potential to generate 
significant savings to large, taxpayer-funded entitlement 
programs like Medicare and Medicaid.
    Consumer Choice: Research demonstrates that consumer 
driven, self-directed care models that provide for the 
assessment of the needs and preferences of an individual at 
risk for institutional placement can help individuals avoid 
unnecessary nursing home placement. Furthermore, consumer 
driven models better respond to individuals' needs and 
preferences and provide the option for the individual to direct 
and control the receipt of support services provided.
    H.R. 5293 includes an amendment offered by Mr. Danny K. 
Davis and Mr. Jon C. Porter to support consumer-driven models 
of home and community-based care and to help prevent high-risk 
individuals from spending down their savings to receive 
Medicaid. The provision directs the AoA to develop policy 
alternatives for long-term care provided in home and community-
based settings.
    Access to Information: The Senior Independence Act 
encourages service delivery models that provide consumer-
directed and community-based long term care options. For 
example, H.R. 5293 authorizes the establishment of Aging and 
Disability Resource Centers (ADRC) in each state and Puerto 
Rico (AoA currently funds one or more ADRCs in 43 states). 
ADRCs conduct public outreach and provide individual support 
through ``one stop'' centers designed to be ``visible and 
trusted'' sources for information on all available support 
options, including private financing options such as long-term 
care insurance and home equity instruments. These centers can 
empower individuals--both those in immediate need and those who 
have the ability to plan ahead for their long-term care--to 
make informed decisions about their support options. This will 
reduce the confusion and frustration consumers and their 
families often face as they explore long-term care options. It 
also will improve government efficiency by integrating the 
multiple eligibility forms and procedures for various public 
programs that help finance long-term support options.
    Health Promotion: The Committee recognizes the importance 
of evidence-based disease prevention and health promotion 
initiatives. There is a growing body of scientific evidence on 
the efficacy of low-cost programs that can empower older 
individuals, including functionally impaired individuals, to 
better maintain their health. These programs focus on 
interventions such as chronic disease self-management, falls 
prevention, exercise, and nutrition. Activities such as 
screening for early disease detection and lifestyle changes to 
increase physical activity, consume healthful foods, stop 
tobacco use, and avoid risky behaviors can help prevent or 
delay the onset of chronic disease or functional disabilities.
    The Senior Independence Act will strengthen the role of the 
OAA in translating research into practice by promoting the use 
of evidence-based health promotion and disease prevention 
programs at the community-level through local aging services 
provider organizations such as senior centers, nutrition 
programs, senior housing projects, and faith-based groups. 
These programs can improve quality of life, reduce health care 
costs, and complement the increasing focus on prevention in our 
health care system.
    Overall, H.R. 5293 will, consistent with the Choices for 
Independence plan, give states and communities greater 
flexibility under the OAA to help moderate and low-income 
individuals to remain in their homes and delay their premature 
entry into nursing homes. Choices will provide flexible funding 
that will be targeted at individuals, not at service categories 
as with the current titles under the Act. This will make it 
easier for states to respond to people's individualized needs 
and preferences. It also will promote the use of consumer-
directed approaches, including ``cash and counseling'' models 
that give consumers more control over the care they receive.

TARGETING SERVICES TO INDIVIDUALS WITH THE GREATEST ECONOMIC AND SOCIAL 
                                  NEED

    According to the U.S. Census, 4.4 million people (12.6 
percent) of individuals age 65 or older spoke a language other 
than English at home. Less than half of these individuals (47 
percent) spoke English ``very well.'' The same report states 
that in 2003, 83 percent of older Americans were white, 8 
percent black, 6 percent Hispanic, and 3 percent Asian. By 
2030, those percentages are projected to be 72 percent white, 
11 percent Hispanic, 10 percent black, and 5 percent Asian.
    The Older Americans Act throughout its history has targeted 
services to those with the greatest economic and social need. 
The Act directs states and local area agencies on aging to pay 
particular attention to low-income, minority and rural 
populations. The Committee recognizes that individuals with 
limited English proficiency (LEP) may have unique needs, and 
that language often is a significant barrier to older 
individuals seeking information or access to services within a 
community. The Committee included amendments to direct states 
and local area agencies on aging and service providers to make 
special efforts in their outreach and services to meet the 
needs of older individuals who have limited English 
proficiency.

                    BENEFITS OUTREACH AND ENROLLMENT

    The Committee is aware that older Americans who are 
eligible for important public benefits are not always receiving 
them. An estimated 47 percent of the elderly eligible for 
Supplemental Security Income, 70 percent of seniors eligible 
for food stamps, 67 percent of people eligible for Qualified 
Medicare Beneficiary protections, and 87 percent of those 
eligible for Specified Low-Income Medicare Beneficiary 
protections are not participating in these programs. While 
poverty among those age 65 and older has fallen from one-in-
three older persons in 1960 to one-in-ten today, an estimated 
28 percent of Americans age 65 and older had incomes of less 
than $10,000 in 2004 (Congressional Research Service, 2006). It 
is the Committee's view that the aging network should help to 
ensure that eligible beneficiaries age 65 and older receive 
support in accessing the full range of public and private 
services and assistance for which they are eligible.
    An amendment offered by Mr. John R. ``Randy'' Kuhl, Jr. 
encourages the AoA to support identification and outreach to 
low-income seniors eligible for public assistance. There are 
many trusted, non-profit community organizations and many 
caregivers that can help find and assist low-income seniors, 
but they need easy-to-use tools to help seniors understand what 
they are eligible for and to assist them with enrollment. 
Trusted intermediary organizations also need resources to be 
able to reach beneficiaries and provide one-on-one counseling 
and enrollment assistance. While some support is currently 
being provided in conjunction with outreach for the new 
Medicare prescription drug benefit and other federal programs 
such as Food Stamps, there is no focused, coordinated effort to 
assist low-income seniors in receiving the range of assistance 
for which they may be eligible.
    H.R. 5293 will help improve the health and independence of 
low-income seniors who are not receiving assistance available 
to them. The provision has the potential to significantly boost 
efforts to find and enroll additional low-income seniors in the 
Medicare prescription drug discount program.

                           FINANCIAL LITERACY

    The Committee is aware that vulnerable older Americans are 
too often victimized by identity theft or other financial 
exploitation. Family caregivers often must make financial 
decisions with little or no support or understanding about 
options and their consequences. Therefore, the Committee 
included amendments to strengthen financial literacy services 
in the Act. The first amendment includes financial literacy as 
one of the family caregiver support activities. The second adds 
public outreach and education to support financial literacy and 
prevent identity theft as activities in the prevention of elder 
abuse.

                           SENIOR VOLUNTEERS

    Adults over 60 represent a source of human capital to meet 
critical social needs. Tapping this resource through paid and 
unpaid public service has the potential to expand the economy 
while providing civic benefit. It is projected that the 
productivity of seniors could add over $3 trillion to the GNP 
by 2045.
    The Committee recognizes the value and potential return on 
investment of civic engagement and volunteerism among the 
Nation's senior population, and encourages the development of 
new models for civic engagement. Older adults across the 
country can be strategically mobilized to tutor and mentor 
children, facilitate access to health services, strengthen 
communities and families, provide respite to caregivers, and 
bolster the long-term care system--all civic activities shown 
also to contribute to their own well-being.
    H.R. 5293 includes amendments to promote volunteerism and 
the coordination of OAA programs with other national volunteer 
programs such as those authorized through the Corporation for 
National and Community Service. Volunteers play a critical role 
in the aging network. Seniors do not just receive services from 
the Older Americans Act programs; they are primary service 
providers, contributing countless hours and expertise to 
improve their communities. The Committee recognizes the 
tremendous potential in the soon to retire baby-boom generation 
and encourages the aging network to leverage that resource by 
expanding opportunities for volunteerism and employment.

                               NUTRITION

    Older Americans Nutrition Programs serve about 250 million 
congregate and in-home meals to about 2.6 million older adults 
annually and are intended to reduce nutrition risk among older 
adults. The goals are to support quality of life, improve 
functionality, promote independence, and decrease early nursing 
home admissions and hospitalizations, and reduce health 
disparities, through better nutrition.
    Food is an essential component of quality of life; an 
unacceptable or unpalatable diet can lead to poor food and 
fluid intake, resulting in weight loss, under nutrition and a 
spiral of negative health effects. Normal aging brings about a 
decrease in both the energy an individual requires and the 
amount of food consumed.
    The Committee is aware that older Americans are often 
malnourished. Approximately 40 percent of individuals residing 
in the community age 65 years and older have inadequate 
nutrient intakes. The malnutrition rate for older Americans is 
1 in 4, and 1 in 3 OAA program participants are underweight 
(Institute of Medicine, 2003). Inadequate nutrient intake is 
complicated by the fact that as individuals age, the body loses 
some of its ability to make and absorb nutrients.
    The combined effect of poor diet and the inability to make 
and digest nutrients causes vitamin and mineral deficiencies in 
many older Americans. According to the Baltimore Longitudinal 
Study on Aging, a majority of older men and women are deficient 
in calcium, zinc, iron, magnesium, and vitamin D. Older adults 
are more susceptible to nutrient deficiencies for a number of 
reasons, including chronic diseases that impair absorption and 
utilization of nutrients, oral problems such as gum disease and 
dysphagia, and loss of appetite due to medications and their 
side effects. A study conducted by the Institute of Medicine 
(IOM) found that inadequate nutrient intake affects up to 40 
percent of community dwelling older adults, and 87 percent of 
older Americans suffer from chronic conditions which can be 
managed in part by appropriate nutrition intervention. Thirty 
percent of individuals receiving home-delivered meals have 
three or more activities of daily living (ADL) impairments, 
comparable to individuals receiving nursing home care.
    The Committee finds that stronger and more comprehensive 
and coordinated nutrition services will improve quality of 
life, reduce health care costs, and complement efforts focused 
on prevention. Comprehensive nutrition services, which may 
include nutrition screening, assessment and counseling, can 
benefit OAA clients who receive meals, especially those who are 
homebound. Further, these activities can prevent the 
devastating and debilitating conditions often seen upon 
admission to hospitals and nursing homes, such as dehydration, 
pressure ulcers, unexplained weight loss and uncontrolled 
diabetes.
    Maintaining a healthy body weight is important for older 
adults, since being overweight or obese is associated with a 
greater risk of disease and can worsen existing conditions. 
While research shows that obesity is the most common 
nutritional disorder in older persons, malnutrition and being 
underweight also continue to be pervasive problems. One in 
three older Americans are underweight, and all have a high risk 
of being deficient in commonly required nutrients (Institute of 
Medicine, 2000).
    Chronic diseases are extremely prevalent in older 
population and can be prevented, delayed or diminished through 
diet, exercise, and other positive lifestyle choices. According 
to the Centers for Disease Control, 85 percent of individuals 
over the age of 65 have at least one chronic disease. Heart 
disease and cancer are two chronic diseases that can be 
prevented or managed by making healthy lifestyle choices, 
particularly by maintaining a proper diet. According to the 
American Cancer Society, one third of all cancer deaths are 
related to unhealthy diet and lifestyle behaviors. Proper 
nutrition is an important factor in preventing cancer; and 
studies have shown that greater consumption of fruits and 
vegetables lowers an individual's risk of developing several 
cancers including lung, mouth, colon, and stomach (American 
Cancer Society. Diet, Physical Activity and Cancer . . . What's 
the Connection? Byers, Tim, MD and Doyle, Colleen, MS, RD. 
American Cancer Society website: www.cancer.org).
    The nutrition services provided under the OAA play a vital 
role in helping seniors to continue to lead active, 
independent, healthy lives and avoid unnecessary 
institutionalization. The OAA nutrition program serves a 
population that is older, poorer, less healthful, more racially 
and ethnically diverse, and with more functional impairments 
than the general US population.
    Congregate and home delivered meals provided with OAA 
funding must deliver 33\1/3\ percent of dietary requirements 
per meal. For the majority of meal program participants, the 
meal they receive provides over 50 percent of participant's 
daily dietary intake. Home delivered meals provide about 62 
percent of a participant's daily dietary intake. For congregate 
meal participants, meal participants receive 58 percent of 
daily dietary intake from the meal provided.
    A consistent total diet and eating pattern over a period of 
time is more important than any single meal to establish a 
healthy diet in accordance with the most recent dietary 
guidance. H.R. 5293 simplifies nutrient requirements by 
authorizing nutrition providers to average key nutrients. There 
is precedence for averaging nutrient intake in the National 
School Lunch Program. When local service providers are allowed 
to average the nutrients their meals provide over time, rather 
than adhering each meal to the strict 33\1/3\ daily value 
percentages, they can plan meals that better accommodate the 
preferences of the clients they serve. Furthermore, as the 
title III language strongly encourages, when registered 
dietitians and qualified nutrition professionals are closely 
involved in meal planning, meals can be planned in such a way 
to be both palatable and appropriate for the client while still 
meeting their nutritional needs.
    Section 23 of the Senior Independence Act allows local meal 
providers the option of offering a single multivitamin-mineral 
supplement to a congregate meal participant along with a 
complete meal. The supplement may not replace all or any part 
of a meal and is not intended to be factored into the nutrient 
requirements of such meal. A single, daily multivitamin 
supplement can help prevent nutrition deficiencies common in 
many older Americans. A daily multivitamin-mineral supplement 
is an inexpensive strategy to help insure the nutritional 
health of older Americans. Multivitamins are broadly available 
for less than $40 per year per person (7 cents per day at 
retail price, cheaper if bought in bulk). A 2003 report by the 
Lewin Group estimated that daily use of a multivitamin by 
adults over the age of 65 could lead to approximately $1.6 
billion in Medicare savings over five years.

                    ROLE OF NUTRITION PROFESSIONALS

    The essential factor in keeping older adults active, 
healthy and at home is applying the basic nutrition science 
from the Recommended Dietary Allowances and the Dietary 
Guidelines for Americans. Nutrition science has become 
increasingly complex, and the most recent scientific evidence 
should be put into practice to benefit older adults. Nutrition 
professionals such as registered dietitians have the necessary 
education and training to integrate and disseminate scientific 
information to the providers of nutrition services. Registered 
dietitians bring specific skills to the design, implementation 
and evaluation of nutrition programs that are invaluable to 
service providers. Qualified nutrition professionals also can 
ensure that the role of nutrition is addressed in the context 
of long-term care for individuals involved in home- and 
community-based services. These programs are serving frail 
older adults who often have more complex nutritional needs than 
a member of the average population. A registered dietitian or 
other qualified nutrition professional should, when possible, 
serve as a resource for training other professionals and as a 
team member in designing the comprehensive and coordinated 
services that will meet the unique needs of older adults in 
each state.

                      NUTRITION PROGRAM EVALUATION

    An amendment offered by Representative Mark E. Souder (R-
IN) requires the Administration on Aging to contract with the 
Food and Nutrition Board at the IOM to conduct an independent 
study to evaluate the nutrition services provided under the 
OAA. This study would be the first independent evaluation of 
the impact the nutrition services provided by the OAA have on 
older adults' health and quality of life. The advances that 
have occurred in nutrition knowledge and its application have 
made the public aware of the importance of food and nutrition 
for a healthy life, illness or injury risk reduction and 
disease management and prevention. However, older adults 
account for a disproportionate share of the escalating costs of 
Medicaid and Medicare. The purpose of this study is to 
determine whether the nutrition services are meeting the goal 
of helping seniors live healthier lives, which in the long term 
should reduce health care costs. The American Dietetic 
Association, the National Association of Nutrition Service 
Providers and the Meals on Wheels Association of America all 
recognize the importance of this study to ensure that their 
programs are successful and the public's tax dollars are being 
spent in the most effective manner.
    The Committee also supports the action of the AoA to 
contract with an outside entity to conduct an administrative 
review of the title III nutrition program, but notes that the 
evaluation recently commissioned by AoA serves a different 
purpose, and therefore is not duplicative of the IOM study 
authorized by H.R. 5293.

                       NUTRITION RESOURCE CENTER

    The Committee supports the continued funding of a National 
Center for Nutrition, Physical Activity and Aging. The 
Administration on Aging has funded such a center through a 
competitive grant process since 1995. The Center provides 
senior nutrition service providers and the public vital 
information to improve food and nutrition services provided to 
older individuals. The Center encourages risk-based nutrition 
screening to identify and serve the neediest, provides 
technical training, disseminates timely information, and 
conducts policy analysis and outcomes research. The Center's 
applied, community-based research has fostered vital links 
among researchers, local nutrition service providers, older 
adults, and caregivers.

                                  NSIP

    Nutrition Services Incentive Program (NSIP) authorized in 
section 311 of the Older Americans Act provides incentives to 
States and Tribes for the effective delivery of nutritious 
meals to older adults. Since 2003, the program is administered 
by AoA, which provides cash and/or commodities through the 
United States Department of Agriculture (USDA) to supplement 
meals provided under the authority of the OAA. State Units on 
Aging (SUAs) funded through title III of the OAA and Indian 
Tribal Organizations (ITOs) funded through title VI of the OAA 
may receive grants of cash from the AoA and/or commodities from 
the USDA to support OAA nutrition programs. The NSIP cash or 
cash and commodity allocation to SUAs and ITOs is a 
proportional share of the annual appropriation based on the 
number of meals served in the prior year.
    Section 19 of the Senior Independence Act converts NSIP 
into a cash only program. This change in program operation was 
requested by the Administration on Aging and supported by the 
Department of Agriculture. The provision is intended to 
streamline the purchase and delivery of small amounts of 
commodities by providing cash to states for the purchase of 
commodities. The provision authorizes but does not mandate that 
a local nutrition service provider funded under the Older 
Americans Act make a local agreement with a local school 
district to better meet unique, local community needs. Local 
school districts could benefit from discounts provided to 
larger bulk purchase orders when the needs of the local 
nutrition service provider and the local school district are 
combined.
    While the proposal would provide cash only to all states, 
the proposed language does not preclude a state unit on aging 
from reaching an agreement with another state agency to 
continue the purchase and distribution of commodities at a 
state level.

                        VOLUNTARY CONTRIBUTIONS

    The Committee recognizes that seniors have many reasons for 
needing OAA services, and that those needs are not always 
economic. The majority of its Members believe that those 
seniors who can afford to contribute to the cost of their meals 
and other services should do so. While nutrition programs 
receive the bulk of the funding under the Older Americans Act, 
funding is not available to cover all eligible individuals. In 
many communities there are other programs that provide meals to 
older individuals. The major source of additional funding for 
these programs comes from seniors in the form of voluntary 
contributions. Until the 2000 amendments, the law restricted 
efforts to solicit voluntary contributions from program 
participants.
    H.R. 5293 retains the long-standing federal policy of 
prohibiting states from applying cost-sharing to certain 
services: information and assistance, outreach, benefits 
counseling, and case management; ombudsman, elder abuse 
prevention, legal assistance, or other consumer protection 
services; congregate and home delivered meals; and any services 
delivered through tribal organizations.
    The Committee understands the increasing demand for 
services and the need to collect additional funding and expand 
supportive and nutrition services under title III. According to 
some local providers, confusion remains regarding the extent to 
which a provider may solicit voluntary contributions. 
Therefore, the legislation clarifies and strengthens the 
existing provision relating to the solicitation of voluntary 
contributions by expressly authorizing service providers to 
solicit voluntary contributions. Further, service providers are 
required to encourage such contributions from eligible 
individuals whose self declared income is at or above 125 
percent of the federal poverty line.
    Mr. Vinsen Faris, Executive Director, Meals on Wheels of 
Johnson and Ellis Counties, Texas testified that the need for 
home-delivered meal services by older individuals is not always 
economic. As he noted at the Subcommittee on Select Education's 
May 2, 2006 hearing:

          We learned that by giving people an opportunity to do 
        their part, the welfare stigma can be alleviated. We 
        also learned several other important lessons from that 
        experience. We learned that senior meal programs are 
        misunderstood by many in the community and thought to 
        be only for low income people. We learned that 
        voluntary contributions are essential to expanding our 
        program. Our success at encouraging donations from 
        clients has been great. In fact, our client donations 
        have generally accounted for seven to ten percent of 
        our overall revenue. Client contributions have been one 
        of our largest single sources of revenue in our budget 
        each year.
          Last time Congress reauthorized the Older Americans 
        Act, you helped us accomplish this by changing the law 
        to allow us to actively solicit contributions. It has 
        made a real difference. I believe the change that you 
        are proposing in your reauthorization bill will have 
        the same effect. It will enable us to be more effective 
        about bringing those seniors who need our services, but 
        also have the ability to pay, into our program. And it 
        will assist our program in encouraging contributions 
        from them.

    Determination of the best method of accepting contributions 
remains a local decision. The law permits providers to send 
individualized client benefit summaries to program participants 
in order to increase voluntary contributions. Providers have 
pointed out that many individuals want to contribute at a level 
that covers the cost of the meal service if they were provided 
a statement that summarized the actual cost of their meals. 
However, H.R. 5293 maintains current law that any contribution 
is voluntary and all solicitations shall be non-coercive. 
Written requests should solicit contributions for a fixed 
period of service (such as a month) only and not reflect any 
past due balances. Such written requests should state clearly 
that contributions are voluntary and the statement should not 
be construed as a bill.
    The Committee does not support any method of soliciting 
voluntary contributions or cost-sharing that would deny meals 
to eligible individuals due to their inability or refusal to 
pay. However, the Committee has found that most individuals 
want to contribute to the cost of their meals or other service 
and will do so willingly, even if a contribution does not cover 
the full cost of the meal or service provided.
    Further, H.R. 5293 stipulates that monies collected through 
contributions are supplemental funds for the provision of 
services from which they are collected and may not be used to 
supplant other funds provided under the Act. Title III 
allocations to any service provider should not be reduced based 
on the amount of voluntary contributions received.

                           TRANSFER AUTHORITY

    Current law allows States to transfer up to 30 percent of 
Title III-C funding (nutrition services) to Title III-B 
(supportive services). The allowance of transfers is important 
because such flexibility of programming and financing in States 
recognizes the close interrelationship between meals and 
supportive services that exists in the communities. Flexibility 
allows States to adapt the use of funding to the needs that 
arise where they are, and avoid one-size-fits all models of 
programming. The current flexibility of transfer authority 
allows State and local entities to accurately identify the 
units of service being provided under the Act and the unit cost 
of those services.
    The 2000 amendments liberalized current law restrictions on 
the transferability of funds from congregate and home-delivered 
nutrition services allotments. Because the demand for services 
can change from month to month, states and local providers need 
the flexibility to fund services when and where they are 
needed. As such, the Committee supports state flexibility to 
transfer up to 50 percent of funds between congregate and home-
delivered nutrition services. This flexibility allows local 
providers greater ability to allocate funding based on the 
types of nutritional services actually needed by older 
individuals residing in their community.
    Most transfers from nutrition to supportive services are 
from congregate meals funds (which is funded at higher levels 
than home-delivered meals), and there is justification for such 
transfers. For many congregate meals programs, there is an 
almost inseparable relationship between meals and supportive 
services activities. It is very common, for example, for frail 
elderly people to be transported between their homes and the 
congregate meals sites on almost a daily basis, and these 
transportation services are classified as supportive services.
    Transfer authority allows States, where needed, to ensure 
that they can match the level of financing needed for non-meal 
costs that are associated with their congregate meals programs. 
For example, if States were not allowed to use such transfers, 
the cost of transporting elderly people to congregate meal 
sites might aversely affect other necessary supportive services 
for homebound individuals. Similarly, significant other non-
meals services, such as exercise services, information, 
assistance, and counseling, are provided to elderly individuals 
in congregate meal sites, and so are closely related to the 
delivery of the meals.
    The Committee notes that some nutrition providers are 
advocating for a prohibition on funds transfers between title 
III-B, which provides supportive services, and title III-C, 
which provides nutrition services. In 2005, $708,000 (0.2 
percent) was transferred from supportive services to meals, and 
$36 million (6.4 percent) was transferred from meals to 
supportive services. Both these amounts are significantly below 
transfers allowed under the OAA and are slightly less than the 
percentages transferred in 2003. According to analysis of AoA 
data, rates of transfer between nutrition and supportive 
services have remained consistent over time. The Committee 
finds no indications of widespread interest among the States in 
increasing levels of transfers.
    The Committee cautions States from transferring funds from 
nutrition services to non-nutrition supportive services unless 
such transfers support, facilitate, or foster participation in 
senior nutrition programs. In particular, States with a high 
prevalence of food insecurity are strongly discouraged from 
diverting funding provided for food services to non-food 
expenditures and should do so only as a last resort. Further, 
the Committee strongly encourages states to use general and 
administrative dollars provided in the specific line item or 
category for which the funds were intended. The Committee 
believes strongly that, while flexibility should be preserved, 
Title III-C dollars should not be used by states to pay the 
administrative cost associated with managing Title III-B 
services.

         CONTRACTUAL, COMMERCIAL, AND PRIVATE PAY RELATIONSHIPS

    Current law requires area agencies on aging to maintain the 
integrity and public purpose of services in all partnerships, 
contractual, and commercial relationships. This provision has 
been interpreted to prohibit area agencies on aging and other 
service providers from using any OAA funds, including 
administrative funds or staff time, to develop contractual or 
commercial relationships that would result in payment for 
services to the non-profit agency.
    The Committee recognizes that the aging services provider 
network has knowledge, skills and services that are needed by a 
growing number of older individuals, adults with disabilities, 
caregivers and persons planning for longer-term care needs. 
These skills and services are currently provided by the network 
while a new industry has developed in the marketplace of 
unskilled individuals who attempt to sell sometimes inferior 
information and services to those who can pay. The aging 
network, if able to implement a system to respond to this 
market, could provide reliable services--from a known and 
trusted community resource--to those individuals and businesses 
accustomed and able to pay for services.
    Section 9 of the Senior Independence Act clarifies intent 
that efforts by the aging services network to be more 
entrepreneurial, expand services to help support the aging baby 
boom populations, and allow for private pay opportunities are 
permissible and encouraged. At the same time, this provision 
maintains safeguards to ensure that aging network providers 
operate in a manner consistent with the public purpose mission 
and targeting provisions of the OAA.

                      SUPPORTING FAMILY CAREGIVERS

    Despite substantial public spending for long-term care 
(primarily for nursing home care), relatives provide the bulk 
of long-term care services to family members with physical and 
cognitive disabilities. Over 7 million caregivers provide 
informal, or unpaid, care to elderly family members each week. 
Typically, adult children provide this care to elderly parents. 
About two-thirds of the functionally impaired elderly rely 
exclusively on informal assistance. Research has documented the 
enormous responsibilities that families face in caring for 
relatives who have significant impairments.
    Section 30 of H.R. 5293 reauthorizes the National Family 
Caregiver Support Act and strengthens assistance available to 
caregivers. The Family Caregiver program provides grants to 
States for services such as counseling, training, support 
groups, respite-care, informational assistance, and 
supplemental services to family members caring for an aging 
family member, and for grandparents age 60 or older caring for 
a grandchild. Funding for the program is distributed on the 
basis of a State's relative share of individuals age 70 and 
older in order to target resources to the most frail, however, 
individuals age 60 and older in need of caregiver services will 
be eligible to receive the services. Within States, funding is 
distributed to those seniors who have the greatest social and 
economic need with particular attention to low-income older 
individuals.
    Since its inception in 2001, the National Family Caregiver 
Support Program has proven successful in enhancing the quality 
of life for frail individuals and those who care for them. 
Today, the program serves over 500,000 caregivers. The 
Administration on Aging has documented that in 2004, 52 percent 
of caregivers reported that services provided by the National 
Family Caregiver Support Program helped them to provide care 
longer.
    Further, the program is saving taxpayer money by preventing 
or delaying institutionalization of older individuals who, with 
caregiver supports, are able to live independently. 
Approximately over 4.5 million persons age 65 and older living 
in the community need long-term care assistance due to a 
functional disability. Functional disability is defined as the 
inability to perform, without assistance, the following 
activities of daily living (ADLs): dressing, eating, bathing, 
transferring from a bed to a chair, and toileting; and/or, the 
inability to perform certain instrumental activities of daily 
living (IADLs): light housekeeping, meal preparation, shopping, 
taking medications, and managing money. Caregivers provide an 
average of 20 hours of unpaid help each week to older 
individuals with certain functional limitations. Unpaid work, 
if replaced by paid home care, would cost an estimated $45 
billion to $94 billion annually.
    According to the 2000 U.S. Census, more than 2.4 million 
grandparents in the United States have the primary 
responsibility for raising grandchildren, and 6 million 
children, or 1 in 12, under the age of 18 live in a home of a 
grandparent or other relative. Section 29 of the Senior 
Independence Act expands eligibility for caregiver support to 
grandparents and other relatives age 55 years of age or older 
who care for a grandchild or an adult child with a disability. 
Under current law, a local AAA may reserve up to 10 percent of 
the programs funds to serve older caregivers age 60 and older. 
Because a significant number of grandparents raising a 
grandchild are under age 60, this change increases to nearly 
half the number of grandparents eligible for caregiver 
assistance. A May 2006 letter to Congress co-signed by the 
National Council on Aging, Generations United, Child Welfare 
League, and Easter Seals stated, ``Lowering the age limit to 55 
better responds to the demographics of relative caregivers and 
the unique challenges they face.''
    Research suggests that grandparents raising grandchildren 
have health problems more comparable to individuals of a 
greater age. A 1999 study reported in the American Journal of 
Public Health demonstrated that caregiving grandparents had a 
50 greater chance of having a functional limitation than non-
caregiving grandparents.
    The Senior Independence Act allows caregivers who care for 
individuals of any age with Alzheimer's disease or other 
dementias or neurological disorders to receive support from the 
National Family Caregiver Support program. Under current law, 
caregivers only receive support when they are caring for adults 
age 60 or over, however, it is estimated that about 300,000 
individuals--about six to eight percent of the four million 
Americans diagnosed with Alzheimer's disease--are cases of 
early onset (Mayo Clinic, 2005). It is the view of this 
Committee that in this unfortunate situation, family caregivers 
should be eligible for services provided under the National 
Family Caregiver Support Act.
    According to the Alzheimer's Association, ``increased use 
of respite care at mild and moderate stages of Alzheimer's have 
shown to delay nursing home placement significantly, which 
result in a net savings of as much as $600 to $1,000 per week. 
Similarly, delaying nursing home admissions for people with 
Alzheimer's disease by just one month could save at least $1.12 
billion a year.''

              SUPPORTING OLDER AMERICANS WITH DISABILITIES

    Assistive Technology (AT) plays an important role in the 
lives of millions of Americans with and without disabilities. 
In no segment of the population, is the impact of AT more 
significant than with elders who experience a decline in 
functional skills. AT enables seniors to improve functional 
abilities and to live independently and safely in the 
community. Without AT, aging in place would not be possible for 
many older Americans. Research suggests that keeping people in 
their communities and avoiding unnecessary institutionalization 
not only improves quality of life but also reduces the cost of 
both public and private health care.
    Encompassing a range of items, AT can be as complex as a 
tilt in space wheelchair or an Augmentative Alternative 
Communication System that gives voice to a person who has lost 
the ability to speak. AT can also be simple and as commonplace 
as Velcro or a large handle on a toothbrush that makes it 
easier to hold. The common denominator is that AT makes it 
easier to perform activities of daily life. While AT is often 
used by seniors with disabilities, the Committee notes that 
other older individuals also may benefit from AT.

                   PREVENTING ELDER ABUSE AND NEGLECT

    While an accurate account of how many seniors experience 
abuse or neglect in the United States is not known, the best 
estimates suggest that between one to two million seniors are 
mistreated (included physical abuse, psychological abuse, and 
neglect) each year.
    According to the National Research Council, the occurrence 
and severity of elder mistreatment are expected to increase 
significantly in future decades due in part to the increasing 
numbers of individuals over 65 (National Research Council, 
2003).
    The Administration on Aging serves as the primary agency 
for preventing and addressing elder abuse and neglect. OAA 
authorizes the National Center on Elder Abuse and a grant 
program to states to develop and implement programs 
specifically focused on the prevention and treatment of elder 
abuse. Several other authorities to address elder care issues 
are established within HHS and other Federal entities.
    The Federal government plays an important role in promoting 
research, training, public safety, data collection, and the 
identification, development, and dissemination of promising 
health care, social, protective services, and law enforcement 
practices relating to child abuse and neglect, domestic 
violence, and violence against women. It is the view of the 
Committee that the federal government, along with its state and 
local partners, should promote similar efforts and protections 
relating to elder abuse, neglect, and exploitation.
    During Select Education Subcommittee hearings, witnesses 
testified that a fragmented elder justice system is not serving 
vulnerable older Americans well, and that information gaps 
inhibit efforts to protect elders from abuse and neglect.
    Mr. David Bibler, Executive Director, Licking County Aging 
Program in Newark, Ohio testified April 28, 2006, at the Select 
Education Subcommittee field hearing in Westerville, Ohio about 
the need to better coordinate elder justice activities:

          Abuse, exploitation and neglect are common 
        occurrences for far too many of today's older adults 
        and this problem will only be exacerbated by the rapid 
        growth of the aging population over the next decade. To 
        date there is no federal law that comprehensively 
        addresses elder abuse and neglect, from prevention to 
        intervention through prosecution. Individuals and 
        agencies that are dedicated to protecting older adults 
        against abuse, exploitation and neglect, often do so 
        within a fragmented system and with limited resources. 
        In Licking County we have only one case manager in 
        Adult Protective Services for a senior population of 
        23,534. This is an injustice to our elderly. Too many 
        seniors are abused and neglected, many by their own 
        family members. This area needs to be addressed.

    The Committee supports the utilization of existing federal 
entities with responsibility for protecting seniors who are at 
risk or have experienced elder abuse or neglect, and supports a 
comprehensive infrastructure for elder abuse prevention and 
treatment. H.R. 5293 seeks to address the apparent need for 
federal coordination and leadership.
    An amendment offered by Mr. Jon C. Porter and Mr. Danny M. 
Davis authorizes the Assistant Secretary on Aging to develop 
objectives, priorities, policy, and a long-term plan for 
carrying out and coordinating federal elder justice activities. 
Specifically, this amendment provides authority for the 
Assistant Secretary on Aging to: carry out elder justice 
programs and activities relating to elder abuse prevention, 
detection, treatment, intervention, and response (including the 
training of individuals regarding these matters); collect and 
disseminate data relating to the abuse, neglect, and 
exploitation of elders; identify best practices; conduct 
research; and provide technical assistance to States. The 
Committee encourages efforts by the AoA to promote 
collaboration and diminish duplicative efforts in the 
development and carrying out of elder justice programs at the 
federal, state, and local levels.

              COMMUNITY SERVICES EMPLOYMENT-BASED TRAINING

    The Committee views the Senior Community Service Employment 
Program (SCSEP) as a community-oriented, subsidized employment-
based training program for low-income older Americans. It 
provides work experience and training opportunities to those 
seniors with the capacity and interest to transition into 
unsubsidized employment. In addition, the program provides 
invaluable services to our nation's communities. The Committee 
is committed to supporting the dual nature of the program and 
has revised the purposes of the program accordingly.
    H.R. 5293 authorizes the Secretary of Labor to establish a 
program to foster and promote useful part-time public and 
private sector employment-based training opportunities. In 
addition, the program is to provide vital social and human 
services to communities by providing work experience to 
eligible individuals in public agencies, and community-based 
and faith-based organizations.
    To reinforce this dual goal, the legislation renames 
``community service'' to ``community service employment-based 
training,'' which is defined as ``work experience that is 
related to providing social, health, welfare, and educational 
services (including literacy tutoring), legal and other 
counseling services and assistance, including tax counseling 
and assistance and financial counseling, and library, 
recreational and other similar services; conservation, 
maintenance, or restoration of natural resources; community 
betterment or beautification; antipollution and environmental 
quality efforts; weatherization activities; economic 
development; and such other services essential and necessary to 
the community as the Secretary determines by rule.'' Thus, the 
bill emphasizes the desire to achieve training but maintains 
the focus on meeting the needs of communities.

                TRANSITION INTO UNSUBSIDIZED EMPLOYMENT

    The majority of Committee Members believe that the SCSEP 
program should be a limited program to assist individuals in 
transitioning to unsubsidized jobs. Program placements are not 
intended to be permanent jobs. The work experience received 
through these positions is intended to allow individuals to 
gain necessary skills or experience to find work.
    Our nation is experiencing significant demographic change 
as our population ages, which underscores the value of the 
SCSEP program and its role in assisting individuals as they 
move into unsubsidized positions. As Mason Bishop, Deputy 
Assistant Secretary of Labor for Employment and Training at the 
Department of Labor, testified before the Subcommittee on 
Select Education on May 2, 2006:

          According to the Census Bureau's American Community 
        Survey, 12 percent of the total population in 2004 was 
        aged 65 or over, and this percentage is set to expand 
        rapidly in the coming decades. After the first Baby 
        Boomers turn 65 in 2011, the older population will 
        become twice as large by 2030 as it was in 2000 . . . 
        [Most of the Baby Boomer cohort of older workers] 
        envision a very different retirement than that of their 
        parents--one that includes at least some work, whether 
        for social engagement, intellectual stimulation, or 
        because of financial necessity. However, despite a need 
        for their skills and their desire to remain in or re-
        enter the workforce, many older Americans find 
        themselves unable to find suitable work.
          Through SCSEP, individuals gain new skills and access 
        to employment opportunities, which enables them to find 
        suitable work.

    The Committee recognizes that direct skills training, in 
addition to community-based placements, may help some 
individuals achieve their employment goals. The current law 
requirement that no less than 75 percent of a grantee's funds 
be spent on wages and fringe benefits could limit the kinds of 
training opportunities available to participants. When coupled 
with the allowance to use between 13.5 and 15 percent of funds 
for administrative costs, a grantee currently may use only 
approximately 10 percent of its funds for classroom training 
and other supportive services necessary to allow individuals to 
move into employment. H.R. 5293 changes this requirement to 
permit grantees to spend no less than 65 percent of their grant 
funds on wages and benefits. This would allow grantees, if they 
choose and it is in the best interest of participants, to spend 
approximately 20 percent of their funds on services such as 
classroom training or on-the-job training.
    A witness at the Subcommittee on Select Education hearing 
on April 3, 2006 testified regarding the opportunity that on-
the-job training presents. Marlon Sullivan, Senior Director of 
Staffing for the Home Depot, described the benefit of Home 
Depot's participation in a pilot project conducted under the 
Secretary's existing discretionary authority and operated by 
SER--Jobs for Progress, one of the SCSEP national grantees:

          As part of SER National's 502(e) On the Job Training 
        program (OJT), 23 participants in each of the 6 markets 
        underwent 2 weeks of pre-employment training. The 80 
        hours of training included skills such as computer 
        basics, customer service, interview best practices and 
        preparing for the Home Depot application. Having 
        recently completed the training, the 138 total 
        applicants are currently applying on line for Home 
        Depot opportunities, which include but are not limited 
        to Lot Associate, Cashier, Sales Associate and Sales 
        Specialist.
          Similar opportunities could be available nationally 
        if grantees have the flexibility to develop such 
        partnerships.

    The Committee views the program as a means to an end, and 
not as permanent employment for participants. To reflect this 
belief, H.R. 5293 requires national grantees annually to have 
an average participation by eligible individuals of not more 
than 24 months in the aggregate. The Committee recognizes that 
some individuals may be ready to move into unsubsidized 
employment within months of enrollment, while others may have 
barriers to employment that make finding a job more 
challenging. In addition, individuals may live in an area where 
fewer jobs are available. Requiring average participation of 24 
months provides grantees with sufficient flexibility to address 
the individual needs and circumstances of their participants 
while reinforcing the temporary nature of the program. 
According to the Department of Labor, the average time a 
participant currently remains in the program is 27 months.
    To ensure that grantees are assisting participants in 
moving to employment, the bill creates a four year time-limit 
(whether or not consecutive) for individual participants. 
However, to create a transition period for those already 
participating in the program, the Committee added language 
allowing individuals who have already participated in the 
program for at least 24 months to have an additional 24 months 
eligibility. As a result, someone who already has been enrolled 
for four years may participate an additional two years if 
necessary to prepare further for an unsubsidized job. Anyone 
who has been participating in the program for 24 months or less 
at the time of enactment will have a four year time limit, 
inclusive of time already spent in the program.
    In addition, a time limit for participants will ensure that 
the program can serve the greatest number of eligible 
individuals. In 2000, nine million people were eligible for 
SCSEP programs. The SCSEP funds support about 61,000 positions, 
through which about 100,000 participants are served annually. 
Although State and national grantees are not required to keep 
or report waiting lists, some do. As of June 30, 2005, there 
were over 2,100 people on these waiting lists. Clearly demand 
and unmet need exists.
    Under current law, national grantees are expected to move 
20 percent of their participants into unsubsidized employment 
annually. To increase the expectation of job placements, H.R. 
5293 incrementally increases this percentage by two percentage 
points annually so that in 2011 grantees will be expected to 
place 30 percent of their caseloads in unsubsidized employment. 
The Committee believes that this phase-in allows grantees 
sufficient time to adjust their programs, as necessary, to 
reach higher placement goals.

                           COMMUNITY SERVICE

    The Committee wants to ensure that, while moving 
individuals toward unsubsidized employment, the program 
continues to provide the vital services to communities for 
which it is known. According to the Department of Labor, the 
program has provided over 45 million hours in community 
service. Many of the program's participants provide needed 
services for other older adults. For example, participants work 
in community senior centers or deliver meals to frail elderly 
individuals. Others work in health clinics, libraries, or on 
the campus of Job Corps centers assisting the next generation 
of workers.
    While grantees are free to make placements with either 
public or private, for profit, or not-for-profit organizations 
as appropriate for the participant, the Committee recognizes 
and commends the program for the invaluable contribution 
participants have made to local communities. Therefore, in 
addition to maintaining community service as a central purpose 
of the program, H.R. 5293 requires that not less than 50 
percent of hours worked (in the aggregate) by the participants 
of each grantee shall be in community service employment-based 
training. This requirement ensures that public agencies and 
charitable organizations that depend on the assistance of SCSEP 
participants will continue to receive the support they need.
    Further, States and national grantees will be evaluated on 
the level of community service they provide. H.R. 5293 
includes, as a core indicator of performance, hours (in the 
aggregate) of community service employment-based training 
pursuant to the requirement that 50 percent of hours worked (in 
the aggregate) shall be in such positions. By including 
community service as a core indicator, States may face 
sanctions for failure to meet expected levels of community 
service, and national grantees will be evaluated on their level 
of community service when applying for future grants. The 
Committee commends the program for successes in community 
betterment and believes the bill will continue to support these 
efforts.

                       IMPORTANCE OF COMPETITION

    H.R. 5293 reinforces Congressional intent that full and 
open competition is the best way to assure the highest quality 
services to eligible individuals.
    Under current law, the Department must hold a competition 
for SCSEP funds when a State or national grantee fails to meet 
its performance measures or the responsibility tests 
established in section 514 of the Act. In addition, the 
Department may hold a full and open competition before the 
beginning of a new grant period, or if additional grantees are 
funded. Current law specifies that the Secretary shall award 
grants for a period not to exceed three years. The Department 
first conducted a competition in November 2002 to award 
national grants starting in program year 2003. The Department's 
authority to conduct these grant competitions was upheld in 
U.S. District Court (Experience Works v. Elaine Chao, 2003). 
Judge Gladys Kessler wrote:

          While it is clear that Congress intended to make 
        grantees more accountable for the manner in which they 
        carried out their programs, there is absolutely nothing 
        in the statute which precludes the Secretary from using 
        a national competition to decide under the appropriate 
        criteria set forth in Section 30561, who is the best 
        qualified to receive program year 2003 grants. The use 
        of competitive procedures is a time-honored method for 
        obtaining the most highly qualified awardees of 
        government funds, for allowing new and innovative ideas 
        and organizations to receive those funds, and for 
        assuring public confidence in the integrity of the 
        process to distribute government funds.

    The Department published a Solicitation for Grant 
Application (SGA) on March 2, 2006 for grants beginning in 
program year 2006.
    The Committee supports competition for the selection of 
national grantees, and the bill eliminates sanctions for 
national grantees in favor of competition. Current requirements 
to compete the funds of national grantees that fail to meet 
performance would be replaced with a requirement that all 
grants be competed every three years. However, the Committee 
does not intend to diminish the importance of attaining 
expected levels of performance, as they are indicators of 
grantees' ability to assist eligible individuals. Therefore, 
H.R. 5293 includes the applicant's prior performance, if any, 
in meeting performance measures under this title and under 
other Federal or State programs as one of the criterion upon 
which competitive selection shall be based. Including 
consideration of past performance should help ensure selection 
of the highest quality providers.
    The Committee also notes that H.R. 5293 maintains authority 
for the Secretary to provide for the State to conduct a 
competition to award 25 percent of a State's SCSEP grant after 
two consecutive years of failure to meet performance measures. 
In addition, the Secretary shall require a competition to award 
all of the funds allocated to a State after three years of 
consecutive failure to meet its expected levels of performance. 
(The Secretary shall provide technical assistance and require 
the development of a corrective action plan for the first year 
States fail to achieve performance measures and for each year a 
national grantee fails to achieve its performance targets.)
    The Committee acknowledges that States face sanctions while 
national grantees do not. However, States receive funds 
annually based on formula and are not subject to competition 
for funds upfront. Therefore, States appropriately should face 
sanctions and possible requirements to compete funds for 
failure to perform.

                         PERFORMANCE INDICATORS

    The Committee recognizes that the Department has instituted 
common outcome measures across employment and training 
programs. H.R. 5293 holds States and national grantees 
accountable for these three core measures: (1) entry into 
unsubsidized employment; (2) retention in unsubsidized 
employment for six months; and (3) earnings. The Committee 
believes use of these common measures will allow easier 
comparisons across employment and training programs for 
purposes of program evaluation. In addition, using common 
measures simplifies efforts to coordinate employment and 
training programs at the State and local level. This may ease 
coordination with Workforce Investment Act (WIA) services, in 
particular, to help improve services to older workers.
    As previously described, the Committee also has included 
hours (in the aggregate) of community service employment-based 
training as a core indicator of performance. The Committee 
believes that including community service provided as a measure 
on which possible sanctions and evaluation for purposes of 
competition will be based appropriately reinforces community 
service as a purpose of the program.
    States and national grantees also report to the Secretary 
on additional indicators, which include retention in 
unsubsidized employment for one year, the number of eligible 
individuals served, and any other indicators the Secretary 
determines to be appropriate to evaluate the program. Data on 
the number of individuals served shall include the number of 
participating individuals with barriers to employment, 
including those over 65 years of age. Although sanctions are 
not tied to these indicators, Congress, the Department, and the 
public will have access to this information to determine 
whether those most in need are receiving services.
    States and national grantees negotiate their expected level 
of performance with the Department. Expected levels of 
performance also may be adjusted based on changes in the 
following factors: high rates of unemployment or of poverty or 
welfare participation in the areas served by a grantee relative 
to other areas of the State or nation; significant downturns in 
the areas served by the grantee or in the national economy; 
significant number or proportions of participants with one or 
more barriers to employment served by a grantee relative to 
grantees serving other areas of the State of Nation; and 
changes in Federal, State or local minimum wage requirements. 
For purposes of developing or adjusting levels of performance, 
barriers to employment include (but are not limited to) having 
a disability, having limited English proficiency or low 
literacy skills, residing in a rural area, being a veteran, 
having low employment prospects, or having failed to find 
employment after utilizing services provided under title I of 
the Workforce Investment Act of 1998. The Committee recognizes 
the unique challenges of placing individuals who reside in 
remote areas and believes that ``low employment prospects'' 
includes geographically isolated areas with the availability of 
public transportation limited or nonexistent.
    Inclusion of adjustment factors allows the expected levels 
of performance to reflect accurately the population each 
grantee is to serve, which helps to ensure that the grantee has 
no disincentive to serve those most in need.

                              ELIGIBILITY

    Current law allows services to be provided to individuals 
55 years of age or older who have a low income (including those 
with incomes not more than 125 percent of the federal poverty 
guidelines). In addition, current law includes a priority for 
those individuals over 60 years of age.
    The Committee believes that the one-stop delivery system 
created under the WIA should serve individuals between the ages 
of 55 and 64, since such individuals have not yet reached the 
traditional age of retirement. The one-stop delivery system is 
intended to be a universal system available to all job seekers. 
The SCSEP program is a mandatory partner in the one-stop 
delivery system and makes services available through the job 
centers. However, the Committee recognizes that many older 
individuals have unique barriers to employment and may need 
more specialized services than WIA provides.
    Therefore, H.R. 5293 continues to allow low-income 
individuals 55 years of age or older to be eligible for SCSEP, 
but the bill creates a new priority of service for older 
individuals or those with barriers to employment. Under the 
bill, an individual who is 65 years of age or older, has a 
disability, has limited English proficiency, resides in a rural 
area, is a veteran, has low employment prospects, or has failed 
to find employment after utilizing services provided under 
title I of WIA shall have priority for the work opportunities 
provided under the program. The Committee aims to ensure that 
the program serves those most in need of SCSEP's intensive 
services.
    The Committee has clarified that certain sources of 
unearned income shall not be counted when determining whether 
an individual meets the low-income threshold of 125 percent of 
poverty. States and grantees shall exclude any income that is 
unemployment compensation, Supplemental Security Income (SSI) 
benefits received under Title XVI of the Social Security Act, 
or veterans' payments and 25 percent of benefits received under 
title II of the Social Security Act (Old-Age, Survivors and 
Disability Insurance [OASDI] payments). This change restores 
prior operating practice that was in place before 2004 and 
allows additional low-income seniors to be eligible to 
participate in the program.
    The Committee also aims to ensure that an individual's 
income is accurately counted. The Department issued guidance in 
January 2005 that requires grantees to annualize an applicant's 
income based upon the six months prior to application. Under 
current practice, annualizing six months of income could 
distort income for those who only had earnings during that six-
month period (such as older individuals who work during the 
planting and harvesting seasons but are unemployed for the 
remainder of the year). Basing income determination on 
individual's six-month income annualized makes many seasonal 
workers ineligible for SCSEP or can have the unintended 
consequence of including some individuals who would not 
otherwise be eligible for the program if a 12-month period was 
applied.
    Allowing grantees the flexibility to use either six months 
or 12 months of actual income would negate these unintended 
consequences and promote more accurate eligibility 
determinations. Therefore, H.R. 5293 provides State and 
national grantees operating SCSEP the flexibility to use either 
the income for the 12 months preceding an individual's 
application or an individual's income for the six months 
preceding one's application when determining eligibility. 
Providing grantees with this flexibility when determining 
income eligibility returns the program to operating practice 
prior to the January 2005 guidance.
    The bill also clarifies who is an unemployed individual for 
purposes of participating in the program. Under current law, 
and the bill, the program serves unemployed low-income 
individuals who have low employment prospects. The Department 
properly has interpreted this to mean an individual currently 
must not have any earned income. SCSEP resources are limited, 
and the Committee is committed to serving those most in need. 
Therefore, the program is intended for individuals without any 
employment. WIA services are available through the one-stop 
delivery system to serve those individuals who have part-time 
employment and are therefore not eligible for SCSEP.
    However, the Committee believes and H.R. 5293 specifies 
that occasional employment that does not result in a constant 
source of income should not disqualify an individual from 
participating in SCSEP if he or she meets other eligibility 
criteria. As a result, occasional income from sources such as 
babysitting, mowing lawns for cash, or picking fruits and 
vegetables at harvest time, does not need to preclude 
eligibility for SCSEP.

                        LIMITING FRINGE BENEFITS

    H.R. 5293 eliminates fringe benefits for participants. 
Current law allows grantees to offer annual leave, sick leave, 
paid holidays, health insurance, social security, physical 
examinations, and any other fringe benefits approved in the 
grant agreement. The bill also allows grantees to use funds to 
pay for benefits required by law, such as workers' compensation 
accident insurance; the costs of physical examinations; 
compensation for scheduled work hours during which an employer 
is closed for a Federal holiday; and necessary sick leave that 
is not part of an accumulated sick leave program. However, the 
bill prohibits funds from being used to pay the cost of annual 
leave, accumulated sick leave, or bonuses. Grantees already 
have limited these benefits. For example, only four of 13 
grantees provide annual leave.
    In addition, the bill specifies that no program funds may 
be used to pay the cost of pension benefits. Some grantees have 
expressed concerns that pension law allows SCSEP participants 
to participate in their pension programs.
    The Committee believes that providing participants with the 
benefits now excluded or a pension would serve as a 
disincentive to obtain unsubsidized employment and is not 
appropriate for a time-limited assistance program. In addition, 
the program funds do not provide for payment toward pension 
programs or other fringe benefits and providing such benefits 
would reduce the amount of funds available to serve additional 
participants.

                               References

    Institute of Medicine. The Role of Nutrition in Maintaining 
the Health of the Nation's Elderly. Food and Nutrition Board. 
National Academies Press, Washington, DC. 2000.
    American Cancer Society. Diet, Physical Activity and Cancer 
. . . What's the Connection? Byers, Tim, MD and Colleen Doyle, 
MS, RD. www.cancer.org.
    Mayo Clinic. Early On-set of Alzheimer's: An interview with 
a Mayo Clinic specialist. www.mayoclinic.com/health/alzheimers/
AZO009. 2005.
    National Research Council. Elder Mistreatment: Abuse, 
Neglect, and Exploitation in an Aging America. Bonnie, Richard 
J. and Robert B. Wallace, eds. Committee on National Statistics 
and Committee on Law and Justice, Division of Behavioral and 
Social Sciences and Education. National Academies Press, 
Washington, DC. 2003.

                      Section-by-Section Analysis

    Section 1. Short Title; Table of Contents. Cites the short 
title as the ``Senior Independence Act of 2006'' and includes 
the table of contents.
    Section 2. Definitions. Amends Section 102 of the Older 
Americans Act (42 U.S.C. 3002). Modifies and adds to the 
definitions under this act, including definitions of 
``assistive device, assistive technology, and assistive 
technology service'', amends paragraph (12)(D) to include 
evidence-based health promotion programs, including programs 
related to prevention of chronic disease, ``exploitation'', 
``neglect'', ``Aging and Disability Resource Center'', ``at 
risk for institutional placement'', ``elder justice'', 
``Hispanic serving institution'', ``long-term care'', 
multivitamin-mineral supplement'', ``self-directed care'', 
``self-neglect'', ``State system of long-term care''.
    Section 3. Establishment of Administration on Aging. Amends 
Section 201 of the Older Americans Act (42 U.S.C. 3011). 
Includes elder abuse prevention and services as a 
responsibility of the Administration on Aging.
    Section 4. Functions of the Assistant Secretary. Amends 
Section 202 of the Older Americans Act (42 U.S.C. 3012). 
Modifies and adds to the functions of the Assistant Secretary, 
including language to provide for the increased use of 
assistive technology, coordination with the Centers for 
Medicare & Medicaid and other federal entities to assist in 
benefit enrollment and outreach, strengthen coordination on the 
Federal, State, and local levels for providing long-term care 
in home and community-based settings.
    Section 5. Federal Agency Consultation. Amends Section 
203(a)(3)(A) of the Older Americans Act (42 U.S.C. 
3013(a)(3)(A)). Adds language to support individuals with 
limited English proficiency.
    Section 6. Administration. Amends Section 205 of the Older 
Americans Act (42 U.S.C. 3016). Adds language to strengthen the 
design, implementation, and evaluation of evidence-based 
programs to support improved nutrition and regular physical 
activity.
    Section 7. Evaluation. Amends Section 206(g) of the Older 
Americans Act (42 U.S.C. 3017(g)). Modifies the total amount 
appropriated for each fiscal year to carry out title III to use 
such sums, but not to exceed \1/2\ of 1 percent of such amount, 
for purposes of conducting evaluations under this section, 
either directly or through grants or contracts.
    Section 8. Reports. Amends Section 207(b)(2) of the Older 
Americans Act (42 U.S.C. 3018(b)(2)) to revise the names of 
House and Senate Committee of jurisdiction.
    Section 9. Contractual, Commercial and Private Pay 
Relationships; Appropriate Use of Act Funds. Amends Section 212 
of the Older Americans Act (42 U.S.C. 3020c) to expand services 
and allow for private pay opportunities while maintaining 
safeguards that the aging network providers operate in a manner 
consistent with the public purpose mission and targeting 
provision of the Older Americans Act.
    Section 10. Nutrition Education. Amends Section 214 of the 
Older Americans Act (42 U.S.C. 3020e) to require the Assistant 
Secretary to provide outreach and technical assistance to 
promote health and prevent disease through improved nutrition.
    Section 11. Pension Counseling and Information Programs. 
Amends Section 215 of the Older Americans Act (42 U.S.C. 3020E-
1) to expand outreach and improve program access to individuals 
with limited English proficiency.
    Section 12. Authorization of Appropriations. Amends Section 
216 of the Older Americans Act (42 U.S.C. 3020F) by striking 
``2001, 2002, 2003, 2004, and 2005'' and inserting ``2007, 
2008, 2009, 2010, and 2011''.
    Section 13. Purpose; Administration. Amends section 
301(a)(2) of the Older Americans Act (42 U.S.C. 3021(a)(2)) to 
support program access for individuals with limited English 
proficiency; promote financial literacy; and enhance 
coordination among senior volunteer programs.
    Section 14. Authorization of Appropriations; Uses of Funds. 
Amends Section 303 of the Older Americans Act (42 U.S.C. 3023) 
by striking ``year 2001'' and all that follows through 
``years'' each place it appears, and inserting ``years 2007, 
2008, 2009, 2010, and 2011''.
    Section 15. Organization. Amends Section 305(a) of the 
Older Americans Act (42 U.S.C. 3025a) to improve program access 
for individuals with limited English proficiency and requires 
States to develop and implement a comprehensive, coordinated 
system for providing long-term care in home- and community-
based settings.
    Section 16. Area Plans. Amends Section 306 of the Older 
Americans Act (42 U.S.C. 3026) to improve program access for 
individuals with limited English proficiency; updates area plan 
requirements for area agencies on aging to develop and 
implement a comprehensive coordinated system for providing 
long-term care in home and community-based settings. Adds 
mental health services to the list of services that may be 
accessed. Also authorizes area agencies on aging to conduct an 
assessment of anticipated change in the number of older 
individuals and encourages AAA's, in cooperation with public 
agencies, to support community planning efforts to prepare for 
an increased number of older Americans.
    Section 17. State Plans. Amends Section 307(a) of the Older 
Americans Act (42 U.S.C. 3027(a)) to improve program access for 
individuals with limited English proficiency and require States 
to provide assurances that area agencies on aging will furnish 
services consistent with self-directed care as well as to 
prepare for the increased number of older individuals.
    Section 18. Payments. Amends Section 309(b)(2) of the Older 
Americans Act (42 U.S.C. 3029(b)(2)) to update payments to 
States.
    Section 19. Nutrition Services Incentive Program. Amends 
Section 311 of the Older Americans Act (42 U.S.C. 3030a) to 
authorize a cash only program to purchase food through school 
food authorities.
    Section 20. Consumer Contributions. Amends Section 315 of 
the Older Americans Act (42 U.S.C. 3030c-2) to encourage 
voluntary contributions for individuals with self-declared 
income at or above 125 percent of poverty and improves program 
access for individuals with limited English proficiency.
    Section 21. Supportive Services and Senior Centers Program. 
Amends Section 321(a) of the Older Americans Act (42 U.S.C. 
3030d(a)) to include mental health screenings in the types of 
screenings provided to detect or prevent illness. Also includes 
assistive technology devices and services as types of services 
to be provided for older adults.
    Section 22. Nutrition Service. Amends the heading of part C 
of title III of the Older Americans Act (42 U.S.C. 3030e-3030g-
22) to add a purpose to describe activities under Part C of 
title III.
    Section 23. Congregate Nutrition Program. Amends Section 
331 of the Older Americans Act (42 U.S.C. 3030e) to encourage 
nutrition education and counseling and provides local meal 
providers the option to provide a single multivitamin-mineral 
supplement to older individuals as an addition to a meal.
    Section 24. Home Delivered Nutrition Services. Amends 
Section 336 of the Older Americans Act (42 U.S.C. 3030f) to 
expand the type of meal to be delivered to include fresh and 
supplemental foods and to encourage nutrition education and 
counseling.
    Section 25. Criteria. Amends Section 337 of the Older 
Americans Act (42 U.S.C. 3030g) to update the professions of 
people qualified to consult on the minimum criteria of 
efficiency and quality for the furnishing of home delivered 
meal services.
    Section 26. Nutrition. Amends Section 339 of the Older 
Americans Act (42 U.S.C. 3030g-21) to update the nutrition 
program requirements consistent with current science in 
addition to encourage professionals who distribute nutrition 
assistance to provide information to homebound seniors on how 
to obtain a flu shot in their area.
    Section 27. Evaluation of Nutrition Projects. Authorizes a 
study by the Food and Nutrition Board of the Institute of 
Medicine to conduct and evidence-based evaluation of the 
nutrition projects authorized in the Older Americans Act.
    Section 28. Improving Indoor Air Quality in Building Where 
Seniors Congregate. Amends Section 361 of the Older Americans 
Act (42 U.S.C. 3030m) to work with qualified experts to provide 
information on methods of improving indoor air quality in 
buildings where seniors congregate.
    Section 29. Caregiver Support Program Definitions. Amends 
Section 372 of the National Family Support Caregiver Act (42 
U.S.C. 3030s) to add an individual with a disability to the 
definition of child, add individuals with Alzheimer's disease 
or a related neurological disorder to the type of individuals 
being cared for by a family caregiver, and by striking ``60'' 
and inserting ``55'' as the qualifying age for a grandparent 
who is caring for a child.
    Section 30. Caregiver Support Program. Amends Section 373 
of the National Family Support Caregiver Act (42 U.S.C. 3030s-
1) to strengthen assistance available to caregivers and 
encourage the use of volunteers to care for older individuals. 
Also, the authorization date is updated through 2011.
    Section 31. Activities of National Significance. Amends 
Section 376(a) of the National Family Support Caregiver Act (42 
U.S.C. 3030s-12(a)) to encourage research and demonstrations to 
support intergenerational programs, families who have a child 
with a disability, programs unique to rural areas, Alzheimer's 
programs, and family caregiver support programs.
    Section 32. Title IV Grant Programs. Amends Section 411 of 
the Older Americans Act (42 U.S.C. 3032) to authorize 
additional uses of funds to support activities to prepare for 
the aging of the population, and to develop and assess 
technology-based service models and best practices. Also 
updates authorization year through 2011.
    Section 33. Career Preparation for the Field of Aging. 
Amends Section 412(a) of the Older Americans Act (42 U.S.C. 
3032a(a)) to include grants to Hispanic serving institutions 
and Hispanic Centers of Excellence in Applied Gerontology to 
educate and train students for a career in the field of aging.
    Section 34. Health Care Service Demonstration Projects in 
Rural Areas. Amends Section 414 of the Older Americans Act (42 
U.S.C. 3032d) to include mental health in the types of service 
projects that may be funded and the types of graduate programs 
that are eligible to receive such grant.
    Section 35. Demonstration Projects for Multigenerational 
Activities. Amends Section 417(c)(2) of the Older Americans Act 
(42 U.S.C. 3032f(c)(2)) to improve program access to 
individuals with limited English proficiency.
    Section 36. Native American Programs. Amends Section 
418(a)(2)(B)(i) of the Older Americans Act (42 U.S.C. 
3032g(a)(2)(B)(i) to add mental health to the list of areas of 
concern for the Resource Center on Native American Elders.
    Section 37. Responsibilities of Assistant Secretary. Amends 
Section 432(c)(2)(B) of the Older Americans Act (42 U.S.C. 
3033a(c)(2)(B) to authorize the Assistant Secretary to include 
in its evaluation the effect of such improvements in the yearly 
report.
    Section 38. Community Service Employment-Based Training for 
Older Americans. Amends title V of the Older Americans Act (42 
U.S.C. 3056 et seq.) to reauthorize the community service 
employment-based training program for older Americans. Requires 
grantees to serve those with greatest need; clarifies use of 
SCSEP funds; sets an average time limit for participation; and 
phases in a requirement to place a greater percentage of 
exiting participants in unsubsidized employment. Additionally 
it requires the Department of Labor to exclude certain sources 
of income for the purpose of determining eligibility for Title 
V and changes the look-back period for determining an 
individual's income for purposes of SCSEP eligibility.
    Section 39. Native Americans Caregiver Support Program. 
Amends Section 643 of the Older Americans Act (42 U.S.C. 3057n) 
by striking ``2001'' each place it appears and inserting 
``2007''.
    Section 40. Vulnerable Elder Rights Protection Activities. 
Amends Section 702 of the Older Americans Act (42 U.S.C. 3058a) 
by striking ``2001'' each place it appears and inserting 
``2007''.
    Section 41. Native American Organization Provisions. Amends 
Section 751(d) of the Older Americans Act (42 U.S.C. 3058aa(b)) 
by striking ``2001'' and inserting ``2007''.
    Section 42. Elder Abuse, Neglect, and Exploitation 
Prevention Amendment. Amends Section 721(b) of the Older 
Americans Act (42 U.S.C. 3058i(b)) to provide education and 
outreach to promote financial literacy and prevent identity 
theft and financial exploitation.
    Section 43. Technical Amendments. Amends the Older American 
Act (42 U.S.C. 2001 et seq.) to include a heading for title IV 
of the Act.

                       Explanation of Amendments

    The provisions of the substitute, as amended, are explained 
in the descriptive portions of this report.


              Application of Law to the Legislative Branch

    Section 102(b)(3) of Public Law 104-1 requires a 
description of the application of this bill to the legislative 
branch where the bill relates to the terms and conditions of 
employment or access to public services and accommodations. 
H.R. 5293 amends the Older Americans Act to authorize 
appropriations for fiscal years 2007 through 2011.
    Legislative branch employees and their families, to the 
extent that they are otherwise eligible for the benefits 
provided by this legislation, have equal access to its 
benefits.

  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

         Statement of General Performance Goals and Objectives

    In accordance with clause 3(c)(4) of rule XIII of the Rules 
of the House of Representatives, the Committee's performance 
goals and objectives are reflected in the descriptive portions 
of this report.

                   Constitutional Authority Statement

    Under clause 3(d)(1) of rule XIII of the Rules of the House 
of Representatives, the Committee must include a statement 
citing the specific powers granted to Congress to enact the law 
proposed by H.R. 5293. Article I, Section 8, Clause 18 of the 
Constitution of the United States grants the Congress the power 
to enact this law.

                     Federal Advisory Committee Act

    The Committee finds that the legislation does not establish 
or authorize the establishment of an advisory committee within 
the definition of 5 U.S.C. App., Section 5(b).

                       Unfunded Mandate Statement

    Section 423 of the Congressional Budget and Impoundment 
Control Act (as amended by Section 101(a)(2) of the Unfunded 
Mandates Reform Act, P.L. 104-4) requires a statement whether 
the provisions of the reported include unfunded mandates. In 
compliance with this requirement the Committee has received a 
letter from the Congressional Budget Office included herein.

                           Committee Estimate

    Clause 3(d)(2) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison by the 
Committee of the costs that would be incurred in carrying out 
H.R. 5293. However, clause 3(d)(3)(B) of that rule provides 
that this requirement does not apply when the Committee has 
included in its report a timely submitted cost estimate of the 
bill prepared by the Director of the Congressional Budget 
Office under section 402 of the Congressional Budget Act.

     Budget Authority and Congressional Budget Office Cost Estimate

    With respect to the requirements of clause 3(c)(2) of rule 
XIII of the Rules of the House of Representatives and section 
308(a) of the Congressional Budget Act of 1974 and with respect 
to requirements of clause (3)(c)(3) of rule XIII of the Rules 
of the House of Representatives and section 402 of the 
Congressional Budget Act of 1974, the Committee has received 
the following cost estimate for H.R. 5293 from the Director of 
Congressional Budget Office:

                                     U.S. Congress,
                               Congressional Budget Office,
                                      Washington, DC, June 2, 2006.
Hon. Howard P. ``Buck'' McKeon,
Chairman, Committee on Education and the Workforce,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 5293, the Senior 
Independence Act of 2006.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Christina 
Hawley Anthony.
            Sincerely,
                                          Donald B. Marron,
                                                   Acting Director.
    Enclosure.

H.R. 5293--Senior Independence Act of 2006

    Summary: H.R. 5293 would reauthorize programs under the 
Older Americans Act of 1965, which provides funding for 
services such as home and community-based supportive services, 
congregate and home-delivered meals, family caregiver support, 
and other services for the elderly. Authorizations for most of 
those programs expired at the end of fiscal year 2005, although 
a few of those programs are permanently authorized. 
Appropriations for the programs covered by this bill totaled 
$1.8 billion in fiscal year 2006. CBO estimates that H.R. 5293 
would increase authorizations by $1.7 billion in 2007 and by 
$8.8 billion from 2007 to 2011. Appropriation of those amounts 
would result in $7.3 billion of discretionary spending over the 
next five years (in addition to amounts spent under current 
law).
    H.R. 5293 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
any costs to state, local, or tribal governments would be 
incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 5293 is shown in the following table. 
The costs of this legislation fall within budget function 500 
(education, training, employment and social services).

----------------------------------------------------------------------------------------------------------------
                                                                     By fiscal year, in millions of dollars--
                                                                 -----------------------------------------------
                                                                   2006    2007    2008    2009    2010    2011
----------------------------------------------------------------------------------------------------------------
                                        SPENDING SUBJECT TO APPROPRIATION

Spending Under Current Law:
    Budget Authority \1\........................................   1,795      92      94      95      97      99
    Estimated Outlays...........................................   1,810     908     155     101      96      98
Proposed Changes:
    Estimated Authorization Level...............................       0   1,688   1,720   1,751   1,783   1,814
    Estimated Outlays...........................................       0     877   1,164   1,722   1,760   1,791
Spending Under H.R. 5293:
    Estimated Authorization Level \1\...........................   1,795   1,780   1,813   1,846   1,880   1,913
    Estimated Outlays...........................................   1,810   1,784   1,796   1,823   1,856  1,889
----------------------------------------------------------------------------------------------------------------
\1\ The 2006 level is the amount appropriated for that year for programs under the Older Americans Act of 1965.

    Basis of estimate: H.R. 5293 would reauthorize programs 
established under the Older Americans Act of 1965. Through 
those programs, the Department of Health and Human Services and 
the Department of Labor provide grants to states and other 
eligible entities that provide services such as home-delivered 
meals, subsidized employment and training opportunities, and 
services to prevent abuse and neglect of older individuals. The 
authorizations for many of those programs expired at the end of 
fiscal year 2005. However, those programs received 
appropriations for fiscal year 2006 totaling $1.8 billion.
    The bill would reauthorize most of the programs at ``such 
sums as may be necessary'' for fiscal years 2007 through 2011. 
In those instances, CBO estimated the authorization levels by 
adjusting the 2006 appropriation levels for anticipated 
inflation. Those programs, along with their fiscal year 2006 
appropriation levels, are listed below.

                          [Dollars in millions]

        Program                                       2006 Appropriation
Home and Community-Based Supportive Services......................  $351
Congregate Nutrition Services.....................................   385
Home-Delivered Nutrition Services.................................   182
Nutrition Services Incentive Program..............................   148
Preventive Health Services........................................    21
Program Administration............................................    18
Community Service Employment......................................   432

    Based on the above amounts appropriated for fiscal year 
2006 (which total a little more than $1.5 billion), CBO 
estimates authorization levels for those programs to total 
about $1.6 billion in fiscal year 2007, and $8.1 billion over 
the 2007-2011 period.
    The bill would authorize the appropriation of $125 million 
for the National Family Caregiver Support program for fiscal 
year 2007, and such sums as may be necessary for the following 
four fiscal years. That program received an appropriation of 
$156 million for fiscal year 2006; its authorization expired at 
the end of fiscal year 2005.
    The Native American Caregiver Support program--which is 
permanently authorized under current law--received an 
appropriation of $6 million for 2006. H.R. 5293 would set the 
authorization level for that program at $5 million for fiscal 
year 2007 and such sums as may be necessary in following years.
    A handful of other programs are permanently authorized 
under current law: Native American Nutrition and Supportive 
Services, the Long-Term Care Ombudsman program, grants to 
prevent elder abuse and neglect, grants for program 
innovations, and aging network support activities (including 
pension counseling and eldercare locator services). 
Appropriations for those programs totaled $84 million in fiscal 
year 2006. Three of those (Native American Nutrition and 
Supportive Services, the Long-Term Care Ombudsman program, and 
grants to prevent elder abuse and neglect) would retain their 
permanent authorization under H.R. 5293. The others would be 
authorized at ``such sums as may be necessary'' for fiscal 
years 2007 through 2011. Because those programs are permanently 
authorized, their reauthorization under H.R. 5293 would not 
represent an increase in authorization levels for fiscal years 
2007 through 2011.
    Intergovernmental and private-sector impact: H.R. 5293 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. The bill would authorize funds that would 
benefit state, local, and tribal governments that provide 
services authorized in the Older Americans Act. Any costs they 
might incur to comply with grant requirements would be incurred 
voluntarily.
    Estimate prepared by: Federal Costs: Christina Hawley 
Anthony. Impact on State, Local, and Tribal Governments: Lisa 
Ramirez-Branum. Impact on the Private Sector: Jennifer Doleac.
    Estimate approved by: Peter H. Fontaine, Deputy Assistant 
Director for Budget Analysis.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italic, existing law in which no change is 
proposed is shown in roman):

OLDER AMERICANS ACT OF 1965

           *       *       *       *       *       *       *



TITLE I--DECLARATION OF OBJECTIVES; DEFINITIONS

           *       *       *       *       *       *       *



                              definitions

    Sec. 102. For the purposes of this Act--
          [(13)] (1) The term ``abuse'' means the willful--
                  (A) * * *

           *       *       *       *       *       *       *

          [(14)] (2) The term ``Administration'' means the 
        Administration on Aging.
          [(15)] (3) The term ``adult child with a disability'' 
        means a child who--
                  (A) * * *

           *       *       *       *       *       *       *

          (4) The term ``Aging and Disability Resource Center'' 
        means a program established by a State as part of the 
        State's system of long-term care, to provide a 
        coordinated system for providing--
                  (A) comprehensive information on available 
                public and private long-term care programs, 
                options, and resources;
                  (B) personal counseling to assist individuals 
                in assessing their existing or anticipated 
                long-term care needs, and developing and 
                implementing a plan for long-term care designed 
                to meet their specific needs and circumstances; 
                and
                  (C) consumer access to the range of publicly-
                supported long-term care programs for which 
                they may be eligible, by serving as a 
                convenient point of entry for such programs.
          [(16)] (5) The term ``aging network'' means the 
        network of--
                  (A) * * *

           *       *       *       *       *       *       *

          [(17)] (6) The term ``area agency on aging'' means an 
        area agency on aging designated under section 
        305(a)(2)(A) or a State agency performing the functions 
        of an area agency on aging under section 305(b)(5).
          [(2)] (7) The term ``Assistant Secretary'' means the 
        Assistant Secretary for Aging.
          [(10) The term ``assistive technology'' means 
        technology, engineering methodologies, or scientific 
        principles appropriate to meet the needs of, and 
        address the barriers confronted by, older individuals 
        with functional limitations.]
          (8) The terms ``assistive device'', ``assistive 
        technology'', and ``assistive technology service'' have 
        the meanings given such terms in section 3 of the 
        Assistive Technology Act of 1998 (29 U.S.C. 3002).
          (9) The term ``at risk for institutional placement'' 
        means, with respect to an older individual, that such 
        individual is unable to perform at least two activities 
        of daily living without substantial human assistance 
        (including verbal reminding, physical cuing, or 
        supervision) and is determined by the State to be in 
        need of placement in a long-term care facility.
          [(18)] (10) The term ``board and care facility'' 
        means an institution regulated by a State pursuant to 
        section 1616(e) of the Social Security Act (42 U.S.C. 
        1382e(e)).
          [(21)] (11) The term ``case management service''--
                  (A) * * *

           *       *       *       *       *       *       *

          (12) The term ``disease prevention and health 
        promotion services'' means--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(D) health promotion programs, including but 
                not limited to programs relating to prevention 
                and reduction of effects of chronic disabling 
                conditions (including osteoporosis and 
                cardiovascular disease), alcohol and substance 
                abuse reduction, smoking cessation, weight loss 
                and control, and stress management;]
                  (D) evidence-based health promotion programs, 
                including programs related to the prevention 
                and mitigation of the effects of chronic 
                disease (including osteoporosis, hypertension, 
                obesity, diabetes, and cardiovascular disease), 
                alcohol and substance abuse reduction, smoking 
                cessation, weight loss and control, stress 
                management, falls prevention, physical 
                activity, and improved nutrition through the 
                consumption of a healthful diet and 
                multivitamin-mineral supplementation;

           *       *       *       *       *       *       *

          [(8)] (13) The term ``disability'' means (except when 
        such term is used in the phrase ``severe disability'', 
        ``developmental disabilities'', ``physical or mental 
        disability'', ``physical and mental disabilities'', or 
        ``physical disabilities'') a disability attributable to 
        mental or physical impairment, or a combination of 
        mental and physical impairments, that results in 
        substantial functional limitations in 1 or more of the 
        following areas of major life activity: (A) self-care, 
        (B) receptive and expressive language, (C) learning, 
        (D) mobility, (E) self-direction, (F) capacity for 
        independent living, (G) economic self-sufficiency, (H) 
        cognitive functioning, and (I) emotional adjustment.
          [(22)] (14) The term ``elder abuse'' means abuse of 
        an older individual.
          [(23)] (15) The term ``elder abuse, neglect, and 
        exploitation'' means abuse, neglect, and exploitation, 
        of an older individual.
          (16) The term ``elder justice'' means 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.
          [(24) The term ``exploitation'' means the illegal or 
        improper act or process of an individual, including a 
        caregiver, using the resources of an older individual 
        for monetary or personal benefit, profit, or gain.]
          (17) The term ``exploitation'' means the fraudulent 
        or otherwise illegal, unauthorized, or improper act or 
        process of an individual 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.
          [(42)] (18) The term ``family violence'' has the same 
        meaning given the term in the Family Violence 
        Prevention and Services Act.
          [(25)] (19) The term ``focal point'' means a facility 
        established to encourage the maximum collocation and 
        coordination of services for older individuals.
          [(26)] (20) The term ``frail'' means, with respect to 
        an older individual in a State, that the older 
        individual is determined to be functionally impaired 
        because the individual--
                  (A) * * *

           *       *       *       *       *       *       *

          [(27)] (21) The term ``greatest economic need'' means 
        the need resulting from an income level at or below the 
        poverty line.
          [(28)] (22) The term ``greatest social need'' means 
        the need caused by noneconomic factors, which include--
                  (A) * * *

           *       *       *       *       *       *       *

          (23) The term ``Hispanic serving institution'' has 
        the meaning as defined in section 502 of the Higher 
        Education Act of 1965 (20 U.S.C. 1101A).
          [(19)] (24) The term ``in-home services'' includes--
                  (A) * * *

           *       *       *       *       *       *       *

          [(5)] (25) The term ``Indian'' means a person who is 
        a member of an Indian tribe.
          [(6)] (26) Except for the purposes of title VI of 
        this Act, the term ``Indian tribe'' means any tribe, 
        band, nation, or other organized group or community of 
        Indians (including any Alaska Native village or 
        regional or village corporation as defined in or 
        established pursuant to the Alaska Native Claims 
        Settlement Act (Public Law 92-203; 85 Stat. 688) which 
        (A) is recognized as eligible for the special programs 
        and services provided by the United States to Indians 
        because of their status as Indians; or (B) is located 
        on, or in proximity to, a Federal or State reservation 
        or rancheria.
          [(29)] (27) The term ``information and assistance 
        service'' means a service for older individuals that--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) serves the entire community of older 
                individuals, particularly--
                          (i) older individuals with greatest 
                        social need; [and]
                          (ii) older individuals with greatest 
                        economic need[.]; and
                          (iii) older individuals at risk for 
                        institutional placement.
          [(11)] (28) The term ``information and referral'' 
        includes information relating to assistive technology.
          [(30)] (29) The term ``institution of higher 
        education'' has the meaning given the term in section 
        101 of the Higher Education Act of 1965.
          [(31)] (30) The term ``legal assistance''--
                  (A) means legal advice and representation 
                provided by an attorney to older individuals 
                with economic or social needs; and
                  (B) includes--
                          (i) to the extent feasible, 
                        counseling or other appropriate 
                        assistance by a paralegal or law 
                        student under the direct supervision of 
                        an attorney; and
                          (ii) counseling or representation by 
                        a nonlawyer where permitted by law.
          (31) The term ``long-term care'' means any services, 
        care, or items (including assistive devices), including 
        disease prevention and health promotion services, in-
        home services, and case management service--
                  (A) intended to assist individuals in coping 
                with, and to the extent practicable compensate 
                for, functional impairments in carrying out 
                activities of daily living;
                  (B) furnished at home, in a community care 
                setting (including a small community care 
                setting as defined in subsection (g)(1), and a 
                large community care setting as defined in 
                subsection (h)(1), of section 1929 of the 
                Social Security Act (42 U.S.C. 1396t)), or in a 
                long-term care facility; and
                  (C) not furnished to prevent, diagnose, 
                treat, or cure a medical disease or condition.

           *       *       *       *       *       *       *

          [(34) The term ``neglect'' means--
                  [(A) the failure to provide for oneself the 
                goods or services that are necessary to avoid 
                physical harm, mental anguish, or mental 
                illness; or
                  [(B) the failure of a caregiver to provide 
                the goods or services.]
          (34) The term ``multivitamin-mineral supplement'' 
        means a dietary supplement that provides at least two-
        third's of the essential vitamins and minerals at 100 
        percent of the daily value levels as determined by the 
        Food and Drug Administration.
          [(20)] (35) The term ``Native American'' means--
                  (A) * * *

           *       *       *       *       *       *       *

          (36) The term ``neglect'' means--
                  (A) the failure of a caregiver or fiduciary 
                to provide goods or services that are necessary 
                to maintain the health or safety of an elder; 
                or
                  (B) self neglect.
          [(4)] (37) The term ``nonprofit'' as applied to any 
        agency, institution, or organization means an agency, 
        institution, or organization which is, or is owned and 
        operated by, one or more corporations or associations 
        no part of the net earnings of which inures, or may 
        lawfully inure, to the benefit of any private 
        shareholder or individual.
          [(35)] (38) The term ``older individual'' means an 
        individual who is 60 years of age or older.
          [(36)] (39) The term ``physical harm'' means bodily 
        injury, impairment, or disease.
          [(37)] (40) The term ``planning and service area'' 
        means an area designated by a State agency under 
        section 305(a)(1)(E), including a single planning and 
        service area described in section 305(b)(5)(A).
          [(38)] (41) The term ``poverty line'' means the 
        official poverty line (as defined by the Office of 
        Management and Budget, and adjusted by the Secretary in 
        accordance with section 673(2) of the Community 
        Services Block Grant Act (42 U.S.C. 9902(2)).
          [(39)] (42) The term ``representative payee'' means a 
        person who is appointed by a governmental entity to 
        receive, on behalf of an older individual who is unable 
        to manage funds by reason of a physical or mental 
        incapacity, any funds owed to such individual by such 
        entity.
          [(1)] (43) The term ``Secretary'' means the Secretary 
        of Health and Human Services, expect that for purposes 
        of title V such term means the Secretary of Labor.
          (44) The term ``self-directed care'' means an 
        approach to providing services (including programs, 
        benefits, supports, and technology) under this Act 
        intended to an older individual to assist such 
        individual with activities of daily living, in which--
                  (A) such services (including the amount, 
                duration, scope, provider, and location of such 
                services) are planned, budgeted, and purchased 
                under the direction and control of such 
                individual;
                  (B) such individual is provided with such 
                information and assistance as necessary and 
                appropriate to enable such individual to make 
                informed decisions about his or her care 
                options;
                  (C) the needs, capabilities, and preferences 
                of such individual with respect to such 
                services, and such individual's ability to 
                direct and control his or her receipt of such 
                services, are assessed by the area agency on 
                aging (or other agency designated by the area 
                agency on aging);
                  (D) based on the assessment made under 
                subparagraph (C), the area agency on aging (or 
                other agency designated by the area agency on 
                aging) develops together with such individual 
                and his or her family, caregiver, or legal 
                representative--
                          (i) a plan of services for such 
                        individual that specifies which 
                        services such individual will be 
                        responsible for directing;
                          (ii) a determination of the role of 
                        family members (and others whose 
                        participation is sought by such 
                        individual) in providing services under 
                        such plan; and
                          (iii) a budget for such services; and
                  (E) the area agency on aging or State agency 
                provides for oversight of such individual's 
                self-directed receipt of services, including 
                steps to ensure the quality of services 
                provided and the appropriate use of funds under 
                this Act.
          (45) 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--
                  (A) obtaining essential food, clothing, 
                shelter, and medical care;
                  (B) obtaining goods and services necessary to 
                maintain physical health, mental health, or 
                general safety; or
                  (C) managing one's own financial affairs.
          [(9)] (46) The term ``severe disability'' means a 
        severe, chronic disability attributable to mental or 
        physical impairment, or a combination of mental and 
        physical impairments, that--
                  (A) is likely to continue indefinitely; and
                  (B) results in substantial functional 
                limitation in 3 or more of the major life 
                activities specified in subparagraphs (A) 
                through (G) of paragraph (8).
          [(43)] (47) The term ``sexual assault'' has the 
        meaning given the term in section 2003 of the Omnibus 
        Crime Control and Safe Streets Act of 1968 (42 U.S.C. 
        3796gg-2).
          [(3)] (48) The term ``State'' means any of the 
        several States, the District of Columbia, the Virgin 
        Islands of the United States, the Commonwealth of 
        Puerto Rico, Guam, American Samoa, and the Commonwealth 
        of the Northern Mariana Islands.
          [(40)] (49) The term ``State agency'' means the 
        agency designated under section 305(a)(1).
          (50) 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.
          [(41)] (51) The term ``supportive service'' means a 
        service described in section 321(a).
          [(7)] (52) Except for the purposes of title VI of 
        this Act, the term ``tribal organization'' means the 
        recognized governing body of any Indian tribe, or any 
        legally established organization of Indians which is 
        controlled, sanctioned, or chartered by such governing 
        body. In any case in which a contract is let or grant 
        made to an organization to perform services benefiting 
        more than one Indian tribe, the approval of each such 
        Indian tribe shall be a prerequisite to the letting or 
        making of such contract or grant.

           *       *       *       *       *       *       *


                   TITLE II--ADMINISTRATION ON AGING

                establishment of administration on aging

    Sec. 201. (a) * * *

           *       *       *       *       *       *       *

  (e)(1) The Assistant Secretary may designate within the 
Administration responsibility for elder abuse prevention and 
services.
  (2) It shall be the duty of the assistant secretary, acting 
through the person designated with responsibility for elder 
abuse prevention and services, to develop objectives, 
priorities, policy, and a long-term plan for--
          (A) 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 clause (i); and
                  (iii) the improvement of the elder justice 
                system in the United States;
          (B) collecting and disseminating data relating to the 
        abuse, neglect, and exploitation of older individuals;
          (C) disseminating information concerning best 
        practices regarding, and providing training on, 
        carrying out activities related to abuse, neglect, and 
        exploitation of older individuals;
          (D) conducting research related to abuse, neglect, 
        and exploitation of older individuals;
          (E) providing technical assistance to States and 
        other eligible entities under title VII;
          (F) assisting States and other eligible entities 
        under title VII to develop strategic plans to better 
        coordinate elder justice activities, research, and 
        training; and
          (G) promoting collaborative efforts and diminishing 
        duplicative efforts in the development and carrying out 
        of elder justice programs at the Federal, State, and 
        local levels.

                    FUNCTIONS OF ASSISTANT SECRETARY

    Sec. 202. (a) It shall be the duty and function of the 
Administration to--
          (1) * * *

           *       *       *       *       *       *       *

          (5) develop plans, conduct and arrange for research 
        in the field of aging, and assist in the establishment 
        and implementation of programs designed to meet the 
        needs of older individuals for supportive services, 
        including nutrition, hospitalization, education and 
        training services (including preretirement training, 
        and continuing education), low-cost transportation and 
        housing, assistive technology, and health (including 
        mental health) services;

           *       *       *       *       *       *       *

          (12)(A) consult and coordinate activities with the 
        Centers for Medicare & Medicaid Services and other 
        federal entities to implement and build awareness of 
        programs providing benefits affecting older 
        individuals; and
          (B) carry on a continuing evaluation of the programs 
        and activities related to the objectives of this Act, 
        with particular attention to the impact of medicare and 
        medicaid, the Age Discrimination in Employment Act of 
        1967, and the programs of the National Housing Act 
        relating to housing for older individuals and the 
        setting of standards for the licensing of nursing 
        homes, intermediate care homes, and other facilities 
        providing care for such individuals;

           *       *       *       *       *       *       *

          (20)(A) encourage, and provide technical assistance 
        to, States [and area agencies on aging], area agencies 
        on aging, and service providers to carry out outreach 
        to inform older individuals with greatest economic need 
        who may be eligible to receive, but are not receiving, 
        supplemental security income benefits under title XVI 
        of the Social Security Act (42 U.S.C. 1381 et seq.) (or 
        assistance under a State plan program under such 
        title), medical assistance under title XIX of such Act 
        (42 U.S.C. 1396 et seq.), [and] benefits under the Food 
        Stamp Act of 1977 (7 U.S.C. 2011 et seq.), benefits 
        under any other applicable Federal program, or any 
        other service (including technology and internet-based 
        decision support tools) to assist consumers to learn 
        about, to receive benefits under, and to participate in 
        programs for which they may be eligible of the 
        requirements for eligibility to receive such benefits 
        and such assistance; and
          (B) provide technical assistance and support for 
        benefits enrollment assistance and outreach to support 
        existing efforts to inform and enroll older individuals 
        who may be eligible to participate, but who are not 
        participating, in programs for which they are eligible, 
        and may in cooperation with Federal partners, establish 
        a National Center on Senior Benefits Outreach and 
        Enrollment, which shall--
                  (i) develop, maintain, and update web-based 
                decision supports and enrollment tools and 
                integrated, person-centered systems designed to 
                inform older individuals about the full range 
                of benefits for which they may be eligible;
                  (ii) utilize strategies to find and enroll 
                those with greatest economic need;
                  (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, to serve as enrollment benefit 
                centers;
                  (iv) develop and maintain an information 
                clearinghouse on best practices and cost 
                effective methods for enrolling limited income 
                older Americans in benefits for which they are 
                eligible; and
                  (v) provide, in collaboration with Federal 
                partners administering programs, training and 
                technical assistance on effective outreach, 
                screening, enrollment and follow-up strategies.

           *       *       *       *       *       *       *

          (26) design and implement, for purposes of compliance 
        with paragraph (19), uniform data collection procedures 
        for use by State agencies, including--
                  (A) * * *

           *       *       *       *       *       *       *

                  (D) procedures for collecting information on 
                [gaps in] services needed by older individuals 
                (including services that would permit such 
                individuals to receive long-term care in home 
                and community-based settings), as identified by 
                service providers in assisting clients through 
                the provision of the supportive services; and
                  (E) procedures for the assessment of unmet 
                needs for services under this Act; [and]
          (27) improve the delivery of services to older 
        individuals living in rural areas through--
                  (A) synthesizing results of research on how 
                best to meet the service needs of older 
                individuals in rural areas;
                  (B) developing a resource guide on best 
                practices for States, area agencies on aging, 
                and service providers; and
                  (C) providing training and technical 
                assistance to States to implement these best 
                practices of service delivery;[ and.]
                  [(D) submitting a report on the States' 
                experiences in implementing these best 
                practices and the effect these innovations are 
                having on improving service delivery in rural 
                areas to the relevant committees not later than 
                36 months after enactment.]
          (28) make available to States information and 
        technical assistance to support the provision of 
        evidence-based disease prevention and health promotion 
        services.
    [(b) In order to strengthen the involvement of the 
Administration in the development of policy alternatives in 
long-term care and to insure that the development of community 
alternatives is given priority attention, the Assistant 
Secretary shall--
          [(1) develop planning linkages with utilization and 
        quality control peer review organizations under title 
        XI of the Social Security Act, with the Substance Abuse 
        and Mental Health Services Administration and the 
        Administration on Developmental Disabilities;
          [(2) participate in all departmental and 
        interdepartmental activities which concern issues of 
        institutional and noninstitutional long-term health 
        care services development;
          [(3) review and comment on all departmental 
        regulations and policies regarding community health and 
        social service development for older individuals; and
          [(4) participate in all departmental and 
        interdepartmental activities to provide a leadership 
        role for the Administration, State agencies, and area 
        agencies on aging in the development and implementation 
        of a national community-based long-term care program 
        for older individuals.
      [(c) In executing the duties and functions of the 
Administration under this Act and carrying out the programs and 
activities provided for by this Act, the Assistant Secretary, 
in consultation with the Corporation for National and Community 
Service, shall take all possible steps to encourage and permit 
voluntary groups active in supportive services, including youth 
organizations active at the high school or college levels, to 
participate and be involved individually or through 
representative groups in such programs or activities to the 
maximum extent feasible, through the performance of advisory or 
consultative functions, and in other appropriate ways.]
  (b) To promote the development and implementation of 
comprehensive, coordinated systems at Federal, State, and local 
levels for providing long-term care in home and community-based 
settings, in a manner responsive to the needs and preferences 
of older individuals and their family caregivers, the Assistant 
Secretary shall, consistent with the applicable provisions of 
this title--
          (1) collaborate, coordinate, and consult with other 
        Federal agencies and departments responsible for 
        formulating and implementing programs, benefits, and 
        services related to providing long-term care, and may 
        make grants, contracts, and cooperative agreements with 
        funds received from other Federal entities;
          (2) conduct research and demonstration projects to 
        identify innovative, cost-effective strategies for 
        modifying State systems of long-term care to--
                  (A) respond to the needs and preferences of 
                older individuals and family caregivers; and
                  (B) target services to individuals at risk 
                for institutional placement, to permit such 
                individuals to remain in home and community-
                based care settings;
          (3) establish criteria 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;
          (4) facilitate, in coordination with the Centers for 
        Medicare & Medicaid Services, the provision of long-
        term care in home and community-based settings, 
        including the provision of 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 nursing home placement and 
                depletion of income and assets to qualify for 
                Medicaid eligibility;
                  (B) respond to the needs and preferences of 
                such individual and provide the option for the 
                individual (or representative, as appropriate) 
                to direct and control the receipt of support 
                services provided;
                  (C) assist an older individual (or a 
                representative, as appropriate) develop a plan 
                for long-term support, including the selecting, 
                budgeting, and purchasing of home and 
                community-based long-term care and supportive 
                services;
        (for purposes of this paragraph, the term 
        ``representative'' means a person appointed by the 
        eligible individual, or legally acting on the 
        individual's behalf, to represent or advise the 
        individual in financial or service coordination 
        matters);
          (5) provide for the Administration to play a lead 
        role with respect to issues concerning home and 
        community-based long-term care, including--
                  (A) directing (as the Secretary or the 
                President determines to be appropriate) or 
                otherwise participating in departmental and 
                interdepartmental activities concerning long-
                term care;
                  (B) reviewing and commenting on departmental 
                rules, regulations, and policies related to 
                providing long-term care; and
                  (C) making recommendations to the Secretary 
                with respect to home and community-based long-
                term care, including recommendations based on 
                findings made through projects conducted under 
                paragraph (2);
          (6) promote, in coordination with other appropriate 
        Federal agencies, enhanced awareness by the public of 
        the importance of planning in advance for long-term 
        care and the availability of information and resources 
        to assist in such planning;
          (7) implement in all states Aging and Disability 
        Resource Centers--
                  (A) to serve as visible and trusted sources 
                of information on the full range of long-term 
                care options that are available in the 
                community, including both institutional and 
                home and community-based care;
                  (B) to provide personalized and consumer 
                friendly assistance to empower people to make 
                informed decisions about their care options;
                  (C) to provide coordinated and streamlined 
                access to all publicly supported long-term care 
                options so that consumers can obtain the care 
                they need though a single intake, assessment 
                and eligibility determination process;
                  (D) to help people to plan ahead for their 
                future long-term care needs; and
                  (E) to assist, in coordination with the State 
                Health Insurance Assistance Program, Medicare 
                beneficiaries in understanding and accessing 
                the Prescription Drug Coverage and preventative 
                health benefits available under the Medicare 
                Modernization Act;
          (8) establish, either directly or through grants or 
        contracts, a national technical assistance program to 
        assist State agencies, area agencies on aging, and 
        community-based service providers funded under this Act 
        in implementing such home and community-based long-term 
        care systems including evidence-based programs;
          (9) 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
          (10) conduct such other activities as the Assistant 
        Secretary determines to be appropriate.
  (c) The Assistant Secretary, in consultation with the 
Corporation for National and Community Service, shall--
          (1) encourage and permit voluntary groups active in 
        supportive services, including youth organizations 
        active at the secondary or postsecondary levels, to 
        participate and be involved individually or through 
        representative groups, in such 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.

           *       *       *       *       *       *       *

  (e)(1)(A) The Assistant Secretary shall make grants or enter 
into contracts with eligible entities to establish the National 
Aging Information Center (in this subsection referred to as the 
``Center'') to--
          (i) * * *

           *       *       *       *       *       *       *

          (vi) be a national resource on statistical data 
        regarding aging[;].

                      federal agency consultation

    Sec. 203. (a)(1) * * *

           *       *       *       *       *       *       *

  (3) The head of each department, agency, or instrumentality 
of the Federal Government administering programs and services 
substantially related to the objectives of this Act shall 
collaborate with the Assistant Secretary in carrying out this 
Act, and shall develop a written analysis, for review and 
comment by the Assistant Secretary, of the impact of such 
programs and services on--
          (A) older individuals [(with particular attention to 
        low-income minority older individuals and older 
        individuals residing in rural areas)] (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 eligible 
        individuals (as defined in section 507); and

           *       *       *       *       *       *       *

    (b) For the purposes of subsection (a), programs related to 
the objectives of this Act shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (17) the Developmental Disabilities Assistance and 
        Bill of Rights Act of 2000; [and]
          (18) the Edward Byrne Memorial State and Local Law 
        Enforcement Assistance Programs, established under part 
        E of title I of the Omnibus Crime Control and Safe 
        Streets Act of 1968 (42 U.S.C. 3750-3766b))[.]; and
          (19) sections 4 and 5 of the Assistive Technology Act 
        of 1998 (29 U.S.C. 3003-3004).

           *       *       *       *       *       *       *


                       administration of the act

    Sec. 205. (a)(1) In carrying out the objectives of this 
Act, the Assistant Secretary is authorized to--
          (A) * * *
          (B) provide short-term training and technical 
        instruction;
          (C) conduct research and demonstrations; and
          (D) collect, prepare, publish, and disseminate 
        special educational or informational materials, 
        including reports of the projects for which funds are 
        provided under this Act[; and].
          [(E) provide staff and other technical assistance to 
        the Federal Council on the Aging.]
  (2)(A) The Assistant Secretary shall designate an officer or 
employee who shall serve on a full-time basis and who shall be 
responsible for the administration of the nutrition services 
described in subparts 1 and 2 of part C of title III and shall 
have duties that include--
          [(i) designing, implementing, and evaluating 
        nutrition programs;]
          (i) designing, implementing, and evaluating evidence-
        based programs to support improved nutrition and 
        regular physical activity for older individuals;

           *       *       *       *       *       *       *

          [(iii) disseminating information to nutrition service 
        providers about nutrition advancements and 
        developments;]
          (iii) conducting outreach and disseminating evidence-
        based information to nutrition service providers about 
        the benefits of healthful diets and regular physical 
        activity, including information about the most current 
        Dietary Guidelines for Americans published under 
        section 301 of the National Nutrition Monitoring and 
        Related Research Act of 1990 (7 U.S.C. 5341), the Food 
        Guide Pyramid published jointly by the Secretary and 
        the Secretary of Agriculture, and advances in nutrition 
        science;

           *       *       *       *       *       *       *

          (vii) developing model menus and other appropriate 
        materials for serving special needs populations and 
        meeting cultural meal preferences; [and]
          [(viii) providing technical assistance to the 
        regional offices of the Administration with respect to 
        each duty described in clauses (i) through (vii).]
          (viii) disseminating guidance that describes 
        strategies for improving the nutritional quality of 
        meals provided under title III, particularly strategies 
        for increasing the consumption of whole grains, lowfat 
        dairy products, fruits and vegetables;
          (ix) developing and disseminating guidelines for 
        conducting nutrient analyses of meals provided in 
        subparts 1 and 2 of part C, including guidelines for 
        averaging key nutrients over an appropriate period of 
        time; and
          (x) providing technical assistance to the regional 
        offices of the Administration with respect to each duty 
        described in clauses (i) through (viii).

           *       *       *       *       *       *       *

  (C) The officer or employee designated under subparagraph (A) 
shall--
          [(i) have expertise in nutrition and dietary services 
        and planning; and]
          (i) have expertise in nutrition, energy balance, and 
        meal planning; and

           *       *       *       *       *       *       *


                               evaluation

    Sec. 206. (a) * * *

           *       *       *       *       *       *       *

  (g) [The Secretary may use such sums as may be necessary, but 
not to exceed $3,000,000 (of which not to exceed $1,500,000 
shall be available from funds appropriated to carry out title 
III and not to exceed $1,500,000 shall be available from funds 
appropriated to carry out title IV), to conduct directly 
evaluations under this section.] From the total amount 
appropriated for each fiscal year to carry out title III, the 
Secretary may use such sums as may be necessary, but not to 
exceed \1/2\ of 1 percent of such amount, for purposes of 
conducting evaluations under this section, either directly or 
through grants or contracts. No part of such sums may be 
reprogrammed, transferred, or used for any other purpose. Funds 
expended under this subsection shall be justified and accounted 
for by the Secretary.

                                reports

    Sec. 207. (a) * * *
    (b)(1) * * *
    (2) The Assistant Secretary shall submit the report 
required by paragraph (1) to--
          (A) * * *
          (B) the Committee on Education and [Labor] the 
        Workforce of the House of Representatives; and
          (C) the Committee on [Labor and Human Resources] 
        Health, Education, Labor, and Pensions of the Senate.

           *       *       *       *       *       *       *


                    [contracting and grant authority

    [Sec. 212. None of the provisions of this Act shall be 
construed to prevent a recipient of a grant or a contract from 
entering into an agreement, subject to the approval of the 
State agency (or in the case of a grantee under title VI, 
subject to the recommendation of the Director of the Office for 
American Indian, Alaskan Native, and Native Hawaiian Aging and 
the approval of the Assistant Secretary), with a profitmaking 
organization to carry out the provisions of this Act and of the 
appropriate State plan.]

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

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

           *       *       *       *       *       *       *


[SEC. 214. NUTRITION EDUCATION.

  [The Assistant Secretary and the Secretary of Agriculture may 
provide technical assistance and appropriate material to 
agencies carrying out nutrition education programs in 
accordance with section 339(2)(J).]

SEC. 214. NUTRITION EDUCATION.

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

SEC. 215. PENSION COUNSELING AND INFORMATION PROGRAMS.

  (a) * * *

           *       *       *       *       *       *       *

  (e) Application.--To be eligible to receive a grant under 
this section, 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, including--
          (1) a plan to establish a pension counseling and 
        information program that--
                  (A) * * *

           *       *       *       *       *       *       *

                  (J) establishes or continues an outreach 
                program to provide information, counseling, 
                referral and assistance regarding pension and 
                other retirement benefits, with particular 
                emphasis on outreach to women, minorities, 
                older individuals residing in rural areas [and 
                low income retirees], low-income retirees, and 
                older individuals with limited English 
                proficiency; and

           *       *       *       *       *       *       *

  (f ) Criteria.--The Assistant Secretary shall consider the 
following criteria in awarding grants under this section:
          (1) * * *
          [(2) The ability of the entity to perform effective 
        outreach to affected populations, particularly 
        populations that are identified in need of special 
        outreach.]
          (2) The ability of the entity to perform effective 
        outreach to affected populations, particularly 
        populations with limited English proficiency and other 
        populations that are identified in need of special 
        outreach.

           *       *       *       *       *       *       *

  (h) Pension Assistance Hotline and Intragency Coordination.--
          (1) * * *
          (2) Content.--Such hotline described in paragraph (1) 
        shall provide information for individuals (including 
        individuals with limited English proficiency) seeking 
        outreach, information, counseling, referral, and 
        assistance regarding pension and other retirement 
        benefits, and rights related to such benefits.

           *       *       *       *       *       *       *


SEC. 216. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--For purposes of carrying out this Act, there 
are authorized to be appropriated for administration, salaries, 
and expenses of the Administration such sums as may be 
necessary for fiscal years [2001, 2002, 2003, 2004, and 2005] 
2007, 2008, 2009, 2010, and 2011.
  (b) Eldercare Locator Service.--There are authorized to be 
appropriated to carry out section 202(a)(24) (relating to the 
National Eldercare Locator Service) such sums as may be 
necessary for fiscal [year 2001, and such sums as may be 
necessary for each of the 4 succeeding fiscal years] years 
2007, 2008, 2009, 2010, and 2011.
  (c) Pension Counseling and Information Programs.--There are 
authorized to be appropriated to carry out section 215, such 
sums as may be necessary for fiscal [year 2001 and for each of 
the 4 succeeding fiscal years] years 2007, 2008, 2009, 2010, 
and 2011.

           *       *       *       *       *       *       *


      TITLE III--GRANTS FOR STATE AND COMMUNITY PROGRAMS ON AGING

                       Part A--General Provisions

                        purpose; administration

    Sec. 301. (a)(1) * * *
  (2) The persons referred to in paragraph (1) include--
          (A) * * *

           *       *       *       *       *       *       *

          (D) the providers, including voluntary organizations 
        or other private sector organizations, of supportive 
        services, nutrition services, and multipurpose senior 
        centers; [and]
          (E) organizations representing or employing older 
        individuals or their families[.]; and
          (F) organizations with experience in providing senior 
        volunteer services, such as Federal volunteer programs 
        administered by the Corporation for National and 
        Community Service designed to provide training, 
        placement, and stipends for volunteers in community 
        service settings.

           *       *       *       *       *       *       *


             authorization of appropriations; uses of funds

    Sec. 303. (a)(1) There are authorized to be appropriated to 
carry out part B (relating to supportive services) such sums as 
may be necessary for fiscal [year 2001, and such sums as may be 
necessary for each of the 4 succeeding fiscal years] years 
2007, 2008, 2009, 2010, and 2011.

           *       *       *       *       *       *       *

  (b)(1) There are authorized to be appropriated to carry out 
subpart 1 of part C (relating to congregate nutrition services) 
such sums as may be necessary for fiscal [year 2001, and such 
sums as may be necessary for each of the 4 succeeding fiscal 
years] years 2007, 2008, 2009, 2010, and 2011.
  (2) There are authorized to be appropriated to carry out 
subpart 2 of part C (relating to home delivered nutrition 
services) such sums as may be necessary for fiscal [year 2001, 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years] years 2007, 2008, 2009, 2010, and 2011.

           *       *       *       *       *       *       *

  (d) There are authorized to be appropriated to carry out part 
D (relating to disease prevention and health promotion 
services) such sums as may be necessary for fiscal [year 2001, 
and such sums as may be necessary for each of the 4 succeeding 
fiscal years] years 2007, 2008, 2009, 2010, and 2011.
  (e)(1) There are authorized to be appropriated to carry out 
part E (relating to family caregiver support) $125,000,000 for 
fiscal year [2001] 2007 if the aggregate amount appropriated 
under subsection (a)(1) (relating to part B, supportive 
services), paragraphs (1) (relating to subpart 1 of part C, 
congregate nutrition services) and (2) (relating to subpart 2 
of part C, home delivered nutrition services) of subsection 
(b), and (d) (relating to part D, disease prevention and health 
promotion services) of this section for fiscal year [2001] 2007 
is not less than the aggregate amount appropriated under 
subsection (a)(1), paragraphs (1) and (2) of subsection (b), 
and subsection (d) of section 303 of the Older Americans Act of 
1965 for fiscal year 2000.

           *       *       *       *       *       *       *


                              organization

    Sec. 305. (a) In order for a State to be eligible to 
participate in programs of grants to States from allotments 
under this title--
          (1) the State shall, in accordance with regulations 
        of the Assistant Secretary, designate a State agency as 
        the sole State agency to--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) divide the State into distinct planning 
                and service areas (or in the case of a State 
                specified in subsection (b)(5)(A), designate 
                the entire State as a single planning and 
                service area), in accordance with guidelines 
                issued by the Assistant Secretary, after 
                considering the geographical distribution of 
                older individuals in the State, the incidence 
                of the need for supportive services, nutrition 
                services, multipurpose senior centers, and 
                legal assistance, the distribution of older 
                individuals who have greatest economic need 
                [(with particular attention to low-income 
                minority individuals and older individuals 
                residing in rural areas)] (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) residing in such 
                areas, the distribution of older individuals 
                who have greatest social need [(with particular 
                attention to low-income minority individuals 
                and older individuals residing in rural areas)] 
                (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) residing 
                in such areas, the distribution of older 
                individuals who are Indians residing in such 
                areas, the distribution of resources available 
                to provide such services or centers, the 
                boundaries of existing areas within the State 
                which were drawn for the planning or 
                administration of supportive services programs, 
                the location of units of general purpose local 
                government within the State, and any other 
                relevant factors; and
          (2) the State agency shall--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) provide assurance that preference will be 
                given to providing services to older 
                individuals with greatest economic need and 
                older individuals with greatest social need, 
                [with particular attention to low-income 
                minority individuals and older individuals 
                residing in rural areas] 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 include proposed 
                methods of carrying out the preference in the 
                State plan;

           *       *       *       *       *       *       *

          (3) the State agency shall, consistent with this 
        section, promote the development and implementation of 
        a comprehensive, coordinated system in such State for 
        providing long-term care in home and community-based 
        settings, in a manner responsive to the needs and 
        preferences of older individuals and their family 
        caregivers, by--
                  (A) collaborating, coordinating, and 
                consulting with other agencies in such State 
                responsible for formulating, implementing, and 
                administering programs, benefits, and services 
                related to providing long-term care;
                  (B) participating in any State government 
                activities concerning long-term care, including 
                reviewing and commenting on any State rules, 
                regulations, and policies related thereto;
                  (C) conducting analyses, making 
                recommendations, and implementing programs and 
                strategies to modify the State's system of 
                long-term care to better--
                          (i) respond to the needs and 
                        preferences of older individuals and 
                        family caregivers;
                          (ii) facilitate the provision of 
                        long-term care in home and community-
                        based settings through service 
                        providers;
                          (iii) target services to individuals 
                        at risk for institutional placement, to 
                        permit such individuals to remain in 
                        home and community-based care settings; 
                        and
                          (iv) implement (through area agencies 
                        on aging, service providers, and such 
                        other entities as the State determines 
                        to be appropriate) evidence-based 
                        programs to assist older individuals 
                        and their family caregivers in learning 
                        about and making behavioral changes 
                        intended to reduce the risk of injury, 
                        disease, and disability among older 
                        individuals; and
                  (D) providing for the availability and 
                distribution (through public education 
                campaigns, aging and disability resource 
                centers, area agencies on aging, and other 
                appropriate means) of information relating to--
                          (i) the need to plan in advance for 
                        long-term care; and
                          (ii) the range of available public 
                        and private long-term care programs, 
                        options, and resources.

           *       *       *       *       *       *       *


                               area plans

    Sec. 306. (a) Each area agency on aging designated under 
section 305(a)(2)(A) shall, in order to be approved by the 
State agency, prepare and develop an area plan for a planning 
and service area for a two-, three-, or four-year period 
determined by the State agency, with such annual adjustments as 
may be necessary. Each such plan shall be based upon a uniform 
format for area plans within the State prepared in accordance 
with section 307(a)(1). Each such plan shall--
          (1) provide, through a comprehensive and coordinated 
        system, for supportive services, nutrition services, 
        and, where appropriate, for the establishment, 
        maintenance, or construction of multipurpose senior 
        centers, within the planning and service area covered 
        by the plan, including determining the extent of need 
        for supportive services, nutrition services, and 
        multipurpose senior centers in such area (taking into 
        consideration, among other things, the number of older 
        individuals with low incomes residing in such area, the 
        number of older individuals who have greatest economic 
        need [(with particular attention to low-income minority 
        individuals and older individuals residing in rural 
        areas)] (with particular attention to low-income older 
        individuals, low-income minority older individuals, 
        older individuals with limited English proficiency, and 
        older individuals residing in rural areas) residing in 
        such area, the number of older individuals who have 
        greatest social need (with particular attention to low-
        income minority individuals) residing in such area, the 
        number of older individuals at risk for institutional 
        placement residing in such area, and the number of 
        older individuals who are Indians residing in such 
        area, and the efforts of voluntary organizations in the 
        community), evaluating the effectiveness of the use of 
        resources in meeting such need, and entering into 
        agreements with providers of supportive services, 
        nutrition services, or multipurpose senior centers in 
        such area, for the provision of such services or 
        centers to meet such need;
          (2) provide assurances that an adequate proportion, 
        as required under section 307(a)(2), of the amount 
        allotted for part B to the planning and service area 
        will be expended for the delivery of each of the 
        following categories of services--
                  (A) services associated with access to 
                services (transportation, health services 
                (including mental health services), outreach, 
                information and assistance, and case management 
                services);

           *       *       *       *       *       *       *

          (4)(A)[(i) provide assurances that the area agency on 
        aging will set specific objectives for providing 
        services to older individuals with greatest economic 
        need and older individuals with greatest social need, 
        include specific objectives for providing services to 
        low-income minority individuals and older individuals 
        residing in rural areas, and include proposed methods 
        of carrying out the preference in the area plan;] (i) 
        provide assurances that the area agency on aging will--
                  (I) set specific objectives, consistent with 
                State policy, for providing services to older 
                individuals with greatest economic need, older 
                individuals with greatest social need, and 
                older individuals at risk for institutional 
                placement;
                  (II) include in the area plan specific 
                objectives for providing services to low-income 
                minority older individuals and older 
                individuals residing in rural areas; and
                  (III) include in the area plan proposed 
                methods to achieve such objectives;
          (ii) provide assurances that the area agency on aging 
        will include in each agreement made with a provider of 
        any service under this title, a requirement that such 
        provider will--
                  (I) specify how the provider intends to 
                satisfy the service needs of low-income 
                minority individuals (including older 
                individuals with limited English proficiency) 
                and older individuals residing in rural areas 
                in the area served by the provider;
                  (II) to the maximum extent feasible, provide 
                services to low-income minority individuals 
                (including older individuals with limited 
                English proficiency) and older individuals 
                residing in rural areas in accordance with 
                their need for such services; and
                  (III) meet specific objectives established by 
                the area agency on aging, for providing 
                services to low-income minority individuals 
                (including older individuals with limited 
                English proficiency) and older individuals 
                residing in rural areas within the planning and 
                service area; and

           *       *       *       *       *       *       *

          (B) provide assurances that the area agency on aging 
        will use outreach efforts that will--
                  (i) identify individuals eligible for 
                assistance under this Act, with special 
                emphasis on--
                          (I) older individuals residing in 
                        rural areas;
                          (II) older individuals with greatest 
                        economic need (with particular 
                        attention to low-income minority 
                        individuals and older individuals 
                        residing in rural areas);
                          (III) older individuals with greatest 
                        social need (with particular attention 
                        to low-income minority individuals and 
                        older individuals residing in rural 
                        areas);
                          (IV) older individuals with severe 
                        disabilities;
                          (V) older individuals with limited 
                        English-speaking ability; [and]
                          (VI) older individuals at risk for 
                        institutional placement; and
                          [(VI)] (VII) older individuals with 
                        Alzheimer's disease or related 
                        disorders with neurological and organic 
                        brain dysfunction (and the caretakers 
                        of such individuals); and
                  (ii) inform the older individuals referred to 
                in subclauses (I) through (VI) of clause (i), 
                and the caretakers of such individuals, of the 
                availability of such assistance; and

           *       *       *       *       *       *       *

          (5) provide assurances that the area agency on aging 
        will coordinate planning, identification, assessment of 
        needs, and provision of services for older individuals 
        with disabilities, with particular attention to 
        individuals with severe disabilities and individuals at 
        risk for institutional placement, with agencies that 
        develop or provide services for individuals with 
        disabilities;
          (6) provide that the area agency on aging will--
                  (A) * * *

           *       *       *       *       *       *       *

                  (C)(i) where possible, enter into 
                arrangements with organizations providing day 
                care services for children, assistance to older 
                individuals caring for relatives who are 
                children, and respite for families, so as to 
                provide opportunities for older individuals to 
                aid or assist on a voluntary basis in the 
                delivery of such services to children, adults, 
                and families; [and]
                  (ii) if possible regarding the provision of 
                services under this title, enter into 
                arrangements and coordinate with organizations 
                that have a proven record of providing services 
                to older individuals, that--
                          (I) * * *

           *       *       *       *       *       *       *

                and that meet the requirements under section 
                676B of the Community Services Block Grant Act; 
                and
                  (iii) make use of trained volunteers in 
                providing direct services delivered to elderly 
                and disabled individuals needing such care and, 
                if possible, work in coordination with 
                volunteer programs (including programs 
                administered by the Corporation for National 
                Service) designed to provide training, 
                placement, and stipends for volunteers in 
                community service settings.
                  (D) establish an advisory council consisting 
                of older individuals (including minority 
                individuals and older individuals residing in 
                rural areas) who are participants or who are 
                eligible to participate in programs assisted 
                under this Act, family caregivers of such 
                individuals, representatives of older 
                individuals, service providers, the business 
                community, local elected officials, providers 
                of veterans' health care (if appropriate), and 
                the general public, to advise continuously the 
                area agency on aging on all matters relating to 
                the development of the area plan, the 
                administration of the plan and operations 
                conducted under the plan;

           *       *       *       *       *       *       *

                  (F) coordinate any mental health services 
                provided (including mental health screening) 
                with funds expended by the area agency on aging 
                for part B with the mental health services 
                provided by community health centers and by 
                other public agencies and nonprofit private 
                organizations; and

           *       *       *       *       *       *       *

          [(7) provide that the area agency on aging will 
        facilitate the coordination of community-based, long-
        term care services designed to enable older individuals 
        to remain in their homes, by means including--
                  [(A) development of case management services 
                as a component of the long-term care services, 
                consistent with the requirements of paragraph 
                (8);
                  [(B) involvement of long-term care providers 
                in the coordination of such services; and
                  [(C) increasing community awareness of and 
                involvement in addressing the needs of 
                residents of long-term care facilities;]
          (7) provide that the area agency on aging shall, 
        consistent with this section, facilitate the area-wide 
        development and implementation of a comprehensive, 
        coordinated system for providing long-term care in home 
        and community-based settings, in a manner responsive to 
        the needs and preferences of older individuals and 
        their family caregivers, by--
                  (A) collaborating, coordinating, and 
                consulting with other local public and private 
                agencies and organizations responsible for 
                administering programs, benefits, and services 
                related to providing long-term care;
                  (B) conducting analyses and making 
                recommendations with respect to strategies for 
                modifying the local system of long-term care to 
                better--
                          (i) respond to the needs and 
                        preferences of older individuals and 
                        family caregivers;
                          (ii) facilitate the provision, 
                        through service providers, of long-term 
                        care in home and community-based 
                        settings; and
                          (iii) target services to older 
                        individuals at risk for institutional 
                        placement, to permit such individuals 
                        to remain in home and community-based 
                        care settings;
                  (C) implementing, 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
                  (D) 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;

           *       *       *       *       *       *       *

          [(14) provide assurances that funds received under 
        this title will not be used to pay any part of a cost 
        (including an administrative cost) incurred by the area 
        agency on aging to carry out a contract or commercial 
        relationship that is not carried out to implement this 
        title; and
          [(15) provide assurances that preference in receiving 
        services under this title will not be given by the area 
        agency on aging to particular older individuals as a 
        result of a contract or commercial relationship that is 
        not carried out to implement this title.
          [(15) provide assurances that funds received under 
        this title will not be used to pay any part of a cost 
        (including an administrative cost) incurred by the area 
        agency on aging to carry out a contract or commercial 
        relationship that is not carried out to implement this 
        title;]
          [(16)] (14) provide assurances that preference in 
        receiving services under this title will not be given 
        by the area agency on aging to particular older 
        individuals as a result of a contract or commercial 
        relationship that is not carried out to implement this 
        title;
          (15) provide assurances that funds received under 
        this title will be used--
                  (A) in a manner, consistent with paragraph 
                (4), that gives priority in furnishing benefits 
                and services to older individuals with greatest 
                economic need, older individuals with greatest 
                social need, and older individuals at risk for 
                institutional placement; and
                  (B) in compliance with the assurances 
                specified in paragraph (13) and the limitations 
                specified in section 212(b); and
          (16) provide, to the maximum extent feasible, for the 
        furnishing of services under this Act consistent with 
        self-directed care.
  (b)(1) An area agency on aging may include in the area plan 
an assessment of how prepared the planning and service area is 
for any anticipated change in the number of older individual 
during the 10-year period following the fiscal year for which 
the plan is submitted. Such assessment may include--
          (A) the projected change in the number of older 
        individuals in the planning and service area;
          (B) an analysis of how such change may affect such 
        individuals, including such individuals with low 
        incomes, such individuals with greatest economic need, 
        minority older individuals, older individuals residing 
        in rural areas, and older individuals with limited 
        English proficiency;
          (C) an analysis of how the programs, policies, and 
        services provided in the planning and service area can 
        be improved, and how resource levels can be adjusted, 
        to meet the needs of the changing population of older 
        individuals in such area; and
          (D) an analysis of how the change in the number of 
        individuals 85 years of age and older is expected to 
        affect the need for supportive services.
  (2) An area agency on aging, in cooperation with government 
officials, State agencies, tribal organizations, or local 
entities, may make recommendations to government officials in 
the planning and service area and the State, on actions 
determined by the area agency to build the capacity in the 
planning and service area to meet the needs of older 
individuals for--
          (A) health and human services;
          (B) land use;
          (C) housing;
          (D) transportation;
          (E) public safety;
          (F) workforce and economic development;
          (G) recreation;
          (H) education;
          (I) civic engagement; and
          (J) any other service as determined by such agency.
    [(b)] (c) Each State, in approving area agency on aging 
plans under this section, shall waive the requirement described 
in paragraph (2) of subsection (a) for any category of services 
described in such paragraph if the area agency on aging 
demonstrates to the State agency that services being furnished 
for such category in the area are sufficient to meet the need 
for such services in such area and had conducted a timely 
public hearing upon request.
    [(c)] (d)(1) * * *

           *       *       *       *       *       *       *

    [(d)] (e) An area agency on aging may not require any 
provider of legal assistance under this title to reveal any 
information that is protected by the attorney-client privilege.
    [(e)] (f)(1) * * *

           *       *       *       *       *       *       *


                              state plans

    Sec. 307. (a) Except as provided in the succeeding sentence 
and section 309(a), each State, in order to be eligible for 
grants from its allotment under this title for any fiscal year, 
shall submit to the Assistant Secretary a State plan for a two-
, three-, or four-year period determined by the State agency, 
with such annual revisions as are necessary, which meets such 
criteria as the Assistant Secretary may by regulation 
prescribe. If the Assistant Secretary determines, in the 
discretion of the Assistant Secretary, that a State failed in 2 
successive years to comply with the requirements under this 
title, then the State shall submit to the Assistant Secretary a 
State plan for a 1-year period that meets such criteria, for 
subsequent years until the Assistant Secretary determines that 
the State is in compliance with such requirements. Each such 
plan shall comply with all of the following requirements:
          (1) * * *

           *       *       *       *       *       *       *

          (4) The plan shall provide that the State agency will 
        conduct periodic evaluations of, and public hearings 
        on, activities and projects carried out in the State 
        under this title and title VII, including evaluations 
        of the effectiveness of services provided to 
        individuals with greatest economic need, greatest 
        social need, or disabilities, [with particular 
        attention to low-income minority individuals and older 
        individuals residing in rural areas] low-income 
        minority older individuals, older individuals with 
        limited English proficiency, and older individuals 
        residing in rural areas.

           *       *       *       *       *       *       *

          (14) The plan shall, with respect to the fiscal year 
        preceding the fiscal year for which such plan is 
        prepared--
                  (A) identify the number of low-income 
                minority older individuals in the State, 
                including the number of low-income older 
                individuals with limited English proficiency; 
                and
                  (B) describe the methods used to satisfy the 
                service needs of such minority older 
                individuals, including the plan to service the 
                needs of older individuals with limited English 
                proficiency.
          [(14)] (15) The plan shall provide assurances that, 
        if a substantial number of the older individuals 
        residing in any planning and service area in the State 
        are of limited English-speaking ability, then the State 
        will require the area agency on aging for each such 
        planning and service area--
                  (A) * * *

           *       *       *       *       *       *       *

          [(15) 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; and
                  [(B) describe the methods used to satisfy the 
                service needs of such minority older 
                individuals.]
          (16) The plan shall provide assurances that the State 
        agency will require outreach efforts that will--
                  (A) identify individuals eligible for 
                assistance under this Act, with special 
                emphasis on--
                          (i) older individuals residing in 
                        rural areas;
                          (ii) older individuals with greatest 
                        economic need [(with particular 
                        attention to low-income minority 
                        individuals and older individuals 
                        residing in rural areas)] (with 
                        particular attention to low-income 
                        older individuals, low-income minority 
                        older individuals, older individuals 
                        with limited English proficiency, and 
                        older individuals residing in rural 
                        areas);
                          (iii) older individuals with greatest 
                        social need [(with particular attention 
                        to low-income minority individuals and 
                        older individuals residing in rural 
                        areas)] (with particular attention to 
                        low-income older individuals, low-
                        income minority older individuals, 
                        older individuals with limited English 
                        proficiency, and older individuals 
                        residing in rural areas);

           *       *       *       *       *       *       *

          (27) The plan shall provide assurances that area 
        agencies on aging will, to the maximum extent feasible, 
        provide for the furnishing of services under this Act 
        consistent with self-directed care.
          (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 85 years of age and older 
                in the State is expected to affect the need for 
                supportive services.

           *       *       *       *       *       *       *


                                payments

    Sec. 309. (a) * * *
    (b)(1) * * *
    (2) Funds required to meet the non-Federal share required 
by section 304(d)(1)(D), in amounts exceeding [the non-Federal 
share required prior to fiscal year 1981] 10 percent of the 
cost of the services specified in such section 304(d)(1)(D), 
shall be from State sources.

           *       *       *       *       *       *       *


                  nutrition services incentive program

    Sec. 311. (a) * * *
  (b)(1) * * *

           *       *       *       *       *       *       *

  (3) Each State agency shall promptly and equitably disburse 
amounts received under this subsection to recipients of grants 
and contracts.
  (c)(1) Agricultural commodities (including bonus commodities) 
and products purchased by the Secretary of Agriculture under 
section 32 of the Act of August 24, 1935 (7 U.S.C. 612c), shall 
be donated to a recipient of a grant or contract to be used for 
providing nutrition services in accordance with the provisions 
of this title.
    (2) The Commodities Credit Corporation shall dispose of 
food commodities (including bonus commodities) under section 
416 of the Agricultural Act of 1949 (7 U.S.C. 1431) by donating 
them to a recipient of a grant or contract to be used for 
providing nutrition services in accordance with the provisions 
of this title.
    (3) Dairy products (including bonus commodities) purchased 
by the Secretary of Agriculture under section 709 of the Food 
and Agriculture Act of 1965 (7 U.S.C. 1446a-1) shall be used to 
meet the requirements of programs providing nutrition services 
in accordance with the provisions of this title.
  (4) Among the commodities delivered under this subsection, 
the Secretary of Agriculture shall give special emphasis to 
high protein foods. The Secretary of Agriculture, in 
consultation with the Assistant Secretary, is authorized to 
prescribe the terms and conditions respecting the donation of 
commodities under this subsection.
  [(d)(1) Each State agency and each grantee under title VI 
shall be entitled to use all or any part of amounts allotted 
under subsection (b) to obtain from the Secretary of 
Agriculture commodities available through any Federal food 
commodity processing program, at the rates at which such 
commodities are valued for purposes of such program.
  [(2) The Secretary of Agriculture shall determine and report 
to the Secretary, by such date as the Secretary may require, 
the amount (if any) of its allotment under subsection (b) which 
each State agency and title VI grantee has elected to receive 
in the form of commodities. Such amount shall include an amount 
bearing the same ratio to the costs to the Secretary of 
Agriculture of providing such commodities under this subsection 
as the value of commodities received by such State agency or 
title VI grantee under this subsection bears to the total value 
of commodities so received.
  [(3) From the allotment under subsection (b) for each State 
agency and title VI grantee, the Secretary shall first 
reimburse the Secretary of Agriculture for costs of commodities 
received by such State agency or grantee under this subsection, 
and shall then pay the balance (if any) to such State agency or 
grantee.
  [(4) Each State agency shall promptly and equitably disburse 
amounts received under this subsection to recipients of grants 
and contracts. Such disbursements shall only be used by such 
recipients of grants or contracts to purchase United States 
agricultural commodities and other foods for their nutrition 
projects.
  [(5) Among the commodities delivered under subsection (c), 
the Secretary of Agriculture shall give special emphasis to 
high protein foods. The Secretary of Agriculture, in 
consultation with the Assistant Secretary, is authorized to 
prescribe the terms and conditions respecting the provision of 
commodities under this subsection.]
  (d)(1) Amounts provided under subsection (b) to State 
grantees and contractors, and to title VI grantees, shall be 
available only for the purchase by such entities of United 
States agricultural commodities and other foods for their 
respective nutrition projects, subject to paragraph (2).
  (2) Part or all of the amounts received by an entity 
specified in paragraph (1) may be used to pay a school food 
authority (as referred to under the Richard B. Russell National 
School Lunch Act (42 U.S.C.1751 et seq.) to obtain United 
States agricultural commodities for such entity's nutrition 
projects, in accordance with an agreement between the entity 
and the school food authority, under which such payments--
          (A) shall cover the cost of such commodities; and
          (B) may cover related expenses incurred by the school 
        food authority, including the cost of transporting, 
        distributing, processing, storing, and handling such 
        commodities.
  (e) There are authorized to be appropriated to carry out this 
section (other than subsection (c)(1)) such sums as may be 
necessary for fiscal year [2001] 2007 and such sums as may be 
necessary for each of the 4 succeeding fiscal years.
  (f) In each fiscal year, [the Secretary of Agriculture and 
the Secretary of Health and Human Services] the Assistant 
Secretary and the Secretary of Agriculture shall jointly 
disseminate to State agencies, area agencies on aging, and 
providers of nutrition services assisted under this title, 
information concerning--
          [(1) the existence of any Federal commodity 
        processing program in which such State agencies, area 
        agencies on aging, and providers may be eligible to 
        participate; and
          [(2) the procedures to be followed to participate in 
        the program.]
          (1) school food authorities participating in programs 
        authorized under the Richard B. Russell National School 
        Lunch Act within the geographic area served by each 
        such State agency; and
          (2) the donated foods available to such State 
        agencies, area agencies on aging, and providers under 
        subsection (c).

           *       *       *       *       *       *       *


SEC. 315. CONSUMER CONTRIBUTIONS.

  (a) * * *
  (b) Voluntary Contributions.--
          (1) In general.--Voluntary contributions shall be 
        allowed and may be solicited for all services for which 
        funds are received under this Act [provided that], and 
        such contributions shall be encouraged for individuals 
        whose self-declared income is at or above 125 percent 
        of the poverty line and may be requested at 
        contribution levels based on the actual cost of 
        services, if the method of solicitation is noncoercive.

           *       *       *       *       *       *       *

          (4) Required acts.--The area agency on aging shall 
        ensure that each service provider will--
                  (A) * * *

           *       *       *       *       *       *       *

                  (E) use all collected contributions to expand 
                the service for which the contributions were 
                given and to supplement (not supplant) funds 
                received under this Act.
  (c) Participation.--
          (1) * * *
          (2) Plans.--Prior to the implementation of cost 
        sharing under subsection (a), each State and area 
        agency on aging shall develop plans that are designed 
        to ensure that the participation of low-income older 
        individuals [(with particular attention to low-income 
        minority individuals and older individuals residing in 
        rural areas)] (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) receiving services will not decrease with the 
        implementation of the cost sharing under such 
        subsection.
  (d) Evaluation.--Not later than 1 year after the date of the 
enactment of the Older Americans Act Amendments of 2000, and 
annually thereafter, the Assistant Secretary shall conduct a 
comprehensive evaluation of practices for cost sharing to 
determine its impact on participation rates [with particular 
attention to low-income and minority older individuals and 
older individuals residing in rural areas], 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. If the Assistant Secretary finds that there is a 
disparate impact upon low-income or minority older individuals 
or older individuals residing in rural areas in any State or 
region within the State regarding the provision of services, 
the Assistant Secretary shall take corrective action to assure 
that such services are provided to all older individuals 
without regard to the cost sharing criteria.

           *       *       *       *       *       *       *


             Part B--Supportive Services and Senior Centers

                           program authorized

    Sec. 321. (a) The Assistant Secretary shall carry out a 
program for making grants to States under State plans approved 
under section 307 for any of the following supportive services:
          (1) * * *

           *       *       *       *       *       *       *

          (8) services designed to provide health screening 
        (including mental health screening) to detect or 
        prevent illnesses, or both, that occur most frequently 
        in older individuals;

           *       *       *       *       *       *       *

          (11) services (including assistive technology devices 
        and assistive technology services) which are designed 
        to meet the unique needs of older individuals who are 
        disabled, and of older individuals who provide 
        uncompensated care to their adult children with 
        disabilities;

           *       *       *       *       *       *       *

          (14) a program, to be known as ``Senior Opportunities 
        and Services'', designed to identify and meet the needs 
        of low-income older individuals in one or more of the 
        following areas: (A) development and provision of new 
        volunteer services; (B) effective referral to existing 
        health (including mental health), employment, housing, 
        legal, consumer, transportation, and other services; 
        (C) stimulation and creation of additional services and 
        programs to remedy gaps and deficiencies in presently 
        existing services and programs; and (D) such other 
        services as the Assistant Secretary may determine are 
        necessary or especially appropriate to meet the needs 
        of low-income older individuals and to assure them 
        greater self-sufficiency;

           *       *       *       *       *       *       *

          (22) in-home services for frail older individuals, 
        including individuals with Alzheimer's disease and 
        related disorders with neurological and organic brain 
        dysfunction, and their families, including in-home 
        services defined by a State agency in the State plan 
        submitted under section 307, taking into consideration 
        the age, economic need, and noneconomic and nonhealth 
        factors contributing to the frail condition and need 
        for services of the individuals described in this 
        paragraph, and in-home services defined by an area 
        agency on aging in the area plan submitted under 
        section 306[.];
          (23) services designed to support States, area 
        agencies on aging, and local service providers carry 
        out and coordinate, with respect to mental health 
        services, activities including outreach, education, 
        screening, and referral for treatment of older 
        individuals; and
          [(23)] (24) any other services necessary for the 
        general welfare of older individuals;

           *       *       *       *       *       *       *


                       Part C--Nutrition Service

SEC. 330. PURPOSE.

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

                Subpart 1--Congregate Nutrition Services

                           program authorized

    Sec. 331. The Assistant Secretary shall carry out a program 
for making grants to States under State plans approved under 
section 307 for the establishment and operation of nutrition 
projects that--
          (1) [which,] 5 or more days a week (except in a rural 
        area where such frequency is not feasible (as defined 
        by the Assistant Secretary by regulation) and a lesser 
        frequency is approved by the State agency), provide at 
        least one hot or other appropriate meal per day and any 
        additional meals which the recipient of a grant or 
        contract under this subpart may elect to provide;
          (2) [which] shall be provided in congregate settings, 
        including adult day care facilities and 
        multigenerational meal sites; [and]
          [(3) which may include nutrition education services 
        and other appropriate nutrition services for older 
        individuals.]
          (3) provide nutrition education, nutrition 
        counseling, and other nutrition services, as 
        appropriate, based on the needs of meal participants; 
        and
          (4) may provide along with a meal described in (1), a 
        multivitamin-mineral supplement as an addition to such 
        meal.

           *       *       *       *       *       *       *


              Subpart 2--Home Delivered Nutrition Services

                          [program authorized

      [Sec. 336. The Assistant Secretary shall carry out a 
program for making grants to States under State plans approved 
under section 307 for the establishment and operation of 
nutrition projects for older individuals which, 5 or more days 
a week (except in a rural area where such frequency is not 
feasible (as defined by the Assistant Secretary by regulation) 
and a lesser frequency is approved by the State agency), 
provide at least one home delivered hot, cold, frozen, dried, 
canned, or supplemental foods (with a satisfactory storage 
life) meal per day and any additional meals which the recipient 
of a grant or contract under this subpart may elect to provide.

                               [criteria

    [Sec. 337. The Assistant Secretary, in consultation with 
organizations of and for the aged, blind, and disabled, and 
with representatives from the American Dietetic Association, 
the Dietary Managers Association, the National Association of 
Area Agencies on Aging, the National Association of Nutrition 
and Aging Services Programs, the National Association of Meals 
Programs, Incorporated, and any other appropriate group, shall 
develop minimum criteria of efficiency and quality for the 
furnishing of home delivered meal services for projects 
described in section 336. The criteria required by this section 
shall take into account the ability of established home 
delivered meals programs to continue such services without 
major alteration in the furnishing of such services.]

SEC. 336. PROGRAM AUTHORIZED.

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

SEC. 337. CRITERIA.

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

                     Subpart 3--General Provisions

SEC. 339. NUTRITION.

  A State that establishes and operates a nutrition project 
under this chapter shall--
          [(1) solicit the advice of a dietitian or individual 
        with comparable expertise in the planning of 
        nutritional services, and]
          (1) solicit the expertise of a dietitian or other 
        individual with equivalent education and training in 
        nutrition science, or if such an individual is not 
        available, an individual with comparable expertise in 
        the planning of nutritional services, and
          (2) ensure that the project--
                  (A) provides meals that--
                          [(i) comply with the Dietary 
                        Guidelines for Americans, published by 
                        the Secretary and the Secretary of 
                        Agriculture,]
                          (i) comply with the most recent 
                        Dietary Guidelines for Americans, 
                        published by the Secretary and the 
                        Secretary of Agriculture, and
                          (ii) provide to each participating 
                        older individual--
                                  (I) a minimum of 33\1/3\ 
                                percent of the [daily 
                                recommended dietary allowances 
                                as] dietary reference intakes 
                                established by the Food and 
                                Nutrition Board of the 
                                Institute of Medicine of the 
                                National Academy of Sciences, 
                                if the project provides one 
                                meal per day,

           *       *       *       *       *       *       *

                  (D) where feasible, encourages joint 
                arrangements with schools and other facilities 
                serving meals to children in order to promote 
                shared intergenerational meal programs,

           *       *       *       *       *       *       *

                  [(G) ensures that meal providers carry out 
                such project with the advice of dietitians (or 
                individuals with comparable expertise), meal 
                participants, and other individuals 
                knowledgeable with regard to the needs of older 
                individuals,]
                  (G) ensures that local meal providers solicit 
                the advice and expertise of--
                          (i) a dietitian or, if a dietitian is 
                        not available, an individual with 
                        comparable expertise in the planning of 
                        nutrition and food services,
                          (ii) meal participants, and
                          (iii) other individuals knowledgeable 
                        with regard to the needs of older 
                        individuals,
                  (H) ensures that each participating area 
                agency on aging establishes procedures that 
                allow nutrition project administrators the 
                option to offer a meal, on the same basis as 
                meals provided to participating older 
                individuals, to individuals providing volunteer 
                services during the meal hours, and to 
                individuals with disabilities who reside at 
                home with [and accompany] older individuals 
                eligible under this chapter,

           *       *       *       *       *       *       *

                  [(J) provide for nutrition screening and, 
                where appropriate, for nutrition education and 
                counseling.]
                  (J) provides for nutrition screening and 
                nutrition education, and nutrition assessment 
                and counseling if appropriate, and
                  (K) encourages professionals who distribute 
                nutrition assistance under subpart 2 to provide 
                information to homebound seniors on how to get 
                an influenza vaccination in their local areas.

           *       *       *       *       *       *       *


        Part D--Disease Prevention and Health Promotion Services

                           PROGRAM AUTHORIZED

      Sec. 361. (a) * * *

           *       *       *       *       *       *       *

  (c) The Assistant Secretary shall work in consultation with 
qualified experts to provide information on methods of 
improving indoor air quality in buildings where seniors 
congregate.

           *       *       *       *       *       *       *


           PART E--NATIONAL FAMILY CAREGIVER SUPPORT PROGRAM

SEC. 371. SHORT TITLE.

  This part may be cited as the ``National Family Caregiver 
Support Act''.

                  Subpart 1--Caregiver Support Program

SEC. 372. DEFINITIONS.

  In this subpart:
          (1) Child.--The term ``child'' means an individual 
        who is not more than 18 years of age or who is an 
        individual with a disability.
          (2) Family caregiver.--The term ``family caregiver'' 
        means an adult family member, or another individual, 
        who is an informal provider of in-home and community 
        care to an older individual or an individual with 
        Alzheimer's disease or a related disorder with 
        neurological and organic brain dysfunction.
          (3) Grandparent or older individual who is a relative 
        caregiver.--The term ``grandparent or older individual 
        who is a relative caregiver'' means a grandparent or 
        stepgrandparent of a child, or a relative of a child by 
        blood or marriage, who is [60] 55 years of age or older 
        and--
                  (A) * * *

           *       *       *       *       *       *       *


SEC. 373. PROGRAM AUTHORIZED.

  (a) * * *
  (b) Support Services.--The services provided, in a State 
program under subsection (a), by an area agency on aging, or 
entity that such agency has contracted with, shall include--
          (1) * * *

           *       *       *       *       *       *       *

          (3) individual counseling, organization of support 
        groups, and caregiver training to [caregivers to assist 
        the caregivers in making decisions and solving problems 
        relating to their caregiving roles;] assist the 
        caregivers in addressing caregiver issues related to 
        the areas of health, nutrition, and financial literacy, 
        and in making decisions and solving problems relating 
        to their caregiving roles;

           *       *       *       *       *       *       *

  [(d) Coordination With Service Providers.--In carrying out 
this subpart, each area agency on aging shall coordinate the 
activities of the agency, or entity that such agency has 
contracted with, with the activities of other community 
agencies and voluntary organizations providing the types of 
services described in subsection (b).]
  (d) Use of Volunteers.--In carrying out this subpart, each 
area agency on aging shall encourage the use of trained 
volunteers to expand the available services described in 
subsection (b) and shall, if possible, coordinate with 
volunteer programs (including programs administered by the 
Corporation for National Service) designed to provide training, 
placement, and stipends for volunteers in community service 
settings.
  (e) Quality Standards and Mechanisms and Accountability.--
          (1) * * *

           *       *       *       *       *       *       *

          (3) Reports.--The State shall prepare and submit to 
        the Assistant Secretary reports on the data and records 
        required under paragraph (2), including information on 
        the services funded under this subpart, and standards 
        and mechanisms by which the quality of the services 
        shall be assured. The reports shall describe any 
        mechanisms used in the State to provide family 
        caregivers of an older individual and relative 
        caregivers of a child or an adult child with a 
        disability, information about and access to various 
        services so that caregivers can better carry out their 
        care responsibilities.
  (f) Caregiver Allotment.--
          (1) In general.--
                  (A) From sums appropriated under section 
                303(e) for fiscal years [2001 through 2005] 
                2007, 2008, 2009, 2010, and 2011, the Assistant 
                Secretary shall allot amounts among the States 
                proportionately based on the population of 
                individuals 70 years of age or older in the 
                States.

           *       *       *       *       *       *       *


Subpart 2--National Innovation Programs

           *       *       *       *       *       *       *


SEC. 376. ACTIVITIES OF NATIONAL SIGNIFICANCE.

  [(a) In General.--]The Assistant Secretary [shall] may, 
directly or by grant or contract, carry out activities of 
national significance to promote quality and continuous 
improvement in the support provided to family and other 
informal caregivers of older individuals through [program] 
programs that include evaluation, training, technical 
assistance, and [research.] research, including--
          (1) intergenerational programs, including supports 
        for grandparents and other older relatives raising 
        children (such as kinship navigator programs), and 
        sustaining and replicating innovative intergenerational 
        family support programs that involve senior volunteers;
          (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 such family 
        support programs;
          (3) programs addressing unique issues faced by rural 
        caregivers;
          (4) programs focusing on the needs of older persons 
        with Alzheimer's disease and related dementia and their 
        caregivers; and
          (5) programs supporting caregivers in the role they 
        play in health promotion and disease prevention.
  [(b) Sunset Provision.--This section shall be effective for 3 
fiscal years after the date of the enactment of the Older 
Americans Act Amendments of 2000.]

           *       *       *       *       *       *       *


TITLE IV--ACTIVITIES FOR HEALTH, INDEPENDENCE AND LONGEVITY

           *       *       *       *       *       *       *


                         PART A--GRANT PROGRAMS

SEC. 411. PROGRAM AUTHORIZED.

  (a) In General.--For the purpose of carrying out this 
section, the Assistant Secretary may make grants to and enter 
into contracts with States, public agencies, private nonprofit 
agencies, institutions of higher education, and organizations, 
including tribal organizations, for--
          (1) * * *

           *       *       *       *       *       *       *

          (8) the training of graduate level professionals 
        specializing in the mental health needs of older 
        individuals; [and]
          (9) planning activities to prepare communities for 
        the aging of the population, which include--
                  (A) efforts to assess the aging population;
                  (B) activities to coordinate 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 a grant under 
                title VI, engage 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 
        elderly residing in home- and community-based settings 
        or rural areas; and
          [(9)] (11) any other activities that the Assistant 
        Secretary determines will achieve the objectives of 
        this section.
  (b) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for fiscal [year 2001, and such sums as may be 
necessary for subsequent fiscal years] years 2007, 2008, 2009, 
2010, and 2011.

SEC. 412. CAREER PREPARATION FOR THE FIELD OF AGING.

  [(a) Grants.--The Assistant Secretary shall make grants to 
institutions of higher education, historically Black colleges 
or universities, Hispanic Centers of Excellence in Applied 
Gerontology, and other educational institutions that serve the 
needs of minority students, to provide education and training 
to prepare students for careers in the field of aging.]
  (a) Grants.--The Assistant Secretary shall make grants to 
institutions of higher education, including historically Black 
colleges or universities, Hispanic serving institutions, and 
Hispanic Centers of Excellence in Applied Gerontology, to 
provide education and training that prepares students for 
careers in the field of aging.

           *       *       *       *       *       *       *


SEC. 414. HEALTH CARE SERVICE DEMONSTRATION PROJECTS IN RURAL AREAS.

  (a) Authority.--The Assistant Secretary, after consultation 
with the State agency of the State involved, shall make grants 
to eligible public agencies and nonprofit private organizations 
to pay part or all of the cost of developing or operating model 
health care service projects (including related home health 
care services, adult day health care, mental health services, 
outreach, and transportation) through multipurpose senior 
centers that are located in rural areas and that provide 
nutrition services under section 331, to meet the health care 
needs of medically underserved older individuals residing in 
such areas.
  (b) Eligibility.--To be eligible to receive a grant under 
subsection (a), a public agency or nonprofit private 
organization shall submit to the Assistant Secretary an 
application containing such information and assurances as the 
Secretary may require, including--
          (1) information describing the nature and extent of 
        the applicant's--
                  (A) * * *
                  (B) coordination and cooperation with--
                          (i) institutions of higher education 
                        having graduate programs with 
                        capability in public health, mental 
                        health, the medical sciences, 
                        psychology, pharmacology, nursing, 
                        social work, health education, 
                        nutrition, or gerontology, for the 
                        purpose of designing and developing 
                        such project; and

           *       *       *       *       *       *       *


SEC. 417. DEMONSTRATION PROJECTS FOR MULTIGENERATIONAL ACTIVITIES.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Preference.--In awarding grants and entering into 
contracts under subsection (a), the Assistant Secretary shall 
give preference to--
          (1) * * *
          (2) eligible organizations proposing projects that 
        will serve older individuals with greatest economic 
        need [(with particular attention to low-income minority 
        individuals and older individuals residing in rural 
        areas)] (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. 418. NATIVE AMERICAN PROGRAMS.

  (a) Establishment.--
          (1) * * *
          (2) Functions.--
                  (A) * * *
                  (B) Areas of concern.--In conducting the 
                functions described in subparagraph (A), a 
                Resource Center shall focus on priority areas 
                of concern for the Resource Centers regarding 
                Native Americans who are older individuals, 
                which areas shall be--
                          (i) health problems (including mental 
                        health);

           *       *       *       *       *       *       *


PART B--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 432. RESPONSIBILITIES OF ASSISTANT SECRETARY.

  (a) * * *

           *       *       *       *       *       *       *

  (c) Evaluations.--
          (1) * * *
          (2) Results.--The Assistant Secretary shall--
                  (A) * * *
                  (B) use such evaluation to improve services 
                delivered, or the operation of projects and 
                programs carried out, under this Act, 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.

           *       *       *       *       *       *       *


       [TITLE V--COMMUNITY SERVICE EMPLOYMENT FOR OLDER AMERICANS

[SEC. 501. SHORT TITLE.

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

[SEC. 502. OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT PROGRAM.

  [(a)(1) In order to foster and promote useful part-time 
opportunities in community service activities for unemployed 
low-income persons who are 55 years or older and who have poor 
employment prospects, and in order to foster individual 
economic self-sufficiency and to increase the number of persons 
who may enjoy the benefits of unsubsidized employment in both 
the public and private sectors, the Secretary of Labor 
(hereafter in this title referred to as the ``Secretary'') is 
authorized to establish an older American community service 
employment program.
  [(2) Amounts appropriated to carry out this title shall be 
used only to carry out the provisions contained in this title.
  [(b)(1) In order to carry out the provisions of this title, 
the Secretary is authorized to enter into agreements, subject 
to section 514, with State and national public and private 
nonprofit agencies and organizations, agencies of a State 
government or a political subdivision of a State (having 
elected or duly appointed governing officials), or a 
combination of such political subdivisions, or tribal 
organizations in order to further the purposes and goals of the 
program. Such agreements may include provisions for the payment 
of costs, as provided in subsection (c) of this section, of 
projects developed by such organizations and agencies in 
cooperation with the Secretary in order to make the program 
effective or to supplement the program. No payment shall be 
made by the Secretary toward the cost of any project 
established or administered by any organization or agency 
unless the Secretary determines that such project--
          [(A) will provide employment only for eligible 
        individuals except for necessary technical, 
        administrative, and supervisory personnel, but such 
        personnel shall, to the fullest extent possible, be 
        recruited from among eligible individuals;
          [(B)(i) will provide employment for eligible 
        individuals in the community in which such individuals 
        reside, or in nearby communities; or
          [(ii) if such project is carried out by a tribal 
        organization that enters into an agreement under this 
        subsection or receives assistance from a State that 
        enters into such an agreement, will provide employment 
        for such individuals, including those who are Indians 
        residing on an Indian reservation, as the term is 
        defined in section 2601(2) of the Energy Policy Act of 
        1992 (25 U.S.C. 3501(2));
          [(C) will employ eligible individuals in service 
        related to publicly owned and operated facilities and 
        projects, or projects sponsored by organizations, other 
        than political parties, exempt from taxation under the 
        provisions of section 501(c)(3) of the Internal Revenue 
        Code of 1986, except projects involving the 
        construction, operation, or maintenance of any facility 
        used or to be used as a place for sectarian religious 
        instruction or worship;
          [(D) will contribute to the general welfare of the 
        community;
          [(E) will provide employment for eligible 
        individuals;
          [(F)(i) will result in an increase in employment 
        opportunities over those opportunities which would 
        otherwise be available;
          [(ii) will not result in the displacement of 
        currently employed workers (including partial 
        displacement, such as a reduction in the hours of 
        nonovertime work or wages or employment benefits); and
          [(iii) will not impair existing contracts or result 
        in the substitution of Federal funds for other funds in 
        connection with work that would otherwise be performed;
          [(G) will not employ or continue to employ any 
        eligible individual to perform work the same or 
        substantially the same as that performed by any other 
        person who is on layoff;
          [(H) will utilize methods of recruitment and 
        selection (including participating in a one-stop 
        delivery system as established under section 134(c) of 
        the Workforce Investment Act of 1998 (29 U.S.C. 
        2864(c)) and listing of job vacancies with the 
        employment agency operated by any State or political 
        subdivision thereof ) which will assure that the 
        maximum number of eligible individuals will have an 
        opportunity to participate in the project;
          [(I) will include such training as may be necessary 
        to make the most effective use of the skills and 
        talents of those individuals who are participating, and 
        will provide for the payment of the reasonable expenses 
        of individuals being trained, including a reasonable 
        subsistence allowance;
          [(J) will assure that safe and healthy conditions of 
        work will be provided, and will assure that persons 
        employed in community service and other jobs assisted 
        under this title shall be paid wages which shall not be 
        lower than whichever is the highest of--
                  [(i) the minimum wage which would be 
                applicable to the employee under the Fair Labor 
                Standards Act of 1938, if section 6(a)(1) of 
                such Act applied to the participant and if the 
                participant were not exempt under section 13 
                thereof;
                  [(ii) the State or local minimum wage for the 
                most nearly comparable covered employment; or
                  [(iii) the prevailing rates of pay for 
                persons employed in similar public occupations 
                by the same employer;
          [(K) will be established or administered with the 
        advice of persons competent in the field of service in 
        which employment is being provided, and of persons who 
        are knowledgeable with regard to the needs of older 
        persons;
          [(L) will authorize pay for necessary transportation 
        costs of eligible individuals which may be incurred in 
        employment in any project funded under this title, in 
        accordance with regulations promulgated by the 
        Secretary;
          [(M) will assure that, to the extent feasible, such 
        project will serve the needs of minority, limited 
        English-speaking, and Indian eligible individuals, and 
        eligible individuals who have the greatest economic 
        need, at least in proportion to their numbers in the 
        State and take into consideration their rates of 
        poverty and unemployment;
          [(N)(i) will prepare an assessment of the 
        participants' skills and talents and their needs for 
        services, except to the extent such project has, for 
        the participant involved, recently prepared an 
        assessment of such skills and talents, and such needs, 
        pursuant to another employment or training program 
        (such as a program under the Workforce Investment Act 
        of 1998 (29 U.S.C. 2801 et seq.), the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 
        U.S.C. 2301 et seq.), or part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.));
          [(ii) will provide to eligible individuals training 
        and employment counseling based on strategies that 
        identify appropriate employment objectives and the need 
        for supportive services, developed as a result of the 
        assessment and service strategy provided for in clause 
        (i); and
          [(iii) will provide counseling to participants on 
        their progress in meeting such objectives and 
        satisfying their need for supportive services;
          [(O) will provide appropriate services for 
        participants through the one-stop delivery system as 
        established under section 134(c) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2864(c)), and will be 
        involved in the planning and operations of such system 
        pursuant to a memorandum of understanding with the 
        local workforce investment board in accordance with 
        section 121(c) of such Act (29 U.S.C. 2841(c));
          [(P) will post in such project workplace a notice, 
        and will make available to each person associated with 
        such project a written explanation, clarifying the law 
        with respect to allowable and unallowable political 
        activities under chapter 15 of title 5, United States 
        Code, applicable to the project and to each category of 
        individuals associated with such project and containing 
        the address and telephone number of the Inspector 
        General of the Department of Labor, to whom questions 
        regarding the application of such chapter may be 
        addressed;
          [(Q) will provide to the Secretary the description 
        and information described in paragraphs (8) and (14) of 
        section 112(b) of the Workforce Investment Act of 1998; 
        and
          [(R) will ensure that entities carrying out 
        activities under the project, including State offices, 
        local offices, subgrantees, subcontractors, or other 
        affiliates of such organization or agency shall receive 
        an amount of the administration cost allocation that is 
        sufficient for the administrative activities under the 
        project to be carried out by such State office, local 
        office, subgrantee, subcontractor, or other affiliate.
  [(2) The Secretary is authorized to establish, issue, and 
amend such regulations as may be necessary to effectively carry 
out the provisions of this title.
  [(3) The Secretary shall develop alternatives for innovative 
work modes and provide technical assistance in creating job 
opportunities through work sharing and other experimental 
methods to labor organizations, groups representing business 
and industry and workers as well as to individual employers, 
where appropriate.
  [(4)(A) An assessment and service strategy provided for an 
eligible individual under this title shall satisfy any 
condition for an assessment and service strategy or individual 
employment plan for an adult participant under subtitle B of 
title I of the Workforce Investment Act of 1998 (29 U.S.C. 2811 
et seq.), in order to determine whether such individual 
qualifies for intensive or training services described in 
section 134(d) of such Act (29 U.S.C. 2864(d)), in accordance 
with such Act.
  [(B) An assessment and service strategy or individual 
employment plan provided for an adult participant under 
subtitle B of title I of the Workforce Investment Act of 1998 
(29 U.S.C. 2811 et seq.) shall satisfy any condition for an 
assessment and service strategy for an eligible individual 
under this title.
  [(c)(1) The Secretary is authorized to pay a share, but not 
to exceed 90 percent of the cost of any project which is the 
subject of an agreement entered into under subsection (b) of 
this section, except that the Secretary is authorized to pay 
all of the costs of any such project which is--
          [(A) an emergency or disaster project; or
          [(B) a project located in an economically depressed 
        area,
as determined by the Secretary in consultation with the 
Secretary of Commerce and the Secretary of Health and Human 
Services.
  [(2) The non-Federal share shall be in cash or in kind. In 
determining the amount of the non-Federal share, the Secretary 
is authorized to attribute fair market value to services and 
facilities contributed from non-Federal sources.
  [(3) Of the amount for any project to be paid by the 
Secretary under this subsection, not more than 13.5 percent for 
any fiscal year shall be available for paying the costs of 
administration for such project, except that--
          [(A) whenever the Secretary determines that it is 
        necessary to carry out the project assisted under this 
        title, based on information submitted by the grantee 
        with which the Secretary has an agreement under 
        subsection (b), the Secretary may increase the amount 
        available for paying the cost of administration to an 
        amount not more than 15 percent of the cost of such 
        project; and
          [(B) whenever the grantee with which the Secretary 
        has an agreement under subsection (b) demonstrates to 
        the Secretary that--
                  [(i) major administrative cost increases are 
                being incurred in necessary program components, 
                including liability insurance, payments for 
                workers' compensation, costs associated with 
                achieving unsubsidized placement goals, and 
                other operation requirements imposed by the 
                Secretary;
                  [(ii) the number of employment positions in 
                the project or the number of minority eligible 
                individuals participating in the project will 
                decline if the amount available for paying the 
                cost of administration is not increased; or
                  [(iii) the size of the project is so small 
                that the amount of administrative expenses 
                incurred to carry out the project necessarily 
                exceeds 13.5 percent of the amount for such 
                project,
        the Secretary shall increase the amount available for 
        the fiscal year for paying the cost of administration 
        to an amount not more than 15 percent of the cost of 
        such project.
  [(4) The costs of administration are the costs, both 
personnel and non-personnel and both direct and indirect, 
associated with the following:
          [(A) The costs of performing overall general 
        administrative functions and providing for the 
        coordination of functions, such as--
                  [(i) accounting, budgeting, financial, and 
                cash management functions;
                  [(ii) procurement and purchasing functions;
                  [(iii) property management functions;
                  [(iv) personnel management functions;
                  [(v) payroll functions;
                  [(vi) coordinating the resolution of findings 
                arising from audits, reviews, investigations, 
                and incident reports;
                  [(vii) audit functions;
                  [(viii) general legal services functions; and
                  [(ix) developing systems and procedures, 
                including information systems, required for 
                these administrative functions.
          [(B) The costs of performing oversight and monitoring 
        responsibilities related to administrative functions.
          [(C) The costs of goods and services required for 
        administrative functions of the program, including 
        goods and services such as rental or purchase of 
        equipment, utilities, office supplies, postage, and 
        rental and maintenance of office space.
          [(D) The travel costs incurred for official business 
        in carrying out administrative activities or overall 
        management.
          [(E) The costs of information systems related to 
        administrative functions (for example, personnel, 
        procurement, purchasing, property management, 
        accounting, and payroll systems) including the 
        purchase, systems development, and operating costs of 
        such systems.
  [(5) To the extent practicable, an entity that carries out a 
project under this title shall provide for the payment of the 
expenses described in paragraph (4) from non-Federal sources.
  [(6)(A) Amounts made available for a project under this title 
that are not used to pay for the cost of administration shall 
be used to pay for the costs of programmatic activities, 
including--
          [(i) enrollee wages and fringe benefits (including 
        physical examinations);
          [(ii) enrollee training, which may be provided prior 
        to or subsequent to placement, including the payment of 
        reasonable costs of instructors, classroom rental, 
        training supplies, materials, equipment, and tuition, 
        and which may be provided on the job, in a classroom 
        setting, or pursuant to other appropriate arrangements;
          [(iii) job placement assistance, including job 
        development and job search assistance;
          [(iv) enrollee supportive services to assist an 
        enrollee to successfully participate in a project under 
        this title, including the payment of reasonable costs 
        of transportation, health care and medical services, 
        special job-related or personal counseling, incidentals 
        (such as work shoes, badges, uniforms, eyeglasses, and 
        tools), child and adult care, temporary shelter, and 
        followup services; and
          [(v) outreach, recruitment and selection, intake, 
        orientation, and assessments.
  [(B) Not less than 75 percent of the funds made available 
through a grant made under this title shall be used to pay 
wages and benefits for older individuals who are employed under 
projects carried out under this title.
  [(d) Whenever a grantee conducts a project within a planning 
and service area in a State, such grantee shall conduct such 
project in consultation with the area agency on aging of the 
planning and service area and shall submit to the State agency 
and the area agency on aging a description of such project to 
be conducted in the State, including the location of the 
project, 90 days prior to undertaking the project, for review 
and public comment according to guidelines the Secretary shall 
issue to assure efficient and effective coordination of 
programs under this title.
  [(e)(1) The Secretary, in addition to any other authority 
contained in this title, shall conduct projects designed to 
assure second career training and the placement of eligible 
individuals in employment opportunities with private business 
concerns. The Secretary shall enter into such agreements with 
States, public agencies, nonprofit private organizations, and 
private business concerns as may be necessary, to conduct the 
projects authorized by this subsection to assure that placement 
and training. The Secretary, from amounts reserved under 
section 506(a)(1) in any fiscal year, may pay all of the costs 
of any agreements entered into under the provisions of this 
subsection. The Secretary shall, to the extent feasible, assure 
equitable geographic distribution of projects authorized by 
this subsection.
  [(2) The Secretary shall issue, and amend from time to time, 
criteria designed to assure that agreements entered into under 
paragraph (1) of this subsection--
          [(A) will involve different kinds of work modes, such 
        as flex-time, job sharing, and other arrangements 
        relating to reduced physical exertion;
          [(B) will emphasize projects involving second careers 
        and job placement and give consideration to placement 
        in growth industries in jobs reflecting new 
        technological skills; and
          [(C) require the coordination of projects carried out 
        under such agreements, with the programs carried out 
        under title I of the Workforce Investment Act of 1998.
  [(f ) The Secretary shall, on a regular basis, carry out 
evaluations of the activities authorized under this title, 
which may include but are not limited to projects described in 
subsection (e).

[SEC. 503. ADMINISTRATION.

  [(a) State Senior Employment Services Coordination Plan.--
          [(1) Governor submits plan.--The Governor of each 
        State shall submit annually to the Secretary a State 
        Senior Employment Services Coordination Plan, 
        containing such provisions as the Secretary may 
        require, consistent with the provisions of this title, 
        including a description of the process used to ensure 
        the participation of individuals described in paragraph 
        (2).
          [(2) Recommendations.--In developing the State plan 
        prior to its submission to the Secretary, the Governor 
        shall obtain the advice and recommendations of--
                  [(A) individuals representing the State and 
                area agencies on aging in the State, and the 
                State and local workforce investment boards 
                established under title I of the Workforce 
                Investment Act of 1998 (29 U.S.C. 2801 et 
                seq.);
                  [(B) individuals representing public and 
                private nonprofit agencies and organizations 
                providing employment services, including each 
                grantee operating a project under this title in 
                the State; and
                  [(C) individuals representing social service 
                organizations providing services to older 
                individuals, grantees under title III of this 
                Act, affected communities, underserved older 
                individuals, community-based organizations 
                serving the needs of older individuals, 
                business organizations, and labor 
                organizations.
                  [(3) Comments.--Any State plan submitted by a 
                Governor in accordance with paragraph (1) shall 
                be accompanied by copies of public comments 
                relating to the plan received pursuant to 
                paragraph (4) and a summary thereof.
          [(4) Plan provisions.--The State Senior Employment 
        Services Coordination Plan shall identify and address--
                  [(A) the relationship that the number of 
                eligible individuals in each area bears to the 
                total number of eligible individuals, 
                respectively, in that State;
                  [(B) the relative distribution of individuals 
                residing in rural and urban areas within the 
                State;
                  [(C) the relative distribution of--
                          [(i) eligible individuals who are 
                        individuals with greatest economic 
                        need;
                          [(ii) eligible individuals who are 
                        minority individuals; and
                          [(iii) eligible individuals who are 
                        individuals with greatest social need;
                  [(D) consideration of the employment 
                situations and the type of skills possessed by 
                local eligible individuals;
                  [(E) the localities and populations for which 
                community service projects of the type 
                authorized by this title are most needed; and
                  [(F) plans for facilitating the coordination 
                of activities of grantees in the State under 
                this title with activities carried out in the 
                State under title I of the Workforce Investment 
                Act of 1998.
          [(5) Governor's recommendations on grant proposals.--
        Prior to the submission to the Secretary of any 
        proposal for a grant under this title for any fiscal 
        year, the Governor of each State in which projects are 
        proposed to be conducted under such grant shall be 
        afforded a reasonable opportunity to submit 
        recommendations to the Secretary--
                  [(A) regarding the anticipated effect of each 
                such proposal upon the overall distribution of 
                enrollment positions under this title within 
                the State (including such distribution among 
                urban and rural areas), taking into account the 
                total number of positions to be provided by all 
                grantees within the State;
                  [(B) any recommendations for redistribution 
                of positions to underserved areas as vacancies 
                occur in previously encumbered positions in 
                other areas; and
                  [(C) in the case of any increase in funding 
                that may be available for use within the State 
                under this title for any fiscal year, any 
                recommendations for distribution of newly 
                available positions in excess of those 
                available during the preceding year to 
                underserved areas.
          [(6) Disruptions.--In developing plans and 
        considering recommendations under this subsection, 
        disruptions in the provision of community service 
        employment opportunities for current enrollees shall be 
        avoided, to the greatest possible extent.
          [(7) Determination; review.--
                  [(A) Determination.--In order to effectively 
                carry out the provisions of this title, each 
                State shall make available for public comment 
                its senior employment services coordination 
                plan. The Secretary, in consultation with the 
                Assistant Secretary, shall review the plan and 
                public comments received on the plan, and make 
                a written determination with findings and a 
                decision regarding the plan.
                  [(B) Review.--The Secretary may review on the 
                Secretary's own initiative or at the request of 
                any public or private agency or organization, 
                or an agency of the State government, the 
                distribution of projects and services under 
                this title within the State including the 
                distribution between urban and rural areas 
                within the State. For each proposed 
                reallocation of projects or services within a 
                State, the Secretary shall give notice and 
                opportunity for public comment.
          [(8) Exemption.--The grantees serving older American 
        Indians under section 506(a)(3) will not be required to 
        participate in the State planning processes described 
        in this section but will collaborate with the Secretary 
        to develop a plan for projects and services to older 
        American Indians.
  [(b)(1) The Secretary of Labor and the Assistant Secretary 
shall coordinate the programs under this title and the programs 
under other titles of this Act to increase job opportunities 
available to older individuals.
  [(2) The Secretary shall coordinate the program assisted 
under this title with programs authorized under the Workforce 
Investment Act of 1998, the Community Services Block Grant Act, 
the Rehabilitation Act of 1973 (as amended by the 
Rehabilitation Act Amendments of 1998 (29 U.S.C. 701 et seq.)), 
the Carl D. Perkins Vocational and Technical Education Act of 
1998 (20 U.S.C. 2301 et seq.), the National and Community 
Service Act of 1990 (42 U.S.C. 12501 et seq.), and the Domestic 
Volunteer Service Act of 1973 (42 U.S.C. 4950 et seq.). The 
Secretary shall coordinate the administration of this title 
with the administration of other titles of this Act by the 
Assistant Secretary to increase the likelihood that eligible 
individuals for whom employment opportunities under this title 
are available and who need services under such titles receive 
such services. Appropriations under this title shall not be 
used to carry out any program under the Workforce Investment 
Act of 1998, the Community Services Block Grant Act, the 
Rehabilitation Act of 1973 (as amended by the Rehabilitation 
Act Amendments of 1998), the Carl D. Perkins Vocational and 
Technical Education Act of 1998, the National and Community 
Service Act of 1990, or the Domestic Volunteer Service Act of 
1973. The preceding sentence shall not be construed to prohibit 
carrying out projects under this title jointly with programs, 
projects, or activities under any Act specified in such 
sentence, or from carrying out section 512.
  [(3) The Secretary shall distribute to grantees under this 
title, for distribution to program enrollees, and at no cost to 
grantees or enrollees, informational materials developed and 
supplied by the Equal Employment Opportunity Commission and 
other appropriate Federal agencies which the Secretary 
determines are designed to help enrollees identify age 
discrimination and understand their rights under the Age 
Discrimination in Employment Act of 1967.
  [(c) In carrying out the provisions of this title, the 
Secretary is authorized to use, with their consent, the 
services, equipment, personnel, and facilities of Federal and 
other agencies with or without reimbursement, and on a similar 
basis to cooperate with other public and private agencies and 
instrumentalities in the use of services, equipment, and 
facilities.
  [(d) Payments under this title may be made in advance or by 
way of reimbursement and in such installments as the Secretary 
may determine.
  [(e) The Secretary shall not delegate any function of the 
Secretary under this title to any other department or agency of 
the Federal Government.
  [(f )(1) The Secretary shall monitor projects receiving 
financial assistance under this title to determine whether the 
grantees are complying with the provisions of and regulations 
issued under this title, including compliance with the 
statewide planning, consultation, and coordination provisions 
under this title.
  [(2) Each grantee receiving funds under this title shall 
comply with the applicable uniform cost principles and 
appropriate administrative requirements for grants and 
contracts that are applicable to the type of entity receiving 
funds, as issued as circulars or rules of the Office of 
Management and Budget.
  [(3) Each grantee described in paragraph (2) shall prepare 
and submit a report in such manner and containing such 
information as the Secretary may require regarding activities 
carried out under this title.
  [(4) Each grantee described in paragraph (2) shall keep 
records that--
          [(A) are sufficient to permit the preparation of 
        reports required pursuant to this title;
          [(B) are sufficient to permit the tracing of funds to 
        a level of expenditure adequate to ensure that the 
        funds have not been spent unlawfully; and
          [(C) contain any other information that the Secretary 
        determines to be appropriate.
  [(g) The Secretary shall establish by regulation and 
implement a process to evaluate the performance of projects and 
services, pursuant to section 513, carried out under this 
title. The Secretary shall report to Congress and make 
available to the public the results of each such evaluation and 
use such evaluation to improve services delivered, or the 
operation of projects carried out under this title.

[SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES.

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

[SEC. 505. INTERAGENCY COOPERATION.

  [(a) The Secretary shall consult with, and obtain the written 
views of, the Assistant Secretary for Aging in the Department 
of Health and Human Services prior to the establishment of 
rules or the establishment of general policy in the 
administration of this title.
  [(b) The Secretary shall consult and cooperate with the 
Director of the Office of Community Services, the Secretary of 
Health and Human Services, and the heads of other Federal 
agencies carrying out related programs, in order to achieve 
optimal coordination with such other programs. In carrying out 
the provisions of this section, the Secretary shall promote 
programs or projects of a similar nature. Each Federal agency 
shall cooperate with the Secretary in disseminating information 
relating to the availability of assistance under this title and 
in promoting the identification and interests of individuals 
eligible for employment in projects assisted under this title.
  [(c)(1) The Secretary shall promote and coordinate carrying 
out projects under this title jointly with programs, projects, 
or activities under other Acts, especially activities provided 
under the Workforce Investment Act of 1998 (29 U.S.C. 2801 et 
seq.), including activities provided through one-stop delivery 
systems established under section 134(c) of such Act (29 U.S.C. 
2864(c)), that provide training and employment opportunities to 
eligible individuals.
  [(2) The Secretary shall consult with the Secretary of 
Education to promote and coordinate carrying out projects under 
this title jointly with workforce investment activities in 
which eligible individuals may participate that are carried out 
under the Carl D. Perkins Vocational and Technical Education 
Act of 1998.

[SEC. 506. DISTRIBUTION OF ASSISTANCE.

  [(a) Reservations.--
          [(1) Reservation for private employment projects.--
        From sums appropriated under this title for each fiscal 
        year, the Secretary shall first reserve not more than 
        1.5 percent of the total amount of such sums for the 
        purpose of entering into agreements under section 
        502(e), relating to improved transition to private 
        employment.
          [(2) Reservation for territories.--From sums 
        appropriated under this title for each fiscal year, the 
        Secretary shall reserve 0.75 percent of the total 
        amount of such sums, of which--
                  [(A) Guam, American Samoa, and the United 
                States Virgin Islands shall each receive 30 
                percent; and
                  [(B) the Commonwealth of the Northern Mariana 
                Islands shall receive 10 percent.
          [(3) Reservation for organizations.--The Secretary 
        shall reserve such sums as may be necessary for 
        national grants with public or nonprofit national 
        Indian aging organizations with the ability to provide 
        employment services to older Indians and with national 
        public or nonprofit Pacific Island and Asian American 
        aging organizations with the ability to provide 
        employment to older Pacific Island and Asian Americans.
  [(b) State Allotments.--The allotment for each State shall be 
the sum of the amounts allotted for national grants in such 
State under subsection (d) and for the grant to such State 
under subsection (e).
  [(c) Division Between National Grants and Grants to States.--
From the sums appropriated to carry out this title for any 
fiscal year that remain after amounts are reserved under 
paragraphs (1), (2), and (3) of subsection (a), the Secretary 
shall divide the remainder between national grants and grants 
to States, as follows:
          [(1) Reservation of funds for fiscal year 2000 level 
        of activities.--The Secretary shall reserve the amounts 
        necessary to maintain the fiscal year 2000 level of 
        activities supported by public and private nonprofit 
        agency and organization grantees that operate under 
        this title under national grants from the Secretary, 
        and the fiscal year 2000 level of activities supported 
        by State grantees under this title, in proportion to 
        their respective fiscal year 2000 levels of activities. 
        In any fiscal year for which the appropriations are 
        insufficient to provide the full amounts so required, 
        then such amounts shall be reduced proportionally.
          [(2) Funding in excess of fiscal year 2000 level of 
        activities.--
                  [(A) Up to $35,000,000.--From the amounts 
                remaining after the application of paragraph 
                (1), the portion of such remaining amounts up 
                to the sum of $35,000,000 shall be divided so 
                that 75 percent shall be provided to State 
                grantees and 25 percent shall be provided to 
                public and private nonprofit agency and 
                organization grantees that operate under this 
                title under national grants from the Secretary.
                  [(B) Over $35,000,000.--Any amounts remaining 
                after the application of subparagraph (A) shall 
                be divided so that 50 percent shall be provided 
                to State grantees and 50 percent shall be 
                provided to public and private nonprofit agency 
                and organization grantees that operate under 
                this title under national grants from the 
                Secretary.
  [(d) Allotments for National Grants.--From the sums provided 
for national grants under subsection (c), the Secretary shall 
allot for public and private nonprofit agency and organization 
grantees that operate under this title under national grants 
from the Secretary in each State, an amount that bears the same 
ratio to such sums as the product of the number of persons aged 
55 or over in the State and the allotment percentage of such 
State bears to the sum of the corresponding product for all 
States, except as follows:
          [(1) Minimum allotment.--No State shall be provided 
        an amount under this subsection that is less than \1/2\ 
        of 1 percent of the amount provided under subsection 
        (c) for public and private nonprofit agency and 
        organization grantees that operate under this title 
        under national grants from the Secretary in all of the 
        States.
          [(2) Hold harmless.--If the amount provided under 
        subsection (c) is--
                  [(A) equal to or less than the amount 
                necessary to maintain the fiscal year 2000 
                level of activities, allotments for public and 
                private nonprofit agency and organization 
                grantees that operate under this title under 
                national grants from the Secretary in each 
                State shall be proportional to their fiscal 
                year 2000 level of activities; or
                  [(B) greater than the amount necessary to 
                maintain the fiscal year 2000 level of 
                activities, no State shall be provided a 
                percentage increase above the fiscal year 2000 
                level of activities for public and private 
                nonprofit agency and organization grantees that 
                operate under this title under national grants 
                from the Secretary in the State that is less 
                than 30 percent of such percentage increase 
                above the fiscal year 2000 level of activities 
                for public and private nonprofit agency and 
                organization grantees that operate under this 
                title under national grants from the Secretary 
                in all of the States.
          [(3) Reduction.--Allotments for States not affected 
        by paragraphs (1) and (2)(B) of this subsection shall 
        be reduced proportionally to satisfy the conditions in 
        such paragraphs.
  [(e) Allotments for Grants to States.--From the sums provided 
for grants to States under subsection (c), the Secretary shall 
allot for the State grantee in each State an amount that bears 
the same ratio to such sums as the product of the number of 
persons aged 55 or over in the State and the allotment 
percentage of such State bears to the sum of the corresponding 
product for all States, except as follows:
          [(1) Minimum allotment.--No State shall be provided 
        an amount under this subsection that is less than \1/2\ 
        of 1 percent of the amount provided under subsection 
        (c) for State grantees in all of the States.
          [(2) Hold harmless.--If the amount provided under 
        subsection (c) is--
                  [(A) equal to or less than the amount 
                necessary to maintain the fiscal year 2000 
                level of activities, allotments for State 
                grantees in each State shall be proportional to 
                their fiscal year 2000 level of activities; or
                  [(B) greater than the amount necessary to 
                maintain the fiscal year 2000 level of 
                activities, no State shall be provided a 
                percentage increase above the fiscal year 2000 
                level of activities for State grantees in the 
                State that is less than 30 percent of such 
                percentage increase above the fiscal year 2000 
                level of activities for State grantees in all 
                of the States.
          [(3) Reduction.--Allotments for States not affected 
        by paragraphs (1) and (2)(B) of this subsection shall 
        be reduced proportionally to satisfy the conditions in 
        such paragraphs.
  [(f ) Allotment Percentage.--For the purposes of subsections 
(d) and (e)--
          [(1) the allotment percentage of each State shall be 
        100 percent less that percentage which bears the same 
        ratio to 50 percent as the per capita income of such 
        State bears to the per capita income of the United 
        States, except that: (A) the allotment percentage shall 
        in no case be more than 75 percent or less than 33 
        percent; and (B) the allotment percentage for the 
        District of Columbia and the Commonwealth of Puerto 
        Rico shall be 75 percent;
          [(2) the number of persons aged 55 or over in any 
        State and in all States, and the per capita income in 
        any State and in all States, shall be determined by the 
        Secretary on the basis of the most satisfactory data 
        available to the Secretary; and
          [(3) for the purpose of determining the allotment 
        percentage, the term ``United States'' means the 50 
        States and the District of Columbia.
  [(g) Definitions.--In this section:
          [(1) Cost per authorized position.--The term ``cost 
        per authorized position'' means the sum of--
                  [(A) the hourly minimum wage rate specified 
                in section 6(a)(1) of the Fair Labor Standards 
                Act of 1938 (29 U.S.C. 206(a)(1)) (as amended), 
                multiplied by the number of hours equal to the 
                product of 21 hours and 52 weeks;
                  [(B) an amount equal to 11 percent of the 
                amount specified under subparagraph (A), for 
                the purpose of covering Federal payments for 
                fringe benefits; and
                  [(C) an amount determined by the Secretary, 
                for the purpose of covering Federal payments 
                for the remainder of all other program and 
                administrative costs.
          [(2) Fiscal year 2000 level of activities.--The term 
        ``fiscal year 2000 level of activities'' means--
                  [(A) with respect to public and private 
                nonprofit agency and organization grantees that 
                operate under this title under national grants 
                from the Secretary, their level of activities 
                for fiscal year 2000, or the amount remaining 
                after the application of section 514(e); and
                  [(B) with respect to State grantees, their 
                level of activities for fiscal year 2000, or 
                the amount remaining after the application of 
                section 514(f ).
          [(3) Grants to states.--The term ``grants to States'' 
        means grants under this title to the States from the 
        Secretary.
          [(4) Level of activities.--The term ``level of 
        activities'' means the number of authorized positions 
        multiplied by the cost per authorized position.
          [(5) National grants.--The term ``national grants'' 
        means grants to public and private nonprofit agency and 
        organization grantees that operate under this title 
        under national grants from the Secretary.
          [(6) State.--The term ``State'' does not include 
        Guam, American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the United States Virgin Islands.

[SEC. 507. EQUITABLE DISTRIBUTION.

  [(a) Interstate Allocation.--The Secretary, in awarding 
grants and contracts under section 506, shall, to the extent 
feasible, assure an equitable distribution of activities under 
such grants and contracts, in the aggregate, among the States, 
taking into account the needs of underserved States.
  [(b) Intrastate Allocation.--The amount allocated for 
projects within each State under section 506 shall be allocated 
among areas within the State in an equitable manner, taking 
into consideration the State priorities set out in the State 
plan pursuant to section 503(a).

[SEC. 508. REPORT.

  [In order to carry out the Secretary's responsibilities for 
reporting in section 503(g), the Secretary shall require the 
State agency for each State receiving funds under this title to 
prepare and submit a report at the beginning of each fiscal 
year on such State's compliance with section 507(b). Such 
report shall include the names and geographic location of all 
projects assisted under this title and carried out in the State 
and the amount allocated to each such project under section 
506.

[SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND FOOD STAMP 
                    PROGRAMS.

  [Funds received by eligible individuals from projects carried 
out under the program established in this title shall not be 
considered to be income of such individuals for purposes of 
determining the eligibility of such individuals, or of any 
other persons, to participate in any housing program for which 
Federal funds may be available or for any income determination 
under the Food Stamp Act of 1977.

[SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT ACTIVITIES.

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

[SEC. 511. TREATMENT OF ASSISTANCE.

  [Assistance furnished under this title shall not be construed 
to be financial assistance described in section 245A(h)(1)(A) 
of the Immigration and Nationality Act (8 U.S.C. 
1255A(h)(1)(A)).

[SEC. 512. COORDINATION WITH THE WORKFORCE INVESTMENT ACT OF 1998.

  [(a) Partners.--Grantees under this title shall be one-stop 
partners as described in subparagraphs (A) and (B)(vi) of 
section 121(b)(1) of the Workforce Investment Act of 1998 (29 
U.S.C. 2841(b)(1)) in the one-stop delivery system established 
under section 134(c) of such Act (29 U.S.C. 2864(c)) for the 
appropriate local workforce investment areas, and shall carry 
out the responsibilities relating to such partners.
  [(b) Coordination.--In local workforce investment areas where 
more than one grantee under this title provides services, the 
grantees shall coordinate their activities related to the one-
stop delivery system, and grantees shall be signatories of the 
memorandum of understanding established under section 121(c) of 
the Workforce Investment Act of 1998 (29 U.S.C. 2841(c)).

[SEC. 513. PERFORMANCE.

  [(a) Measures.--
          [(1) Establishment of measures.--The Secretary shall 
        establish, in consultation with grantees, 
        subgrantees, and host agencies under this 
        title, States, older individuals, area agencies on 
        aging, and other organizations serving older 
        individuals, performance measures for each grantee for 
        projects and services carried out under this title.
          [(2) Content.--
                  [(A) Composition of measures.--The 
                performance measures as established by the 
                Secretary and described in paragraph (1) shall 
                consist of indicators of performance and levels 
                of performance applicable to each indicator. 
                The measures shall be designed to promote 
                continuous improvement in performance.
                  [(B) Adjustment.--The levels of performance 
                described in subparagraph (A) applicable to a 
                grantee shall be adjusted only with respect to 
                the following factors:
                          [(i) High rates of unemployment, 
                        poverty, or welfare recipiency in the 
                        areas served by a grantee, relative to 
                        other areas of the State or Nation.
                          [(ii) Significant downturns in the 
                        areas served by the grantee or in the 
                        national economy.
                          [(iii) Significant numbers or 
                        proportions of enrollees with one or 
                        more barriers to employment served by a 
                        grantee relative to grantees serving 
                        other areas of the State or Nation.
                  [(C) Placement.--For all grantees, the 
                Secretary shall establish a measure of 
                performance of not less than 20 percent 
                (adjusted in accordance with subparagraph (B)) 
                for placement of enrollees into unsubsidized 
                public or private employment as defined in 
                subsection (c)(2).
          [(3) Performance evaluation of public or private 
        nonprofit agencies and organizations.--The Secretary 
        shall annually establish national performance measures 
        for each public or private nonprofit agency or 
        organization that is a grantee under this title, which 
        shall be applicable to the grantee without regard to 
        whether such grantee operates the program directly or 
        through contracts, grants, or agreements with other 
        entities. The performance of the grantees with respect 
        to such measures shall be evaluated in accordance with 
        section 514(e)(1) regarding performance of the grantees 
        on a national basis, and in accordance with section 
        514(e)(3) regarding the performance of the grantees in 
        each State.
          [(4) Performance evaluation of states.--The Secretary 
        shall annually establish performance measures for each 
        State that is a grantee under this title, which shall 
        be applicable to the State grantee without regard to 
        whether such grantee operates the program directly or 
        through contracts, grants, or agreements with other 
        entities. The performance of the State grantees with 
        respect to such measures shall be evaluated in 
        accordance with section 514(f ).
          [(5) Limitation.--An agreement to be evaluated on the 
        performance measures shall be a requirement for 
        application for, and a condition of, all grants 
        authorized by this title.
  [(b) Required Indicators.--The indicators described in 
subsection (a) shall include--
          [(1) the number of persons served, with particular 
        consideration given to individuals with greatest 
        economic need, greatest social need, or poor employment 
        history or prospects, and individuals who are over the 
        age of 60;
          [(2) community services provided;
          [(3) placement into and retention in unsubsidized 
        public or private employment;
          [(4) satisfaction of the enrollees, employers, and 
        their host agencies with their experiences and the 
        services provided; and
          [(5) any additional indicators of performance that 
        the Secretary determines to be appropriate to evaluate 
        services and performance.
  [(c) Definitions of Indicators.--
          [(1) In general.--The Secretary, after consultation 
        with national and State grantees, representatives of 
        business and labor organizations, and providers of 
        services, shall, by regulation, issue definitions of 
        the indicators of performance described in subsection 
        (b).
          [(2) Definitions of certain terms.--In this section:
                  [(A) Placement into public or private 
                unsubsidized employment.--The term ``placement 
                into public or private unsubsidized 
                employment'' means full- or part-time paid 
                employment in the public or private sector by 
                an enrollee under this title for 30 days within 
                a 90-day period without the use of funds under 
                this title or any other Federal or State 
                employment subsidy program, or the equivalent 
                of such employment as measured by the earnings 
                of an enrollee through the use of wage records 
                or other appropriate methods.
                  [(B) Retention in public or private 
                unsubsidized employment.--The term ``retention 
                in public or private unsubsidized employment'' 
                means full- or part-time paid employment in the 
                public or private sector by an enrollee under 
                this title for 6 months after the starting date 
                of placement into unsubsidized employment 
                without the use of funds under this title or 
                any other Federal or State employment subsidy 
                program.
  [(d) Corrective Efforts.--A State or other grantee that does 
not achieve the established levels of performance on the 
performance measures shall submit to the Secretary, for 
approval, a plan of correction as described in subsection (e) 
or (f ) of section 514 to achieve the established levels of 
performance.

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

  [(a) Program Authorized.--In accordance with section 502(b), 
the Secretary shall award grants to eligible applicants to 
carry out projects under this title for a period of 1 year, 
except that, after the promulgation of regulations for this 
title and the establishment of the performance measures 
required by section 513(a), the Secretary shall award grants 
for a period of not to exceed 3 years.
  [(b) Eligible Applicants.--An applicant shall be eligible to 
receive a grant under subsection (a) in accordance with section 
502(b)(1), and subsections (c) and (d).
  [(c) Criteria.--The Secretary shall select the eligible 
applicants to receive grants under subsection (a) based on the 
following:
          [(1) The applicant's ability to administer a program 
        that serves the greatest number of eligible 
        individuals, giving particular consideration to 
        individuals with greatest economic need, greatest 
        social need, poor employment history or prospects, and 
        over the age of 60.
          [(2) The applicant's ability to administer a program 
        that provides employment for eligible individuals in 
        the communities in which such individuals reside, or in 
        nearby communities, that will contribute to the general 
        welfare of the community.
          [(3) The applicant's ability to administer a program 
        that moves eligible individuals into unsubsidized 
        employment.
          [(4) The applicant's ability to move individuals with 
        multiple barriers to employment into unsubsidized 
        employment.
          [(5) The applicant's ability to coordinate with other 
        organizations at the State and local level.
          [(6) The applicant's plan for fiscal management of 
        the program to be administered with funds received 
        under this section.
          [(7) Any additional criteria that the Secretary deems 
        appropriate in order to minimize disruption for current 
        enrollees.
  [(d) Responsibility Tests.--
          [(1) In general.--Before final selection of a 
        grantee, the Secretary shall conduct a review of 
        available records to assess the applicant's overall 
        responsibility to administer Federal funds.
          [(2) Review.--As part of the review described in 
        paragraph (1), the Secretary may consider any 
        information, including the organization's history with 
        regard to the management of other grants.
          [(3) Failure to satisfy test.--The failure to satisfy 
        any one responsibility test that is listed in paragraph 
        (4), except for those listed in subparagraphs (A) and 
        (B) of such paragraph, does not establish that the 
        organization is not responsible unless such failure is 
        substantial or persistent (for 2 or more consecutive 
        years).
          [(4) Test.--The responsibility tests include review 
        of the following factors:
                  [(A) Efforts by the organization to recover 
                debts, after three demand letters have been 
                sent, that are established by final agency 
                action and have been unsuccessful, or that 
                there has been failure to comply with an 
                approved repayment plan.
                  [(B) Established fraud or criminal activity 
                of a significant nature within the 
                organization.
                  [(C) Serious administrative deficiencies 
                identified by the Secretary, such as failure to 
                maintain a financial management system as 
                required by Federal regulations.
                  [(D) Willful obstruction of the audit 
                process.
                  [(E) Failure to provide services to 
                applicants as agreed to in a current or recent 
                grant or to meet applicable performance 
                measures.
                  [(F) Failure to correct deficiencies brought 
                to the grantee's attention in writing as a 
                result of monitoring activities, reviews, 
                assessments, or other activities.
                  [(G) Failure to return a grant closeout 
                package or outstanding advances within 90 days 
                of the grant expiration date or receipt of 
                closeout package, whichever is later, unless an 
                extension has been requested and granted.
                  [(H) Failure to submit required reports.
                  [(I) Failure to properly report and dispose 
                of Government property as instructed by the 
                Secretary.
                  [(J) Failure to have maintained effective 
                cash management or cost controls resulting in 
                excess cash on hand.
                  [(K) Failure to ensure that a subrecipient 
                complies with its Office of Management and 
                Budget Circular A-133 audit requirements 
                specified at section 667.200(b) of title 20, 
                Code of Federal Regulations.
                  [(L) Failure to audit a subrecipient within 
                the required period.
                  [(M) Final disallowed costs in excess of 5 
                percent of the grant or contract award if, in 
                the judgment of the grant officer, the 
                disallowances are egregious findings.
                  [(N) Failure to establish a mechanism to 
                resolve a subrecipient's audit in a timely 
                fashion.
          [(5) Determination.--Applicants that are determined 
        to be not responsible shall not be selected as 
        grantees.
          [(6) Disallowed costs.--Interest on disallowed costs 
        shall accrue in accordance with the Debt Collection 
        Improvement Act of 1996.
  [(e) National Performance Measures and Competition for Public 
and Private Nonprofit Agencies and Organizations.--
          [(1) In general.--Not later than 120 days after the 
        end of each program year, the Secretary shall determine 
        if each public or private nonprofit agency or 
        organization that is a grantee has met the national 
        performance measures established pursuant to section 
        513(a)(3).
          [(2) Technical assistance and corrective action 
        plan.--
                  [(A) In general.--If the Secretary determines 
                that a grantee fails to meet the national 
                performance measures for a program year, the 
                Secretary shall provide technical assistance 
                and require such organization to submit a 
                corrective action plan not later than 160 days 
                after the end of the program year.
                  [(B) Content.--The plan submitted under 
                subparagraph (A) shall detail the steps the 
                grantee will take to meet the national 
                performance measures in the next program year.
                  [(C) After second year of failure.--If a 
                grantee fails to meet the national performance 
                measures for a second consecutive program year, 
                the Secretary shall conduct a national 
                competition to award, for the first full 
                program year following the determination 
                (minimizing, to the extent possible, the 
                disruption of services provided to enrollees), 
                an amount equal to 25 percent of the funds 
                awarded to the grantee for such year.
                  [(D) Competition after third consecutive year 
                of failure.--If a grantee fails to meet the 
                national performance measures for a third 
                consecutive program year, the Secretary shall 
                conduct a national competition to award the 
                amount of the grant remaining after deduction 
                of the portion specified in subparagraph (C) 
                for the first full program year following the 
                determination. The eligible applicant that 
                receives the grant through the national 
                competition shall continue service to the 
                geographic areas formerly served by the grantee 
                that previously received the grant.
          [(3) Competition requirements for public and private 
        nonprofit agencies and organizations in a state.--
                  [(A) In general.--In addition to the actions 
                required under paragraph (2), the Secretary 
                shall take corrective action if the Secretary 
                determines at the end of any program year that, 
                despite meeting the established national 
                performance measures, a public or private 
                nonprofit agency or organization that is a 
                grantee has attained levels of performance 20 
                percent or more below the national performance 
                measures with respect to the project carried 
                out in a State and has failed to meet the 
                performance measures as established by the 
                Secretary for the State grantee in such State, 
                and there are not factors, such as the factors 
                described in section 513(a)(2)(B), or size of 
                the project, that justify the performance.
                  [(B) First year of failure.--After the first 
                program year of failure to meet the performance 
                criteria described in subparagraph (A), the 
                Secretary shall require a corrective action 
                plan, and may require the transfer of the 
                responsibility for the project to other 
                grantees, provide technical assistance, and 
                take other appropriate actions.
                  [(C) Second year of failure.--After the 
                second consecutive program year of failure to 
                meet the performance criteria described in 
                subparagraph (A), the corrective actions to be 
                taken by the Secretary may include the transfer 
                of the responsibility for a portion or all of 
                the project to a State or public or private 
                nonprofit agency or organization, or a 
                competition for a portion or all of the funds 
                to carry out such project among all eligible 
                entities that meet the responsibility tests 
                under section 514(d) except for the grantee 
                that is the subject of the corrective action.
                  [(D) Third year of failure.--After the third 
                consecutive program year of failure to meet the 
                performance criteria described in subparagraph 
                (A), the Secretary shall conduct a competition 
                for the funds to carry out such project among 
                all eligible entities that meet the 
                responsibility tests under section 514(d) 
                except for the grantee that is the subject of 
                the corrective action.
          [(4) Request by governor.--Upon the request of the 
        Governor of a State for a review of the performance of 
        a public or private nonprofit agency or organization 
        within the State, the Secretary shall undertake such a 
        review in accordance with the criteria described in 
        paragraph (3)(A). If the performance of such grantee is 
        not justified under such criteria, the Secretary shall 
        take corrective action in accordance with paragraph 
        (3).
  [(f ) Performance Measures and Competition for States.--
          [(1) In general.--Not later than 120 days after the 
        end of the program year, the Secretary shall determine 
        if a State grantee has met the performance measures 
        established pursuant to section 513(a)(4).
          [(2) Technical assistance and corrective action 
        plan.--If a State that receives a grant fails to meet 
        the performance measures for a program year, the 
        Secretary shall provide technical assistance and 
        require the State to submit a corrective action plan 
        not later than 160 days after the end of the program 
        year.
          [(3) Content.--The plan described in paragraph (2) 
        shall detail the steps the State will take to meet the 
        standards.
          [(4) Failure to meet performance measures for second 
        and third years.--
                  [(A) After second year of failure.--If a 
                State fails to meet the performance measures 
                for a second consecutive program year, the 
                Secretary shall provide for the conduct by the 
                State of a competition to award, for the first 
                full program year following the determination 
                (minimizing, to the extent possible, the 
                disruption of services provided to enrollees), 
                an amount equal to 25 percent of the funds 
                available to the State for such year.
                  [(B) After third year of failure.--If the 
                State fails to meet the performance measures 
                for a third consecutive program year, the 
                Secretary shall provide for the conduct by the 
                State of a competition to award the funds 
                allocated to the State for the first full 
                program year following the Secretary's 
                determination that the State has not met the 
                performance measures.

[SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

  [(a) There is authorized to be appropriated to carry out this 
title--
          [(1) $475,000,000 for fiscal year 2001 and such sums 
        as may be necessary for fiscal year 2002 through 2005; 
        and
          [(2) such additional sums as may be necessary for 
        each such fiscal year to enable the Secretary, through 
        programs under this title, to provide for at least 
        70,000 part-time employment positions for eligible 
        individuals.
For purposes of paragraph (2), ``part-time employment 
position'' means an employment position within a workweek of at 
least 20 hours.
  [(b) Amounts appropriated under this section for any fiscal 
year shall be available for obligation during the annual period 
which begins on July 1 of the calendar year immediately 
following the beginning of such fiscal year and which ends on 
June 30 of the following calendar year. The Secretary may 
extend the period during which such amounts may be obligated or 
expended in the case of a particular organization or agency 
receiving funds under this title if the Secretary determines 
that such extension is necessary to ensure the effective use of 
such funds by such organization or agency.
  [(c) At the end of the program year, the Secretary may 
recapture any unexpended funds for the program year, and 
reobligate such funds within the 2 succeeding program years 
for--
          [(1) incentive grants;
          [(2) technical assistance; or
          [(3) grants or contracts for any other program under 
        this title.

[SEC. 516. DEFINITIONS.

  [In this title:
          [(1) Community service.--The term ``community 
        service'' means social, health, welfare, and 
        educational services (including literacy tutoring), 
        legal and other counseling services and assistance, 
        including tax counseling and assistance and financial 
        counseling, and library, recreational, and other 
        similar services; conservation, maintenance, or 
        restoration of natural resources; community betterment 
        or beautification; antipollution and environmental 
        quality efforts; weatherization activities; economic 
        development; and such other services essential and 
        necessary to the community as the Secretary, by 
        regulation, may prescribe.
          [(2) Eligible individuals.--The term ``eligible 
        individuals'' means an individual who is 55 years old 
        or older, who has a low income (including any such 
        individual whose income is not more than 125 percent of 
        the poverty guidelines established by the Office of 
        Management and Budget), except that, pursuant to 
        regulations prescribed by the Secretary, any such 
        individual who is 60 years old or older shall have 
        priority for the work opportunities provided for under 
        this title.
          [(3) Pacific island and asian americans.--The term 
        ``Pacific Island and Asian Americans'' means Americans 
        having origins in any of the original peoples of the 
        Far East, Southeast Asia, the Indian Subcontinent, or 
        the Pacific Islands.
          [(4) Program.--The term ``program'' means the older 
        American community service employment program 
        established under this title.]

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

SEC. 501. SHORT TITLE.

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

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

  (a) To foster individual economic self-sufficiency and to 
increase the number of individuals who may enjoy the benefits 
of unsubsidized employment in both the public and private 
sectors, the Secretary of Labor (hereafter in this title 
referred to as the ``Secretary'') may establish an older 
American community service employment-based training program to 
foster and promote useful part-time public and private-sector 
employment-based training opportunities for unemployed low-
income eligible individuals who have poor employment prospects 
and to provide vital social and human services to communities 
by providing work experience to eligible individuals in public 
agencies, community-based and faith-based organizations.
  (b)(1) To carry out this title, the Secretary may make grants 
to public and nonprofit agencies and organizations, agencies of 
a State, and tribal organizations to carry out the program 
established under subsection (a). Such grants may provide for 
the payment of costs, as provided in subsection (c), of 
projects developed by such organizations and agencies in 
cooperation with the Secretary in order to make such program 
effective or to supplement such program. No payment shall be 
made by the Secretary toward the cost of any project 
established or administered by any organization or agency 
unless the Secretary determines that such project--
          (A) shall provide authorized activities only for 
        eligible individuals, and that not less than 50 percent 
        of hours worked (in the aggregate) shall be in 
        community service employment-based training provided by 
        a grantee in a program year;
          (B)(i) shall provide authorized activities for 
        eligible individuals in the community in which such 
        individuals reside, or in nearby communities, and that 
        not less than 50 percent of hours worked (in the 
        aggregate) shall be in community service employment-
        based training provided by a grantee in a program year; 
        or
          (ii) if such project is carried out by a tribal 
        organization that receives a grant under this 
        subsection or receives assistance from a State that 
        receives a grant under this subsection, will provide 
        authorized activities, including community service 
        employment-based training for such individuals, 
        including those who are Indians residing on an Indian 
        reservation, as defined in section 2601(2) of the 
        Energy Policy Act of 1992 (25 U.S.C. 3501(2));
          (C) together with all the projects carried out under 
        this title in each program year by a grantee, will not 
        provide for participation under this title by eligible 
        individuals (in the aggregate) for an average period 
        per capita that exceeds 24 months (whether or not 
        consecutive) during the period including the program 
        year for which the determination under this 
        subparagraph is made and the previous program years in 
        which such grantee carried out projects under this 
        title;
          (D) will provide employment-based training to 
        eligible individuals in service related to publicly 
        owned and operated facilities and projects, or projects 
        sponsored by profitmaking or nonprofit organizations 
        (excluding political parties exempt from taxation under 
        section 501(c)(3) of the Internal Revenue Code of 
        1986), but excluding projects involving the 
        construction, operation, or maintenance of any facility 
        used or to be used as a place for sectarian religious 
        instruction or worship;
          (E) will contribute to the general welfare of the 
        community, which may include support for children, 
        youth, and families;
          (F) is intended to result in unsubsidized employment 
        for eligible individuals after completion of such 
        program;
          (G)(i) will not reduce the number of job 
        opportunities or vacancies that would otherwise be 
        available to individuals not participating in such 
        program;
          (ii) will not displace currently employed workers 
        (including partial displacement, such as a reduction in 
        the hours of non-overtime work, wages, or employment 
        benefits);
          (iii) will not impair existing contracts or result in 
        the substitution of Federal funds for other funds in 
        connection with work that would otherwise be performed; 
        and
          (iv) will not place an eligible individual in 
        employment-based training to perform work the same or 
        substantially the same work as that performed by any 
        other individual who is on layoff;
          (H) will coordinate with training and other services 
        provided under title I of the Workforce Investment Act, 
        including utilizing the One-Stop delivery system to 
        recruit eligible individuals to ensure that the maximum 
        number of eligible individuals will have an opportunity 
        to participate in the project;
          (I) will include such training (such as community 
        service employment-based training, work experience, on-
        the-job training, and classroom training) as may be 
        necessary to make the most effective use of the skills 
        and talents of those individuals who are participating;
          (J) will ensure that safe and healthy conditions of 
        the employment-based training facility or other 
        training facility will be provided, and will ensure 
        that individuals employed in community service and 
        other jobs assisted under this title shall be paid 
        wages that shall not be lower than whichever is the 
        highest of--
                  (i) the minimum wage that would be applicable 
                to the employee under the Fair Labor Standards 
                Act of 1938, if section 6(a)(1) of such Act 
                applied to the participant and if the 
                participant were not exempt under section 13 
                thereof;
                  (ii) the State or local minimum wage for the 
                most nearly comparable covered employment; or
                  (iii) the prevailing rates of pay for 
                individuals employed in similar occupations by 
                the same employer;
          (K) will be established or administered with the 
        advice of persons competent in the field of service in 
        which job training is being provided, and of persons 
        who are knowledgeable about the needs of older 
        individuals;
          (L) will authorize payment for necessary supportive 
        services costs, (including transportation costs) of 
        eligible individuals that may be incurred in training 
        in any project funded under this title, in accordance 
        with rules issued by the Secretary;
          (M) will ensure that, to the extent feasible, such 
        project will serve the needs of minority, limited 
        English-speaking, and Indian eligible individuals, and 
        eligible individuals who have the greatest economic 
        need, at least in proportion to their numbers in the 
        State and take into consideration their rates of 
        poverty and unemployment;
          (N)(i) will prepare an assessment of the 
        participants' skills and talents and their needs for 
        services, except to the extent such project has, for 
        the participant involved, recently prepared an 
        assessment of such skills and talents, and such needs, 
        pursuant to another employment or training program 
        (such as a program under the Workforce Investment Act 
        of 1998 (29 U.S.C. 2801 et seq.), the Carl D. Perkins 
        Vocational and Technical Education Act of 1998 (20 
        U.S.C. 2301 et seq.), or part A of title IV of the 
        Social Security Act (42 U.S.C. 601 et seq.));
          (ii) will provide training and employment counseling 
        to eligible individuals based on strategies that 
        identify appropriate employment objectives and the need 
        for supportive services, developed as a result of the 
        assessment and service strategy provided for in clause 
        (i), and provide other appropriate information 
        regarding such program; and
          (iii) will provide counseling to participants on 
        their progress in meeting such objectives and 
        satisfying their need for supportive services;
          (O) will provide appropriate services for 
        participants through the One-Stop delivery system as 
        established under section 134(c) of the Workforce 
        Investment Act of 1998 (29 U.S.C. 2864(c)), and will be 
        involved in the planning and operations of such system 
        pursuant to a memorandum of understanding with the 
        local workforce investment board in accordance with 
        section 121(c) of such Act (29 U.S.C. 2841(c));
          (P) will post in such project workplace a notice, and 
        will make available to each person associated with such 
        project a written explanation--
                  (i) clarifying the law with respect to 
                political activities allowable and unallowable 
                under chapter 15 of title 5, United States 
                Code, applicable to the project and to each 
                category of individuals associated with such 
                project; and
                  (ii) containing the address and telephone 
                number of the Inspector General of the 
                Department of Labor, to whom questions 
                regarding the application of such chapter may 
                be addressed;
          (Q) will provide to the Secretary the description and 
        information described in--
                  (i) paragraph (8), relating to coordination 
                with other Federal programs, of section 112(b) 
                of the Workforce and Investment Act of 1998; 
                and
                  (ii) paragraph (14), relating to 
                implementation of One-Stop delivery systems, of 
                section 112(b) of the Workforce Investment Act 
                of 1998; and
          (R) will ensure that entities that carry out 
        activities under the project (including State agencies, 
        local entities, subgrantees, subcontractors) and 
        affiliates of such entities receive an amount of the 
        administrative cost allocation determined by the 
        Secretary to be sufficient.
  (2) The Secretary may establish, issue, and amend such 
regulations as may be necessary to effectively carry out this 
title.
  (3)(A) An assessment and service strategy required by 
paragraph (1) to be prepared for an eligible individual shall 
satisfy any condition for an assessment and service strategy or 
individual employment plan for an adult participant under 
subtitle B of title I of the Workforce Investment Act of 1998 
(29 U.S.C. 2811 et seq.), in order to determine whether such 
eligible individual also qualifies for intensive or training 
services described in section 134(d) of such Act (29 U.S.C. 
2864(d)).
  (B) An assessment and service strategy or individual 
employment plan prepared under subtitle B of title I of the 
Workforce Investment Act of 1998 (29 U.S.C. 2811 et seq.) for 
an eligible individual may be used to comply with the 
requirement specified in subparagraph (A).
  (c)(1) The Secretary may pay a share not to exceed 90 percent 
of the cost of any project for which a grant is made under 
subsection (b), except that the Secretary may pay all of such 
cost if such project is--
          (A) an emergency or disaster project; or
          (B) a project located in an economically depressed 
        area, as determined by the Secretary in consultation 
        with the Secretary of Commerce and the Secretary of 
        Health and Human Services.
  (2) The non-Federal share shall be in cash or in kind. In 
determining the amount of the non-Federal share, the Secretary 
may attribute fair market value to services and facilities 
contributed from non-Federal sources.
  (3) Of the amount to be paid under this subsection by the 
Secretary for a project, not to exceed 13.5 percent shall be 
available for any fiscal year to pay the administrative costs 
of such project, except that--
          (A) the Secretary may increase the amount available 
        to pay administrative costs to an amount not to exceed 
        15 percent of the cost of such project if the Secretary 
        determines, based on information submitted by the 
        grantee under subsection (b), that such increase is 
        necessary to carry out such project; and
          (B) if the grantee under subsection (b) demonstrates 
        to the Secretary that--
                  (i) major administrative cost increases are 
                being incurred in necessary program components, 
                including liability insurance, payments for 
                workers' compensation, costs associated with 
                achieving unsubsidized placement goals, and 
                other operation requirements imposed by the 
                Secretary;
                  (ii) the number of positions in the project 
                or the number of minority eligible individuals 
                participating in the project will decline if 
                the amount available to pay administrative 
                costs is not increased; or
                  (iii) the size of the project is so small 
                that the amount of administrative costs 
                incurred to carry out the project necessarily 
                exceeds 13.5 percent of the cost of such 
                project;
        the Secretary shall increase the amount available for 
        such fiscal year to pay administrative costs to an 
        amount not to exceed 15 percent of the cost of such 
        project.
  (4) Administrative costs are the costs, both personnel and 
non-personnel and both direct and indirect, associated with the 
following:
          (A) The costs of performing general administrative 
        functions and of providing for the coordination of 
        functions, such as--
                  (i) accounting, budgeting, financial, cash 
                management and related data processing;
                  (ii) quality assurance;
                  (iii) preparing program plans;
                  (iv) procurement and purchasing;
                  (v) property management;
                  (vi) personnel management, including 
                personnel administration, administration of 
                affirmative action plans, and training and 
                staff development;
                  (vii) administrative salaries, including 
                clerical and other support staff salaries;
                  (viii) payroll functions;
                  (ix) coordinating the resolution of findings 
                arising from audits, reviews, investigations, 
                and incident reports;
                  (x) audit;
                  (xi) general legal services;
                  (xii) developing systems and procedures, 
                including information systems, required for 
                administrative functions;
                  (xiii) preparing reports; and
                  (xiv) other activities necessary for the 
                general administration of government funds and 
                associated programs.
          (B) The costs of performing oversight and monitoring 
        responsibilities.
          (C) The costs of goods and services required for 
        administrative functions of such program, including 
        goods and services such as rental or purchase of 
        equipment, utilities, office supplies, postage, and 
        rental and maintenance of office space.
          (D) The travel costs incurred for official business 
        in carrying out such program, excluding travel costs 
        related to providing services.
          (E) The costs of information systems related to 
        personnel, procurement, purchasing, property 
        management, accounting, and payroll systems), including 
        the purchase, systems development, and operating costs 
        of such systems.
          (F) The costs of technical assistance, professional 
        organization membership dues, removal of architectural 
        barriers, operating and maintaining assistive 
        technology, and evaluating program results against 
        stated objectives.
  (5) To the extent practicable, an entity that carries out a 
project under this title shall provide for the payment of the 
expenses described in paragraph (4) from non-Federal sources.
  (6)(A) Amounts made available for a project under this title 
that are not used to pay for the administrative costs shall be 
used to pay for the costs of programmatic activities, 
including--
          (i) participant wages, such benefits as are required 
        by law (such as workers compensation or unemployment 
        compensation) the costs of physical examinations, 
        compensation for scheduled work hours during which an 
        employer is closed for a Federal holiday, and necessary 
        sick leave that is not part of an accumulated sick 
        leave program, except that no amounts provided under 
        this title may be used to pay the cost of pension 
        benefits, annual leave, accumulated sick leave, or 
        bonuses;
          (ii) participant training (including the payment of 
        reasonable costs of instructors, classroom rental, 
        training supplies, materials, equipment, and tuition) 
        which may be provided prior to or subsequent to 
        placement and which may be provided on the job, in a 
        classroom setting or pursuant to other appropriate 
        arrangements;
          (iii) job placement assistance, including job 
        development and job search assistance;
          (iv) participant supportive services to enable a 
        participant to successfully participate in a project 
        under this title, which may include the payment of 
        reasonable costs of transportation, special job-related 
        or personal counseling, incidentals (such as work 
        shoes, badges, uniforms, eyeglasses, and tools), child 
        and adult care, temporary shelter, and follow-up 
        services; and
          (v) outreach, recruitment, and selection, intake, 
        orientation, and assessments.
  (B) Not less than 65 percent of the funds made available 
under a grant made under this title (excluding a grant made 
under subsection (d)) shall be used to pay wages and benefits 
for eligible individuals who are employed under projects 
carried out under this title.
  (d) Pilot, Demonstration, and Evaluation Projects.--The 
Secretary shall use funds reserved under section 506(a)(1) to 
carry out demonstration projects, pilot projects, and 
evaluation projects, for the purpose of developing and 
implementing techniques and approaches, and demonstrating the 
effectiveness of the specialized methods, in addressing the 
employment and training needs of eligible individuals. Such 
projects may include--
          (1) activities linking businesses and eligible 
        individuals, including assistance to participants 
        transitioning from subsidized activities to private-
        sector employment; and
          (2) demonstration projects and pilot projects 
        designed to--
                  (A) attract more eligible individuals into 
                the labor force;
                  (B) improve the provision of services to 
                eligible individuals under the One-Stop 
                delivery system established in accordance with 
                title I of the Workforce Investment Act of 
                1998;
                  (C) enhance the technological skills of 
                eligible individuals; and
                  (D) provide incentives to grantees under this 
                title for exemplary performance and incentives 
                to businesses to promote their participation in 
                the program under this title;
          (3) demonstration projects and pilot projects, as 
        described in paragraph (2), for older workers only if 
        such demonstration projects and pilot projects are 
        designed to assist in developing and implementing 
        techniques and approaches in addressing the employment 
        and training needs of eligible individuals;
          (4) training and technical assistance to support any 
        project funded under this title;
          (5) dissemination of best practices; and
          (6) evaluation of the activities authorized under 
        this title.

SEC. 503. ADMINISTRATION.

  (a) State Plan.--
          (1) Chief executive officer submits plan.--For a 
        State to be eligible to receive an allotment under 
        section, 506, the chief executive officer of the State 
        shall submit to the Secretary for consideration and 
        approval, a single State plan (referred to in this 
        title as the ``State plan'') that outlines a 3-year 
        strategy for the statewide provision of training and 
        related activities for eligible individuals under this 
        title. The plan shall contain such provisions as the 
        Secretary may require, consistent with this title, 
        including a description of the process used to ensure 
        the participation of individuals described in paragraph 
        (2).
          (2) Recommendations.--In developing the State plan 
        prior to its submission to the Secretary, the chief 
        executive officer of the State shall seek the advice 
        and recommendations of--
                  (A) individuals representing the State agency 
                and the area agencies on aging in the State, 
                and the State and local workforce investment 
                boards established under title I of the 
                Workforce Investment Act of 1998 (29 U.S.C. 
                2801 et seq.);
                  (B) individuals representing public and 
                nonprofit private agencies and organizations 
                providing employment services, including each 
                grantee operating a project under this title in 
                the State; and
                  (C) individuals representing social service 
                organizations providing services to older 
                individuals, grantees under title III of this 
                Act, affected communities, unemployed older 
                individuals, community-based organizations 
                serving the needs of older individuals, 
                business organizations, and labor 
                organizations.
                  (D) Comments.--Any State plan submitted by 
                the chief executive officer in accordance with 
                paragraph (1) shall be accompanied by copies of 
                public comments relating to the plan received 
                pursuant to paragraph (4) and a summary 
                thereof.
          (4) Plan provisions.--The State plan shall identify 
        and address--
                  (A) the relationship that the number of 
                eligible individuals in each area bears to the 
                total number of eligible individuals, 
                respectively, in the State;
                  (B) the relative distribution of eligible 
                individuals residing in rural and urban areas 
                in the State; and
                  (C) the relative distribution of--
                          (i) eligible individuals who are 
                        individuals with greatest economic 
                        need;
                          (ii) eligible individuals who are 
                        minority individuals, including 
                        individuals who are limited English 
                        proficient; and
                          (iii) eligible individuals who are 
                        individuals with greatest social need;
                  (D) the current and projected employment 
                opportunities in the State, by occupation, and 
                the type of skills possessed by local eligible 
                individuals;
                  (E) the localities and populations for which 
                projects of the type authorized by this title 
                are most needed; and
                  (F) plans for facilitating the coordination 
                of activities of grantees in the State under 
                this title with activities carried out in the 
                State under title I of the Workforce Investment 
                Act of 1998.
          (5) Chief executive officer's recommendations on 
        grant proposals.--Before a proposal for a grant under 
        this title for any fiscal year is submitted to the 
        Secretary, the chief executive officer of each State in 
        which projects are proposed to be conducted under such 
        grant shall be afforded a reasonable opportunity to 
        submit recommendations to the Secretary--
                  (A) regarding the anticipated effect of each 
                such proposal upon the overall distribution of 
                enrollment positions under this title in the 
                State (including such distribution among urban 
                and rural areas), taking into account the total 
                number of positions to be provided by all 
                grantees in the State;
                  (B) any recommendations for redistribution of 
                positions to under served areas as vacancies 
                occur in previously encumbered positions in 
                other areas; and
                  (C) in the case of any increase in funding 
                that may be available for use in the State 
                under this title for any fiscal year, any 
                recommendations for distribution of newly 
                available positions in excess of those 
                available during the preceding year to 
                underserved areas.
          (6) Disruptions.--In developing plans and considering 
        recommendations under this subsection, disruptions in 
        the provision of services for current participants 
        shall be avoided to the greatest possible extent.
          (7) Determination; review.--
                  (A) Determination.--In order to effectively 
                carry out this title, each State shall make the 
                State plan available for public comment. The 
                Secretary, in consultation with the Assistant 
                Secretary, shall review the plan and make a 
                written determination with findings and a 
                decision regarding the plan.
                  (B) Review.--The Secretary may review, on the 
                Secretary's own initiative or at the request of 
                any public or private agency or organization or 
                of any agency of the State, the distribution of 
                projects and services under this title in the 
                State including the distribution between urban 
                and rural areas in the State. For each proposed 
                reallocation of projects or services in a 
                State, the Secretary shall give notice and 
                opportunity for public comment.
          (8) Exemption.--The grantees that serve eligible 
        individuals who are older Indians with funds reserved 
        under section 506(a)(3) may not be required to 
        participate in the State planning processes described 
        in this section but will collaborate with the Secretary 
        to develop a plan for projects and services to eligible 
        individuals who are Indians.
  (b) Coordination With Other Federal Programs.--
          (1) The Secretary and the Assistant Secretary shall 
        coordinate the program carried out under this title 
        with programs carried out under other titles of this 
        Act, to increase job opportunities available to older 
        individuals.
          (2) The Secretary shall coordinate programs carried 
        out under this title with the program carried out under 
        the Workforce Investment Act of 1998, the Community 
        Services Block Grant Act, the Rehabilitation Act of 
        1973, the Carl D. Perkins Vocational and Technical 
        Education Act of 1998 (20 U.S.C. 2301 et seq.), the 
        National and Community Service Act of 1990 (42 U.S.C. 
        12501 et seq.), and the Domestic Volunteer Service Act 
        of 1973 (42 U.S.C. 4950 et seq.). The Secretary shall 
        coordinate the administration of this title with the 
        administration of other titles of this Act by the 
        Assistant Secretary to increase the likelihood that 
        eligible individuals for whom employment opportunities 
        under this title are available and who need services 
        under such titles receive such services. Funds 
        appropriated to carry out this title may not be used to 
        carry out any program under the Workforce Investment 
        Act of 1998, the Community Services Block Grant Act, 
        the Rehabilitation Act of 1973, the Carl D. Perkins 
        Vocational and Technical Education Act of 1998, the 
        National and Community Service Act of 1990, or the 
        Domestic Volunteer Service Act of 1973. The preceding 
        sentence shall not be construed to prohibit carrying 
        out projects under this title jointly with programs, 
        projects, or activities under any Act specified in such 
        sentence, or from carrying out section 512.
          (3) The Secretary shall distribute to grantees under 
        this title, for distribution to program participants, 
        and at no cost to grantees or participants, 
        informational materials developed and supplied by the 
        Equal Employment Opportunity Commission and other 
        appropriate Federal agencies that the Secretary 
        determines are designed to help participants identify 
        age discrimination and to understand their rights under 
        the Age Discrimination in Employment Act of 1967.
  (c) In carrying out this title, the Secretary may use, with 
their consent, the services, equipment, personnel, and 
facilities of Federal and other agencies with or without 
reimbursement, and on a similar basis to cooperate with other 
public and private agencies and instrumentalities in the use of 
services, equipment, and facilities.
  (d) Payments under this title may be made in advance or by 
way of reimbursement and in such installments as the Secretary 
may determine.
  (e) The Secretary shall not delegate any function of the 
Secretary under this title to any other Federal officer or 
entity.
  (f)(1) The Secretary shall monitor projects for which grants 
are made under this title to determine whether the grantees are 
complying with rules and regulations issued to carry out this 
title (including the statewide planning, consultation, and 
coordination requirements of this title).
  (2) Each grantee that receives funds under this title shall 
comply with the applicable uniform cost principles and 
appropriate administrative requirements for grants and 
contracts that are applicable to the type of entity that 
receives funds, as issued as circulars or rules of the Office 
of Management and Budget.
  (3) Each grantee described in paragraph (2) shall prepare and 
submit a report in such manner and containing such information 
as the Secretary may require regarding activities carried out 
under this title.
  (4) Each grantee described in paragraph (2) shall keep 
records that--
          (A) are sufficient to permit the preparation of 
        reports required by this title;
          (B) are sufficient to permit the tracing of funds to 
        a level of expenditure adequate to ensure that the 
        funds have not been spent unlawfully; and
          (C) contain any other information that the Secretary 
        determines to be appropriate.
  (g) The Secretary shall establish by rule and implement a 
process to evaluate, in accordance with section 513, the 
performance of projects and services carried out under this 
title. The Secretary shall report to the Congress, and make 
available to the public, the results of each such evaluation 
and shall use such evaluation to improve services delivered by, 
or the operation of, projects carried out under this title.

SEC. 504. PARTICIPANTS NOT FEDERAL EMPLOYEES.

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

SEC. 505. INTERAGENCY COOPERATION.

  (a) The Secretary shall consult with and obtain the written 
views of the Assistant Secretary before issuing rules and 
before establishing general policy in the administration of 
this title.
  (b) The Secretary shall consult and cooperate with the 
Director of the Office of Community Services, the Secretary of 
Health and Human Services, and the heads of other Federal 
agencies that carry out related programs, in order to achieve 
optimal coordination with such other programs. In carrying out 
this section, the Secretary shall promote programs or projects 
of a similar nature. Each Federal agency shall cooperate with 
the Secretary in disseminating information relating to the 
availability of assistance under this title and in promoting 
the identification and interests of individuals eligible for 
employment in projects assisted under this title.
  (c)(1) The Secretary shall promote and coordinate carrying 
out projects under this title jointly with programs, projects, 
or activities carried out under other Acts, especially 
activities provided under the Workforce Investment Act of 1998 
(29 U.S.C. 2801 et seq.), including activities provided through 
One-Stop delivery systems established under section 134(c)) of 
such Act (29 U.S.C. 2864(c)), that provide training and 
employment opportunities to eligible individuals.
  (2) The Secretary shall consult with the Secretary of 
Education to promote and coordinate carrying out projects under 
this title jointly with workforce investment activities in 
which eligible individuals may participate that are carried out 
under the Carl D. Perkins Vocational and Technical Education 
Act of 1998.

SEC. 506. DISTRIBUTION OF ASSISTANCE.

  (a) Reservations.--
          (1) Reservation for national activities.--Of the 
        funds appropriated to carry out this title for each 
        fiscal year, the Secretary may first reserve up to 1.5 
        percent to carry out demonstration projects, pilot 
        projects, and evaluation projects under section 502(d).
          (2) Reservation for territories.--Of the funds 
        appropriated to carry out this title for each fiscal 
        year, the Secretary shall reserve up to 0.75 percent, 
        of which--
                  (A) Guam, American Samoa, and the United 
                States Virgin Islands shall each receive 30 
                percent of the funds so reserved; and
                  (B) the Commonwealth of the Northern Mariana 
                Islands shall receive 10 percent of the funds 
                so reserved.
          (3) Reservation for organizations.--Of the funds 
        appropriated to carry out this title for each fiscal 
        year, the Secretary shall reserve such amount as may be 
        necessary to make national grants to public or 
        nonprofit national Indian aging organizations with the 
        ability to provide authorized activities for eligible 
        individuals who are Indians and to national public or 
        nonprofit Pacific Island and Asian American aging 
        organizations with the ability to provide authorized 
        activities for eligible individuals who are Pacific 
        Island and Asian Americans.
  (b) State Allotments.--The allotment for each State shall be 
the sum of the amounts allotted for national grants in such 
State under subsection (d) and for the grant to such State 
under subsection (e).
  (c) Division Between National Grants and Grants to States.--
The funds appropriated to carry out this title for any fiscal 
year that remain after amounts are reserved under paragraphs 
(1), (2), and (3) of subsection (a), shall be divided by the 
Secretary between national grants and grants to States as 
follows:
          (1) Reservation of funds for fiscal year 2006 level 
        of activities.--
                  (A) The Secretary shall reserve the amount of 
                funds necessary to maintain the fiscal year 
                2006 level of activities supported by grantees 
                that operate under this title under national 
                grants from the Secretary, and the fiscal year 
                2006 level of activities supported by State 
                grantees under this title, in proportion to 
                their respective fiscal year 2006 levels of 
                activities.
                  (B) If in any fiscal year for which the funds 
                appropriated to carry out this title are 
                insufficient to satisfy the requirement 
                specified in subparagraph (A), then the amount 
                described in subparagraph (A) shall be reduced 
                proportionally.
          (2) Funding in excess of fiscal year 2006 level of 
        activities.--
                  (A) Up to $35,000,000.--The amount of funds 
                remaining after the application of paragraph 
                (1), but not to exceed $35,000,000, shall be 
                divided so that 75 percent shall be provided to 
                State grantees and 25 percent shall be provided 
                to grantees that operate under this title under 
                national grants from the Secretary.
                  (B) Over $35,000,000.--The amount of funds 
                remaining (if any) after the application of 
                subparagraph (A) shall be divided so that 50 
                percent shall be provided to State grantees and 
                50 percent shall be provided to grantees that 
                operate under this title under national grants 
                from the Secretary.
  (d) Allotments for National Grants.--From funds available 
under subsection (c) for national grants, the Secretary shall 
allot for public and nonprofit private agency and organization 
grantees that operate under this title under national grants 
from the Secretary in each State, an amount that bears the same 
ratio to such funds as the product of the number of individuals 
55 years of age or older in the State and the allotment 
percentage of such State bears to the sum of the corresponding 
products for all States, except as follows:
          (1) Minimum allotment.--No State shall be provided an 
        amount under this subsection that is less than \1/2\ of 
        1 percent of the amount provided under subsection (c) 
        for public and nonprofit private agency and 
        organization grantees that operate under this title 
        under national grants from the Secretary in all of the 
        States.
          (2) Hold harmless.--If the amount provided under 
        subsection (c) is--
                  (A) equal to or less than the amount 
                necessary to maintain the fiscal year 2006 
                level of activities, allotments for grantees 
                that operate under this title under national 
                grants from the Secretary in each State shall 
                be proportional to their fiscal year 2006 level 
                of activities; or
                  (B) greater than the amount necessary to 
                maintain the fiscal year 2006 level of 
                activities, no State shall be provided a 
                percentage increase above the fiscal year 2006 
                level of activities for grantees that operate 
                under this title under national grants from the 
                Secretary in the State that is less than 30 
                percent of such percentage increase above the 
                fiscal year 2006 level of activities for public 
                and nonprofit private agency and organization 
                grantees that operate under this title under 
                national grants from the Secretary in all of 
                the States.
          (3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be 
        reduced proportionally to satisfy the conditions in 
        such paragraphs.
  (e) Allotments for Grants to States.--From the amount 
provided for grants to States under subsection (c), the 
Secretary shall allot for the State grantee in each State an 
amount that bears the same ratio to such amount as the product 
of the number of individuals 55 years of age or older in the 
State and the allotment percentage of such State bears to the 
sum of the corresponding product for all States, except as 
follows:
          (1) Minimum allotment.--No State shall be provided an 
        amount under this subsection that is less than \1/2\ of 
        1 percent of the amount provided under subsection (c) 
        for State grantees in all of the States.
          (2) Hold harmless.--If the amount provided under 
        subsection (c) is--
                  (A) equal to or less than the amount 
                necessary to maintain the fiscal year 2006 
                level of activities, allotments for State 
                grantees in each State shall be proportional to 
                their fiscal year 2006 level of activities; or
                  (B) greater than the amount necessary to 
                maintain the fiscal year 2006 level of 
                activities, no State shall be provided a 
                percentage increase above the fiscal year 2006 
                level of activities for State grantees in the 
                State that is less than 30 percent of such 
                percentage increase above the fiscal year 2006 
                level of activities for State grantees in all 
                of the States.
          (3) Reduction.--Allotments for States not affected by 
        paragraphs (1) and (2)(B) of this subsection shall be 
        reduced proportionally to satisfy the conditions in 
        such paragraphs.
  (f) Allotment Percentage.--For purposes of subsections (d) 
and (e)--
          (1) the allotment percentage of each State shall be 
        100 percent less that percentage that bears the same 
        ratio to 50 percent as the per capita income of such 
        State bears to the per capita income of the United 
        States, except that--
                  (A) the allotment percentage shall be not 
                more than 75 percent and not less than 33 
                percent; and
                  (B) the allotment percentage for the District 
                of Columbia and the Commonwealth of Puerto Rico 
                shall be 75 percent;
          (2) the number of individuals 55 years of age or 
        older in any State and in all States, and the per 
        capita income in any State and in all States, shall be 
        determined by the Secretary on the basis of the most 
        satisfactory data available to the Secretary; and
          (3) for the purpose of determining the allotment 
        percentage, the term ``United States'' means the 50 
        States and the District of Columbia.
  (g) Definitions.--For purposes of this section:
          (1) Cost per authorized position.--The term ``cost 
        per authorized position'' means the sum of--
                  (A) the hourly minimum wage rate specified in 
                section 6(a)(1) of the Fair Labor Standards Act 
                of 1938 (29 U.S.C. 206(a)(1)), multiplied by 
                the number of hours equal to the product of 21 
                hours and 52 weeks;
                  (B) an amount equal to 11 percent of the 
                amount specified under subparagraph (A), for 
                the purpose of covering Federal payments for 
                fringe benefits; and
                  (C) an amount determined by the Secretary, 
                for the purpose of covering Federal payments 
                for the remainder of all other program and 
                administrative costs.
          (2) Fiscal year 2006 level of activities.--The term 
        ``fiscal year 2006 level of activities'' means--
                  (A) with respect to public and nonprofit 
                private agency and organization grantees that 
                operate under this title under national grants 
                from the Secretary, their level of activities 
                for fiscal year 2006; and
                  (B) with respect to State grantees, their 
                level of activities for fiscal year 2006.
          (3) Grants to states.--The term ``grants to States'' 
        means grants made under this title by the Secretary to 
        the States.
          (4) Level of activities.--The term ``level of 
        activities'' means the number of authorized positions 
        multiplied by the cost per authorized position.
          (5) National grants.--The term ``national grants'' 
        means grants made under this title by the Secretary to 
        public and nonprofit private agency and organization 
        grantees that operate under this title under national 
        grants from the Secretary.
          (6) State.--The term ``State'' does not include Guam, 
        American Samoa, the Commonwealth of the Northern 
        Mariana Islands, and the United States Virgin Islands.

SEC. 507. EQUITABLE DISTRIBUTION.

  (a) Interstate Allocation.--In making grants under section 
506, the Secretary shall ensure, to the extent feasible, an 
equitable distribution of activities under such grants, in the 
aggregate, among the States, taking into account the needs of 
underserved States.
  (b) Intrastate Allocation.--The amount allocated for projects 
within each State under section 506 shall be allocated among 
areas in the State in an equitable manner, taking into 
consideration the State priorities set out in the State plan in 
effect under section 503(a).

SEC. 508. REPORT.

  To carry out the Secretary's responsibilities for reporting 
in section 503(g), the Secretary shall require the State agency 
for each State that receives funds under this title to prepare 
and submit a report at the beginning of each fiscal year on 
such State's compliance with section 507(b). Such report shall 
include the names and geographic location of all projects 
assisted under this title and carried out in the State and the 
amount allocated to each such project under section 506.

SEC. 509. EMPLOYMENT ASSISTANCE AND FEDERAL HOUSING AND FOOD STAMP 
                    PROGRAMS.

  Funds received by eligible individuals from projects carried 
out under the program established in this title shall not be 
considered to be income of such individuals for purposes of 
determining the eligibility of such individuals, or of any 
other individuals, to participate in any housing program for 
which Federal funds may be available or for any income 
determination under the Food Stamp Act of 1977.

SEC. 510. ELIGIBILITY FOR WORKFORCE INVESTMENT ACTIVITIES.

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

SEC. 511. TREATMENT OF ASSISTANCE.

  Assistance provided under this title shall not be considered 
to be financial assistance described in section 245A(h)(1)(A) 
of the Immigration and Nationality Act (8 U.S.C. 
1255A(h)(1)(A)).

SEC. 512. COORDINATION WITH THE WORKFORCE INVESTMENT ACT OF 1998.

  (a) Partners.--Grantees under this title shall be One-Stop 
partners as described in subparagraphs (A) and (B)(vi) of 
section 121(b)(1) of the Workforce Investment Act of 1998 (29 
U.S.C. 2841(b)(1)) in the One-Stop delivery system established 
under section 134(c)) of such Act (29 U.S.C. 2864(c))) for the 
appropriate local workforce investment areas, and shall carry 
out the responsibilities relating to such partners.
  (b) Coordination.--In local workforce investment areas where 
more than 1 grantee under this title provides services, the 
grantees shall--
          (1) coordinate their activities related to the One-
        Stop delivery system; and
          (2) shall be signatories of the memorandum of 
        understanding established under section 121(c) of the 
        Workforce Investment Act of 1998 (29 U.S.C. 2841(c)).

SEC. 513. PERFORMANCE.

  (a) Measures.--
          (1) Establishment of measures.--The Secretary shall 
        establish, in consultation with grantees, subgrantees, 
        and host agencies under this title, States, older 
        individuals, area agencies on aging, and other 
        organizations serving older individuals, performance 
        measures for each grantee for projects and services 
        carried out under this title.
          (2) Content.--
                  (A) Composition of measures.--The performance 
                measures established by the Secretary in 
                accordance with paragraph (1) shall consist 
                of--
                          (i) core indicators of performance 
                        specified in subsection (b)(1) and the 
                        expected levels of performance 
                        applicable to each core indicator of 
                        performance, and
                          (ii) additional indicators of 
                        performance specified in subsection 
                        (b)(2)
                  (B) Continuous improvement.--The measures 
                described in subparagraph (A)(i) shall be 
                designed to promote continuous improvement in 
                performance.
                  (C) Expected levels of performance.--The 
                Secretary and each grantee shall reach 
                agreement on the expected levels of performance 
                for each program year for each of the core 
                indicators of performance specified in 
                subsection (b)(1). The agreement shall take 
                into account the factors described in 
                subparagraphs (B) and (D) and other appropriate 
                factors as determined by the Secretary, and 
                shall be consistent with the requirements of 
                subparagraph (E). Funds under the grant may not 
                be awarded until such agreement is reached.
                  (D) Adjustment.--The expected levels of 
                performance described in subparagraph (C) 
                applicable to a grantee shall be adjusted after 
                the agreement under subparagraph (C) has been 
                reached only with respect to the following 
                factors:
                          (i) High rates of unemployment or of 
                        poverty or welfare participation, in 
                        the areas served by a grantee, relative 
                        to other areas of the State or Nation.
                          (ii) Significant downturns in the 
                        areas served by the grantee or in the 
                        national economy.
                          (iii) Significant numbers or 
                        proportions of participants with 1 or 
                        more barriers to employment served by a 
                        grantee relative to grantees serving 
                        other areas of the State or Nation.
                          (iv) Changes in Federal, State, or 
                        local minimum wage requirements.
                  (E) Placement.--
                          (i) Level of performance.--For all 
                        grantees, the Secretary shall establish 
                        a level of performance of not less than 
                        the percentage specified in clause (ii) 
                        (adjusted in accordance with 
                        subparagraph (D)) for the entry into 
                        unsubsidized employment core indicator 
                        of performance described in subsection 
                        (b)(1)(A). If a grantee achieved a 
                        level of performance less than the 
                        percentage specified in such clause for 
                        the preceding fiscal year for which 
                        results are available before the 
                        enactment of the Senior Independence 
                        Act of 2006, the Secretary shall 
                        provide technical assistance to assist 
                        such grantee to achieve the applicable 
                        percentage specified in such clause.
                          (ii) Required placement 
                        percentages.--The minimum percentage 
                        for the entry into unsubsidized 
                        employment (including those listed in 
                        section 516(2)(A)(ii)) described in 
                        subsection (b)(1)(A) is--
                                  (I) 22 percent in fiscal year 
                                2007;
                                  (II) 24 percent in fiscal 
                                year 2008;
                                  (III) 26 percent in fiscal 
                                year 2009;
                                  (IV) 28 percent in fiscal 
                                year 2010; and
                                  (V) 30 percent in fiscal year 
                                2011.
          (3) Performance evaluation of grantees.--The 
        Secretary shall annually establish national performance 
        measures for each grantee under this title, which shall 
        be applicable to the grantee without regard to whether 
        such grantee operates such program directly or through 
        contracts, grants, or agreements with other entities. 
        The measures shall include the core indicators of 
        performance and expected level of performance for each 
        such indicator, and the additional indicators of 
        performance. In addition, the Secretary shall annually 
        publish the actual performance of each grantee with 
        respect to--
                  (A) the levels achieved for each of the core 
                indicators of performance, compared to expected 
                levels of performance under paragraph (2)(C) 
                (including any adjustments to such levels made 
                in accordance with to paragraph (2)(D)); and
                  (B) the levels achieved for each of the 
                additional indicators of performance.
          (4) Limitation.--An agreement to be evaluated on the 
        performance measures shall be a requirement for 
        application for, and a condition of, all grants 
        authorized by this title.
  (b) Indicators of Performance.--
          (1) Core indicators.--The core indicators of 
        performance described in subsection (a)(2)(A)(i) shall 
        consist of--
                  (A) entry into unsubsidized employment;
                  (B) retention in unsubsidized employment for 
                6 months;
                  (C) earnings; and
                  (D) hours (in the aggregate) of community 
                service employment-based training pursuant to 
                subparagraphs (A) and (B)(I) of section 
                502(b)(1); and
          (2) Additional indicators.--The additional indicators 
        of performance described in subsection (a)(2)(A)(ii) 
        shall consist of--
                  (A) retention in unsubsidized employment for 
                1 year;
                  (B) the number of eligible individuals 
                served, including the number of participating 
                individuals described in section 516(2)(A)(ii), 
                and
                  (C) any other indicators of performance that 
                the Secretary determines to be appropriate to 
                evaluate services and performance.
  (c) Definitions of Indicators.--The Secretary, after 
consultation with national and State grantees, representatives 
of business and labor organizations, and providers of services, 
shall issue rules that define the indicators of performance 
described in subsection (b).
  (d) Corrective Efforts.--
          (1) National grantees.--
                  (A) In general.--Not later than 120 days 
                after the end of each program year, the 
                Secretary shall determine if a national grantee 
                awarded a grant under section 514 has met the 
                expected levels of performance established 
                under subsection (a)(2)(c) (including any 
                adjustments to such levels made in accordance 
                with to subsection (a)(2)(D)) for the core 
                indicators of performance described in 
                subsection (b)(1).
                  (B) Technical assistance and corrective 
                action plan.--
                          (i) In general.--If the Secretary 
                        determines that a grantee fails to meet 
                        the expected levels of performance 
                        described in paragraph (1), the 
                        Secretary shall provide technical 
                        assistance and require such grantee to 
                        submit a corrective action plan not 
                        later than 160 days after the end of 
                        the program year.
                          (ii) Content.--The plan submitted 
                        under subparagraph (A) shall detail the 
                        steps the grantee will take to meet the 
                        national performance measures in the 
                        next program year.
          (2) State grantees.--
                  (A) In general.--Not later than 120 days 
                after the end of the program year, the 
                Secretary shall determine if a State grantee 
                allotted funds under section 506(e) has met the 
                expected levels of performance established 
                under subsection (a)(2)(C) (including any 
                adjustments to such levels made in accordance 
                with to subsection (a)(2)(D)) for the core 
                indicators of performance described in 
                subsection (b)(1).
                  (B) Technical assistance and corrective 
                action plan.--If a State fails to meet the 
                levels of performance described in subparagraph 
                (A), the Secretary shall provide technical 
                assistance and require the State to submit a 
                corrective action plan not later than 160 days 
                after the end of the program year.
                  (C) Content.--The plan described in 
                subparagraph (B) shall detail the steps the 
                State will take to meet the standards.
                  (D) Failure to meet performance measures for 
                second and third years.--
                          (i) After second year of failure.--If 
                        a State fails to meet the levels of 
                        performance described in subparagraph 
                        (A) for a second consecutive program 
                        year, the Secretary shall provide for 
                        the conduct by the State of a 
                        competition to award, for the first 
                        full program year following the 
                        determination (minimizing, to the 
                        extent possible, the disruption of 
                        services provided to participants), an 
                        amount equal to 25 percent of the funds 
                        available to the State for such year.
                          (ii) After third year of failure.--If 
                        the State fails to meet the levels of 
                        performance described in subparagraph 
                        (A) for a third consecutive program 
                        year, the Secretary shall provide for 
                        the conduct by the State of a 
                        competition to award the funds 
                        allocated to the State for the first 
                        full program year following the 
                        Secretary's determination that the 
                        State has not met the performance 
                        measures.

SEC. 514. COMPETITIVE REQUIREMENTS RELATING TO GRANT AWARDS.

  (a) Program Authorized.--From the funds available for 
national grants under section 506(d), the Secretary shall award 
grants to eligible applicants to carry out projects under this 
title through a competitive process that is conducted every 3 
years.
  (b) Eligible Applicants.--An applicant shall be eligible to 
receive a grant under subsection (a) in accordance with section 
502(b)(1), and subsections (c) and (d).
  (c) Criteria.--The Secretary shall select the eligible 
applicants to receive grants under subsection (a) based on the 
following:
          (1) The applicant's ability to administer a program 
        that serves the greatest number of eligible 
        individuals, giving particular consideration to 
        individuals with greatest economic need, greatest 
        social need, poor employment history or prospects, and 
        over the age of 65.
          (2) The applicant's ability to administer a program 
        that provides employment for eligible individuals in 
        the communities in which such individuals reside, or in 
        nearby communities, that will contribute to the general 
        welfare of the community.
          (3) The applicant's ability to administer a program 
        that moves eligible individuals into unsubsidized 
        employment.
          (4) The applicant's prior performance, if any, in 
        meeting performance measures under this title and under 
        other Federal or State programs.
          (5) The applicant's ability to move individuals with 
        multiple barriers to employment into unsubsidized 
        employment.
          (6) The applicant's ability to coordinate with other 
        organizations at the State and local level.
          (7) The applicant's plan for fiscal management of the 
        program to be administered with funds received under 
        this section.
          (8) Any additional criteria that the Secretary 
        considers to be appropriate in order to minimize 
        disruption for current participants.
  (d) Responsibility Tests.--
          (1) In general.--Before final selection of a grantee, 
        the Secretary shall conduct a review of available 
        records to assess the applicant's overall 
        responsibility to administer Federal funds.
          (2) Review.--As part of the review described in 
        paragraph (1), the Secretary may consider any 
        information, including the organization's history with 
        regard to the management of other grants.
          (3) Failure to satisfy test.--The failure to satisfy 
        any 1 responsibility test that is listed in paragraph 
        (4), excluding those listed in subparagraphs (A) and 
        (B), does not establish that the organization is not 
        responsible unless such failure is substantial or 
        persists for 2 or more consecutive years.
          (4) Test.--The responsibility tests include review of 
        the following factors:
                  (A) Unsuccessful efforts by the organization 
                to recover debts, after 3 demand letters have 
                been sent, that are established by final agency 
                action, or a failure to comply with an approved 
                repayment plan.
                  (B) Established fraud or criminal activity of 
                a significant nature within the organization.
                  (C) Serious administrative deficiencies 
                identified by the Secretary, such as failure to 
                maintain a financial management system as 
                required by Federal rules or regulations.
                  (D) Willful obstruction of the audit process.
                  (E) Failure to provide services to applicants 
                as agreed to in a current or recent grant or to 
                meet applicable performance measures.
                  (F) Failure to correct deficiencies brought 
                to the grantee's attention in writing as a 
                result of monitoring activities, reviews, 
                assessments, or other activities.
                  (G) Failure to return a grant closeout 
                package or outstanding advances within 90 days 
                of the grant expiration date or receipt of 
                closeout package, whichever is later, unless an 
                extension has been requested and granted.
                  (H) Failure to submit required reports.
                  (I) Failure to properly report and dispose of 
                Government property as instructed by the 
                Secretary.
                  (J) Failure to have maintained effective cash 
                management or cost controls resulting in excess 
                cash on hand.
                  (K) Failure to ensure that a subrecipient 
                complies with its Office of Management and 
                Budget Circular A-133 audit requirements 
                specified at section 667.200(b) of title 20, 
                Code of Federal Regulations.
                  (L) Failure to audit a subrecipient within 
                the required period.
                  (M) Final disallowed costs in excess of 5 
                percent of the grant or contract award if, in 
                the judgment of the grant officer, the 
                disallowances are egregious findings.
                  (N) Failure to establish a mechanism to 
                resolve a subrecipient's audit in a timely 
                fashion.
          (5) Determination.--Applicants that are determined to 
        be not responsible shall not be selected as grantees.
          (6) Disallowed costs.--Interest on disallowed costs 
        shall accrue in accordance with the Debt Collection 
        Improvement Act of 1996.

SEC. 515. AUTHORIZATION OF APPROPRIATIONS.

  (a) There is authorized to be appropriated to carry out this 
title such sums as may be necessary for fiscal years 2007, 
2008, 2009, 2010, and 2011.
  (b) Amounts appropriated under this section for any fiscal 
year shall be available for obligation during the annual period 
that begins on July 1 of the calendar year immediately 
following the beginning of such fiscal year and that ends on 
June 30 of the following calendar year. The Secretary may 
extend the period during which such amounts may be obligated or 
expended in the case of a particular organization or agency 
that receives funds under this title if the Secretary 
determines that such extension is necessary to ensure the 
effective use of such funds by such organization or agency.
  (c) At the end of the program year, the Secretary may 
recapture any unexpended funds for the program year, and 
reobligate such funds within the 2 succeeding program years 
for--
          (1) technical assistance; or
          (2) grants or contracts for any other program under 
        this title.

SEC. 516. DEFINITIONS.

  For purposes of this title:
          (1) Community service employment-based training.--The 
        term ``community service employment-based training'' 
        means work experience that is related to providing 
        social, health, welfare, and educational services 
        (including literacy tutoring), legal and other 
        counseling services and assistance, including tax 
        counseling and assistance and financial counseling, and 
        library, recreational, and other similar services; 
        conservation, maintenance, or restoration of natural 
        resources; community betterment or beautification; 
        antipollution and environmental quality efforts; 
        weatherization activities; economic development; and 
        such other services essential and necessary to the 
        community as the Secretary determines by rule.
          (2) Eligible individual.--The term ``eligible 
        individual'' means an individual who is 55 years of age 
        or older and who has a low income (including any such 
        individual whose income is not more that 125 percent of 
        the poverty line), excluding any income that is 
        unemployment compensation, benefits received under 
        title XVI of the Social Security Act, veterans 
        payments, or 25 percent of the benefits received under 
        title II of the Social Security Act, but--
                  (A) pursuant to regulations prescribed by the 
                Secretary, any such individual who meets one or 
                more of the following criteria shall have 
                priority for the work opportunities provided 
                under this title--
                          (i) is 65 years of age or older; or
                          (ii) has one or more of the following 
                        barriers to employment:
                                  (I) has a disability;
                                  (II) has limited English 
                                proficiency or low literacy 
                                skills;
                                  (III) resides in a rural 
                                area;
                                  (IV) is a veteran;
                                  (V) has low employment 
                                prospects; or
                                  (VI) has failed to find 
                                employment after utilizing 
                                services provided under title I 
                                of the Workforce Investment Act 
                                of 1998; and
                  (B) notwithstanding any other provision of 
                this paragraph, excludes--
                          (i) an individual who has 
                        participated in projects under this 
                        title for a period of 48 months in the 
                        aggregate (whether or not consecutive) 
                        after the date of the enactment of the 
                        Senior Independence Act of 2006; and
                          (ii) an individual who has 
                        participated in projects under this 
                        title for a period of 24 months in the 
                        aggregate (whether or not consecutive) 
                        after the date of the enactment of the 
                        Senior Independence Act of 2006 if such 
                        individual participated more than 24 
                        months in the aggregate (whether or not 
                        consecutive) under title V of this Act, 
                        as in effect before the date of the 
                        enactment of the Senior Independence 
                        Act of 2006.
          (3) Low income.--The term ``low income'' means income 
        received during the 12-month period (or, at the option 
        of the grantee involved, for any period that is not 
        multiplied and that does not exceed the 6-month period) 
        ending on the date an eligible individual submits an 
        application to participate in the project carried out 
        under this title by such grantee.
          (4) Pacific island and asian americans.--The term 
        ``Pacific Island and Asian Americans'' means Americans 
        having origins in any of the original peoples of the 
        Far East, Southeast Asia, the Indian Subcontinent, or 
        the Pacific Islands.
          (5) Program.--The term ``program'' means the older 
        American community service employment-based training 
        program established under this title.
          (6) Supportive services.--The term ``supportive 
        services'' means services such as transportation, child 
        care, dependent care, housing, and needs-related 
        payments, that are necessary to enable an individual to 
        participate in activities authorized under this title, 
        consistent with the provisions of this title.
          (7) Unemployed individual.--The term ``unemployed 
        individual'' means an individual who is without a job 
        and who wants and is available for work, including an 
        individual who may have occasional employment that does 
        not result in a constant source of income.

TITLE VI--GRANTS FOR NATIVE AMERICANS

           *       *       *       *       *       *       *


SEC. 643. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title--
          (1) for parts A and B, such sums as may be necessary 
        for fiscal year [2001] 2007, and such sums as may be 
        necessary for subsequent fiscal years; and
          (2) for part C, $5,000,000 for fiscal year [2001] 
        2007, and such sums as may be necessary for subsequent 
        fiscal years.

           *       *       *       *       *       *       *


TITLE VII--ALLOTMENTS FOR VULNERABLE ELDER RIGHTS PROTECTION ACTIVITIES

                      Subtitle A--State Provisions

CHAPTER 1--GENERAL STATE PROVISIONS

           *       *       *       *       *       *       *


SEC. 702. AUTHORIZATION OF APPROPRIATIONS.

  (a) Ombudsman Program.--There are authorized to be 
appropriated to carry out chapter 2, such sums as may be 
necessary for fiscal year [2001] 2007, and such sums as may be 
necessary for subsequent fiscal years.
  (b) Prevention of Elder Abuse, Neglect, and Exploitation.--
There are authorized to be appropriated to carry out chapter 3, 
such sums as may be necessary for fiscal year [2001] 2007, and 
such sums as may be necessary for subsequent fiscal years.
  (c) Legal Assistance Development Program.--There are 
authorized to be appropriated to carry out chapter 4, such sums 
as may be necessary for fiscal year [2001] 2007, and such sums 
as may be necessary for subsequent fiscal years.

           *       *       *       *       *       *       *


    CHAPTER 3--PROGRAMS FOR PREVENTION OF ELDER ABUSE, NEGLECT, AND 
                              EXPLOITATION

SEC. 721. PREVENTION OF ELDER ABUSE, NEGLECT, AND EXPLOITATION.

  (a) * * *
  (b) Use of Allotments.--The State agency shall use an 
allotment made under subsection (a) to carry out, through the 
programs described in subsection (a), activities to develop, 
strengthen, and carry out programs for the prevention and 
treatment of elder abuse, neglect, and exploitation (including 
financial exploitation), including--
          (1) * * *
          (2) providing for public education and outreach to 
        promote financial literacy and prevent identity theft 
        and financial exploitation of older individuals;
          [(2)] (3) ensuring the coordination of services 
        provided by area agencies on aging with services 
        instituted under the State adult protection service 
        program, State and local law enforcement systems, and 
        courts of competent jurisdiction;
          [(3)] (4) promoting the development of information 
        and data systems, including elder abuse reporting 
        systems, to quantify the extent of elder abuse, 
        neglect, and exploitation in the State;
          [(4)] (5) conducting analyses of State information 
        concerning elder abuse, neglect, and exploitation and 
        identifying unmet service, enforcement, or intervention 
        needs;
          [(5)] (6) conducting training for individuals, 
        including caregivers described in part E of title III, 
        professionals, and paraprofessionals, in relevant 
        fields on the identification, prevention, and treatment 
        of elder abuse, neglect, and exploitation, with 
        particular focus on prevention and enhancement of self-
        determination and autonomy;
          [(6)] (7) providing technical assistance to programs 
        that provide or have the potential to provide services 
        for victims of elder abuse, neglect, and exploitation 
        and for family members of the victims;
          [(7)] (8) conducting special and on-going training, 
        for individuals involved in serving victims of elder 
        abuse, neglect, and exploitation, on the topics of 
        self-determination, individual rights, State and 
        Federal requirements concerning confidentiality, and 
        other topics determined by a State agency to be 
        appropriate; and
          [(8)] (9) promoting the development of an elder 
        abuse, neglect, and exploitation system--
                  (A) * * *

           *       *       *       *       *       *       *


          Subtitle B--Native American Organization Provisions

SEC. 751. NATIVE AMERICAN PROGRAM.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Authorization of Appropriations.--There are authorized to 
be appropriated to carry out this section such sums as may be 
necessary for fiscal year [2001] 2007, and such sums as may be 
necessary for subsequent fiscal years.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

           The Dual Purpose of the Title V Employment Program

    The main purpose of the Title V Senior Community Service 
Employment Program (SCSEP) is to place low-income older 
individuals with poor employment prospects in subsidized 
employment so that they may increase their income and to 
provide a source of labor to expand community services.
    For over 40 years, SCSEP has provided a critical source of 
assistance to maintain and expand community services. In 2004, 
program participants provided more than 45 million hours worth 
of community services, including work in local schools, 
libraries, hospitals, senior centers, and meals-on-wheels 
programs. The bill diminishes the community service purpose of 
Title V and relegates community service to one of several 
allowable activities for SCSEP participants.
     Decades of this community service component has 
demonstrated its important role in serving low-income older 
individuals with multiple barriers to employment. With 
resources dwindling for non-profits, the need is even greater 
for older workers to have access to employment services that 
place an emphasis on part-time paid work experience to maintain 
their self-sufficiency while at the same time providing 
services to their communities.
    We believe SCSEP is a critical program which has the 
primary purpose of providing employment and training 
opportunities for low-income seniors and to provide vital 
community services that would frequently be unavailable without 
Title V.

                         Raise the Minimum Wage

    Congressman Miller offered an amendment in Committee markup 
to increase the minimum wage for seniors employed under Older 
Americans Act programs over three years to $7.25 per hour. The 
Majority rejected this amendment.
    It has been nine years since the last minimum wage 
increase, during which time Members of Congress have raised 
their own pay eight times, by $31,600. Meanwhile, 37 million 
Americans live in poverty. Almost 3 million full-time year 
round workers live under the poverty line (a 100% increase 
since the 1970's) according to the U.S. Bureau of the Census in 
2005.
    The value of the current minimum wage has declined 20% 
since the last increase in 1997. According to the Bureau of 
Labor Statistics, the real value of the minimum wage is lower 
today than at any time since 1968. To have the purchasing power 
it had in 1968, the minimum wage would have to be increased to 
almost $7.54 an hour. For it to equal 50% of the average wage, 
as it was in the 1950's and 60's, it would need to be increased 
to $8.20.
    Under the OAA, older workers placed in subsidized or 
unsubsidized employment and training must be paid the greater 
of the federal or local minimum wage. In 21 states older 
workers are paid the minimum wage or pennies above the minimum 
wage. In 29 states older workers earn the higher local minimum 
wage.
    All 97,000 OAA Title V recipients have income under 125% of 
poverty. The average wage payment is $7,172.
    The Committee needs to act to raise the minimum wage for 
older workers and for all workers--this is the most effective 
measure for alleviating poverty.

                            Length of Grant

    Mr. Hinojosa offered and withdrew an amendment to lengthen 
the time between grant competitions in the Senior Community 
Service Employment Program from every 3 years to every 5 years. 
This change would better align the length of the grant with the 
performance, continuous improvement, and accountability 
provisions in the law. It would also provide the benefit of 
program continuity without sacrificing accountability for 
results.
    The 2000 amendments to the Older Americans Act phased in a 
performance based competitive grant program for the Senior 
Community Service Employment Program. It is now time to focus 
on the implementation of the performance-based system. The 3-
year grant cycle could result in an endless stream of new 
grantees that never have enough time to demonstrate the 
performance outcomes, continuous improvement and results that 
the program requires. Additionally, the most successful 
programs under this title involve extensive partnerships. These 
partnerships take time to mature. Partners must believe that 
the program is stable in order to make their participation 
worthwhile. A 3-year revolving door of grantees will discourage 
partners--especially from the private sector.
    It is our view that the grants under Title V of the Older 
Americans Act should be awarded for a period of 5 years.

                                   George Miller.
                                   Betty McCollum.
                                   Tim Bishop.
                                   Lynn Woolsey.
                                   Ron Kind.
                                   Robert Andrews.
                                   Carolyn McCarthy.
                                   Raul M. Grijalva.
                                   Bobby Scott.
                                   Chris Van Hollen.
                                   Major R. Owens.
                                   Dale E. Kildee.
                                   Rush Holt.
                                   David Wu.
                                   Dennis J. Kucinich.
                                   Susan Davis.
                                   John F. Tierney.
                                   Danny K. Davis.
                                   Ruben Hinojosa.
                                   Tim Ryan.
                                   Donald Payne.

                            ADDITIONAL VIEWS

                           Kucinich Amendment

    Congressman Kucinich offered an amendment that would help 
provide relief for Administrations on Aging and thousands of 
volunteers nationwide from being squeezed by the rising cost of 
gas. It provides a non-binding formula for calculating annual 
increases in fuel costs for the three Older Americans Act 
programs that are the most heavily dependent on transportation. 
These programs include the in-home nutrition services, the 
congregate nutrition services, and the supportive services that 
provide rides to doctor's appointments, trips to the grocery 
store and to senior centers, among other services. The Majority 
rejected this amendment.
    When the cost of the basic goods and services necessary for 
daily life increases, the effect is highly regressive. Those 
with lower incomes pay a higher percentage of their income for 
the essentials of life than their high-income counterparts. The 
effect is particularly pronounced on people with fixed incomes 
like seniors.
    At the same time that gas prices have gone up, funding has 
gone down. Supportive Services and congregate meals funding has 
decreased since FY02, losing significant fiscal ground each 
year to inflation.
    The Committee should act to protect seniors from oil 
companies' price gouging.

                                   Dennis J. Kucinich.

                                  
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