[Federal Register Volume 63, Number 171 (Thursday, September 3, 1998)]
[Proposed Rules]
[Pages 46972-46978]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-23302]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1209 and 2553

RIN 3045-AA19


Retired and Senior Volunteer Program

AGENCY: Corporation for National and Community Service.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Corporation for National and Community Service 
(hereinafter the ``Corporation'') proposes to amend the regulations 
governing the administration of the Retired and Senior Volunteer 
Program (RSVP). These amendments will: implement changes in the 
program's authorizing legislation; establish minimum program 
requirements with greater clarity; update program operations to make 
them responsive to changes that have occurred since the regulations 
were last published; consolidate requirements from outdated sources 
into one user friendly document; balance increased flexibility with 
increased responsibility and accountability at the local level; and 
incorporate new concepts of programming to highlight the 
accomplishments and impact of senior service.
    The format used is designed to make the requirements easy for local 
sponsors and project managers to understand. It integrates related 
topics under one heading for easy reference.
    Upon adoption, the proposed amendments will supersede the old 
ACTION regulations, and RSVP Operations Handbook 4700 dated May 1989.

DATES: Comments must be submitted on or before November 2, 1998.

ADDRESSES: Comments should be sent to the Corporation for National 
Service, Director, National Senior Service Corps, 1201 New York Avenue, 
NW., Washington, DC 20525.

FOR FURTHER INFORMATION CONTACT: John Keller, (202) 606-5000 ext 285.

SUPPLEMENTARY INFORMATION: The requirements governing the 
administration of RSVP projects are currently embodied in two 
documents: 45 CFR Part 1209 which was last published in the Federal 
Register on June 10, 1983, and the RSVP Operations Handbook. The 
proposed amendments will combine all minimum program requirements in 
just one document to make it easier for interested parties to secure 
basic program information.
    The proposed amendments include modifications to current program 
requirements including those applicable to: the responsibilities of a 
RSVP sponsor, community participation in local project operations, 
full-time project director, authority to approve grants, waiver of non-
federal support, and compensation for service.
    The proposed amendments also reflect changes in the program's 
administrative structure resulting from the merger of the former ACTION 
agency into the Corporation in April 1994.

Regulatory Flexibility Act and Unfunded Mandate Reform Act

    The General Counsel, in accordance with the Regulatory Flexibility 
Act (5 U.S.C. 606(b)), has reviewed this regulation and by approving 
certifies that this proposed rule will not have a significant impact on 
small business entities.
    Under the Unfunded Mandates Reform Act of 1995, the Corporation 
certifies that this proposed rule does not include any Federal mandate 
that may result in the expenditure by State, local, and tribal 
governments, in the aggregate, or by the private sector, of 
$100,000,000 or more (adjusted annually for inflation) in any one year.

Paperwork Reduction Act of 1995

    These proposed regulations have been examined under the Paperwork 
Reduction Act of 1995 and have been found to contain no information 
collection requirements.

Intergovernmental Review

    This program is subject to the requirements of Executive Order 
12372.

[[Page 46973]]

The objective of the Executive order is to foster an intergovernmental 
partnership and strengthened federalism by relying on processes 
developed by State and local governments for coordination and review of 
proposed Federal financial assistance.
    In accordance with the order, this document is intended to provide 
early notification of the Corporation's specific plans and actions for 
this program.

Executive Order 12866

    This regulation has been drafted and reviewed in accordance with 
Executive Order 12866. The Office of Management and Budget has reviewed 
this rule and has determined that this rule is not a ``significant 
regulatory action'' under Executive Order 12866, section 3(f), 
Regulatory Planning and Review.

Participation in the Rulemaking

    The RSVP Program Council, a group established to provide advice to 
the Corporation on program related issues, was consulted, reviewed and 
gave recommendations on initial drafts of the proposed regulations. 
Council membership is comprised of RSVP project staff and sponsor 
representatives, as well as selected staff from the Corporation's field 
offices. A similar opportunity was given to all Corporation field 
staff, a group that plays an important role in the implementation of 
program regulations.

                           Distribution Table                           
------------------------------------------------------------------------
                                                              New 45 CFR
                    Old 45 CFR Part 1209                      Part 2553 
------------------------------------------------------------------------
1209.1-1...................................................      2553.11
1209.2-1...................................................      2553.22
1209.3-1...................................................      2553.31
1209.4-1...................................................      2553.41
1209.5-1...................................................      2553.51
                                                                 2553.61
                                                                 2553.71
                                                                 2553.81
                                                                 2553.91
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List of Subjects

45 CFR Part 1209

    Aged, Government contracts, Grant programs--social programs, 
Reporting and recordkeeping requirements, Volunteers.

45 CFR Part 2553

    Aged, Grant programs--social programs, Volunteers.
    Accordingly, and under the authority of 42 U.S.C. 12501 et seq., 
the Corporation proposes to amend 45 CFR chapters XII and XXV as 
follows:

PART 1209--[REDESIGNATED AS PART 2553]

    1. Part 1209 in 45 CFR chapter XII is redesignated as part 2553 in 
45 CFR chapter XXV and is revised to read as follows:

PART 2553--THE RETIRED AND SENIOR VOLUNTEER PROGRAM

Subpart A--General

Sec.
2553.11  What is the Retired and Senior Volunteer Program?
2553.12  Definitions.

Subpart B--Eligibility and Responsibilities of a Sponsor

2553.21  Who is eligible to serve as a sponsor?
2553.22  What are the responsibilities of a sponsor?
2553.23  What are a sponsor's program responsibilities?
2553.24  What are a sponsor's responsibilities for securing 
community participation?
2553.25  What are a sponsor's administrative responsibilities?
2553.26  May a sponsor administer more than one program grant from 
the Corporation?

Subpart C--Suspension, Termination and Denial of Refunding

2553.31  What are the rules on suspension, termination and denial of 
refunding of grants?

Subpart D--Eligibility, Cost Reimbursements and Volunteer Assignments

2553.41  Who is eligible to be a RSVP volunteer?
2553.42  Is a RSVP volunteer a federal employee, an employee of the 
sponsor or of the volunteer station?
2553.43  What cost reimbursements are provided to RSVP volunteers?
2553.44  May cost reimbursements received by a RSVP volunteer be 
subject to any tax or charge, treated as wages or compensation, or 
affect eligibility to receive assistance from other programs?

Subpart E--Volunteer Terms of Service

2553.51  What are the terms of service of a RSVP volunteer?
2553.52  Under what circumstances may a RSVP volunteer's service be 
terminated?

Subpart F--Responsibilities of a Volunteer Station

2553.61  When may a sponsor serve as a volunteer station?
2553.62  What are the responsibilities of a volunteer station?

Subpart G--Application and Fiscal Requirements

2553.71  Application and award process.
2553.72  Project funding requirements.
2553.73  Grants management requirements.

Subpart H--Non-Corporation Funded Projects

2553.81 Under what conditions may an agency or organization sponsor 
a RSVP project without Corporation funding?
2553.82  What benefits are a non-Corporation funded project entitled 
to?
2553.83  What financial obligation does the Corporation incur for 
non-Corporation funded projects?
2553.84  What happens if a non-Corporation funded sponsor does not 
comply with the Memorandum of Agreement?

Subpart I--Restrictions and Legal Representation

2553.91  What legal limitations apply to the operation of the RSVP 
Program and to the expenditure of grant funds?
2553.92  What legal coverage does the Corporation make available to 
RSVP volunteers.

    Authority: 42 U.S.C. 4950 et seq., 5001.

Subpart A--General


Sec. 2553.11  What is the Retired and Senior Volunteer Program?

    The Retired and Senior Volunteer Program (RSVP) provides grants to 
qualified agencies and organizations to engage persons 55 and older in 
volunteer service roles, matching their skills and personal interests 
to help meet significant community needs.


Sec. 2553.12  Definitions.

    (a) Act. The Domestic Volunteer Service Act of 1973 as amended, 
Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.
    (b) Adequate Staffing Level. The number of project staff or full-
time equivalent needed by a sponsor to manage NSSC project operations 
considering such factors as: number of budgeted volunteers, number of 
volunteer stations, and the size of the service area.
    (c) Assignment. The activities, functions or responsibilities to be 
performed by volunteers identified in a written outline or description.
    (d) Budget Period. The time interval for which a project grant is 
awarded, as specified in the Notice of Grant Award (NGA). This is 
usually for 12 months.
    (e) Chief Executive Officer. The Chief Executive Officer of the 
Corporation appointed under the Trust Act.
    (f) Corporation. The Corporation for National and Community Service 
established under the Trust Act. The Corporation is also sometimes 
referred to as CNCS.
    (g) Cost Reimbursements. Reimbursements budgeted as Volunteer 
Expenses and provided to volunteers to cover incidental costs, meals, 
transportation, volunteer insurance, and recognition to enable them to 
serve without cost to themselves.

[[Page 46974]]

    (h) Letter of Agreement. A written agreement between a volunteer 
station, the sponsor, and person(s) served or the person legally 
responsible for that person. It authorizes the assignment of a RSVP 
volunteer in the home of a client, defines RSVP volunteer activities, 
and specifies supervision arrangements.
    (i) Memorandum of Understanding. A written statement prepared and 
signed by the RSVP project sponsor and the volunteer station that 
identifies project requirements, working relationships and mutual 
responsibilities.
    (j) National Senior Service Corps (NSSC). The collective name for 
the Foster Grandparent Program (FGP), the Retired and Senior Volunteer 
Program (RSVP), and the Senior Companion Program (SCP), and 
Demonstration Programs established under Parts A, B, and E, Title II of 
the Act. NSSC is also referred to as the ``Senior Corps'.
    (k) Non-Corporation Support (Required). The percentage share of 
non-Federal cash and in-kind contributions required to be raised by the 
sponsor in support of the grant, including non-Corporation federal, 
state and local governments and privately raised contributions.
    (l) Non-Corporation Support (Excess). The amount of non-Federal 
cash and in-kind contributions generated by a sponsor in excess of the 
required percentage.
    (m) Notice of Grant Award (NGA). The official grant document signed 
by the Corporation and the sponsor. It documents the Corporation's 
obligation to provide financial support to the sponsor, and the 
sponsor's commitment to fulfill specific programmatic objectives and 
financial obligations.
    (n) Project. The locally planned and implemented RSVP activity or 
set of activities in a service area as agreed upon between a sponsor 
and the Corporation.
    (o) Qualified Individual With a Disability. An individual with a 
disability who, with or without reasonable accommodation, can perform 
the essential functions of a volunteer position that such individual 
holds or desires. For purposes of the Americans With Disabilities Act, 
consideration shall be given to a sponsor's or volunteer station's 
judgment as to what functions of a volunteer position are essential. If 
a sponsor has prepared a written description before advertising or 
interviewing applicants for the position, the written description shall 
be considered evidence of the essential functions of the volunteer 
position. This definition includes an individual with a physical or 
mental impairment as defined in section 101(8) of the Americans With 
Disabilities Act of 1990 (42 U.S.C. 12111(8)).
    (p) Service Area. The geographically defined area approved in the 
grant application, in which RSVP volunteers are recruited, enrolled, 
and placed on assignments.
    (q) Sponsor. A public agency or private nonprofit organization that 
is responsible for the operation of a RSVP project.
    (r) Trust Act. The National and Community Service Trust Act of 
1993, Public Law 103-82, Sept. 21, 1993, 107 Stat. 785.
    (s) United States and States. Each of the several States, the 
District of Columbia, the U. S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, and Trust Territories of the 
Pacific Islands.
    (t) Volunteer Station. A public agency, nonprofit private 
organization or proprietary health care agency or organization that 
accepts responsibility for assignment, supervision and training of RSVP 
volunteers. Each volunteer station must be licensed or otherwise 
certified, when required, by appropriate state or local government. 
Private homes are not volunteer stations.

Subpart B--Eligibility and Responsibilities of a Sponsor


Sec. 2553.21  Who is eligible to serve as a sponsor?

    The Corporation awards grants to public agencies, including Indian 
tribes and non-profit private organizations, in the United States that 
have the authority to accept and the capability to administer a RSVP 
project.


Sec. 2553.22  What are the responsibilities of a sponsor?

    (a) A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the RSVP program 
as specified in the Act.
    (b) A sponsor shall not delegate or contract these responsibilities 
to another entity.
    (c) A sponsor shall comply with all regulations contained in this 
part, policies, and grant provisions prescribed by the Corporation.


Sec. 2553.23  What are a sponsor's program responsibilities?

    A sponsor shall:
    (a) Focus RSVP resources to have a positive impact on critical 
human and social needs within the project service area.
    (b) Assess on an ongoing basis or collaborate with other community 
organizations in the assessment of the needs of the community or 
service area and develop strategies to respond to those needs using the 
resources of RSVP volunteers.
    (c) Develop and manage a system of volunteer stations to provide a 
wide range of placement opportunities that appeal to persons age 55 and 
over by:
    (1) Insuring that a volunteer station is a public or non-profit 
private organization or an eligible proprietary health care agency 
capable of serving as a volunteer station for the placement of RSVP 
volunteers to meet locally identified needs;
    (2) Ensuring the placement of RSVP volunteers is governed by a 
Memorandum of Understanding:
    (i) That is negotiated prior to placement;
    (ii) That specifies the mutual responsibilities of the station and 
sponsor; and
    (iii) That is renegotiated at least every three years; and
    (3) Annually assessing the placement of RSVP volunteers to ensure 
the safety of volunteers and their impact on meeting the needs of the 
community.
    (d) Consider the demographic make-up of the project service area in 
the enrollment of RSVP volunteers, making special efforts to recruit 
eligible individuals from minority groups, persons with disabilities 
and under represented groups.
    (e) Encourage the most efficient and effective use of RSVP 
volunteers by coordinating project services and activities with related 
national, state and local programs, including other Corporation 
programs.
    (f) Develop, and regularly update, a strategic plan that includes 
the sponsor's vision and goals for the project.
    (g) Develop, and annually update, a plan for promoting service by 
older adults within the project service area.
    (h) Conduct an annual assessment of the accomplishments and impact 
of the project and how they meet the identified needs and problems of 
the community.
    (i) Provide RSVP volunteers with cost reimbursements specified in 
Sec. 2553.43.


Sec. 2553.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) A sponsor shall secure community participation in local project 
operation by establishing an Advisory Council or a similar 
organizational structure with a membership that includes persons:
    (1) Knowledgeable about human and social needs of the community;
    (2) Competent in the field of community service and volunteerism;

[[Page 46975]]

    (3) Capable of helping the sponsor meet its administrative and 
program responsibilities including fund-raising, publicity and impact 
programming;
    (4) With an interest in and knowledge of the capability of older 
adults; and (5) Of a diverse composition that reflects the demographics 
of the service area.
    (b) The sponsor determines how this participation shall be secured, 
consistent with the provisions of paragraphs (a)(1) through (a)(5) of 
this section.


Sec. 2553.25  What are a sponsor's administrative responsibilities?

    A sponsor shall:
    (a) Assume full responsibility for securing maximum and continuing 
community financial and in-kind support to operate the project 
successfully.
    (b) Develop a written delegation of authority that carefully 
defines and clearly delineates project roles and responsibilities 
retained by the sponsor from those delegated to project staff.
    (c) Provide levels of staffing and resources appropriate to 
accomplish the purposes of the project and carry out project management 
responsibilities outlined in the above mentioned delegation of 
authority and provide necessary administrative and fiscal support to 
such staff.
    (d) Employ a full-time project director to accomplish program 
objectives and manage the functions and activities delegated to project 
staff for NSSC program(s) within its control. A full-time project 
director shall not serve concurrently in another capacity, paid or 
unpaid, during established working hours. The project director may 
participate in activities to coordinate program resources with those of 
related local agencies, boards or organizations. A sponsor may 
negotiate the employment of a part-time project director with the 
Corporation when it can justify that such an arrangement will result in 
a proportionate cost savings in Federal and Non-federal funds without 
adversely affecting the size, scope and quality of project operations.
    (e) Consider all project staff as sponsor employees subject to its 
personnel policies and procedures.
    (f) Compensate project staff at a level that is comparable with 
similar staff positions in the sponsor organization and/or project 
service area.
    (g) Establish risk management policies and procedures covering 
project and RSVP activities. This includes provision of appropriate 
insurance coverage for RSVP volunteers and vehicles used in the 
project.
    (h) Establish record keeping and reporting systems in compliance 
with Corporation requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate compliance; and cooperate 
with Corporation evaluation and data collection efforts.
    (i) Comply with and ensure that all volunteer stations comply with, 
all applicable civil rights laws and regulations, including providing 
reasonable accommodation to qualified individuals with disabilities.


Sec. 2553.26  May a sponsor administer more than one program grant from 
the Corporation?

    A sponsor may administer more than one Corporation program grant.

Subpart C--Suspension, Termination and Denial of Refunding


Sec. 2553.31  What are the rules on suspension, termination and denial 
of refunding of grants?

    (a) The Chief Executive Officer or designee is authorized to 
suspend further payments or to terminate payments under any grant 
providing assistance under the Act whenever he/she determines there is 
a material failure to comply with applicable terms and conditions of 
the grant. The Chief Executive Officer shall prescribe procedures to 
insure that:
    (1) Assistance under the Act shall not be suspended for failure to 
comply with applicable terms and conditions, except in emergency 
situations for thirty days;
    (2) An application for refunding under the Act may not be denied 
unless the recipient has been given:
    (i) Notice at least 75 days before the denial of such application 
of the possibility of such denial and the grounds for any such denial; 
and
    (ii) Opportunity to show cause why such action should not be taken;
    (3) In any case where an application for refunding is denied for 
failure to comply with the terms and conditions of the grant, the 
recipient shall be afforded an opportunity for an informal hearing 
before an impartial hearing officer, who has been agreed to by the 
recipient and the Corporation; and
    (4) Assistance under the Act shall not be terminated for failure to 
comply with applicable terms and conditions unless the recipient has 
been afforded reasonable notice and opportunity for a full and fair 
hearing.
    (b) In order to assure equal access to all recipients, such 
hearings or other meetings as may be necessary to fulfill the 
requirements of this section shall be held in locations convenient to 
the recipient agency.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the Retired and Senior Volunteer Program are 
specified in 45 CFR Part 1206.

Subpart D--Eligibility, Cost Reimbursements and Volunteer 
Assignments


Sec. 2553.41  Who is eligible to be a RSVP volunteer?

    (a) To be an RSVP volunteer, an individual must:
    (1) Be 55 years of age or older;
    (2) Agree to serve without compensation;
    (3) Reside in or nearby the community served by RSVP;
    (4) Agree to abide by all requirements as set forth in this part.
    (b) Eligibility to serve as a RSVP volunteer shall not be 
restricted on the basis of formal education, experience, race, 
religion, color, national origin, sex, age, handicap or political 
affiliation.


Sec. 2553.42  Is a RSVP volunteer a federal employee, an employee of 
the sponsor or of the volunteer station?

    RSVP volunteers are not employees of the sponsor, the volunteer 
station, the Corporation, or the Federal Government.


Sec. 2553.43  What cost reimbursements are provided to RSVP volunteers?

    RSVP volunteers are provided the following cost reimbursements 
within the limits of the project's available resources:
    (a) Transportation. RSVP volunteers may receive assistance with the 
cost of transportation to and from volunteer assignments and official 
project activities, including orientation and training, meetings, and 
recognition events. On-the-job or assignment related transportation 
costs are the responsibility of the volunteer station or a third party.
    (b) Meals. RSVP volunteers may receive assistance with the cost of 
meals taken while on assignment.
    (c) Recognition. RSVP volunteers are provided recognition for their 
service.
    (d) Insurance. A RSVP volunteer is provided with the Corporation-
specified minimum levels of insurance as follows:
    (1) Accident insurance. Accident insurance covers RSVP volunteers 
for personal injury during travel between their homes and places of 
assignment, during their volunteer service, during meal periods while 
serving as a volunteer, and while attending project sponsored 
activities. Protection shall be provided against claims in excess of 
any benefits or services for medical care or treatment available to the 
volunteer from other sources.

[[Page 46976]]

    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. It does not 
include professional liability coverage.
    (3) Excess automobile liability insurance. (i) For RSVP volunteers 
who drive in connection with their service, protection is provided 
against claims in excess of the greater of either:
    (A) Liability insurance volunteers carry on their own automobiles; 
or
    (B) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection to be determined by the 
Corporation for each person, each accident, and for property damage.
    (ii) RSVP volunteers who drive their personal vehicles to or on 
assignments or project-related activities shall maintain personal 
automobile liability insurance equal to or exceeding the levels 
established by the Corporation.


Sec. 2553.44  May cost reimbursements received by a RSVP volunteer be 
subject to any tax or charge, treated as wages or compensation, or 
affect eligibility to receive assistance from other programs?

    No. RSVP volunteers' cost reimbursements are not subject to any tax 
or charge and are not treated as wages or compensation for the purposes 
of unemployment insurance, worker's compensation, temporary disability, 
retirement, public assistance, or similar benefit payments or minimum 
wage laws. Cost reimbursements are not subject to garnishment, do not 
reduce or eliminate the level of or eligibility for assistance or 
services a volunteer may be receiving under any governmental program.

Subpart E--Volunteer Terms of Service


Sec. 2553.51  What are the terms of service of a RSVP volunteer?

    A RSVP volunteer shall serve multiple hours a week, on a regular 
basis, or intensively on short-term assignments. An active volunteer 
must serve at least once a month.


Sec. 2553.52  Under what circumstances may a RSVP volunteer's service 
be terminated?

    (a) A sponsor may remove a RSVP volunteer from service for cause. 
Grounds for removal include but are not limited to: extensive and 
unauthorized absences; misconduct; inability to perform assignments; 
and failure to accept supervision.
    (b) The sponsor shall establish appropriate policies on service 
termination as well as procedures for appeal from such adverse action.

Subpart F--Responsibilities of a Volunteer Station


Sec. 2553.61  When may a sponsor serve as a volunteer station?

    In areas where needs have been identified and no volunteer station 
is available, the RSVP sponsor may assume responsibility to implement 
new programming initiatives on a temporary basis for up to three years.


Sec. 2553.62  What are the responsibilities of a volunteer station?

    (a) A volunteer station shall undertake the following 
responsibilities in support of RSVP volunteers:
    (1) Develop volunteer assignments that impact critical human and 
social needs, and regularly assess those assignments for continued 
appropriateness;
    (2) Assign staff member responsible for day to day oversight of the 
placement of RSVP volunteers within the volunteer station and for 
assessing the impact of volunteers in addressing community needs;
    (3) Obtain a Letter of Agreement for an RSVP volunteer assigned in-
home. In cases where client confidentiality needs to be protected, a 
modified document that does not reveal client identities shall be used;
    (4) Keep records and prepare reports as required;
    (5) Comply with all applicable civil rights laws and regulations 
including reasonable accommodation for RSVP volunteers with 
disabilities; and
    (6) Provide assigned RSVP volunteers the following support:
    (i) Orientation to station and appropriate in-service training to 
enhance performance of assignments;
    (ii) Resources required for performance of assignments including 
reasonable accommodation;
    (iii) Supervision while on assignment;
    (iv) Appropriate recognition; and
    (v) Provide for the safety of RSVP volunteers assigned to it.
    (b) A volunteer station shall undertake such other responsibilities 
as may be necessary to the successful performance of RSVP volunteers in 
their assignments or as agreed to in the Memorandum of Understanding.

Subpart G--Application and Fiscal Requirements


Sec. 2553.71  Application and award process.

    (a) When may an eligible organization apply for a grant?
    (1) An eligible organization may file an application for a RSVP 
grant at any time.
    (2) Before submitting an application, an applicant shall determine 
the availability of funds.
    (3) The Corporation may also solicit grant applicants. Applicants 
solicited by the Corporation are not assured of selection or approval 
and may have to compete with other solicited or unsolicited applicants.
    (b) What must an eligible organization include in a grant 
application?
    (1) An applicant shall complete standard forms prescribed by the 
Corporation.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372, the ``Intergovernmental Review of Federal Programs,'' (3 
CFR, 1982 Comp., p. 197) in 45 CFR part 1233, and any other applicable 
requirements.
    (c) Who reviews the merits of a RSVP application? The Corporation 
reviews and determines the merit of an application by its 
responsiveness to published guidelines and to the overall purpose and 
objectives of the program. When funds are available, the Corporation 
awards a grant in writing to each applicant whose grant proposal 
provides the best potential for serving the purpose of the program.
    (d) How is a RSVP project grant awarded?
    (1) The Corporation awards the grant to a sponsor in writing. The 
award is documented by a Notice of Grant Award (NGA).
    (2) The Corporation and the sponsoring organization are parties to 
the NGA. The NGA will document the sponsor's commitment to fulfill 
specific programmatic objectives and financial obligations. It will 
document the extent of the Corporation's obligation to provide 
financial support to the sponsor.
    (e) What happens if the Corporation rejects an application? The 
Corporation will return to the applicant an application that is not 
approved for funding, with an explanation of the Corporation's 
decision.
    (f) For what period of time does the Corporation award a grant? The 
Corporation awards a RSVP grant for a period specified in the NGA and 
this is usually a budget period of 12 months duration.


Sec. 2553.72  Project funding requirements.

    (a) Is non-Corporation support required?
    (1) A Corporation grant may be awarded to fund up to 90 percent of 
the total project cost in the first year, 80 percent in the second 
year, and 70 percent in the third and succeeding years.
    (2) A sponsor is responsible for identifying non-Corporation funds

[[Page 46977]]

which may include in-kind contributions.
    (b) Under what circumstances does the Corporation allow less than 
the percentage identified in paragraph (a) of this section? The 
Corporation may allow exceptions to the local support requirement 
identified in paragraph (a) of this section in cases of demonstrated 
need such as:
    (1) Initial difficulties in the development of local funding 
sources during the first three years of operations; or
    (2) An economic downturn, the occurrence of a natural disaster, or 
similar events in the service area that severely restricts or reduces 
sources of local funding support; or
    (3) The unexpected discontinuation of local support from one or 
more sources that a project has relied on for a period of years.
    (c) May the Corporation restrict how a sponsor uses locally 
generated contributions in excess of the non-Corporation support 
required? Whenever locally generated contributions to RSVP projects are 
in excess of the non-Corporation funds required (10 percent of the 
total cost in the first year, 20 percent in the second year and 30 
percent in the third and succeeding years), the Corporation may not 
restrict the manner in which such contributions are expended provided 
such expenditures are consistent with the provisions of the Act.
    (d) Are program expenditures subject to audit? All expenditures by 
the grantee of Federal and Non-Federal funds, including expenditures 
from excess locally generated contributions, are subject to audit by 
the Corporation, its Inspector General, or their authorized agents.
    (e) How much of the grant must be budgeted to pay volunteer 
expenses or cost reimbursements? The total volunteer expenses and cost 
reimbursements for RSVP volunteers, including transportation, meals, 
recognition and insurance shall be an amount equal to at least 25% 
percent of the Corporation funds in the grant award. Corporation and 
non-Corporation resources may be used to make up this sum.


Sec. 2553.73  Grants management requirements.

What rules govern a sponsor's management of grants?

    (a) A sponsor shall manage a grant awarded in accordance with:
    (1) The Act;
    (2) Regulations in this part;
    (3) 45 CFR Part 2541, ``Uniform Requirements for Grants and 
Cooperative Agreements with State and Local Governments'', or 45 CFR 
Part 2543, ``Grants and Agreements with Institutions of Higher 
Education, Hospitals, and Other Non-Profit Organizations';
    (4) The following OMB Circulars, as appropriate A-21, ``Cost 
Principles for Institutions of Higher Education'', A-87, ``Cost 
Principles for State and Local Governments'', A-122, ``Cost Principles 
for Non-Profit Organizations'', and A-133, ``Audits of Institutions of 
Higher Education and Other Non-Profit Organizations'' (OMB circulars 
are available at the following address: Office of Administration, 
Publication Office, 725 17th Street, NW, Room 2200, Washington, DC 
20503); and
    (5) Other applicable Corporation requirements.
    (b) Project support provided under a Corporation grant shall be 
furnished at the lowest possible cost consistent with the effective 
operation of the project.
    (c) Project costs for which Corporation funds are budgeted must be 
justified as being essential to project operation.
    (d) Project funds shall not be used to reimburse volunteers for 
expenses, including transportation costs, incurred while performing 
their volunteer assignments. Volunteers on assignment during a normal 
meal period may be reimbursed for the meal cost. Equipment or supplies 
for volunteers on assignment are not allowable costs. Assignment 
related costs of transportation, equipment, supplies, etc. are the 
responsibility of the volunteer station or a third party.
    (e) Volunteer expense items, including transportation, meals, 
recognition activities and items purchased at the volunteers own 
expense that are not reimbursed, are not allowable as contributions to 
the non-Federal share of the budget.
    (f) Costs of other insurance not required by program policy, but 
maintained by a sponsor for the general conduct of its activities are 
allowable with the following limitations:
    (1) Types and extent of and cost of coverage are according to sound 
institutional and business practices;
    (2) Costs of insurance or a contribution to any reserve covering 
the risk of loss of or damage to Government-owned property are 
unallowable unless the government specifically requires and approves 
such costs; and
    (3) The cost of insurance on the lives of officers, trustees or 
staff is unallowable except where such insurance is part of an employee 
plan which is not unduly restricted.
    (g) Costs to bring a sponsor into basic compliance with 
accessibility requirements for individuals with disabilities are not 
allowable costs.
    (h) Payments to settle discrimination allegations, either 
informally through a settlement agreement or formally as a result of a 
decision finding discrimination, are not allowable costs.
    (i) Written Corporation State Office approval/concurrence is 
required for the following changes in the approved grant:
    (1) Change in the approved service area.
    (2) Transfer of budgeted line items from Volunteer Expenses to 
Support Expenses. This requirement does not apply if the 25 percent 
cost reimbursement ratio is maintained.

Subpart H--Non-Corporation Funded Projects


Sec. 2553.81  Under what conditions may an agency or organization 
sponsor a RSVP project without Corporation funding?

    An eligible agency or organization who wishes to sponsor a RSVP 
project without Corporation funding, must sign a Memorandum of 
Agreement with the Corporation that:
    (a) Certifies its intent to comply with all Corporation 
requirements for the Retired and Senior Volunteer Program; and
    (b) Identifies responsibilities to be carried out by each party.


Sec. 2553.82  What benefits are a non-Corporation funded project 
entitled to?

    (a) All technical assistance and materials provided to Corporation-
funded RSVP projects; and
    (b) The application of the provisions of Section 404 (f) (1) and 
Section 418 of the Act.


Sec. 2553.83  What financial obligation does the Corporation incur for 
non-Corporation funded projects?

    Entry into a Memorandum of Agreement with, or issuance of a NGA to 
the sponsor of a non-Corporation funded project does not create a 
financial obligation on the part of the Corporation for any costs 
associated with the project.


Sec. 2553.84  What happens if a non-Corporation funded sponsor does not 
comply with the Memorandum of Agreement?

    A non-Corporation funded project sponsor's noncompliance with the 
Memorandum of Agreement shall result in suspension or termination of 
the Corporation's agreement and all benefits specified in Sec. 2553.82.

[[Page 46978]]

Subpart I--Restrictions and Legal Representation


Sec. 2553.91  What legal limitations apply to the operation of the RSVP 
Program and to the expenditure of grant funds?

    (a) Political activities. (1) No part of any grant shall be used to 
finance, directly or indirectly, any activity to influence the outcome 
of any election to public office, or any voter registration activity.
    (2) No project shall be conducted in a manner involving the use of 
funds, the provision of services, or the employment or assignment of 
personnel in a matter supporting or resulting in the identification of 
such project with:
    (i) any partisan or nonpartisan political activity associated with 
a candidate, or contending faction or group, in an election; or
    (ii) any activity to provide voters or prospective voters with 
transportation to the polls or similar assistance in connection with 
any such election; or
    (iii) any voter registration activity, except that voter 
registration applications and nonpartisan voter registration 
information may be made available to the public at the premises of the 
sponsor, but, in making such information available, employees of the 
sponsor shall not express preferences or seek to influence decisions 
concerning any candidate, political party, election issue, or voting 
decision.
    (3) The sponsor shall not use grant funds in any activity for the 
purpose of influencing the passage or defeat of legislation or 
proposals by initiative petition, except:
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests any 
volunteer in, or employee of such a program to draft, review or testify 
regarding measures or to make representation to such legislative body, 
committee or member; or
    (ii) In connection with an authorization or appropriations measure 
directly affecting the operation of the RSVP Program.
    (b) Nondisplacement of Employed Workers. A RSVP volunteer shall not 
perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant 
the hiring of or result in the displacement of employed workers, or 
impair existing contracts for service.
    (c) Compensation For Service. (1) An agency or organization to 
which NSSC volunteers are assigned, or which operates or supervises any 
NSSC program shall not request or receive any compensation from NSSC 
volunteers or from beneficiaries for services of NSSC volunteers.
    (2) This section does not prohibit a sponsor from soliciting and 
accepting voluntary contributions from the community at large to meet 
its local support obligations under the grant; or, from entering into 
agreements with parties other than beneficiaries to support additional 
volunteers beyond those supported by the Corporation grant.
    (3) A RSVP volunteer station may contribute to the financial 
support of the RSVP Program. However, this support shall not be a 
required precondition for a potential station to obtain or retain RSVP 
volunteers. If a volunteer station agrees to provide funds to support 
additional volunteers or pay for other volunteer support costs, the 
agreement shall be stated in a written memorandum of agreement.
    (4) The sponsor shall withdraw services if the station's inability 
to provide monetary or in-kind support to the project diminishes or 
jeopardizes the project's financial capabilities to fulfill its 
obligations.
    (5) Under no circumstances shall a RSVP volunteer receive a fee for 
service from service recipients, their legal guardian, members of their 
family, or friends.
    (d) Labor and Anti-Labor Activity. The sponsor shall not use grant 
funds directly or indirectly to finance labor or anti-labor 
organization or related activity.
    (e) Fair Labor Standards. A sponsor that employs laborers and 
mechanics for construction, alteration, or repair of facilities shall 
pay wages at prevailing rates as determined by the Secretary of Labor 
in accordance with the Davis-Bacon Act, as amended.
    (f) Nondiscrimination. A sponsor or sponsor employee shall not 
discriminate against a RSVP volunteer on the basis of race, color, 
national origin, sex, age, religion, or political affiliation, or on 
the basis of disability, if the volunteer with a disability is 
qualified to serve.
    (g) Religious activities. A RSVP volunteer or a member of the 
project staff funded by the Corporation shall not give religious 
instruction, conduct worship services or engage in any form of 
proselytization as part of his/her duties.
    (h) Nepotism. Persons selected for project staff positions shall 
not be related by blood or marriage to other project staff, sponsor 
staff or officers, or members of the sponsor Board of Directors, unless 
there is written concurrence from the Advisory Council or community 
group established by the sponsor under subpart B of this part, and with 
notification to the Corporation.


Sec. 2553.92  What legal coverage does the Corporation make available 
to RSVP volunteers?

    It is within the Corporation's discretion to determine if Counsel 
is employed and counsel fees, court costs, bail and other expenses 
incidental to the defense of a RSVP volunteer is paid in a criminal, 
civil or administrative proceeding, when such a proceeding arises 
directly out of performance of the volunteer's activities. The 
circumstances under which the Corporation may pay such expenses are 
specified in 45 CFR part 1220.

    Dated: August 25, 1998.
Thomas L. Bryant,
Acting General Counsel.
[FR Doc. 98-23302 Filed 9-2-98; 8:45 am]
BILLING CODE 6050-28-P