[Federal Register Volume 66, Number 53 (Monday, March 19, 2001)]
[Notices]
[Pages 15596-15603]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 01-6606]



[[Page 15595]]

-----------------------------------------------------------------------

Part V





Department of Labor





-----------------------------------------------------------------------



Employment and Training Administration



-----------------------------------------------------------------------



Senior Community Service Employment Program; Request for Comments on 
the 2000 Amendments to the Older American Act; Notice

  Federal Register / Vol. 66, No. 53 / Monday, March 19, 2001 / 
Notices  

[[Page 15596]]


-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Employment and Training Administration


Senior Community Service Employment Program; Request for Comments 
on the 2000 Amendments to the Older Americans Act

AGENCY: Employment and Training Administration, Labor.

ACTION: Notice; request for comments.

-----------------------------------------------------------------------

SUMMARY: The purpose of this notice is to encourage comments on the 
Department of Labor's approach to the implementation of changes to the 
Senior Community Service Employment Program (SCSEP) occasioned by the 
revisions to Title V of the Older Americans Act (OAA) by the Older 
Americans Act Amendments 2000 (Pub. L. 106-501) (dated November 13, 
2000). Comments are welcome on a variety of subjects, including: (1) 
Issues and concerns that should be addressed in regulations; (2) issues 
and concerns that should be addressed in policy guidance; (3) 
suggestions and comments on the overall implementation plan, such as 
consultation strategies; (4) specific suggestions on the approach that 
should be taken in implementing any or all of the new title V 
provisions; and (5) suggestions on revisions that should be made to the 
existing title V regulations which were published in the Federal 
Register on Wednesday, May 17, 1995 (20 CFR part 641). This notice is 
not a proposed rule. The Department will consider comments on 
regulations through the rulemaking process.

DATES: The Department invites written comments on title V of OAA in 
response to this notice. Comments received on or before May 18, 2001 
will be considered in the development of regulations and policy 
guidance, as well as in the overall implementation strategy. The 
Department has already begun consultation with various individuals 
within the older worker employment system and will continue these 
consultations throughout the implementation process.

ADDRESSES: Submit written comments to the Employment and Training 
Administration, Division of Older Worker Programs, 200 Constitution 
Avenue, NW., Room N4644, Washington, DC 20210, Attention: Mr. Erich W. 
(``Ric'') Larisch.
    All comments will be available for public inspection and copying 
during normal business hours at the address listed above. Copies of 
title V of the OAA are available at the address above, as well as on 
the SCSEP website at http://www.wdsc.org/owprog. Comments may be 
submitted electronically to that website address. Commenters wishing 
acknowledgment of receipt of their comments must submit them by 
certified mail, return receipt requested.

FOR FURTHER INFORMATION CONTACT: Mr. Erich W. (``Ric'') Larisch, 
Division of Older Worker Programs, U.S. Department of Labor, 200 
Constitution Avenue, NW., Room N4644, Washington, D.C. 20210, 
Telephone: (202) 693-3742 (voice), TTY (202) 693-2871 (these are not 
toll-free numbers).

SUPPLEMENTARY INFORMATION:

Overview of the Older Americans Act Amendments of 2000 (OAA 
Amendments)

    This paper provides an overview of changes to the Senior Community 
Service Employment Program (SCSEP) due to the reauthorization of the 
Older Americans Act (OAA), signed into law on November 13, 2000. The 
Older Americans Act is the major vehicle for the organization and 
delivery of supportive and nutrition services to older persons, 
authorizing funding for programs including SCSEP, Meals on Wheels, 
elder abuse prevention activities, and a new National Family Caregiver 
Support Program.
    SCSEP, administered by the U.S. Department of Labor under Title V 
of the OAA, is the only Federally sponsored job creation program 
targeted to low-income older Americans. The program subsidizes part-
time community service jobs for low-income persons age 55 years and 
older who have poor employment prospects. Approximately 100,000 program 
enrollees annually work in a wide variety of community service jobs, 
including nurse's aides, teacher aides, librarians, clerical workers 
and day care assistants. Clearly, SCSEP benefits not only its program 
participants, but also the communities in which they serve. The 
Department of Labor allocates funds to operate the program to State 
agencies on aging and 10 national organizations. SCSEP grantees are 
represented on State and local business-led boards (Workforce 
Investment Boards) that provide strategic planning and oversight of 
workforce development activities, established under the bipartisan 
Workforce Investment Act of 1998 (WIA).
    As the baby boom generation ages, the demand for employment and 
training services and income support for low-income older persons will 
substantially increase. The Urban Institute projects that there will be 
1.4 million more disadvantaged adults over the age of 55 in the year 
2005 than in 1995. Low-income seniors generally must continue working, 
which will put added strain on workforce investment resources and the 
One-Stop system, which provides a single point of contact for job 
seekers and employers seeking information about local workforce 
development activities. The OAA Amendments require improved integration 
with WIA, which will not only support SCSEP reforms, but will also help 
the workforce investment system prepare for the greater number of older 
workers it will serve outside of SCSEP. One-Stops can benefit from the 
experience SCSEP has gained in serving this population.
    SCSEP provisions of the OAA Amendments are designed to:
     Enhance employment and training opportunities for seniors 
by reinforcing connections with the broader workforce investment 
system;
     Establish an enhanced performance accountability system to 
hold each grantee accountable for attaining quality levels of 
performance with respect to core measures, such as customer 
satisfaction and placement in unsubsidized employment;
     Improve the ability of States to coordinate services, by 
providing for the broad participation of stakeholders in the 
development of an annual plan to ensure an equitable distribution of 
projects within the State;
     Strengthen administrative procedures by incorporating 
fiscal accountability provisions similar to the Workforce Investment 
Act, including definitions of administrative and programmatic costs and 
the application of uniform cost principles; and
     Revise the distribution of funding.

Enhancing Employment and Training Opportunities for Seniors

    The OAA Amendments strengthen connections between SCSEP and WIA in 
order to provide older individuals with easier access to appropriate 
services while minimizing duplication of services. In 1998, WIA 
included SCSEP as a required partner in the One-Stop delivery system to 
ensure that older workers have access to information about the range of 
employment-related services available to them. The OAA Amendments build 
on that partnership by requiring that all SCSEP grantees in an area 
coordinate their activities through the One-Stop delivery system. The 
legislation also clarifies that service strategies or participant 
assessments of skills, interests, and circumstances provided under WIA 
should be accepted by SCSEP programs (and vice versa).

[[Page 15597]]

Additionally, all projects to promote unsubsidized employment in the 
private sector must coordinate with WIA programs.
    WIA provides for three levels of services--core, intensive, and 
training--with service at one level a prerequisite for moving to the 
next level. Localities establish gateway activities that lead from 
participation in core to intensive and training services. The OAA 
Amendments allow Local Workforce Investment Boards (Local Boards) to 
deem SCSEP participants eligible for WIA-funded intensive and training 
services without first accessing core services.
    Other OAA provisions parallel requirements in WIA that link SCSEP 
to the new workforce investment system, such as the requirement that 
SCSEP programs participate as a One-Stop partner. As a One-Stop 
partner, SCSEP programs must: (1) provide core services through the 
One-Stop system; (2) use a portion of funds to create and maintain the 
One-Stop system; (3) enter into a memorandum of understanding with the 
Local Board relating to the operation of the One-Stop system; and (4) 
participate in the operation of the One-Stop system. A representative 
of Title V grantees must also be a member of the Local Board.
    The OAA Amendments formally recognize unsubsidized employment as a 
program goal, while maintaining the community service nature of the 
program. By moving able participants into unsubsidized employment, 
SCSEP can increase the number of eligible individuals who have access 
to the program's broad array of employment services and opportunities.

Establishing an Enhanced Performance Accountability System

    The OAA Amendments create an accountability system for all SCSEP 
projects to promote continuous improvement in performance with respect 
to required measures and consequences for grantee inability to meet 
performance expectations. The Department will establish performance 
measures for grantees in order to assess their performance. Required 
measures include:
     The placement and retention of participants in 
unsubsidized employment;
     Customer satisfaction of enrollees, employers, and host 
agencies;
     The number of persons served, particularly those with the 
greatest economic or social need, poor employment history or prospects, 
and those more than 60 years old; and
     Community services provided.
    Should grantees prove unable to meet performance expectations, 
their funding may be subject to competition. The Department of Labor 
will evaluate each grantee within 120 days after the end of the Program 
Year that ends June 30. It will provide technical assistance and 
require a corrective action plan for those grantees that are unable to 
meet their performance levels. Grantees that do not reach their 
performance levels after a second consecutive program year will have 25 
percent of their funds awarded to another entity through competition. 
After a third consecutive year of underperformance the Department will 
oversee a competition for the grantee's entire grant award.
    Governors are responsible for overseeing all aspects of performance 
in their State programs. In addition, Governors may request the 
Department of Labor to review the performance of any national grantee 
in the State.

Improving Coordination

    The Governor of each State plays an important role in the planning 
and development of SCSEP services in the State. The Governor must 
submit an annual Senior Employment Services Coordination Plan (the 
``State Plan'') to ensure greater coordination of SCSEP activities 
within a State among State and national grantees, and to provide for an 
equitable allocation of program resources. In its State Plan each State 
must identify the number and distribution of eligible persons in the 
State (including those with greatest economic and social need, and 
minorities), their employment situations and skills, and the localities 
and populations where community service projects are most needed. 
States must also describe their plans to coordinate SCSEP with WIA 
activities.
    In developing the State Plan, Governors must select and work with 
representatives from aging and other organizations, including:
     State and Area Agencies on Aging;
     State and Local Workforce Investment Boards, formed under 
the Workforce Investment Act;
     Public and private nonprofit providers of employment 
services, including all SCSEP grantees in the State; and
     Social service organizations.

Strengthening Administrative Procedures

    The OAA Amendments contain provisions to strengthen the 
administration of SCSEP. Under the legislation, the Department will 
determine the initial eligibility of grantees through 14 responsibility 
tests. The OAA Amendments also establish uniform definitions of program 
and administrative costs and strengthen current Departmental 
regulations that stipulate that not less than 75 percent of Federal 
funds go directly to program participants in the form of wages and 
fringe benefits.
    Through the OAA Amendments, Congress sought to ensure that grantees 
and subgrantees received sufficient administrative resources to cover 
their costs. Therefore, the legislation requires grantees to pass 
through a sufficient amount of their administrative cost allocation to 
the subgrantee. The OAA Amendments also specify that grantees must 
comply with OMB Circulars on cost allocation, cost principles, and 
administrative requirements, and that they must maintain records and 
submit reports about their SCSEP activities to the Department of Labor.

Funding

    The legislation continues to authorize at least 70,000 part-time 
employment positions. The overwhelming majority of funds will be 
distributed so that grantees receive at least the amount necessary to 
maintain their fiscal year 2000 level of activities. Any remaining 
funds will be distributed to each State on the basis of its relative 
population aged 55 and over, and by the State's relative per capita 
income. Currently, national grantees receive 78 percent of the SCSEP 
appropriation and States receive 22 percent.
    The legislation specifies that the first $35 million in funding 
appropriated above the amount that is necessary to maintain the current 
level of activities must be allocated such that 75 percent of the 
funding is reserved for State agency grantees, and the remaining 25 
percent is allotted to national grantees. Any funds appropriated above 
this $35 million increase are to be allotted on an equal basis, with 50 
percent reserved to State agency grantees and 50 percent reserved to 
private or public nonprofit agencies and organizations.

Implementation

    The OAA Amendments became effective upon enactment. Nevertheless, 
the implementation of some provisions will be required once regulations 
have been finalized, and the Department will issue further guidance and 
regulations on these requirements in the early summer of 2001. States 
must submit their first State Plans early in 2001, however. The 
Department will provide additional information on the required State 
Plan submission in the near future.

[[Page 15598]]

Attachment

    Attached is a table that compares current law with revisions 
effected by the Older Americans Act Amendments of 2000 (Pub. L. 106-
501).

    Signed at Washington DC, this 27th day of February, 2001.
Raymond J. Uhalde,
Deputy Assistant Secretary of Labor.

BILLING CODE 4510-30-P

[[Page 15599]]

[GRAPHIC] [TIFF OMITTED] TN19MR01.001


[[Page 15600]]


[GRAPHIC] [TIFF OMITTED] TN19MR01.002


[[Page 15601]]


[GRAPHIC] [TIFF OMITTED] TN19MR01.003


[[Page 15602]]


[GRAPHIC] [TIFF OMITTED] TN19MR01.004


[[Page 15603]]


[GRAPHIC] [TIFF OMITTED] TN19MR01.005

[FR Doc. 01-6606 Filed 3-16-01; 8:45 am]
BILLING CODE 4510-30-C