[Federal Register Volume 83, Number 241 (Monday, December 17, 2018)]
[Rules and Regulations]
[Pages 64636-64658]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-26739]



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Vol. 83

Monday,

No. 241

December 17, 2018

Part II





Corporation for National and Community Service





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45 CFR Parts 2551, 2552, and 2553





Senior Corps: Senior Companion Program, Foster Grandparent Program, 
Retired and Senior Volunteer Program; Final Rule

  Federal Register / Vol. 83 , No. 241 / Monday, December 17, 2018 / 
Rules and Regulations  

[[Page 64636]]


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CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 2551, 2552, and 2553

RIN 3045-AA63


Senior Corps: Senior Companion Program, Foster Grandparent 
Program, Retired and Senior Volunteer Program

AGENCY: Corporation for National and Community Service.

ACTION: Final rule.

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SUMMARY: On February 14, 2018, the Corporation for National and 
Community Service (CNCS) proposed changes to existing regulations under 
the Domestic Volunteer Service Act of 1973, as amended, for the 
following Senior Corps programs: Foster Grandparent Program (FGP), 
Senior Companion Program (SCP), and the Retired Senior Volunteer 
Program (RSVP). The final rule will increase flexibility in program 
administration while maintaining accountability at the local level, 
correct grammatical errors, update terminology and streamline 
requirements for more effective administration of projects in local 
communities.

DATES: This final rule is effective January 31, 2019.

FOR FURTHER INFORMATION CONTACT: Jill Sears, Senior Corps, at the 
Corporation for National and Community Service, 250 E Street SW, 
Washington, DC 20525, phone 303-390-2211. The TDD/TTY number is 800-
833-3722.

SUPPLEMENTARY INFORMATION:

I. Background

    The National Senior Service Corps, known today as Senior Corps, is 
comprised of three separate programs; the Senior Companion Program 
(SCP), the Foster Grandparent Program (FGP) and the Retired and Senior 
Volunteer Program (RSVP).
    The SCP engages low-income older adults to help their more frail 
peers remain independent in their homes. Senior Companions provide 
companionship and support to older adults in need of extra assistance 
to remain at home or in the community for as long as possible, as well 
as provide respite for caregivers. Senior Companions receive a small 
stipend enabling them to participate without cost to themselves.
    The FGP engages low-income older adults in opportunities to provide 
one-to-one mentoring, nurturing, and support to children with special 
or exceptional needs, or who are in academic, social, or financial 
disadvantage. Foster Grandparents receive a small stipend enabling them 
to participate without cost to themselves.
    RSVP promotes the engagement of older persons as community 
resources in planning for community improvement and in delivery of 
volunteer services. RSVP matches the skills of older adults, who are 
willing to help with local organizations, with the identified needs of 
the community.
    In 1973, Congress enacted the Domestic Volunteer Service Act of 
1973 (DVSA), Senior Corps' enabling legislation. Senior Corps continues 
to retain its purpose, as stated in the DVSA, ``to provide 
opportunities for senior service to meet unmet local, State, and 
national needs in the areas of education, public safety, emergency and 
disaster preparedness, relief, and recovery, health and human needs, 
and the environment.''
    In 1990, Congress enacted the National and Community Service Act of 
1990 (NCSA), the enabling legislation that expanded national and 
community service initiatives throughout the United States. In 1994, 
the Corporation for National and Community Service (CNCS) was 
established pursuant to the National and Community Service Trust Act of 
1993; at this time, the operations of all service programs previously 
administered by the former federal agency, ACTION (the Federal Domestic 
Volunteer Agency), including Senior Corps, began to be administered by 
CNCS. Since 1994, Senior Corps continues to be primarily operated and 
administered under the DVSA.
    In 2009, Congress enacted the Edward M. Kennedy Serve America Act 
of 2009 (Serve America Act), which contained certain amendments to both 
the DVSA and the NCSA. With regard to Senior Corps, the Serve America 
Act amendments largely related to initiating competition for the RSVP, 
decreasing the age limit for volunteers from 60 to 55 and modifying the 
income eligibility requirements for SCP and FGP volunteers.

II. Discussion of the Final Rule

    The final rule includes modifications to current program 
requirements and technical updates to the three Senior Corps programs: 
SCP, FGP and RSVP. To modify and update program requirements, CNCS 
published a notice of proposed rulemaking in the Federal Register on 
February 14, 2018. The final rule reflects CNCS's consideration of the 
comments it received. The final rule clarifies several requirements 
where the proposed language introduced unintended ambiguity. In 
addition, CNCS made minor technical corrections to the proposed 
language.

A. Senior Companion Program

    For the SCP, changes are applicable to: Subpart A, General, which 
includes technical updates to definitions and the addition or 
subtraction of certain definitions; Subpart B, Eligibility and 
Responsibility of a Sponsor, which includes modifications to specific 
administrative responsibilities and technical updates; Subpart C, 
Suspension Termination and Denial of Refunding, which includes 
technical updates and clarifying language; Subpart D, Senior Companion 
Eligibility, Status and Cost Reimbursements, which includes: Technical 
updates, such as updating the income exclusion list to specify public 
benefits and disability benefits, and updating the list of what is 
considered income for purposes of determining eligibility to serve to 
include retirement saving plans; and substantive updates, such as 
removing the requirement for annual physicals and clarification of 
language to demonstrate which cost reimbursements are optional and 
which are required; Subpart E, Senior Companion Terms of Service, which 
includes reducing the minimum hour requirement and establishing annual 
minimum and maximum hour requirements, and making technical updates; 
Subpart F, Responsibilities of a Volunteer Station, which includes 
technical updates; Subpart G, Senior Companion Placement and 
Assignments, which includes the addition of a new section that 
consolidates all regulations regarding Senior Companion Leaders, and 
technical updates; Subpart I, Application and Fiscal Requirements, 
which includes technical updates, clarification of how applications are 
made to CNCS, and the removal of regulations for the direct benefit 
ration, or ``80/20 rule''; Subpart J, Non-Stipended Senior Companions, 
which includes consolidation of regulations and technical updates; 
Subpart K, Non-Corporation Funded SCP Projects, which includes 
technical updates; and Subpart L, Restrictions and Legal 
Representation, which includes technical updates.

B. Foster Grandparent Program

    For the FGP, changes are applicable to: Subpart A, General, which 
include technical updates to definitions and the addition or 
modification of certain definitions; Subpart B, Eligibility and 
Responsibility of a Sponsor, which include modifications to specific 
administrative responsibilities and

[[Page 64637]]

technical updates; Subpart C, Suspension Termination and Denial of 
Refunding, which include technical updates; Subpart D, Foster 
Grandparent Eligibility, Status and Cost Reimbursements, which 
includes: Technical updates, such as updating the income exclusion list 
to specify public benefits and disability benefits, updating the list 
of what is considered income for purposes of determining eligibility to 
serve to include retirement saving plans; and substantive updates, such 
as removing the requirement for annual physicals and clarification of 
language to demonstrate what cost reimbursements are optional and what 
are required; Subpart E, Foster Grandparent Terms of Service, which 
include reducing the minimum hour requirement and establishing annual 
minimum and maximum hour requirements, and technical updates; Subpart 
F, Responsibilities of a Volunteer Station, which include technical 
updates; Subpart G, Foster Grandparent Placement and Assignments, which 
include technical updates; Subpart H, Children Served, which include 
language updates; Subpart I, Application and Fiscal Requirements, which 
include technical updates, clarification of how applications are made 
to CNCS, and the removal of regulations for the direct benefit ration, 
or ``80/20 rule''; Subpart J, Non-Stipended Foster Grandparents, which 
include consolidation of regulations and technical updates; Subpart K, 
Non-Corporation Funded Foster Grandparent Program Projects, which 
include technical updates; and Subpart L, Restrictions and Legal 
Representation, which include technical updates.

C. RSVP

    For the RSVP, changes are applicable to: Subpart A, General, which 
include technical updates to definitions and the addition or 
modification of certain definitions; Subpart B, Eligibility and 
Responsibility of a Sponsor, which include modifications to specific 
administrative responsibilities and technical updates; Subpart C, 
Suspension Termination and Denial of Refunding, which include technical 
updates; Subpart D, Eligibility, Cost Reimbursements and Volunteer 
Assignments, which include technical updates and clarification of 
language to demonstrate what cost reimbursements are optional and what 
are required; Subpart E, Volunteer Terms of Service, which include 
technical updates; Subpart F, Responsibilities of a Volunteer Station, 
which include the removal of a cap on volunteers used to assist with 
project administration and support as well as technical updates; 
Subpart G, Application and Fiscal Requirements, which include technical 
updates, and the removal of regulations that were specific to the 
enactment of competition for RSVP in 2013; Subpart H, Non-Corporation 
Funded Projects, which include technical updates; Subpart I, 
Restrictions and Legal Representation, which include technical updates; 
and Subpart J, Performance Measurement, which include consolidation of 
this part as well as clarification of grantee responsibilities.

III. Non-Regulatory Matters

    There are no non-regulatory matters to clarify.

IV. Comments and Responses

    CNCS published the proposed rule on February 14, 2018 in the 
Federal Register with a 60-day comment period that ended on April 16, 
2018. We received over 130 comments to the proposed rule. Commenters 
identified themselves, largely, as representatives of CNCS grantees 
required to comply with the rule, current Senior Corps volunteers 
impacted by the rule, and prospective volunteers interested in serving 
through Senior Corps programs. Commenters also consisted of CNCS's 
Office of Inspector General, and members of the public.
    CNCS received overwhelming support for the proposed rule changes. 
For instance, we received overwhelming support for the elimination of 
the language requiring that a sponsor expend a sum equal to at least 
80% of the total budget on expenses directly benefitting SCP and FGP 
volunteers, also known as the ``Direct Benefit Ratio rule'' or the 
``80/20 rule''. Many commenters agreed that the elimination of the 
Direct Benefit Ratio rule reduces administrative burden for grantees, 
increases budgetary flexibility, allows grantees to focus on the 
delivery of high quality program services, and removes a duplicative 
and onerous requirement.
    We also received strong support for reducing the required hours of 
service in SCP and FGP from ``a minimum of 15 hours per week and a 
maximum of 40 hours per week'' to ``a minimum of 260 hours annually, or 
a minimum of 5 hours per week''. Many commenters agreed that the 
reduction in required hours of service increases program flexibility, 
program reach to communities in need, and volunteer recruitment.
    In addition, we received overwhelming support for the elimination 
of the annual physical examination requirement for SCP and FGP 
volunteers. Commenters indicated that the requirement may not properly 
assess one's ability to serve, and noted that a similar eligibility 
requirement does not exist in other national service programs. Some 
commenters said they found the annual paperwork requirement to be 
burdensome.
    We also received overwhelming support for reducing the required 
annual in-service training hours for SCP and FGP volunteers. Commenters 
mentioned the diminishing value of repetitive training content from 
year-to-year. Commenters also mentioned the desire to optimize 
programmatic resources so that volunteers spend as much time as 
possible providing direct services to beneficiaries. Commenters agreed 
that reducing the required annual in-service training hours still 
achieves our intention to ensure that SCP and FGP volunteers are well-
trained and provided valuable adult learning opportunities aimed at 
personal enrichment and enhancing performance of service assignments.
    Furthermore, CNCS received strong support for defining the term 
``Proprietary Health Care Organization'' for SCP, FGP, and RSVP, and 
for expanding the FGP definition of ``Children having exceptional 
needs'' to include ``behavioral disorders'' and ``math and other 
educational needs.'' Also, many commenters expressed the view that the 
requirement that meal times be specified in the goal statement of a 
volunteer's service activity in order for SCP and FGP volunteers to 
accrue a stipend during those meal times is unnecessary, and supported 
that elimination of the requirement. Finally, CNCS received strong 
support for the elimination of the current RSVP requirement that states 
that ``no more than 5% of the total number of volunteers budgeted for 
the project are assigned to it in administrative or support 
positions.'' CNCS agrees that these changes will strengthen grantee 
program operations, reduce administrative burden, and clarify the 
meanings of defined terms. The changes will also eliminate certain 
unnecessary requirements that are redundant because the goals of these 
requirements are already achieved through other required programmatic 
and budgetary measures.
    The comments and CNCS's responses are set forth below.

A. Definitions

    Comment: We received comments recommending that we modify the 
current definition of ``stipend'' for the SCP and FGP programs, at 45 
CFR 2551.12(s) and 45 CFR 2552.12(v), to

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state whether there is a maximum stipend level and/or whether a maximum 
stipend level may be set by projects locally.
    Response: The current definition of ``stipend'' for SCP and FGP 
ensures that stipend amounts are not subject to a specified maximum. In 
addition, because the amount of the stipend is required to be set 
nationally, a maximum stipend level may not be set by projects locally. 
Therefore, CNCS will not modify the current definition of ``stipend'' 
found at 45 CFR 2551.12 and 45 CFR 2552.12.
    Comment: CNCS received comments seeking clarification asking the 
agency to set exact licensure or certification requirements within the 
requirement for SCP, FGP and RSVP that a ``Volunteer station'' must be 
licensed or otherwise certified, when required, by the appropriate 
state or local government, as currently set forth at 45 CFR 2551.12, 45 
CFR 2552.12, and 45 CFR 2553.12.
    Response: CNCS has determined that the requirements as set forth in 
the proposed regulations provide the correct level of clarity and 
specificity, as each state or local government may have its own rules 
defining necessary licensing and certification and these rules may vary 
by locality. Therefore, CNCS is not modifying language on ``volunteer 
station'' requirements for the three programs (45 CFR 2551.12, 45 CFR 
2552.12, and 45 CFR 2553.12).

B. Senior Corps Project Staffing Requirements

    Comment: We received a comment recommending that CNCS clarify the 
requirement that currently exists at 45 CFR 2551.25(c), 45 CFR 
2552.25(c), and 45 CFR 2553.25(c), that addresses whether an exception 
may be made to the requirement that a SCP, FGP or RSVP project director 
work full-time.
    Response: The current language in the regulations provides 
sufficient clarity regarding when an exception may be made to the 
requirement that a project director work in that capacity on a full-
time basis. The language in all three regulations explicitly states 
that ``a sponsor may negotiate the employment of a part-time project 
director with CNCS when the sponsor can demonstrate that such an 
arrangement will not adversely affect the size, scope, or quality of 
project operations.'' Therefore further clarity is not required. (45 
CFR 2551.25(c), 45 CFR 2552.25(c), and 45 CFR 2553.25(c)).
    Comment: We received several comments that opposed CNCS's proposal 
to remove language that currently exists at 45 CFR 2551.25(e), 45 CFR 
2552.25(e), and 45 CFR 2553.25(e) that requires a sponsoring 
organization to compensate project staff at a level that is comparable 
to other similar staff positions in the organization and/or in the 
project service area. Commenters stated that the removal of this rule 
would interfere with the ability of many project directors to negotiate 
an equitable salary, when needed.
    Response: CNCS has considered the comments received and in response 
made revisions to the proposed changes to the SCP, FGP and RSVP 
regulations, so that sponsors have the discretion to negotiate with 
their project staff regarding appropriate compensation levels. The 
revised language states that a sponsoring organization shall 
``Compensate project staff at a level that is comparable to similar 
staff positions in the sponsor organization and/or project service 
area, as is practicable'' (45 CFR 2551.25, 45 CFR 2552.25(e), 45 CFR 
2553.25(e)).

C. Sponsor Administrative Requirements

    Comment: We received comments in support of the elimination of the 
requirement for SCP and FGP projects to coordinate with local RSVP 
projects when SCP and FGP projects enroll non-stipended volunteers, 
which is currently required at 45 CFR 2551.101 and 45 CFR 2552.101. 
Commenters suggested that the requirement for SCP and FGP projects to 
coordinate with nearby RSVP projects when enrolling over-income 
volunteers increased administrative burden for all three projects. In 
addition, the requirement presumes that a prospective non-stipended 
volunteer is willing to transition to a different project that may not 
offer a similar volunteer opportunity.
    Response: CNCS agrees with these comments. Not only may local RSVP 
projects offer volunteer opportunities that are dissimilar to SCP and 
FGP opportunities, potential non-stipended volunteers may prefer to 
serve through the SCP or FGP project that recruited them. Accordingly, 
SCP and FGP projects will no longer be required to coordinate with 
local RSVP projects when enrolling non-stipended SCP and FGP 
volunteers. Therefore, as set forth in the proposed rule, this 
requirement is eliminated in the final rule.
    Comment: We received comments supporting the elimination of two 
recommendations that are currently set forth at 45 CFR 2551.102(e), CFR 
2551.102(f), CFR 2552.102(e), and CFR 2552.102(f). These regulatory 
provisions recommended that: (1) Non-stipended volunteers serve at 
separate volunteer stations from stipended SCP and FGP volunteers, and 
(2) non-stipended volunteers serve an average number of hours per week 
that differed from the requirement for stipended volunteers.
    Response: CNCS has determined that the elimination of certain 
service recommendations pertaining to non-stipended volunteers is 
warranted in order to make requirements for both stipended and non-
stipended SCP and FGP volunteers consistent, equitable, and conducive 
to an effective service environment. In addition, the elimination of 
these recommendations ensures that service is carried out in a unified 
manner that promotes team building and strengthens impacts on 
communities. Moreover, we have determined that maintaining a separate 
and additional set of criteria related to non-stipended volunteers 
increases the administrative burden that is needed to support both 
stipended and non-stipended volunteers. Thus, as set forth in the 
proposed rule, we are eliminating the language which recommended that 
non-stipended volunteers serve at separate volunteer stations, and 
which recommended that non-stipended volunteers maintain average weekly 
service hours that differ from stipended volunteers.
    Comment: We received comments in support of clarifying the 
regulation that currently exists at 45 CFR 2553.61 that specifies that 
a sponsor may also serve as a volunteer station. Commenters sought 
clarification that both the RSVP sponsor and the RSVP project itself 
may serve as a volunteer station as some commenters found the current 
language too vague.
    Response: CNCS has determined that expressly stating that RSVP 
sponsors and RSVP projects themselves may serve as volunteer stations 
helps more clearly articulate the rule. Accordingly, the final rule 
provides this clarification. (45 CFR 2553.61).
    Comment: We received comments related to the current requirement, 
at 45 CFR 2553.71(2)(e), that addresses RSVP grant cycles. Some 
commenters asked for clarification as to whether grant awards may be 
made for one three-year grant cycle or two three-year grant cycles. 
Other commenters requested that CNCS explicitly state that sponsoring 
organizations may be permitted to retain grant awards indefinitely, 
assuming satisfactory performance.
    Response: CNCS finds the language in the current regulation to be 
sufficiently clear and therefore no further change to the language is 
needed. The regulation states that ``CNCS awards an RSVP grant for a 
specified period that is 3 years in duration with an option for a grant 
renewal of 3 years, if the grantee's performance and compliance with 
grant

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terms and conditions are satisfactory.'' This regulation is pursuant to 
the statutory requirements related to the duration of RSVP grants and 
optional grant renewals. CNCS does not have the legal authority to 
indefinitely retain a sponsoring organization. Rather, we must carry 
out statutory requirements related to RSVP competition.
    Comment: We received a variety of comments related to RSVP 
performance measure requirements as currently set forth at 45 CFR part 
2553, subpart J. Some commenters took issue with the requirement, as 
currently set forth specifically at 45 CFR 2553.108, that if a sponsor 
fails to meet a target performance measure established in the approved 
grant application, CNCS may take one or more of the following actions: 
(a) Reduce the amount, suspend, or deny refunding of the grant or (b) 
terminate the grant. One commenter suggested that CNCS introduce 
language that supports training and technical assistance ahead of the 
actions listed in the proposed rule. Another commenter sought 
clarification as to who develops performance measures. Other comments 
sought clarification on the elimination of definitions related to 
performance measures that are currently set forth at 45 CFR 2553.12.
    Response: CNCS appreciates the range of comments related to 
performance measure requirements. While we understand that the comments 
are indicative of an ongoing desire from practitioners for robust 
support materials related to measuring the impact of Senior Corps 
projects across the country, compliance with performance measure 
requirements is mandated by statute. Where possible, CNCS will continue 
to provide information on performance measures through guidance and 
training rather than through regulation. Support in understanding and 
implementing national performance measures is best delivered through 
guidance and training as these tools allow sponsors more flexibility 
with project design and implementation. Further, by setting performance 
measure requirements in regulation, CNCS and sponsors are less able to 
keep pace with evolving industry standards. In addition, applicants 
have the flexibility to elect specific measures from a list of national 
measures provided by CNCS with each grant opportunity. Moreover, 
including additional requirements into regulation may limit sponsor 
choice without providing a tangible benefit. Thus, CNCS is publishing 
the final rule related to 45 CFR 2553.12 and 45 CFR part 2553, subpart 
J, as proposed (45 CFR 2553.101-45 CFR 2553.109).

D. Volunteer Service Requirements

    Comment: Commenters overwhelmingly support the reduction of 
required annual in-service training hours that currently exist for SCP 
and FGP volunteers at 45 CFR 2551.23(f) and 45 CFR 2552.23(f). Some 
commenters mentioned the diminishing value of repetitive training 
content from year-to-year and thereby support the overall reduction in 
required in-service training hours. Others mentioned preferring to 
spend time in direct service with beneficiaries. One commenter stated 
that fewer hours of training were required to maintain a previous 
professional training certification for similar services. In addition, 
we received a few comments requesting elimination of the training 
requirement altogether.
    Response: CNCS maintains that an investment in ongoing training is 
important to provide SCP and FGP volunteers with valuable adult 
learning opportunities aimed at enhancing performance of service 
assignments and providing volunteers with personal enrichment. The 
proposed change does not alter the requirement that volunteers receive 
at least twenty (20) hours of pre-service orientation when they begin 
service, However, the proposed change clarifies ongoing in-service 
training language and reduces the minimum requirement from forty (40) 
hours to twenty-four (24) hours of in-service training annually. By 
reducing the minimum requirement for annual, ongoing in-service 
training, projects are able to allow volunteers to spend more time 
delivering services to beneficiaries each year. CNCS disagrees with the 
comments proposing the complete elimination of the training requirement 
as ongoing training ensures that volunteers continue to deliver high-
quality service and that volunteers have opportunities for personal 
enrichment. Consequently, CNCS includes the proposed language reducing 
the minimum number of in-service training hours for SCP and FGP 
volunteers in the final rule. (45 CFR 2551.23(f) and 45 CFR 
2552.23(f)).

E. Volunteer Eligibility Requirements

    Comment: We received many comments strongly in favor of removing 
the annual physical examination requirement for SCP and FGP volunteers 
that currently exists at 45 CFR 2551.41(a)(2), 45 CFR 2551.46(d), 45 
CFR 2552.41(a)(2), and 45 CFR 2552.46(d). Some commenters indicated 
that they found the requirement may not properly assess one's ability 
to serve. They noted that a similar eligibility requirement does not 
exist in other national service programs. Some commenters said they 
found the annual paperwork requirement to be burdensome. Many 
commenters supported the elimination of the annual physical examination 
requirement while also expressing a desire to retain physical 
examinations an option, and therefore as an allowable expense because 
some sponsoring organizations and/or volunteer stations like the idea 
of providing the annual physical examination as an option available for 
volunteers. Finally, some commenters disagree with the removal of the 
physical examination and voiced preferences ranging from a one-time 
enrollment requirement to a mandatory requirement every three years.
    Response: CNCS agrees that annual physical examinations, while 
potentially valuable to certain volunteers and stations, may not be 
determinative of one's ability to serve. Furthermore, the annual 
paperwork requirement may be burdensome for both projects and 
volunteers. Accordingly, we are eliminating this requirement in the 
final rule. However, both CNCS and sponsors recognize the value of 
offering physical examinations to volunteers who may not otherwise have 
the resources or means to obtain them. Sponsors who will be offering 
physical examinations to volunteers will likely support the retention 
of incumbent, experienced volunteers, which will in turn support and 
sustain project operations. Therefore, this direct benefit shall be 
retained as an allowable grant expense. As such, CNCS is adding 
``Physical examination'' to the articulated cost reimbursements in the 
final rule (45 CFR 2551.46(f) and 45 CFR 2552.46(f)).
    Comment: CNCS proposed clarifying in the SCP and FGP regulations 
currently set forth in 45 CFR 2551.44(b) and 45 CFR 2552.44(b) that 
Supplemental Nutrition Assistance Program (SNAP) benefits, public 
assistance, child support, and disability payments, are not considered 
income for eligibility verification purposes. CNCS also received a 
comment suggesting that the nonexhaustive listings of funds that are 
considered income be updated to reflect CNCS's longstanding position 
that retirement savings plans, including 401(k) plans, are considered 
income for eligibility verification purposes.
    Response: CNCS has determined that articulating certain forms of 
public assistance that are not to be counted toward an SCP or FGP 
volunteer's

[[Page 64640]]

eligibility is helpful. We have also determined that explicitly 
articulating certain forms of income that are to be counted toward an 
SCP or FGP volunteer's eligibility is likewise helpful. Accordingly, we 
are clarifying in the final rule that SNAP benefits, public assistance, 
child support, and disability payments shall not be used to determine 
income eligibility. (45 CFR 2551.44(b)(3), (b)(4) and 45 CFR 
2552.44(b)(3), (b)(4)). While it has always been CNCS's position that 
these forms of public benefits and assistance are not considered income 
for volunteer eligibility purposes, we note that those forms of public 
benefits and assistance are not specifically denoted in the current SCP 
and FGP regulations as such. Accordingly, in the final rule, we are 
updating the non-exhaustive listings of what funds are not considered 
income for eligibility verification purposes to include SNAP benefits, 
public assistance, child support, and disability payments.
    In addition, non-exhaustive listings of what funds are considered 
income for eligibility purposes are set forth in the current SCP and 
FGP regulations. It was suggested that the nonexhaustive listings of 
funds that are considered income reflect CNCS's longstanding position 
that retirement savings plans, including 401(k) plans, are considered 
income for volunteer eligibility purposes. Accordingly, for both SCP 
and FGP regulations, we are updating the non-exhaustive listings of 
what funds are considered income to reflect retirement savings plans.

F. Volunteer Stipend for Senior Companion Leaders

    Comment: We received a comment that sought clarification as to 
whether a Senior Companion leader may be paid a stipend.
    Response: Yes, a Senior Companion leader may be paid a stipend. A 
Senior Companion leader may also be provided a monetary incentive, 
through recognition, for his or her service as a Senior Companion 
leader. An individual's cumulative service as a Senior Companion and a 
Senior Companion leader may not exceed 40 hours per week.
    CNCS is relocating the Senior Companion leader regulatory provision 
to a new section at 45 CFR 2551.73(b).

G. Comments Related to the Direct Benefit Ratio Rule and Minimum 
Service Hours

    Comment: The agency received overwhelming support for the 
elimination of the language requiring that a sponsor expend a sum equal 
to at least 80% of the total budget on expenses directly benefitting 
SCP and FGP volunteers, also known as the ``Direct Benefit Ratio rule'' 
or the ``80/20 rule'' that currently exist at 45 CFR 2551.92(e) and 45 
CFR 2552.92(e). For example, several commenters stated that the 
elimination of the Direct Benefit Ratio rule would reduce 
administrative burden for grantees and allow them to focus on the 
delivery of high quality program services.
    Response: CNCS agrees that eliminating the Direct Benefit Ratio 
rule will reduce administrative burden for grantees and allow them to 
focus on the delivery of high quality services for their SCP and FGP 
projects. Also, in CNCS's view, elimination of the rule will lead to 
more local control over project design and to increased flexibility in 
budget expenditures.
    The Direct Benefit Ratio rule was intended to control spending on 
administrative costs. However, we have found that the rule no longer 
achieves this goal. Rather, the Direct Benefit Ratio rule constrains 
local control of project design and innovation, and adds a layer of 
complexity to grant awards that is unnecessary and unduly burdensome.
    Moreover, the Direct Benefit Ratio rule is duplicative because CNCS 
regulations and policy, as well as other applicable federal regulations 
set forth in the ``Uniform Administrative Requirements, Cost 
Principles, and Audit Requirements for Federal Awards'' (OMB Uniform 
Guidance), as established by the Office of Management and Budget, 
already restrict spending on administrative costs. The applicable 
regulations and policy are as follows:
    (1) CNCS requires that grantees match at least 10% of the total 
project cost for SCP and FGP projects. (45 CFR 2551.92, 45 CFR 
2552.92).
    (2) Sponsors must request prior CNCS approval if seeking to reduce 
the funding that is allocated to volunteer stipends. (45 CFR 2551.93, 
45 CFR 2552.93).
    (3) SCP and FGP grants are federal awards and continue to be 
governed by the OMB Uniform Guidance, as established by the Office of 
Management and Budget. The OMB Uniform Guidance aims to reduce 
administrative burden on award recipients while guarding against the 
risk of waste and misuse of federal funding. (2 CFR part 200 and 2 CFR 
part 2205).
    (4) CNCS has established a policy that defines a maximum cost per 
volunteer service year (VSY). A VSY is a unit of measure that is equal 
to 1,044 hours of annual volunteer service. At a set volunteer stipend 
rate of $2.65 per hour, each VSY is equivalent to $2,767 per year. This 
means that grantees must annually budget $2,767 for each VSY they agree 
to produce. In turn, they have the flexibility to budget the remaining 
amount, up to the maximum cost per VSY, for a combination of 
administrative costs and other direct benefits for volunteers, like 
meals, transportation, insurance, etc. This rate is communicated to 
applicants or grantees during the application or renewal process rather 
than in regulation. As such, CNCS may adjust the rate in accordance 
with inflation over time. In addition, the maximum cost per VSY is 
linked to service activity in outcome-based assignments. This 
effectively establishes a minimum amount of expected service delivery 
in relation to the federal award; establishing such a minimum amount 
serves as a strong internal control to ensure that quality services at 
satisfactory and higher levels are delivered to the community.
    Finally, the administrative burden necessary to comply with this 
Direct Benefit Ratio rule is unduly onerous. Accordingly, this 
requirement is eliminated in the final rule.
    Comment: We received numerous comments strongly supporting the 
reduction of required hours of service in SCP and FGP from ``a minimum 
of 15 hours per week and a maximum of 40 hours per week'' that 
currently exist at 45 CFR 2551.51 and 45 CFR 2552.51 to ``a minimum of 
260 hours annually, or a minimum of 5 hours per week''. We received 
strong support from project staff, volunteers, and prospective 
volunteers, many of whom articulated challenges associated with the 
current requirement. Challenges articulated include: (1) Prospective 
volunteers' not wanting to commit to serve at least 15 hours per week 
which, in turn, adversely impacts project recruitment; and (2) 
projects' being impeded from offering volunteer services for certain 
established programs (e.g., after-school programs) because the 
schedules of those programs warrant far fewer hours per week for such 
services. In addition, some commenters requested that we set a minimum 
number of hours at a different level, e.g. a minimum of 10 hours per 
week, while others recommended the complete elimination of the 
requirement.
    We also received comments related to the proposal to remove 
language allowing projects to set local policies regarding hours of 
service. Additionally, we received two comments questioning the 
proposed reduction in minimum hours of service; two commenters noted 
the possibility that reducing hours of

[[Page 64641]]

service could lead to the enrollment of additional volunteers, which 
could then lead to a potential increase in costs related to supporting 
those additional volunteers. These commenters also expressed concern 
that the increase in costs associated with supporting additional 
volunteers could lead to a decrease in resource availability, which 
could then possibly lead to a decrease in the support of beneficiaries.
    Finally, we received a comment requesting that CNCS conduct 
research to determine the extent to which the existing requirement that 
volunteers serve a minimum of 15 hours per week prevents grantees from 
filling volunteer slots or retaining volunteers.
    Response: CNCS notes that the majority of commenters support this 
proposed change and recognize the value of reducing the required 
minimum hours of service per week for volunteers. The agency further 
notes that the challenges associated with the existing minimum number 
of hours of service required of each volunteer can adversely impact 
project recruitment. For example, CNCS has received feedback from a 
range of stakeholders that prospective volunteers are deterred from 
service because the weekly commitment is viewed as difficult to meet, 
given other personal interests or obligations. These challenges may 
also restrict a sponsor's ability to offer a diversity of volunteer 
services, which consequently impede sponsors from offering a wider 
range of volunteer opportunities. CNCS anticipates that reducing the 
minimum requirement to five hours weekly, or 260 hours annually, will 
help alleviate these challenges and is therefore adhering to the 
proposed change.
    We also recognize that our proposal to eliminate the language that 
allows projects to set local policies regarding hours of service may 
raise questions as to whether projects will still be permitted to set 
such local policies. Projects will still be able to set local policies 
that define hours of service. Indeed, because sponsors are able to set 
local weekly hours of service policies, they may elect to establish the 
minimum weekly hours of service expected at any level in between the 5 
hour weekly minimum and the 40 hour weekly maximum. Therefore, CNCS 
will not eliminate the proposed language.
    Finally, we address the comment suggesting that CNCS conduct 
research to determine the extent to which the existing requirement of a 
minimum of 15 hours of service per week prevents grantees from filling 
volunteer slots or retaining volunteers. CNCS has determined that more 
research is not necessary prior to issuing this regulatory change.
    Based on CNCS's observation of the adverse impact on stakeholders, 
which includes direct feedback, and research commissioned by CNCS, 
reducing the 15 hour per week minimum service requirement is 
appropriate and warranted. The 15 hour per week minimum serves as a 
barrier to recruitment, retention, project growth, and/or project 
innovation. Research commissioned by CNCS also indicates that 
prospective volunteers are deterred from service because the weekly 
commitment is viewed as difficult to meet, given other personal 
interests or obligations. Additionally, CNCS recognizes that reducing 
the minimum number of required weekly service hours for prospective and 
current volunteers is likely to result in strengthened increased 
recruitment of new volunteers and retention of existing volunteers. 
Therefore, CNCS has determined that this proposed change is appropriate 
and, accordingly incorporates it in the final rule. (45 CFR 2551.51 and 
45 CFR 2552.51).
    Comment: We received one comment in which the commenter recommended 
that CNCS consider the cost effectiveness of the proposed amendment 
reducing the minimum number of volunteer service hours per week from 15 
to 5. The commenter suggests that, by decreasing the number of hours 
each individual serves, the service delivered directly to beneficiaries 
will be minimized because additional funding will be spent in support 
of mobilizing and retaining additional volunteers in service. This 
commenter also recommended that CNCS consider the cost effectiveness of 
eliminating the Direct Benefit Ratio rule (the ``80/20 rule''), which 
requires that a sum equal to at least 80% of the federal award be 
expended on benefits provided directly to SCP and FGP volunteers.
    Response: As stated in the responses to the comments above, CNCS 
has received strong positive feedback from many commenters that express 
support for the proposed reduction to the minimum weekly service hour 
requirement and the elimination of the Direct Benefit Ratio rule. CNCS 
has considered the cost effectiveness of reducing the minimum number of 
volunteer service hours and found that the benefits of making this 
change far outweigh the potential costs. We considered whether reducing 
the weekly service hour requirement would likely improve the quality, 
increase the range, and expand the reach, of services to beneficiaries, 
for the cost incurred. Reducing the minimum number of volunteer service 
hours per week positions CNCS to achieve such increased value and 
better results. This change also removes barriers to service, which 
will, in turn, attract greater numbers of volunteers and support a 
broader range of volunteers in service.
    In addition, this rule states that projects may set local policies 
within these parameters. Therefore, individual sponsors are given the 
discretion to assess the local needs of both prospective volunteers and 
the volunteer stations at which they serve. With the reduction in 
minimum weekly service hours, sponsors will be able to offer service 
opportunities that are attractive to both a larger and more diverse 
group of volunteers and a larger and more diverse group of service 
sites and volunteer stations. Sponsors report that, for some 
prospective volunteer stations, CNCS resources are inaccessible because 
these sites cannot support the 15-hour per week minimum service 
requirement of volunteers. By allowing for more individualized 
volunteer service opportunities, sponsors will have a broader reach 
into the community. Sponsors will be able to support new community 
partners and consequently reach a larger and more diverse group of 
beneficiaries.
    Furthermore, the increased flexibility in service schedules should 
be considered in conjunction with the reduction in required in-service 
training hours as well as other program rules. As discussed above, the 
required amount of in-service training is being reduced from 40 hours 
annually to 24 hours annually. This change will create efficiencies 
because the likelihood of repetitive content appearing in year-to-year 
in-service trainings is diminished. The change will also optimize 
programmatic resources so that volunteers spend as much time as 
possible providing direct services to beneficiaries.
    Moreover, the reduction in the required amount of annual in-service 
training would allow sponsors to spend less of their stipend funding in 
support of mandatory volunteer training. In addition, sponsors continue 
to be required to request prior CNCS approval if seeking to reduce the 
funding that is allocated to volunteer stipends. This is significant 
for two reasons: (1) A sponsor may expend less stipend funding on time 
spent in training, and (2) a sponsor may not shift stipend funding to 
other expenses without express prior CNCS approval. Therefore, a 
sponsor may shift stipend funding from training and must expend that 
funding on time spent in direct service

[[Page 64642]]

unless granted permission from CNCS to do otherwise.
    In other words, the reduction in required minimum hours of in-
service training could result in cost savings for a sponsor, which 
would then be directed into additional hours of service spent with 
beneficiaries of service.
    CNCS has also considered the impact of eliminating the Direct 
Benefit Ratio rule (the ``80/20 rule''), which requires that a sum 
equal to at least 80% of the federal award be expended on benefits 
provided directly to SCP and FGP volunteers. CNCS has determined that 
the Direct Benefit Ratio rule, which must operate in conjunction with 
the match requirement, and the restriction on re-budgeting stipend 
funding, not only constrains local control of project design and 
innovation, but also add a layer of complexity to these grant awards 
that is unnecessary and unduly burdensome. CNCS also finds the Direct 
Benefit Ratio rule to be duplicative because CNCS regulations and 
policy, as well as other applicable federal regulations, already 
restrict spending on administrative costs.
    The applicable regulations and policies used to closely monitor and 
control administrative costs include:
    (1) CNCS requires that grantees match at least 10% of the total 
project cost for SCP and FGP projects. (45 CFR 2551.92, 45 CFR 2552.92)
    (2) Sponsors must request prior CNCS approval if seeking to reduce 
the funding that is allocated to volunteer stipends. (45 CFR 2551.93, 
45 CFR 2552.93)
    (3) SCP and FGP grants are federal awards and continue to be 
governed by the Uniform Administrative Requirements, Cost Principles, 
and Audit Requirements for Federal Awards as established by the Office 
of Management and Budget. The ``Uniform Guidance'' aims to reduce 
administrative burden on award recipients while guarding against the 
risk of waste and misuse of federal funding. (2 CFR part 200 and 2 CFR 
part 2205)
    (4) CNCS has established a policy that defines a maximum cost per 
volunteer service year (VSY). A VSY is a unit of measure that is equal 
to 1,044 hours of annual volunteer service. At a set volunteer stipend 
rate of $2.65 per hour, each VSY is equivalent to $2,767 per year. This 
means that grantees must annually budget $2,767 for each VSY they agree 
to produce. In turn, they have the flexibility to budget the remaining 
amount, up to the maximum cost per VSY, for a combination of 
administrative costs and other direct benefits for volunteers, like 
meals, transportation, insurance, etc. This rate is communicated to 
applicants or grantees during the application or renewal process rather 
than in regulation. As such, CNCS may adjust the rate in accordance 
with inflation over time. In addition, the maximum cost per VSY is 
linked to service activity in outcome-based assignments. This 
effectively establishes a minimum amount of expected service delivery 
in relation to the federal award; establishing such a minimum amount 
serves as a strong internal control to ensure that quality services at 
satisfactory and higher levels are delivered to the community.
    Moreover, eliminating the Direct Benefit Ratio rule will not 
adversely impact the number of volunteers or the level of services 
performed. Rather, establishing a maximum cost per VSY, in combination 
with eliminating the Direct Benefit Ratio rule, allow grantees to both 
assert control over local budgetary needs and deliver an expected 
amount of service to the community.
    To be sure, the elimination of the rule allows grantees, if they 
choose, to incur additional administrative costs. However, even in 
those cases where grantees elect to spend more in administrative costs, 
eliminating the Direct Benefit Ratio rule will reduce burden, improve 
programmatic flexibility, and ultimately, allow more effective service. 
Notwithstanding possible increases in administrative costs for certain 
grantees, we have determined that the value still outweighs such costs.
    Comment: CNCS received one comment that recommended the initiation 
of a pilot program to determine how the proposed changes will impact 
direct service to the community and the total administrative costs 
associated with the SCP and FGP programs, specifically related to the 
reduction in required minimum weekly hours of service and the 
elimination of the Direct Benefit Ratio rule.
    Response: CNCS has determined that a pilot program is unnecessary 
because we have established controls in policy that bind grant 
expenditures, and we evaluate and monitor the impact of direct service 
to the communities where SCP and FGP programs operate on an ongoing 
basis. In addition, SCP and FGP grant awards are governed by the OMB 
Uniform Guidance (2 CFR part 200, 2 CFR part 2205). These rules 
properly regulate and control administrative costs associated with 
federal grant awards and provide sufficient budgetary controls over the 
administrative costs incurred when implementing SCP and FGP awards.
    Moreover, designing, implementing and evaluating the results of a 
pilot program are likely to take several years' time and produce little 
added benefit. CNCS has determined that it has sufficient information 
to conclude that the likely impact of the reduction in minimum hours of 
weekly required service and the elimination of the Direct Benefit Ratio 
rule will be highly favorable for sponsors and the communities they 
serve, as volunteer service will increase and administrative burden 
will decrease.
    To that end, CNCS has received a high degree of positive feedback 
regarding the impact of these proposed regulatory changes, in the form 
of many favorable comments from parties of interest--i.e., grantees and 
other stakeholders. Furthermore, CNCS has conducted research that 
indicates that the 15-hour per week minimum serves as a barrier to 
recruitment, retention, and/or project innovation. This research 
indicates that prospective volunteers are deterred from service because 
the weekly commitment is viewed as difficult to meet given other 
personal obligations and interests. This research also shows that the 
Direct Benefit Ratio rule impedes project growth and innovation because 
it hinders budget flexibility that would allow the projects to grow and 
evolve to meet changing community needs. For example, while projects 
have a reasonable desire to leverage more funding to deliver expanded 
and high quality programming, some sponsors report that they have 
elected to forego accepting additional non-federal funding to avoid the 
administrative burden associated with the Direct Benefit Ratio rule.
    Therefore, CNCS has determined that a pilot program is not 
warranted and does not plan to conduct one.
    Comment: CNCS received a comment that asked us to consider and test 
alternative approaches to the proposed changes, specifically to 
reducing the minimum number of service hours per week and eliminating 
the Direct Benefit Ratio rule. The commenter suggested permitting 
calendar-based variation in minimum service hour requirements to allow 
volunteer commitments to fluctuate with the school year. The commenter 
also suggested that CNCS consider modifying rather than eliminating the 
Direct Benefit Ratio rule.
    Response: CNCS has considered alternative approaches to achieving 
the same objectives of increasing volunteer service opportunities by 
reducing the minimum number of service hours per week from 15 to 5, and 
to decreasing

[[Page 64643]]

administrative burden by eliminating the Direct Benefit Ratio rule. We 
have determined that reducing the minimum number of service hours per 
week is the best approach.
    Indeed, CNCS has guidance in the SCP and FGP Handbooks that 
provides technical support to sponsors so that they can accommodate 
calendar-based variations of service opportunities, particularly when 
considering a typical school year, as this is a common challenge 
experienced by FGP projects.
    Based on CNCS's observation of the adverse impact on stakeholders, 
which includes direct feedback, and research commissioned by CNCS, 
reducing the 15 hour per week minimum service requirement and 
eliminating the Direct Benefit Ratio rule is appropriate and warranted. 
CNCS determined that the 15-hour per week minimum service requirement 
is a barrier to recruitment, retention, and/or project innovation. In 
addition, CNCS determined that the Direct Benefit Ratio rule impedes 
project growth and innovation because it hinders budget flexibility 
that would allow projects to grow and evolve to meet changing community 
needs.
    Indeed, CNCS established and implemented a more effective approach 
to achieve both objectives of increasing volunteer service 
opportunities and decreasing administrative burden prior to publishing 
the proposed rules. As stated above, by establishing a maximum cost per 
volunteer service year (VSY) for time spent in outcome-based 
assignments, a sponsor is able to optimally and more flexibly budget 
non-stipend funding. This consequently makes the Direct Benefit Ratio 
rule unnecessary, and, by eliminating the rule, we relieve sponsors of 
the unduly administrative burden associated with it.
    By setting a maximum cost per VSY, sponsors are also given the 
flexibility, if they choose, to mobilize additional volunteers into 
service. A VSY, again, represents a set number of service hours. It is 
not tied to a specific, individual volunteer, but rather is used as a 
tool to budget service hours and stipend funding. By reducing the 
number of weekly service hours that each individual volunteer is 
required to serve, sponsors are able to bring new volunteers into 
service and offer additional and diverse volunteer opportunities. 
Sponsors are also able to engage additional and diverse volunteer 
stations, as some prospective volunteer stations have reported that 
CNCS resources are inaccessible to them because their sites cannot 
support the 15-hour per week minimum service requirement for 
volunteers.
    In addition, CNCS has linked the maximum cost per VSY to service 
activities in outcome-based assignments. In other words, sponsors must 
assign volunteers to service assignments that are aimed at achieving 
national performance measure outcomes. By setting a maximum cost per 
VSY, CNCS has effectively established a minimum amount of expected 
service delivery in relation to the federal award. That is, by tying 
the maximum cost per VSY to outcome-based assignments, CNCS protects 
its investment in high quality service that directly impacts 
communities.
    Therefore, for the reasons set forth above, further consideration 
of alternatives is unnecessary.

V. Effective Dates and Implementation

    The new regulations are in effect [INSERT DATE 45 DAYS AFTER DATE 
OF PUBLICATION] and apply to all awards funded after the effective date 
of the new regulations, and to all grant activity funded in FY18.

VI. Regulatory Procedures

Executive Order 12866

    CNCS has determined that the rule is not an ``economically 
significant'' rule within the meaning of E.O. 12866 because it is not 
likely to result in: (1) An annual effect on the economy of $100 
million or more, or an adverse and material effect on a sector of the 
economy, productivity, competition, jobs, the environment, public 
health or safety, or State, local, or tribal government or communities; 
(2) the creation of a serious inconsistency or interference with an 
action taken or planned by another agency; (3) a material alteration in 
the budgetary impacts of entitlement, grants, user fees, or loan 
programs or the rights and obligations of recipients thereof; or (4) 
the raising of novel legal or policy issues arising out of legal 
mandates, the President's priorities, or the principles set forth in 
E.O. 12866.

Regulatory Flexibility Act

    As required by the Regulatory Flexibility Act of 1980 (5 U.S.C. 605 
(b)), CNCS certifies that this rule, if adopted, will not have a 
significant economic impact on a substantial number of small entities. 
This regulatory action will not result in (1) an annual effect on the 
economy of $100 million or more; (2) a major increase in costs or 
prices for consumers, individual industries, Federal, State, or local 
government agencies, or geographic regions; or (3) significant adverse 
effects on competition, employment, investment, productivity, 
innovation, or on the ability of United States-based enterprises to 
compete with foreign-based enterprises in domestic and export markets. 
Therefore, CNCS has not performed the initial regulatory flexibility 
analysis that is required under the Regulatory Flexibility Act (5 
U.S.C. 601 et seq.) for major rules that are expected to have such 
results.

Unfunded Mandates

    For purposes of Title II of the Unfunded Mandates Reform Act of 
1995, 2 U.S.C. 1531-1538, as well as Executive Order 12875, this 
regulatory action does not contain any Federal mandate that may result 
in increased expenditures in either Federal, State, local, or tribal 
governments in the aggregate, or impose an annual burden exceeding $100 
million on the private sector.

Paperwork Reduction Act

    This rule addresses the requirement that entities that wish to 
apply to be Senior Corps SCP, FGP, or RSVP sponsors complete an 
application. Consistent with this requirement are two documents: the 
FGP/SCP Grant Application and the RSVP Grant Application (http://www.nationalservice.gov/documents/senior-corps/2015/2016-fgpscp-grant-application-instructions; http://www.nationalservice.gov/documents/senior-corps/2015/rsvp-grant-application-instructions).
    This requirement constitutes one set of information under the 
Paperwork Reduction Act (PRA), 44 U.S.C. 507 et seq. OMB, in accordance 
with the Paperwork Reduction Act, has previously approved these 
information collections for use. The OMB Control Number for both the 
FGP/SCP Grant Application and the RSVP Grant Application is 3045-0035.
    Under the PRA, an agency may not conduct or sponsor a collection of 
information unless the collections of information displays valid 
control numbers. This rule's collections of information are contained 
in 45 CFR part 2551, subparts B, D, F, G, and I, part 2552, subpart B, 
D, F, G, and I, and part 2553, subparts B, D, F, G, and I for the FGP/
SCP Grant Application and the RSVP Grant Application, respectively.
    This information is necessary to ensure that only eligible and 
qualified entities serve as Senior Corps sponsors. This information is 
also necessary to ensure that only eligible and suitable individuals 
are approved by the Senior Corps SCP, FGP, or RSVP programs to

[[Page 64644]]

serve as volunteers in the SCP, FGP, or RSVP programs.
    The likely respondents to these collections of information are 
entities interested in or seeking to become Senior Corps SCP, FGP or 
RSVP sponsors and current sponsors.

Executive Order 13132, Federalism

    Executive Order 13132, Federalism, prohibits an agency from 
publishing any rule that has Federalism implications if the rule 
imposes substantial direct compliance costs on State and local 
governments and is not required by statute, or the rule preempts State 
law, unless the agency meets the consultation and funding requirements 
of section 6 of the Executive Order. The rule does not have any 
Federalism implications, as described above.

List of Subjects

45 CFR Part 2551

    Aged, Grant programs--social programs, Volunteers.

45 CFR Part 2552

    Aged, Grant programs--social programs, Volunteers.

45 CFR Part 2553

    Aged, Grant programs--social programs, Volunteers.

    For the reasons discussed in the preamble, under the authority of 
42 U.S.C. 12651c(c), the Corporation for National and Community Service 
amends chapter XXV, title 45 of the Code of Federal Regulations as 
follows:

PART 2551--SENIOR COMPANION PROGRAM

0
1. The authority citation for part 2551 continues to read as follows:

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.


0
2. Amend Sec.  2551.12 as follows:
0
a. Remove paragraphs (f), (l), (m), (o), (t), and (u).
0
b. Remove all alphabetical paragraph designations.
0
c. Revise the definitions of ``Adequate staffing level'' and ``Chief 
Executive Officer''.
0
d. Move the definition of ``Adequate staffing level'' before the 
definition of ``Adult with special needs''.
0
e. Add the definition of ``CNCS'' in alphabetical order.
0
f. Revise the definitions of ``Cost reimbursements'', ``Letter of 
Agreement'', and ``National Senior Service Corps (NSSC)''.
0
g. Add the definitions of ``Non-CNCS support (excess)'', ``Non-CNCS 
support (match)'', and ``Performance measures'' in alphabetical order.
0
h. Revise the definition of ``Project''.
0
i. Add the definition of ``Proprietary Health Care Organization'' in 
alphabetical order.
0
j. Revise the definitions of ``Service area'', ``Sponsor'', and 
``Stipend''.
0
k. Add the definition of ``United States and Territories'' in 
alphabetical order.
0
l. Revise the definitions of ``Volunteer assignment plan'' and 
``Volunteer station''.
    The revisions and additions read as follows:


Sec.  2551.12  Definitions.

* * * * *
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted Volunteer Service Years (VSYs), number of volunteer stations, 
and the size of the service area.
* * * * *
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
    CNCS. The Corporation for National and Community Service 
established under the NCSA, as amended, 42 U.S.C. 12501 et seq.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance and other 
expenses as negotiated in the Memorandum of Understanding.
* * * * *
    Letter of Agreement. A written agreement between a volunteer 
station or sponsor, and person(s) served or the person legally 
responsible for that person. It authorizes the assignment of an SCP 
volunteer in the home of a client, defines SCP volunteer activities, 
and specifies supervision arrangements.
* * * * *
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), the Foster Grandparent Program (FGP), 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, 
Title II of the Act. NSSC is also referred to as the ``Senior Corps''.
    Non-CNCS support (excess). The amount of non-CNCS cash and in-kind 
contributions generated by a sponsor in excess of the required 
percentage.
    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support 
of the grant.
    Performance measures. Indicators that help determine the impact of 
an SCP project on the community and clients served, including the 
volunteers.
    Project. The locally planned SCP activity or set of activities in a 
service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) in which Senior 
Companions are enrolled and placed on assignments.
* * * * *
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer a Senior Companion project.
    Stipend. A payment to Senior Companions to enable them to serve 
without cost to themselves. The amount of the stipend is set by CNCS in 
accordance with federal law.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer assignment plan. A written description of a Senior 
Companion's assignment with a client. The plan identifies specific 
outcomes for the client served and the activities of the Senior 
Companion.
    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of Senior Companions in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

0
3. Revise Sec.  2551.21 to read as follows:


Sec.  2551.21  Who is eligible to serve as a sponsor?

    CNCS awards grants to public agencies, including Indian tribes as

[[Page 64645]]

defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and the capability to administer a Senior 
Companion project.

0
4. Revise Sec.  2551.22 to read as follows:


Sec.  2551.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the Senior 
Companion Program as specified in the Act. A sponsor shall not delegate 
or contract these overall management responsibilities to another 
entity. CNCS retains the right to determine what types of management 
responsibilities may or may not be contracted.

0
5. Amend Sec.  2551.23 as follows:
0
a. Revise the section heading and paragraphs (a), (b), and (c) 
introductory text.
0
b. Remove the word ``and'' from the end of paragraph (c)(2)(iii).
0
c. Revise paragraphs (c)(2)(iv), (f), and (g).
0
d. Remove paragraphs (i) and (j);
0
e. Redesignate paragraphs (k) and (l) as (i) and (j), respectively, and 
revise newly redesignated paragraphs (i) and (j).
0
f. Add new paragraphs (k) and (l).
    The revisions and additions read as follows:


Sec.  2551.23  What are a sponsor's project responsibilities?

* * * * *
    (a) Focus Senior Companion resources within the project's service 
area, on critical problems affecting the frail elderly and other adults 
with special needs.
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the community or service 
area, and develop strategies to respond to identified needs using 
Senior Companions.
    (c) Develop and manage one or more volunteer stations by:
    (2) * * *
    (iv) That states the station will not discriminate against SCP 
volunteers, service beneficiaries, or in the operation of its program 
on the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
* * * * *
    (f) Provide Senior Companions with assignments that show direct and 
demonstrable benefits to the adults and the community served, the 
Senior Companions, and the volunteer station; with required cost 
reimbursements specified in Sec.  2551.46; with 20 hours of pre-service 
orientation and at least 24 hours annually of in-service training.
    (g) Encourage the most efficient and effective use of Senior 
Companions by coordinating project services and activities with related 
national, state and local programs, including other CNCS programs.
* * * * *
    (i) Establish written service policies for Senior Companions that 
include but are not limited to:
    (1) Annual and sick leave.
    (2) Holidays.
    (3) Service schedules.
    (4) Termination and appeal procedures.
    (5) Meal and transportation reimbursements.
    (j) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.
    (k) Provide Senior Companion volunteers with cost reimbursements 
specified in this section.
    (l) Make every effort to meet such performance measures as 
established in the approved grant application.

0
6. Revise Sec.  2551.24(a)(2), (3), and (4) to read as follows;


Sec.  2551.24   What are a sponsor's responsibilities for securing 
community participation?

    (a) * * *
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity, and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities 
of older adults; and
* * * * *

0
7. Amend Sec.  2551.25 as follows:
0
a. Revise paragraph (c).
0
b. Revise paragraphs (e) through (h).
    The revisions read as follows.


Sec.  2551.25  What are a sponsor's administrative responsibilities?

* * * * *
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies, boards or organizations. A full-
time project director shall not serve concurrently in another capacity, 
paid or unpaid, during established working hours. A sponsor may 
negotiate the employment of a part-time project director with CNCS when 
the sponsor can demonstrate that such an arrangement will not adversely 
affect the size, scope, or quality of project operations.
* * * * *
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering 
Senior Companion project activities. This includes provision of 
appropriate insurance coverage for Senior Companions, which includes; 
accident insurance, personal liability insurance, and excess automobile 
liability insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply 
with, all applicable civil rights laws and regulations, including non-
discrimination based on disability.


Sec.  2551.33   [Removed and Reserved]

0
8. Remove and reserve Sec.  2551.33.

0
9. Revise Sec.  2551.34(a)(3) and (b) to read as follows:


Sec.  2551.34  What are the rules on suspension, termination, and 
denial of refunding of grants?

    (a) * * *
    (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 CNCS; and
* * * * *
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the recipient agency.
* * * * *

0
10. Amend Sec.  2551.41 as follows:
0
a. Add the word ``and'' at the end of paragraph (a)(1).
0
b. Remove paragraphs (a)(2) and (3).
0
c. Redesignate paragraph (a)(4) as (a)(2).
0
d. Revise paragraph (b).

[[Page 64646]]

    The revisions read as follows:


Sec.  2551.41  Who is eligible to be a Senior Companion?

* * * * *
    (b) Eligibility to serve as a Senior Companion shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or 
expression, political affiliation, marital or parental status, or 
military service.

0
11. Revise Sec.  2551.43(b) to read as follows:


Sec.  2551.43   What income guidelines govern eligibility to serve as a 
stipended Senior Companion?

* * * * *
    (b) For applicants to become stipended Senior Companions, annual 
income is projected for the following 12 months, based on income at the 
time of application. For serving stipended Senior Companions, annual 
income is counted for the past 12 months. Annual income includes the 
applicant or enrollee's income and that of his/her spouse, if the 
spouse lives in the same residence.
* * * * *

0
12. Amend Sec.  2551.44 as follows:
0
a. Revise paragraphs (a)(1), (3), and (4).
0
b. Remove the period at the end of paragraph (b)(2) and add a semicolon 
in its place.
0
c. Add paragraphs (b)(3) through (5).
    The revisions and additions read as follows:


Sec.  2551.44  What is considered income for determining volunteer 
eligibility?

    (a) * * *
    (1) Money, wages, and salaries before any deduction;
* * * * *
    (3) Social Security, Unemployment or Workers Compensation, strike 
benefits, training stipends, alimony, and military family allotments, 
or other regular support from an absent family member or someone not 
living in the household;
    (4) Government employee pensions, private pensions, regular 
insurance or annuity payments, and 401(k) or other retirement savings 
plans;
* * * * *
    (b) * * *
    (3) Regular payments for public assistance, including Supplemental 
Nutrition Assistance Program (SNAP);
    (4) Social Security Disability or any type of disability payment; 
and
    (5) Food or rent received in lieu of wages.

0
13. Revise Sec.  2551.45 to read as follows:


Sec.  2551.45  Is a Senior Companion a federal employee, an employee of 
the sponsor or of the volunteer station?

    Senior Companions are volunteers, and are not employees of the 
sponsor, the volunteer station, CNCS, or the Federal Government.

0
14. Amend Sec.  2551.46 as follows:
0
a. Revise the section heading, introductory text, and paragraphs (a), 
(b) introductory text, (b)(1) and (2), (b)(3)(i)(A) and (B), 
(b)(3)(ii), (c), (d), and (e).
0
b. Remove paragraph (f).
0
c. Redesignate paragraph (g) as (f) and revise newly redesignated 
paragraph (f).
0
d. Add a new paragraph (g).
    The revisions and addition read as follows:


Sec.  2551.46  What cost reimbursements and benefits do sponsors 
provide to Senior Companions?

    Cost reimbursements and benefits provided by sponsors include:
    (a) Stipend. The stipend is paid for the time Senior Companions 
spend with their assigned clients, for earned leave, and for attendance 
at official project events.
    (b) Insurance. Insurance is made available to Senior Companions 
with the CNCS specified minimum levels of insurance as follows:
    (1) Accident insurance. Accident insurance covers Senior Companions 
for personal injury during travel between their homes and places of 
assignment, during their service, during meal periods while serving as 
a Senior Companion, 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 Senior 
Companion from other sources.
    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. Such 
protection does not include professional liability coverage.
    (3) * * *
    (i) * * *
    (A) Liability insurance Senior Companions carry on their own 
automobiles; or
    (B) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection that CNCS determines, and that the 
sponsor must provide, for each person, and each accident, and for 
property damage.
    (ii) Senior Companions 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 CNCS.
    (c) Transportation. Senior Companions shall receive assistance with 
the cost of transportation to and from, assignments and official 
project activities, including orientation, training, and recognition 
events.
    (d) Meals. Senior Companions may be provided assistance with the 
cost of meals taken while on assignment, within limits of the project's 
available resources.
    (e) Recognition. Senior Companion volunteers shall be provided 
recognition for their service.
    (f) Physical examination. Senior Companions may be provided a 
physical examination or assistance with the cost of a physical 
examination prior to assignment and annually thereafter.
    (g) Other volunteer expenses. Senior Companions may also be 
reimbursed for allowable out-of-pocket expenses incurred while 
performing their assignments.

0
15. Revise Sec.  2551.47 to read as follows:


Sec.  2551.47  May the cost reimbursements and benefits of a Senior 
Companion be subject to any tax or charge, be treated as wages or 
compensation, or affect eligibility to receive assistance from other 
programs?

    No. Senior Companion's cost reimbursements and benefits are not 
subject to any tax or charge or 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 and benefits are not 
subject to garnishment and do not reduce or eliminate the level of, or 
eligibility for, assistance or services a Senior Companion may be 
receiving under any governmental program.

0
16. Revise Sec.  2551.51 to read as follows:


Sec.  2551.51  What are the terms of service of a Senior Companion?

    A Senior Companion shall serve a minimum of 260 hours annually, or 
a minimum of 5 hours per week. A Senior Companion may serve a maximum 
of 2080 hours annually, or a maximum of 40 hours per week. Within these 
limitations, a sponsor may set service policies consistent with local 
needs.

0
17. Revise Sec.  2551.52(c) to read as follows:


Sec.  2551.52  What factors are considered in determining a Senior 
Companion's service schedule?

* * * * *
    (c) Meal time may be part of the service schedule and is stipended.

[[Page 64647]]


0
18. Revise Sec.  2551.53 to read as follows:


Sec.  2551.53  Under what circumstances may a Senior Companion be 
removed from service?

    (a) A sponsor may remove a Senior Companion from service for cause. 
Grounds for removal include, but are not limited to: Extensive and 
unauthorized absences; misconduct; failure to perform assignments or 
failure to accept supervision. A Senior Companion may also be removed 
from stipended service for having income in excess of the eligibility 
level. A Senior Companion shall be removed immediately if ineligible to 
serve based on criminal history check results.
    (b) The sponsor shall establish appropriate policies on removal 
from service, as well as procedures for appeal.

0
19. Revise Sec.  2551.61 to read as follows:


Sec.  2551.61   May a sponsor serve as a volunteer station?

    Yes. A sponsor may serve as a volunteer station, if the activities 
are part of a work plan in the approved project application.

0
20. Amend Sec.  2551.62 as follows:
0
a. Revise paragraphs (c) and (d).
0
b. Add the word ``and'' at the end of paragraph (e)(1).
0
c. Revise paragraph (e)(2).
0
d. Remove paragraph (e)(3).
0
e. Revise paragraphs (i) and (j).
    The revisions read as follows:


Sec.  2551.62  What are the responsibilities of a volunteer station?

* * * * *
    (c) Develop a written volunteer assignment plan for each Senior 
Companion that identifies their roles and activities, each client 
served, and expected outcomes.
    (d) Keep a Letter of Agreement for each client who receives in-home 
service.
    (e) * * *
    (2) Resources required for performance of assignments, including 
reasonable accommodation, as needed, to enable Senior Companions with 
disabilities to perform the essential functions of their service.
* * * * *
    (i) Comply with all applicable civil rights laws and regulations, 
including providing Senior Companions with disabilities reasonable 
accommodation, to perform the essential functions of their service.
    (j) Undertake such other responsibilities as may be necessary for 
the successful performance of Senior Companions in their assignments or 
as agreed to in the Memorandum of Understanding.


Sec.  2551.71   [Amended]

0
21. Amend Sec.  2551.71 by removing paragraph (b) and redesignating 
paragraph (c) as (b).

0
22. Amend Sec.  2551.72 as follows:
0
a. Revise the section heading and paragraph (a)(5).
0
b. Remove and reserve paragraph (b).
0
c. Remove paragraph (c).
    The revisions read as follows:


Sec.  2551.72  Is a written volunteer assignment plan required for each 
Senior Companion?

    (a) * * *
    (5) Is used to review the impact of the assignment on the 
client(s).
* * * * *

0
23. Add Sec.  2551.73 to subpart G to read as follows:


Sec.  2551.73   May a Senior Companion serve as a volunteer leader?

    Yes. Senior Companions--who on the basis of experience as 
volunteers, special skills, and demonstrated leadership abilities--may 
spend time, in addition to their regular assignment, to assist newer 
Senior Companion volunteers in performing their assignments and in 
coordinating activities of such volunteers.
    (a) All Senior Companions serving as volunteer leaders shall 
receive a written volunteer assignment plan developed by the volunteer 
station that:
    (1) Is approved by the sponsor and accepted by the Senior 
Companion;
    (2) Identifies the role and activities of the Senior Companion and 
expected outcomes;
    (3) Addresses the period of time of service; and
    (4) Is used to review the status of the Senior Companion's services 
identified in the assignment plan, as well as the impact of those 
services.
    (b)While serving in the capacity of a volunteer leader, a Senior 
Companion may be paid a stipend (at the same rate as the established 
Senior Companion stipend) for his or her additional hours served as a 
volunteer leader.
    (c) Senior Companion leaders, through recognition, may receive an 
additional monetary incentive.

0
24. Revise Sec.  2551.91 to read as follows:


Sec.  2551.91  What is the process for application and award of a 
grant?

    (a) How and when may an eligible organization apply for a grant? 
(1) An eligible organization may file an application in response to 
CNCS' published request, such as a Notice of Funding Opportunity or a 
Notice of Funding Availability. Applicants are not assured of selection 
or approval and may have to compete with other applicants.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' (3 CFR, 
1982 Comp., p. 197) in 45 CFR part 1233 and any other applicable 
requirements.
    (b) Who reviews the merits of an application and how is a grant 
awarded? (1) CNCS reviews and determines the merit of an application by 
its responsiveness to published guidelines and to the overall purposes 
and objectives of the program. When funds are available, CNCS awards a 
grant in writing to each applicant whose grant proposal provides the 
best potential for serving the purpose of the program.
    (2) The award will be documented by the Notice of Grant Award 
(NGA). CNCS and the sponsoring organization are the 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 CNCS' obligation to provide financial support to the sponsor.
    (c) What happens if CNCS rejects an application? CNCS will notify 
the applicant if the applicant is not approved for funding, along with 
an explanation of CNCS' decision.
    (d) For what period of time does CNCS award a grant? CNCS awards a 
Senior Companion grant for a specified period that is usually three 
years in duration.

0
25. Amend Sec.  2551.92 as follows:
0
a. Revise paragraphs (a), (b) introductory text, (c), and (d).
0
b. Remove paragraph (e).
0
c. Redesignate paragraph (f) as (e) and revise newly redesignated 
paragraph (e).
    The revisions read as follows:


Sec.  2551.92  What are project funding requirements?

    (a) Is non-CNCS support required? A CNCS grant may be awarded to 
fund up to 90 percent of the cost of development and operation of a 
Senior Companion project. The sponsor is required to contribute at 
least 10 percent of the total project cost from non-Federal sources or 
authorized Federal sources.
    (b) Under what circumstances does CNCS allow less than the 10 
percent non-CNCS support? CNCS may allow exceptions to the 10 percent 
local support requirement in cases of demonstrated need such as:
* * * * *

[[Page 64648]]

    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the 10 percent non-CNCS support required? 
Whenever locally generated contributions to Senior Companion projects 
are in excess of the minimum 10 percent non-CNCS support required, CNCS 
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 in support of the grant, 
are subject to audit by CNCS, its Inspector General, or their 
authorized agents.
    (e) May a sponsor pay stipends at rates different than those 
established by CNCS? No, a sponsor shall pay stipends at rates 
established by CNCS.

0
26. Amend Sec.  2551.93 as follows:
0
a. Revise the section heading.
0
b. Remove the word ``and'' from the end of paragraph (a)(3).
0
c. Revise paragraph (a)(4).
0
d. Add paragraph (a)(5).
0
e. Revise paragraphs (b), (e), and (f).
    The revisions and addition read as follows:


Sec.  2551.93  What are a sponsor's legal requirements in managing 
grants?

* * * * *
    (a) * * *
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
* * * * *
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval is required for the following changes in 
the approved grant:
    (1) Reduction in budgeted volunteer service years.
    (2) Change in the service area.

0
27. Revise Sec.  2551.101 to read as follows:


Sec.  2551.101  What rule governs the recruitment and enrollment of 
persons who do not meet the income eligibility guidelines to serve as 
Senior Companions?

    Over-income persons as described in Sec.  2551.43, age 55 or over, 
may be enrolled in SCP project as non-stipended volunteers.

0
28. Amend Sec.  2551.102 as follows:
0
a. Revise paragraphs (b) and (d).
0
b. Remove paragraphs (e) and (f).
0
c. Redesignate paragraph (g) as (e) and revise newly redesignated 
paragraph (e).
    The revisions read as follows:


Sec.  2551.102  What are the conditions of service of non-stipended 
Senior Companions?

* * * * *
    (b) No special privilege or status is granted or created among 
Senior Companions, whether stipended or non-stipended, and equal 
treatment is required.
* * * * *
    (d) All regulations and requirements applicable to the program 
apply to Senior Companions.
    (e) Non-stipended Senior Companions may contribute the costs they 
incur in connection with their participation in the program. An SCP 
project may not count such contributions as part of the required non-
CNCS support (match) for the grant.

0
29. Revise Sec.  2551.103 to read as follows:


Sec.  2551.103  Must a sponsor be required to enroll non-stipended 
Senior Companions?

    No. Enrollment of non-stipended Senior Companions is not a 
condition for a sponsor to receive a new or continuation grant.


Sec.  2551.104  [Removed and Reserved]

0
30. Remove and reserve Sec.  2551.104.

0
31. Revise the heading for subpart K to read as follows:

Subpart K--Non-CNCS Funded Senior Companion Projects

0
32. Revise Sec.  2551.111 to read as follows:


Sec.  2551.111   Under what conditions may an agency or organization 
sponsor a Senior Companion project without CNCS funding?

    An eligible agency or organization who wishes to sponsor a Senior 
Companion project without CNCS funding must make an application through 
the designated grants management system which is approved by CNCS and 
documented through the Notice of Grant Agreement (NGA).

0
33. Amend Sec.  2551.112 by revising the section heading, introductory 
text, and paragraph (a) to read as follows:


Sec.  2551.112  What are the resources and benefits to which a non-CNCS 
funded project is entitled?

    The Notice of Grant Award entitles the sponsor of a Non-CNCS funded 
project to:
    (a) All technical assistance and materials provided to CNCS funded 
Senior Companion projects; and
* * * * *

0
34. Revise Sec.  2551.113 to read as follows:


Sec.  2551.113  What financial obligation does CNCS incur for non-CNCS 
funded projects?

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

0
35. Revise Sec.  2551.114 to read as follows:


Sec.  2551.114  What happens if a non-CNCS funded sponsor does not 
comply with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2551.112.

0
36. Revise Sec.  2551.121(c)(2), (g), and (h) to read as follows:


Sec.  2551.121   What legal limitations apply to the operation of the 
Senior Companion Program and to the expenditure of grant funds?

* * * * *
    (c) * * *
    (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 CNCS.
* * * * *
    (g) Religious activities. (1) A Senior Companion or a member of the 
project staff funded by CNCS shall not give religious instruction, 
conduct worship services, or engage in any form of proselytization as 
part of his/her duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, 
provided that it does not use CNCS funds to support any inherently 
religious activities, such as worship, religious instruction, or 
proselytization, as part of the programs or services funded. If an 
organization conducts such activities, the activities must be offered 
separately, in time or location, from the programs or services funded 
under this part.
    (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

[[Page 64649]]

sponsor under subpart B of this part, and with notification to CNCS.

0
37. Revise Sec.  2551.122 to read as follows:


Sec.  2551.122   What legal coverage does CNCS make available to Senior 
Companions?

    It is within CNCS's discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to 
the defense of a SCP volunteer are 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 CNCS may pay such expenses are specified in 45 CFR part 1220.

PART 2552--FOSTER GRANDPARENT PROGRAM

0
38. The authority citation for part 2552 continues to read as follows:

    Authority: 42 U.S.C. 4950 et seq.; 42 U.S.C. 12651b-12651d; E.O. 
13331, 69 FR 9911.

0
39. Revise Sec.  2552.11 to read as follows:


Sec.  2552.11  What is the Foster Grandparent Program?

    The Foster Grandparent Program provides grants to qualified 
agencies and organizations for the dual purpose of engaging persons 55 
and older, particularly those with limited incomes, in volunteer 
service to meet critical community needs; and to provide a high quality 
experience that will enrich the lives of the volunteers. Program funds 
are used to support Foster Grandparents in providing supportive, person 
to person service to children with special and or exceptional needs, or 
in circumstances that limit their academic, social or emotional 
development.

0
40. Amend Sec.  2552.12 as follows:
0
a. Remove paragraphs (h), (n), (o), (r), (w), and (x).
0
b. Remove all alphabetical paragraph designations.
0
c. Revise the definitions of ``Adequate staffing level'', ``Chief 
Executive Officer'', and ``Children having exceptional needs''.
0
d. Add the definition of ``CNCS'' in alphabetical order.
0
e. Revise the definitions of ``Cost reimbursements'', ``Letter of 
Agreement'', and ``National Senior Service Corps (NSSC)''.
0
f. Add the definitions of ``Non-CNCS support (excess)'', ``Non-CNCS 
support (match)'', and ``Performance measures'' in alphabetical order.
0
g. Revise the definition of ``Project''.
0
h. Add the definition of ``Proprietary Health Care Organization'' in 
alphabetical order.
0
i. Revise the definitions of ``Service area'', ``Sponsor'', and 
``Stipend''.
0
j. Add the definition of ``United States and Territories'' in 
alphabetical order.
0
k. Revise the definitions of ``Volunteer assignment plan'' and 
``Volunteer station''.
    The revisions and additions read as follows:


Sec.  2552.12   Definitions.

* * * * *
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted Volunteer Service Years (VSYs), number of volunteer stations, 
and the size of the service area.
* * * * *
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
* * * * *
    Children having exceptional needs. Children who have a 
developmental disability, such as those who have autism, intellectual 
disability, cerebral palsy or epilepsy, a visual impairment, speech 
impairment, hearing impairment, or orthopedic impairment, an emotional 
or behavioral disorder, a language disorder, a specific learning 
disability, multiple disabilities, other significant health 
impairments, or have literacy, math or other educational assistance 
needs. Before a Foster Grandparent is assigned to the child, existence 
of a child's exceptional need shall be verified by an appropriate 
professional, such as a physician, psychiatrist, psychologist, 
including school psychologists, registered nurse or licensed practical 
nurse, speech therapist, licensed clinical social worker, or educator.
* * * * *
    CNCS. The Corporation for National and Community Service 
established under the NCSA, as amended, 42 U.S.C. 12501 et seq.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance, and other 
expenses as negotiated in the Memorandum of Understanding.
* * * * *
    Letter of Agreement. A written agreement between a volunteer 
station or sponsor, and person(s) served or the person legally 
responsible for that person. It authorizes the assignment of an FGP 
volunteer in the home of a client, defines FGP volunteer activities, 
and specifies supervision arrangements.
* * * * *
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), the Foster Grandparent Program (FGP), 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, 
Title II of the Act. NSSC is also referred to as the ``Senior Corps''.
    Non-CNCS support (excess). The amount of non-Federal cash and in-
kind contributions generated by a sponsor in excess of the required 
percentage.
    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support 
of the grant.
* * * * *
    Performance measures. Indicators that help determine the impact of 
an FGP project on the community and clients served, including the 
volunteers.
    Project. The locally planned FGP activity or set of activities in a 
service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) in which Foster 
Grandparents are enrolled and placed on assignments.
* * * * *
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer a Foster Grandparent project.
    Stipend. A payment to Foster Grandparents to enable them to serve 
without cost to themselves. The amount of the stipend is set by CNCS in 
accordance with federal law.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer assignment plan. A written description of a Foster 
Grandparent's assignment with a child. The plan identifies specific 
outcomes for the child served and the activities of the Foster 
Grandparent.

[[Page 64650]]

    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of Foster Grandparents in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

0
41. Revise Sec.  2552.21 to read as follows:


Sec.  2552.21  Who is eligible to serve as a sponsor?

    CNCS awards grants to public agencies, including Indian tribes as 
defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and the capability to administer a Foster 
Grandparent project.

0
42. Revise Sec.  2552.22 to read as follows:


Sec.  2552.22  What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the Foster 
Grandparent Program as specified in the Act. A sponsor shall not 
delegate or contract these overall management responsibilities to 
another entity. CNCS retains the right to determine what types of 
management responsibilities may or may not be contracted.

0
43. Amend Sec.  2552.23 as follows:
0
a. Revise the section heading and paragraphs (a), (b), and (c) 
introductory text.
0
b. Remove the word ``and'' from the end of paragraph (c)(2)(iii).
0
c. Revise paragraphs (c)(2)(iv), (f), and (g).
0
d. Remove paragraphs (i) and (j).
0
e. Redesignate paragraphs (k) and (l) as (i) and (j), respectively, and 
revise newly redesignated paragraphs (i) and (j).
0
f. Add new paragraphs (k) through (l).
    The revisions and additions read as follows:


Sec.  2552.23   What are a sponsor's project responsibilities?

* * * * *
    (a) Focus Foster Grandparent resources, within the project's 
service area, on providing supportive services and companionship to 
children with special and exceptional needs, or in circumstances that 
limit their academic, social or emotional development.
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the community or service 
area, and develop strategies to respond to identified needs using 
Foster Grandparents.
    (c) Develop and manage one or more volunteer stations by:
    (2) * * *
    (iv) That states the station will not discriminate against FGP 
volunteers, service beneficiaries, or in the operation of its program 
on the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
* * * * *
    (f) Provide Foster Grandparents with assignments that show direct 
and demonstrable benefits to the children and the community served, the 
Foster Grandparents, and the volunteer station; with required cost 
reimbursements specified in Sec.  2552.46; with 20 hours of pre-service 
orientation and at least 24 hours annually of in-service training.
    (g) Encourage the most efficient and effective use of Foster 
Grandparents by coordinating project services and activities with 
related national, state and local programs, including other CNCS 
programs.
* * * * *
    (i) Establish written service policies for Foster Grandparents that 
include but are not limited to:
    (1) Annual and sick leave.
    (2) Holidays.
    (3) Service schedules.
    (4) Termination and appeal procedures.
    (5) Meal and transportation reimbursements.
    (j) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.
    (k) Provide Foster Grandparent volunteers with cost reimbursements 
specified in this section.
    (l) Make every effort to meet such performance measures as 
established in the approved grant application.

0
44. Revise Sec.  2552.24(a)(2), (3), and (4) to read as follows:


Sec.  2552.24  What are a sponsor's responsibilities for securing 
community participation?

    (a) * * *
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities 
of older adults; and
* * * * *

0
45. Amend Sec.  2552.25 as follows:
0
a. Revise paragraph (c).
0
b. Revise paragraphs (e) through (h).
    The revisions read as follows:


Sec.  2552.25  What are a sponsor's administrative responsibilities?

* * * * *
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies, boards or organizations. A full-
time project director shall not serve concurrently in another capacity, 
paid or unpaid, during established working hours. A sponsor may 
negotiate the employment of a part-time project director with CNCS when 
the sponsor can demonstrate that such an arrangement will not adversely 
affect the size, scope or quality of project operations.
* * * * *
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering 
Foster Grandparent project activities. This includes provision of 
appropriate insurance coverage for Foster Grandparents, which includes; 
accident insurance, personal liability insurance, and excess automobile 
liability insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply 
with, all applicable civil rights laws and regulations, including non-
discrimination based on disability.


Sec.  2552.33  [Removed and Reserved]

0
46. Remove and reserve Sec.  2552.33.

0
47. Revise Sec.  2552.34(a)(3) and (b) to read as follows:

[[Page 64651]]

Sec.  2552.34  What are the rules on suspension, termination, and 
denial of refunding of grants?

    (a) * * *
    (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 CNCS; and
* * * * *
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the grant recipient.
* * * * *

0
48. Revise the heading for subpart D to read as follows:

Subpart D--Foster Grandparent Eligibility, Status, Cost 
Reimbursements and Benefits

0
49. Amend Sec.  2552.41 as follows:
0
a. Add the word ``and'' at the end of paragraph (a)(1).
0
b. Remove paragraphs (a)(2) and (3).
0
c. Redesignate paragraph (a)(4) as (a)(2) and revise newly redesignated 
paragraph (a)(2).
0
d. Revise paragraph (b).
    The revisions read as follows:


Sec.  2552.41  Who is eligible to be a Foster Grandparent?

    (a) * * *
    (2) In order to receive a stipend, have an income that is within 
the income eligibility guidelines specified in this subpart.
    (b) Eligibility to serve as a Foster Grandparent shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or 
expression, political affiliation, marital or parental status, or 
military service.

0
50. Revise Sec.  2552.43(b) to read as follows:


Sec.  2552.43   What income guidelines govern eligibility to serve as a 
stipended Foster Grandparent?

* * * * *
    (b) For applicants to become stipended Foster Grandparents, annual 
income is projected for the following 12 months, based on income at the 
time of application. For serving stipended Foster Grandparents, annual 
income is counted for the past 12 months. Annual income includes the 
applicant or enrollee's income and that of his/her spouse, if the 
spouse lives in the same residence.
* * * * *

0
51. Amend Sec.  2552.44 by revising paragraphs (a)(1), (3) and (4) and 
adding paragraphs (b)(3) through (5) to read as follows:


Sec.  2552.44   What is considered income for determining volunteer 
eligibility?

    (a) * * *
    (1) Money, wages, and salaries before any deduction;
* * * * *
    (3) Social Security, Unemployment or Workers Compensation, strike 
benefits, training stipends, alimony, and military family allotments, 
or other regular support from an absent family member or someone not 
living in the household;
    (4) Government employee pensions, private pensions, regular 
insurance or annuity payments, and 401(k) or other retirement savings 
plans;
* * * * *
    (b) * * *
    (3) Regular payments for public assistance including the 
Supplemental Nutrition Assistance Program (SNAP).
    (4) Social Security Disability or any type of disability payment.
    (5) Food or rent received in lieu of wages.

0
52. Revise Sec.  2552.45 to read as follows:


Sec.  2552.45  Is a Foster Grandparent a federal employee, an employee 
of the sponsor or of the volunteer station?

    Foster Grandparents are volunteers, and are not employees of the 
sponsor, the volunteer station, CNCS or the Federal Government.

0
53. Amend Sec.  2552.46 by revising the section heading, introductory 
text, and paragraphs (a), (b) introductory text, (b)(1) and (2), 
(b)(3)(i)(A) and (B), (b)(3)(ii), (c), (d), (e), and (f), and adding 
paragraph (g), to read as follows:


Sec.  2552.46  What cost reimbursements and benefits do sponsors 
provide to Foster Grandparents?

    Cost reimbursements and benefits include:
    (a) Stipend. The stipend is paid for the time Foster Grandparents 
spend with their assigned children, for earned leave, and for 
attendance at official project events.
    (b) Insurance. A Foster Grandparent is provided with the CNCS 
specified minimum levels of insurance as follows:
    (1) Accident insurance. Accident insurance covers Foster 
Grandparents for personal injury during travel between their homes and 
places of assignment, during their service, during meal periods while 
serving as a Foster Grandparent, 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 
Foster Grandparent from other sources.
    (2) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. Such 
protection does not include professional liability coverage.
    (3) * * *
    (i) * * *
    (A) Liability insurance Foster Grandparents 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 CNCS for each 
person, each accident, and for property damage.
    (ii) Foster Grandparents 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 CNCS.
    (c) Transportation. Foster Grandparents shall receive assistance 
with the cost of transportation to and from, assignments and official 
project activities, including orientation, training, and recognition 
events.
    (d) Meals. Foster Grandparents may be provided assistance with the 
cost of meals taken while on assignment, within limits of the project's 
available resources.
    (e) Recognition. Foster Grandparent volunteers shall be provided 
recognition for their service.
    (f) Physical examination. Foster Grandparents may be provided a 
physical examination or assistance with the cost of a physical 
examination prior to assignment and annually thereafter.
    (g) Other volunteer expenses. Foster Grandparents may also be 
reimbursed for allowable out-of-pocket expenses incurred while 
performing their assignments.

0
54. Revise Sec.  2552.47 to read as follows:


Sec.  2552.47  May the cost reimbursements and benefits received by a 
Foster Grandparent be subject to any tax or charge, be treated as wages 
or compensation, or affect eligibility to receive assistance from other 
programs?

    No. Foster Grandparent's cost reimbursements and benefits are not 
subject to any tax or charge or 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

[[Page 64652]]

wage laws. Cost reimbursements and benefits are not subject to 
garnishment and do not reduce or eliminate the level of, or eligibility 
for, assistance or services a Foster Grandparent may be receiving under 
any governmental program.

0
55. Revise Sec.  2552.51 to read as follows:


Sec.  2552.51  What are the terms of service of a Foster Grandparent?

    A Foster Grandparent shall serve a minimum of 260 hours annually, 
or a minimum of 5 hours per week. A Foster Grandparent may serve a 
maximum of 2080 hours annually, or a maximum of 40 hours per week. 
Within these limitations, a sponsor may set service policies consistent 
with local needs.

0
56. Revise Sec.  2552.52(c) to read as follows:


Sec.  2552.52   What factors are considered in determining a Foster 
Grandparent's service schedule?

* * * * *
    (c) Meal time may be part of the service schedule and is stipended.

0
57. Revise Sec.  2552.53 to read as follows:


Sec.  2552.53  Under what circumstances may a Foster Grandparent be 
removed from service?

    (a) A sponsor may remove a Foster Grandparent from service for 
cause. Grounds for removal include, but are not limited to: Extensive 
and unauthorized absences; misconduct; failure to perform assignments 
or failure to accept supervision. A Foster Grandparent may also be 
removed from stipended service for having income in excess of the 
eligibility level. A Foster Grandparent shall be removed immediately if 
ineligible to serve based on criminal history check results.
    (b) The sponsor shall establish appropriate policies on removal 
from service, as well as procedures for appeal.

0
58. Revise Sec.  2552.61 to read as follows:


Sec.  2552.61   May a sponsor serve as a volunteer station?

    Yes. A sponsor may serve as a volunteer station, if the activities 
are part of a work plan in the approved project application.

0
59. Amend Sec.  2552.62 as follows:
0
a. Revise paragraphs (c) and (d).
0
b. Add the word ``and'' to the end of paragraph (e)(1).
0
c. Revise paragraph (e)(2).

0
d. Remove paragraph (e)(3).
0
e. Revise paragraphs (i) and (j).
    The revisions read as follows:


Sec.  2552.62  What are the responsibilities of a volunteer station?

* * * * *
    (c) Develop a written volunteer assignment plan for each Foster 
Grandparent that identifies their roles and activities, each child 
served, and expected outcomes.
    (d) Keep a Letter of Agreement for each child who receives in-home 
service.
    (e) * * *
    (2) Resources required for performance of assignments, including 
reasonable accommodation, as needed, to enable Foster Grandparents with 
disabilities to perform the essential functions of their service; and
* * * * *
    (i) Comply with all applicable civil rights laws and regulations, 
including providing Foster Grandparents with disabilities reasonable 
accommodation, to perform the essential functions of their service.
    (j) Undertake such other responsibilities as may be necessary for 
the successful performance of Foster Grandparents in their assignments 
or as agreed to in the Memorandum of Understanding.

0
60. Revise Sec.  2552.71(a) and (b) to read as follows:


Sec.  2552.71  What requirements govern the assignment of Foster 
Grandparents?

* * * * *
    (a) Provide for Foster Grandparents to give direct services to one 
or more eligible children.
    (b) Result in person-to-person supportive relationships with each 
child served. Foster Grandparent volunteers cannot be assigned to roles 
such as teacher's aides, group leaders or other similar positions that 
would detract from the person-to-person relationship.
* * * * *

0
61. Amend Sec.  2552.72 as follows:
0
a. Revise the section heading and paragraph (a)(5).
0
b. Remove and reserve paragraph (b).


Sec.  2552.72  Is a written volunteer assignment plan required for each 
Foster Grandparent?

    (a) * * *
    (5) Is used to review the impact of the assignment on the 
child(ren).
* * * * *

0
62. Revise the heading for subpart H to read as follows:

Subpart H--Children and Youth Served

0
63. Revise the heading for Sec.  2552.81 to read as follows:


Sec.  2552.81   Who is eligible to be served?

* * * * *

0
64. Revise Sec.  2552.82(a) introductory text to read as follows:


Sec.  2552.82   Under what circumstances may a Foster Grandparent 
continue to serve an individual beyond his or her 21st birthday?

    (a) Only when a Foster Grandparent has been assigned to, and has 
developed a relationship with an individual with a disability, may that 
assignment continue beyond the individual's 21st birthday, provided 
that:
* * * * *

0
65. Revise Sec.  2552.91 to read as follows:


Sec.  2552.91  What is the process for application and award of a 
grant?

    (a) How and when may an eligible organization apply for a grant? 
(1) An eligible organization may file an application in response to 
CNCS' published request, such as a Notice of Funding Opportunity or a 
Notice of Funding Availability. Applicants are not assured of selection 
or approval and may have to compete with other applicants.
    (2) The applicant shall comply with the provisions of Executive 
Order 12372, ``Intergovernmental Review of Federal Programs,'' (3 CFR, 
1982 Comp., p. 197) in 45 CFR part 1233 and any other applicable 
requirements.
    (b) Who reviews the merits of an application and how is a grant 
awarded? (1) CNCS reviews and determines the merit of an application by 
its responsiveness to published guidelines and to the overall purposes 
and objectives of the program. When funds are available, CNCS awards a 
grant in writing to each applicant whose grant proposal provides the 
best potential for serving the purpose of the program.
    (2) The award will be documented by the Notice of Grant Award 
(NGA). CNCS and the sponsoring organization are the 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 CNCS' obligation to provide financial support to the sponsor.
    (c) What happens if CNCS rejects an application? CNCS will return 
an application that is not approved for funding to the applicant with 
an explanation of CNCS' decision.
    (d) For what period of time does CNCS award a grant? CNCS awards a 
Foster Grandparent grant for a specified period that is usually three 
years in duration.

0
66. Amend Sec.  2552.92 as follows;
0
a. Revise paragraphs (a), (b) introductory text, (c), and (d).

[[Page 64653]]

0
b. Remove paragraph (e).
0
c. Redesignate paragraph (f) as (e) and revise newly redesignated 
paragraph (e).
    The revisions read as follows:


Sec.  2552.92   What are project funding requirements?

    (a) Is non-CNCS support required? A CNCS grant may be awarded to 
fund up to 90 percent of the cost of development and operation of a 
Foster Grandparent project. The sponsor is required to contribute at 
least 10 percent of the total project cost from non-Federal sources or 
authorized Federal sources.
    (b) Under what circumstances does CNCS allow less than the 10 
percent non-CNCS support? CNCS may allow exceptions to the 10 percent 
local support requirement in cases of demonstrated need such as:
* * * * *
    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the 10 percent non-CNCS support required? 
Whenever locally generated contributions to Foster Grandparent projects 
are in excess of the minimum 10 percent non-CNCS support required, CNCS 
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 in support of the grant are 
subject to audit by CNCS, its Inspector General, or their authorized 
agents.
    (e) May a sponsor pay stipends at rates different than those 
established by CNCS? No, a sponsor shall pay stipends at rates 
established by CNCS.

0
67. Amend Sec.  2552.93 as follows:
0
a. Revise the section heading.
0
b. Remove the word ``and'' from the end of paragraph (a)(3).
0
c. Revise paragraph (a)(4).
0
d. Add paragraph (a)(5).
0
e. Revise paragraphs (b), (e), and (f).
    The revisions and addition read as follows:


Sec.  2552.93   What are a sponsor's legal requirements in managing 
grants?

* * * * *
    (a) * * *
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
* * * * *
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval is required for the following changes in 
the approved grant:
    (1) Reduction in budgeted volunteer service years.
    (2) Change in the service area.

0
68. Revise Sec.  2552.101 to read as follows:


Sec.  2552.101  What rule governs the recruitment and enrollment of 
persons who do not meet the income eligibility guidelines to serve as 
Foster Grandparents?

    Over-income persons as described in Sec.  2552.43, age 55 or over, 
may be enrolled in FGP project as non-stipended volunteers.

0
69. Amend Sec.  2552.102 as follows:
0
a. Revise paragraphs (b) and (d).
0
b. Remove paragraphs (e) and (f).
0
c. Redesignate paragraph (g) as (e) and revise newly redesignated 
paragraph (e).
    The revisions read as follows:


Sec.  2552.102  What are the conditions of service of non-stipended 
Foster Grandparents?

* * * * *
    (b) No special privilege or status is granted or created among 
Foster Grandparents, whether stipended or non-stipended, and equal 
treatment is required.
* * * * *
    (d) All regulations and requirements applicable to the program 
apply to all Foster Grandparents.
    (e) Non-stipended Foster Grandparents may contribute the costs they 
incur in connection with their participation in the program. An FGP 
project may not count such contributions as part of the required non-
CNCS support (match) for the grant.

0
70. Revise Sec.  2552.103 to read as follows:


Sec.  2552.103   Must a sponsor be required to enroll non-stipended 
Foster Grandparents?

    No. Enrollment of non-stipended Foster Grandparents is not a 
condition for a sponsor to receive a new or continuation grant.


Sec.  2552.104  [Removed and Reserved]

0
71. Remove and reserve Sec.  2552.104.

0
72. Revise the heading for subpart K to read as follows:

Subpart K--Non-CNCS Funded Foster Grandparent Projects

0
73. Revise Sec.  2552.111 to read as follows:


Sec.  2552.111   Under what conditions may an agency or organization 
sponsor a Foster Grandparent project without CNCS funding?

    An eligible agency or organization who wishes to sponsor a Foster 
Grandparent project without CNCS funding must make an application 
through the designated grants management system which is approved by 
CNCS and documented through the Notice of Grant Agreement (NGA).

0
74. Amend Sec.  2552.112 by revising the section heading, introductory 
text, and paragraph (a) to read as follows:


Sec.  2552.112  What are the resources and benefits to which a non-CNCS 
funded project is entitled?

    The Notice of Grant Award entitles the sponsor of a Non-CNCS funded 
project to:
    (a) All technical assistance and materials provided to CNCS funded 
Foster Grandparent projects; and
* * * * *

0
75. Revise Sec.  2552.113 to read as follows:


Sec.  2552.113  What financial obligation does CNCS incur for non-CNCS 
funded projects?

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

0
76. Revise Sec.  2552.114 to read as follows:


Sec.  2552.114   What happens if a non-CNCS funded sponsor does not 
comply with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2552.112.

0
77. Revise Sec.  2552.121(c)(2), (g), and (h) to read as follows:


Sec.  2552.121  What legal limitations apply to the operation of the 
Foster Grandparent Program and to the expenditure of grant funds?

* * * * *
    (c) * * *
    (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 CNCS.
* * * * *
    (g) Religious activities. (1) A Foster Grandparent or a member of 
the project staff funded by CNCS shall not give religious instruction, 
conduct worship

[[Page 64654]]

services or engage in any form of proselytization as part of his/her 
duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, 
provided that it does not use CNCS funds to support any inherently 
religious activities, such as worship, religious instruction, or 
proselytization, as part of the programs or services funded. If an 
organization conducts such activities, the activities must be offered 
separately, in time or location, from the programs or services funded 
under this part.
    (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 CNCS.

0
78. Revise Sec.  2552.122 to read as follows:


Sec.  2552.122  What legal coverage does CNCS make available to Foster 
Grandparents?

    It is within CNCS' discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to 
the defense of a FGP volunteer are 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 CNCS may pay such expenses are specified in 45 CFR part 1220.

PART 2553--THE RETIRED AND SENIOR VOLUNTEER PROGRAM

0
79. The authority citation for part 2553 continues to read as follows:

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


0
80. Amend Sec.  2553.12 as follows:
0
a. Remove paragraphs (e), (j), (k), (n), (q), and (r).
0
b. Remove all alphabetical paragraph designations.
0
c. Revise the definition of ``Adequate staffing level''.
0
d. Add the definition of ``Assignment description'' in alphabetical 
order.
0
e. Revise the definition of ``Chief Executive Officer''.
0
f. Add the definition of ``CNCS'' in alphabetical order.
0
g. Revise the definitions of ``Cost reimbursements'', ``Letter of 
Agreement'', and ``National Senior Service Corps (NSSC)''.
0
h. Add the definitions of ``Non-CNCS support (excess)'' and ``Non-CNCS 
support (match)'' in alphabetical order.
0
i. Revise the definitions of ``Performance measures'' and ``Project''.
0
j. Add the definition of ``Proprietary Health Care Organization'' in 
alphabetical order.
0
k. Revise the definitions of ``Sponsor'' and ``Service area''.
0
l. Add the definition of ``United States and Territories'' in 
alphabetical order.
0
m. Revise the definition of ``Volunteer station''.
    The revisions and additions read as follows:


Sec.  2553.12   Definitions.

* * * * *
    Adequate staffing level. The number of project staff or full time 
equivalent needed by a sponsor to manage the National Senior Service 
Corps (NSSC) project operations considering such factors as: Number of 
budgeted volunteers, number of volunteer stations, and the size of the 
service area.
* * * * *
    Assignment description. The written description of the activities, 
functions or responsibilities to be performed by RSVP volunteers.
    Chief Executive Officer. The Chief Executive Officer of CNCS 
appointed under the National and Community Service Act of 1990, as 
amended, (NCSA), 42 U.S.C. 12501 et seq.
    CNCS. The Corporation for National and Community Service 
established under the NCSA.
    Cost reimbursements. Reimbursements budgeted as Volunteer Expenses 
and provided to volunteers, including stipends to cover incidental 
costs, transportation, meals, recognition, supplemental accident, 
personal liability and excess automobile liability insurance, and other 
expenses as negotiated in the Memorandum of Understanding.
    Letter of Agreement. A written agreement between a volunteer 
station or sponsor, and person(s) served or the person legally 
responsible for that person. It authorizes the assignment of an RSVP 
volunteer in the home of a client, defines RSVP volunteer activities, 
and specifies supervision arrangements.
* * * * *
    National Senior Service Corps (NSSC). The collective name for the 
Senior Companion Program (SCP), Foster Grandparent Program (FGP), and 
the Retired and Senior Volunteer Program (RSVP), and Demonstration 
Programs, all of which are established under Parts A, B, C, and E, 
Title II of the Act. NSSC is also referred to as the ``Senior Corps.''
    Non-CNCS support (excess). The amount of non-CNCS cash and in-kind 
contributions generated by a sponsor in excess of the required 
percentage.
    Non-CNCS support (match). The percentage share of non-CNCS cash and 
in-kind contributions required to be raised by the sponsor in support 
of the grant.
    Performance measures. Indicators intended to that help determine 
the impact of an RSVP project on the community, including the 
volunteers.
    Project. The locally planned RSVP activity or set of activities in 
a service area as approved by CNCS and implemented by the sponsor.
    Proprietary Health Care Organizations. Private, for-profit health 
care organization that serves one or more vulnerable populations.
    Service area. The geographically defined area(s) approved in the 
grant application, in which RSVP volunteers are enrolled and placed on 
assignments.
    Sponsor. A public agency, including Indian tribes as defined in 
section 421(5) of the Act, and private, non-profit organizations, both 
secular and faith-based, in the United States that have authority to 
accept and the capability to administer an RSVP project.
    United States and Territories. Each of the several States, the 
District of Columbia, the U.S. Virgin Islands, the Commonwealth of 
Puerto Rico, Guam and American Samoa, the Commonwealth of the Northern 
Mariana Islands, and the Trust Territories of the Pacific Islands.
    Volunteer station. A public agency; a private, non-profit 
organization, secular or faith-based; or a proprietary health care 
organization. A volunteer station must accept responsibility for the 
assignment and supervision of RSVP volunteers in health, education, 
social service or related settings such as multi-purpose centers, home 
health care agencies, or similar establishments. Each volunteer station 
must be licensed or otherwise certified, when required, by the 
appropriate state or local government. Private homes are not volunteer 
stations.

0
81. Revise Sec.  2553.21 to read as follows:


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

    CNCS awards grants to public agencies, including Indian tribes as 
defined in section 421(5) of the Act, and private, non-profit 
organizations, both secular and faith-based, in the United States that 
have authority to accept and

[[Page 64655]]

the capability to administer an RSVP project.

0
82. Revise Sec.  2553.22 to read as follows:


Sec.  2553.22   What are the responsibilities of a sponsor?

    A sponsor is responsible for fulfilling all project management 
requirements necessary to accomplish the purposes of the RSVP project 
as specified in the Act. A sponsor shall not delegate or contract these 
overall management responsibilities to another entity. CNCS retains the 
right to determine what types of management responsibilities may or may 
not be contracted.

0
83. Amend Sec.  2553.23 as follows:
0
a. Revise the section heading, paragraph (b), and paragraph (c) 
introductory text.
0
b. Remove the word ``and'' from the end of paragraph (c)(2)(iii).
0
c. Revise paragraph (c)(2)(iv).
0
d. Add paragraph (c)(2)(v).
0
e. Remove paragraph (c)(3).
0
f. Revise paragraph (e).
0
g. Remove paragraphs (f), (g), and (i).
0
h. Redesignate paragraphs (h) and (j) as (f) and (g), respectively, and 
revise newly redesignated paragraph (g). The revisions and addition 
read as follows:


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

* * * * *
    (b) In collaboration with other community organizations or by using 
existing assessments, assess the needs of the community or service 
area, and develop strategies to respond to identified needs using RSVP 
volunteers.
    (c) Develop and manage one or more volunteer stations to provide a 
wide range of placement opportunities that appeal to persons age 55 and 
over by:
* * * * *
    (2) * * *
    (iv) That states the station will not discriminate against RSVP 
volunteers, service beneficiaries, or in the operation of its program 
on the basis of race, color, national origin including individuals with 
limited English proficiency, gender, age, religion, sexual orientation, 
disability, gender identity or expression, political affiliation, 
marital or parental status, or military service; and
    (v) That states the station will provide for the safety of the RSVP 
volunteers assigned to the station.
* * * * *
    (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 CNCS programs.
* * * * *
    (g) Make every effort to meet such performance measures as 
established in the approved grant application.

0
84. Revise Sec.  2553.24(a)(2) through (4) to read as follows:


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

    (a) * * *
    (2) With an interest in the field of community service and 
volunteerism;
    (3) Capable of helping the sponsor satisfy its administrative and 
program responsibilities including fund-raising, publicity and meeting 
or exceeding performance measures;
    (4) With an interest in, and knowledge of, the range of abilities 
of older adults; and
* * * * *

0
85. Amend Sec.  2553.25 as follows:
0
a. Revise paragraph (c).
0
b. Revise paragraphs (e) through (i).
    The revisions read as follows:


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

* * * * *
    (c) Employ a full-time project director to accomplish project 
objectives and manage the functions and activities delegate to project 
staff for Senior Corps project(s) within its control. The project 
director may participate in activities to coordinate project resources 
with those of related local agencies, boards or organizations. A full-
time project director shall not serve concurrently in another capacity, 
paid or unpaid, during established working hours. A sponsor may 
negotiate the employment of a part-time project director with CNCS when 
the sponsor can demonstrate that such an arrangement will not adversely 
affect the size, scope or quality of project operations.
* * * * *
    (e) Compensate project staff at a level that is comparable to 
similar staff positions in the sponsor organization and/or project 
service area, as is practicable.
    (f) Establish risk management policies and procedures covering RSVP 
project activities. This includes provision of appropriate insurance 
coverage for RSVP volunteers, which includes; accident insurance, 
personal liability insurance, and excess automobile liability 
insurance.
    (g) Establish record keeping and reporting systems in compliance 
with CNCS requirements that ensure quality of program and fiscal 
operations, facilitate timely and accurate submission of required 
reports and cooperate with CNCS evaluation and data collection efforts.
    (h) Comply with, and ensure that all volunteer stations comply 
with, all applicable civil rights laws and regulations, including non-
discrimination based on disability.
    (i) Conduct National Service Criminal History Checks in accordance 
with the requirements in 45 CFR 2540.200 through 2540.207.


Sec.  2553.26  [Removed and Reserved]

0
86. Remove and reserve Sec.  2553.26.

0
87. Revise Sec.  2553.31(a)(3), (b), and (c) to read as follows;


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

    (a) * * *
    (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 CNCS; and
* * * * *
    (b) Hearings or other meetings as may be necessary to fulfill the 
requirements of this section should, to the extent practicable, be held 
in locations convenient to the grant recipient.
    (c) The procedures for suspension, termination, and denial of 
refunding, that apply to the RSVP program are specified in 45 CFR part 
1206.

0
88. Amend Sec.  2553.41 as follows:
0
a. Revise the section heading.
0
b. Add the word ``and'' at the end of paragraph (a)(2).
0
c. Remove the semicolon at the end of paragraph (a)(3) and add a period 
in its place.
0
d. Remove paragraph (a)(4).
0
e. Revise paragraph (b).
    The revisions read as follows:


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

* * * * *
    (b) Eligibility to serve as an RSVP volunteer shall not be 
restricted on the basis of formal education, experience, race, color, 
national origin including limited English proficiency, gender, age, 
religion, sexual orientation, disability, gender identity or 
expression, political affiliation, marital or parental status, or 
military service.

0
89. Revise Sec.  2553.42 to read as follows:


Sec.  2553.42   Is an 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, CNCS or the Federal Government.

0
90. Revise Sec.  2553.43 to read as follows:

[[Page 64656]]

Sec.  2553.43  What cost reimbursements and benefits may sponsors 
provide to RSVP volunteers?

    (a) RSVP volunteers may be provided the following cost 
reimbursements within the limits of the project's available resources:
    (1) Transportation. RSVP volunteers may receive assistance with the 
cost of transportation to and from volunteer assignments and official 
project activities, including orientation, training, and recognition 
events.
    (2) Meals. RSVP volunteers may receive assistance with the cost of 
meals taken while on assignment.
    (3) Other volunteer expenses. RSVP volunteers may also be 
reimbursed for allowable out-of-pocket expenses incurred while 
performing their assignments.
    (b) RSVP volunteers must be provided the following cost 
reimbursements:
    (1) Recognition. RSVP volunteers shall be provided recognition for 
their service.
    (2) Insurance. An RSVP volunteer is provided with the CNCS-
specified minimum levels of insurance as follows:
    (i) Accident insurance. Accident insurance covers RSVP volunteers 
for personal injury during travel between their homes and places of 
assignment, during 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.
    (ii) Personal liability insurance. Protection is provided against 
claims in excess of protection provided by other insurance. It does not 
include professional liability coverage.
    (iii) Excess automobile insurance. (A) RSVP drivers who drive in 
connection with their service shall be provided protection against 
claims in excess of the greater of either:
    (1) Liability insurance the volunteers carry on their own 
automobiles; or
    (2) The limits of applicable state financial responsibility law, or 
in its absence, levels of protection to be determined by CNCS for each 
person, each accident, and for property damage.
    (B) 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 CNCS.

0
91. Revise Sec.  2553.44 to read as follows:


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

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

0
92. Revise Sec.  2553.51 to read as follows:


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

    An RSVP volunteer shall serve on a regular basis, or intensively on 
short-term assignments, consistent with the assignment description.

0
93. Revise Sec.  2553.52 to read as follows:


Sec.  2553.52   Under what circumstances may a sponsor remove an RSVP 
volunteer from service?

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

0
94. Revise Sec.  2553.61 to read as follows:


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

    The sponsor and RSVP project itself may function as a volunteer 
station or may initiate special volunteer activities provided that CNCS 
agrees these activities are in accord with program objectives and will 
not hinder overall project operations.

0
95. Amend Sec.  2553.62 as follows:
0
a. Revise paragraphs (b), (c), (e), and (f)(2) and (3).
0
b. Remove paragraphs (f)(4) and (5).
    The revisions read as follows:


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

* * * * *
    (b) Assign staff member responsible for day to day oversight of 
RSVP volunteers within the volunteer station and for assessing the 
impact of volunteers in addressing community needs;
    (c) Keep a Letter of Agreement for each client who receives in-home 
service;
* * * * *
    (e) Comply with all applicable civil rights requirements including 
providing RSVP volunteers with disabilities reasonable accommodation to 
perform the essential functions of their service;
    (f) * * *
    (2) Resources required for performance of assignments including 
reasonable accommodation to RSVP volunteers with disabilities to 
perform the essential functions of their service; and
    (3) Supervision.
* * * * *

0
96. Amend Sec.  2553.71 as follows:
0
a. Revise the introductory text and paragraphs (a)(1), (b)(1), 
(b)(2)(iv), (c)(2), (d), and (e).
0
b. Remove paragraph (f).
    The revisions read as follows:


Sec.  2553.71  What is the process for application and award of a 
grant?

    As funds become available, CNCS solicits application for RSVP 
grants from eligible organizations through a competitive process.
    (a) * * *
    (1) Submit required information determined by CNCS.
* * * * *
    (b) What process does CNCS use to select new RSVP grantees? (1) 
CNCS reviews and determines the merits of an application by its 
responsiveness to published guidelines and to the overall purpose and 
objectives of the program. In conducting its review during the 
competitive process, CNCS considers the input and opinions of those 
serving on a peer review panel, including members with expertise in 
senior service and aging, and may conduct site inspections, as 
appropriate.
    (2) * * *
    (iv) Ensuring innovation and geographic, demographic, and 
programmatic diversity across CNCS RSVP grantee portfolio; and
* * * * *
    (c) * * *
    (2) CNCS 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 CNCS' obligation to provide assistance to the sponsor.
    (d) What happens if CNCS rejects an application? CNCS will inform 
an applicant when an application is not approved for funding.
    (e) For what period of time does CNCS award a grant? CNCS awards an 
RSVP

[[Page 64657]]

grant for a specified period that is usually three years in duration 
with an option for a grant renewal of three years, if the grantee's 
performance and compliance with grant terms and conditions are 
satisfactory. CNCS will terminate funding to a grantee when CNCS 
determines that the grant should not be renewed for an additional three 
year period.

0
97. Revise Sec.  2553.72(a), (b) introductory text, (c), and (d) to 
read as follows:


Sec.  2553.72  What are project funding requirements?

    (a) Is non-CNCS support required? (1) A CNCS 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-CNCS funds which 
may include in-kind contributions.
    (b) Under what circumstances does CNCS allow less than the 
percentage identified in paragraph (a) of this section? CNCS may allow 
exceptions to the local support requirement identified in paragraph (a) 
of this section in cases of demonstrated need such as:
* * * * *
    (c) May CNCS restrict how a sponsor uses locally generated 
contributions in excess of the non-CNCS support required? Whenever 
locally generated contributions to RSVP projects are in excess of the 
non-CNCS 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), CNCS 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 
CNCS, its Inspector General or their authorized agents.

0
98. Amend Sec.  2553.73 as follows:
0
a. Revise the section heading.

0
b. Remove the word ``and'' from the end of paragraph (a)(3).
0
c. Revise paragraph (a)(4).
0
d. Add paragraph (a)(5).
0
e. Revise paragraphs (b), (e), and (f).
    The revisions and addition read as follows:


Sec.  2553.73  What are a sponsor's legal requirements in managing 
grants?

* * * * *
    (a) * * *
    (4) All applicable CNCS policies; and
    (5) All other applicable CNCS requirements.
    (b) Project support provided under a CNCS grant shall be furnished 
at the lowest possible cost consistent with the effective operation of 
the project.
* * * * *
    (e) Payments to settle discrimination complaints, either through a 
settlement agreement or formal adjudication, are not allowable costs.
    (f) Written CNCS approval/concurrence is required for a change in 
the approved service area.

0
99. Revise the heading for subpart H to read as follows:

Subpart H--Non-CNCS Funded Projects

0
100. Revise Sec.  2553.81 to read as follows:


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

    An eligible agency or organization who wishes to sponsor an RSVP 
project without CNCS funding must make an application through the 
designated grants management system which is approved by CNCS and 
documented through the Notice of Grant Agreement (NGA).

0
101. Amend Sec.  2553.82 by revising the section heading and paragraph 
(a) to read as follows:


Sec.  2553.82  What are the resources and benefits to which a non-CNCS 
funded project is entitled?

    (a) All technical assistance and materials provided to CNCS funded 
RSVP volunteer projects; and
* * * * *

0
102. Revise Sec.  2553.83 to read as follows:


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

    Issuance of an NGA to a sponsor of a non-CNCS funded project does 
not create a financial obligation on the part of CNCS for any costs 
associated with the project.

0
103. Revise Sec.  2553.84 to read as follows:


Sec.  2553.84   What happens if a non-CNCS funded sponsor does not 
comply with the NGA?

    A non-CNCS funded project sponsor's noncompliance with the NGA may 
result in suspension or termination CNCS' agreement and all benefits 
specified in Sec.  2553.82.

0
104. In Sec.  2553.91, revise the section heading and paragraphs 
(c)(2), (g), and (h) to read as follows:


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

* * * * *
    (c) * * *
    (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 CNCS.
* * * * *
    (g) Religious activities. (1) An RSVP volunteer or a member of the 
project staff funded by CNCS shall not give religious instruction, 
conduct worship services, or engage in any form of proselytization as 
part of his/her duties.
    (2) A sponsor or volunteer station may retain its independence and 
may continue to carry out its mission, including the definition, 
development, practice, and expression of its religious beliefs, 
provided that it does not use CNCS funds to support any inherently 
religious activities, such as worship, religious instruction, or 
proselytization, as part of the programs or services funded. If an 
organization conducts such activities, the activities must be offered 
separately, in time or location, from the programs or services funded 
under this part.
    (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 CNCS.

0
105. Revise Sec.  2553.92 to read as follows:


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

    It is within CNCS' discretion to determine if Counsel is employed 
and counsel fees, court costs, bail and other expenses incidental to 
the defense of an RSVP volunteer are 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 CNCS may pay such expenses are specified in 45 CFR part 1220.


Sec.  2553.100  [Removed]

0
106. Remove Sec.  2553.100.

0
107. Revise Sec.  2553.101 to read as follows:

[[Page 64658]]

Sec.  2553.101   What is the purpose of performance measurement?

    The purpose of performance measurement is to strengthen the RSVP 
project and foster continuous improvement. Performance measures are 
used to assess how an applicant for a grant approaches the design of 
volunteer activities and how those activities impact community needs.

0
108. Revise Sec.  2553.102 to read as follows:


Sec.  2553.102  What performance measurement information must be part 
of an application for funding under RSVP?

    An application to CNCS for funding under RSVP must contain:
    (a) In a year one renewal application:
    (1) Performance measures.
    (2) Estimated performance data for the project years covered by the 
application.
    (b) In a year two or three continuation application:
    (1) Performance measures.
    (2) Estimated performance data for the project years covered by the 
application.
    (3) Actual performance data, where available, for the preceding 
completed project year.

0
109. Revise Sec.  2553.103 to read as follows:


Sec.  2553.103  Who develops the performance measures?

    (a) CNCS may establish performance measures that will apply to RSVP 
projects, which sponsors will be responsible for meeting.
    (b) An applicant is responsible for choosing its own project 
specific performance measures.

0
110. Revise Sec.  2553.104 to read as follows:


Sec.  2553.104   What performance measures must be submitted to CNCS 
and how are these submitted?

    (a) An applicant for CNCS funds is required to submit any uniform 
performance measure CNCS may establish for all applicants. 
Requirements, including types of performance measures, will be 
communicated in the notice of funding and other related materials.
    (b) CNCS may specify additional requirements related to performance 
measures on an annual basis in program guidance and related materials.
    (c) Applicants for CNCS funds will submit performance measures 
through the grant application. CNCS will provide standard forms.

0
111. Revise Sec.  2553.105 to read as follows:


Sec.  2553.105   How are performance measures approved and documented?

    (a) CNCS reviews and approves performance measures for all 
applicants that apply for funding.
    (b) An applicant must follow CNCS provided guidance and formats 
when submitting performance measures.
    (c) Final performance measures, as negotiated between the applicant 
and CNCS, will be documented in the approved grant application.

0
112. Revise Sec.  2553.106 to read as follows:


Sec.  2553.106  How does a sponsor report performance measures to CNCS?

    CNCS will set specific reporting requirements, including frequency 
and deadlines, concerning performance measures established in the grant 
award. A sponsor is required to report on the actual results that 
occurred when implementing the grant and to regularly measure the 
project's performance.

0
113. Amend Sec.  2553.107 by revising the introductory text to read as 
follows:


Sec.  2553.107  What must a sponsor do if it cannot meet its 
performance measures?

    When a sponsor finds it is not on track to meet its performance 
measures, the sponsor must develop a plan to get back on track or 
submit a request to CNCS to amend its performance measures. CNCS may 
limit when amendments to performance measure can be submitted, as well 
as limit the types of changes a sponsor can make to performance 
measures. The request must include all of the following:
* * * * *


Sec.  2553.108  [Removed]

0
114. Remove Sec.  2553.108.


Sec.  2553.109  [Redesignated as Sec.  2553.108 and Amended]

0
115. Redesignate Sec.  2553.109 as Sec.  2553.108 and revise newly 
redesignated Sec.  2553.108 to read as follows:


Sec.  2553.108  What happens if a sponsor fails to meet the target 
performance measures included in the approved grant application?

    If a sponsor fails to meet a target performance measure established 
in the approved grant application, CNCS may take one or more of the 
following actions:
    (a) Reduce the amount, suspend, or deny refunding of the grant, in 
accordance with the provisions of Sec.  2553.31;
    (b) Terminate the grant, in accordance with 45 CFR part 1206.

    Dated: December 4, 2018.
Tim Noelker,
General Counsel.
[FR Doc. 2018-26739 Filed 12-14-18; 8:45 am]
 BILLING CODE 6050-28-P