Senior Companion Program

CORPORATION FOR NATIONAL AND COMMUNITY SERVICE

45 CFR Parts 1207 and 2551

RIN 3045-AA17

Senior Companion Program

AGENCY: Corporation for National and Community Service.

ACTION: Notice of proposed rulemaking.

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SUMMARY: The Corporation for National and Community Service

(hereinafter the ``Corporation'') proposes to amend the regulations

governing the administration of the Senior Companion Program (SCP).

These amendments will: implement changes in the program's authorizing

legislation; establish minimum program requirements with greater

clarity; update program operations to make them responsive to changes

that have occurred since the regulations were last published;

consolidate requirements from outdated sources into one user friendly

document; balance increased flexibility with increased responsibility

and accountability at the local level; and incorporate new concepts of

programming to highlight the accomplishments and impact of senior

service.

[[Page 46955]]

The format used is designed to make the requirements easy for local

sponsors and project managers to understand. It integrates related

topics under one heading for easy reference.

Upon adoption, the proposed amendments will supersede the old

ACTION regulations and the SCP Operations Handbook.

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

ADDRESSES: Comments should be sent to the Corporation for National

Service, Director, National Senior Service Corps, 1201 New York Avenue,

NW, Washington, DC 20525.

FOR FURTHER INFORMATION CONTACT: Rey Tejada at 202-606-5000, ext. 197.

SUPPLEMENTARY INFORMATION: The requirements governing the

administration of SCP projects are currently embodied in two documents:

45 CFR Part 1207 which was last published in the Federal Register on

June 10, 1983, and the SCP Operations Handbook. The proposed amendments

will combine all minimum program requirements in just one document to

make it easier for interested parties to secure basic program

information.

The proposed amendments include modifications to current program

requirements including those applicable to: the responsibilities of a

SCP sponsor, community participation in local project operations, full-

time project director, volunteer income eligibility, volunteer service

schedule, volunteer leave, client care plan, authority to approve

grants, waiver of non-federal support, ratio of volunteer cost

reimbursement, and compensation for service.

The proposed amendments also reflect changes in the program's

administrative structure resulting from the merger of the former ACTION

agency into the Corporation in April 1994.

Regulatory Flexibility Act and Unfunded Mandate Reform Act

The General Counsel, in accordance with the Regulatory Flexibility

Act (5 U.S.C. 606(b)), has reviewed this regulation and by approving

certifies that this proposed rule will not have a significant impact on

small business entities.

Under the Unfunded Mandates Reform Act of 1995, the Corporation

certifies that this proposed rule does not include any Federal mandate

that may result in the expenditure by State, local, and tribal

governments, in the aggregate, or by the private sector, of

$100,000,000 or more (adjusted annually for inflation) in any one year.

Paperwork Reduction Act of 1995

These proposed regulations have been examined under the Paperwork

Reduction Act of 1995 and have been found to contain no information

collection requirements.

Intergovernmental Review

This program is subject to the requirements of Executive Order

12372. The objective of the Executive order is to foster an

intergovernmental partnership and strengthened federalism by relying on

processes developed by State and local governments for coordination and

review of proposed Federal financial assistance.

In accordance with the order, this document is intended to provide

early notification of the Corporation's specific plans and actions for

this program.

Executive Order 12866

This regulation has been drafted and reviewed in accordance with

Executive Order 12866. The Office of Management and Budget has reviewed

this rule and has determined that this rule is not a ``significant

regulatory action'' under Executive Order 12866, section 3(f),

Regulatory Planning and Review.

Participation in the Rulemaking

The SCP Program Council, a group established to provide advice to

the Corporation on program related issues, was consulted, reviewed and

gave recommendations on initial drafts of the proposed regulations.

Council membership is comprised of SCP project staff and sponsor

representatives, as well as selected staff from Corporation field

offices. A similar opportunity was given to all Corporation field

staff, a group that plays an important role in the implementation of

program regulations.

Distribution Table

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New 45

Old 45 CFR part 1207 CFR part

2551

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1207.1-1..................................................... 2551.11

1207.2-1..................................................... 2551.21

1207.3-1..................................................... 2251.31

1207.4-1..................................................... 2251.41

1207.5-1..................................................... 2251.51

2251.61

2251.71

2251.81

2251.91

2251.101

2251.111

2251.121

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List of Subjects

45 CFR Part 1207

Aged, Grant programs--social programs, Reporting and recordkeeping

requirements, Volunteers.

45 CFR Part 2551

Aged, Grant programs-social programs, Volunteers.

Accordingly, and under the authority of 42 U.S.C. 12501 et seq.,

the Corporation proposes to amend 45 CFR chapters XII and XXV as

follows:

PART 1207--[REDESIGNATED AS PART 2551]

1. Part 1207 in 45 CFR chapter XII is redesignated as part 2551 in

45 CFR chapter XXV and is revised to read as follows:

PART 2551--SENIOR COMPANION PROGRAM

Subpart A--General

Sec.

2551.11 What is the Senior Companion Program?

2551.12 Definitions.

Subpart B--Eligibility and Responsibilities of a Sponsor

2551.21 Who is eligible to serve as a sponsor?

2551.22 What are the responsibilities of a sponsor?

2551.23 What are a sponsor's program responsibilities?

2551.24 What are a sponsor's responsibilities for securing

community participation?

2551.25 What are a sponsor's administrative responsibilities?

2551.26 May a sponsor administer more than one program grant from

the Corporation?

Subpart C--Suspension and Termination of Corporation Assistance

2551.31 What are the rules on suspension, termination, and denial

of refunding of grants?

Subpart D--Senior Companion Eligibility, Status, and Cost

Reimbursements

2551.41 Who is eligible to be a Senior Companion?

2551.42 What income guidelines govern eligibility to serve as a

stipended Senior Companion?

2551.43 What is considered income for determining volunteer

eligibility?

2551.44 Is a Senior Companion a federal employee, an employee of

the sponsor or of the volunteer station?

2551.45 What cost reimbursements are provided to Senior Companions?

2551.46 May the cost reimbursements 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?

[[Page 46956]]

Subpart E--Senior Companion Terms of Service

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

2551.52 Under what circumstances may a Senior Companion be allowed

to serve a modified service schedule?

2551.53 What factors are considered in determining a Senior

Companion's service schedule?

2551.54 Under what circumstances may a Senior Companion's service

be terminated?

2551.55 Are Senior Companions eligible for leave?

Subpart F--Responsibilities of a Volunteer Station

2551.61 When may a sponsor serve as a volunteer station?

2551.62 What are the responsibilities of a volunteer station?

Subpart G--Senior Companion Placements and Assignments

2551.71 Must all Senior Companion placements be year-round?

2551.72 What requirements govern the assignment of Senior

Companions?

2551.73 Is a written care plan required for each volunteer station

and what purpose does it serve?

Subpart H--Clients Served

2551.81 What type of clients are eligible to be served?

Subpart I--Application and Fiscal Requirements

2551.91 Application and award process.

2551.92 Project funding requirements.

2551.93 Grants management requirements.

Subpart J--Non-Stipended Senior Companions

2551.101 What rule governs the recruitment and enrollment of

persons who do not meet the income eligibility guidelines to serve

as Senior Companions without stipends?

2551.102 What are the conditions of service of non-stipended Senior

Companions?

2551.103 Must a sponsor be required to enroll non-stipended Senior

Companions?

2551.104 May Corporation funds be used for non-stipended Senior

Companions?

Subpart K--Non-Corporation Funded SCP Projects

2551.111 Under what conditions can an agency or organization

sponsor a Senior Companion project without Corporation funding?

2551.112 What benefits are a non-Corporation funded project

entitled to?

2551.113 What financial obligation does the Corporation incur for

non-Corporation funded projects?

2551.114 What happens if a non-Corporation funded sponsor does not

comply with the Memorandum of Agreement?

Subpart L--Restrictions and Legal Representation

2551.121 What legal limitations apply to the operation of the

Senior Companion Program and to the expenditure of grant funds?

2551.122 What legal coverage does the Corporation make available to

Senior Companions ?

Authority: 42 U.S.C. 4950 et seq., 5013.

Subpart A--General

Sec. 2551.11 What is the Senior Companion Program?

The Senior Companion Program provides grants to eligible agencies

and organizations to engage older persons, particularly those with

limited incomes, in volunteer service to meet critical community needs.

Program funds are used to support Senior Companions in providing

supportive, individualized services to help adults with special needs

maintain their dignity and independence. The program uses the skills

and experiences of individuals age 60 and over as a resource to address

local needs, and seeks to enrich the lives of older people through

their participation in community service.

Sec. 2551.12 Definitions

(a) Act. The Domestic Volunteer Service Act of 1973 as amended,

Pub. L. 93-113, Oct. 1, 1973, 87 Stat. 396, 42 U.S.C. 4950 et seq.

(b) Adult with special needs. Any individual over 21 years of age

who has one or more physical, emotional, or mental health limitations

and is in need of assistance to achieve and maintain their highest

level of independent living.

(c) Adequate Staffing Level. The number of project staff or full-

time equivalent needed by a sponsor to manage NSSC project operations

considering such factors as: number of budgeted Volunteer Service Years

(VSY), number of volunteer stations, and the size of the service area.

(d) Annual income. Total cash receipts from all sources over the

preceding 12 months including: the applicant or enrollee's income and,

the applicant or enrollee's spouse's income, if the spouse lives in the

same residence. The value of shelter, food, and clothing, may be

counted if provided at no cost by persons related to the applicant/

enrollee, or spouse.

(e) Care plan. A written description of a Senior Companion's

assignment with a client. The plan defines the goals for the client to

be attained through the relationship with a Senior Companion and the

specific activities to be performed by the Senior Companion in the

assignment.

(f) Chief Executive Officer. The Chief Executive Officer of the

Corporation appointed under the Trust Act.

(g) Corporation. The Corporation for National and Community Service

established under the Trust Act. The Corporation is also sometimes

referred to as CNCS.

(h) Cost Reimbursements. Reimbursements provided to volunteers such

as stipends to cover incidental costs, meals, and transportation, to

enable them to serve without cost to themselves. Also included are the

costs of annual physical examinations, volunteer insurance and

recognition which are budgeted as Volunteer Expenses.

(i) In-home. The non-institutional assignment of a Senior Companion

in a private residence.

(j) Letter of Agreement. A written agreement between a volunteer

station, the sponsor and the adult served or the persons legally

responsible for that adult. It authorizes the assignment of a Senior

Companion in the clients home, defines the Senior Companion's

activities and delineates specific arrangements for supervision.

(k) Memorandum of Understanding. A written statement prepared and

signed by the Senior Companion project sponsor and the volunteer

station that identifies project requirements, working relationships and

mutual responsibilities.

(l) National Senior Service Corps (NSSC). The collective name for

the Foster Grandparent Program (FGP), the Retired and Senior Volunteer

Program (RSVP), the Senior Companion Program (SCP), and Demonstration

Programs established under Title II Parts A, B, C, and E, of the Act.

NSSC is also referred to as the ``Senior Corps''.

(m) Non-Corporation Support (Required). The percentage share of

non-Federal cash and in-kind contributions, required to be raised by

the sponsor in support of the grant.

(n) Non-Corporation Support (Excess). The amount of non-Federal

cash and in-kind contributions generated by a sponsor in excess of the

required percentage.

(o) Project. The locally planned and implemented Senior Companion

Program activity or set of activities as agreed upon between a sponsor

and the Corporation.

(p) Qualified Individual With a Disability. An individual with a

disability who, with or without reasonable accommodation, can perform

the essential functions of a volunteer position that such individual

holds or desires. For purposes of the Americans With Disabilities Act,

consideration

[[Page 46957]]

shall be given to a sponsor's or volunteer station's judgment as to

what functions of a volunteer position are essential. If a sponsor has

prepared a written description before advertising or interviewing

applicants for the position, the written description shall be

considered evidence of the essential functions of the volunteer

position. This definition includes an individual with a physical or

mental impairment as defined in section 101(8) of the Americans With

Disabilities Act of 1990 (42 U.S.C. 12111(8)).

(q) Service Area. The geographically defined area in which Senior

Companions are recruited, enrolled, and placed on assignments.

(r) Service Schedule. A written delineation of the days and times a

Senior Companion serves each week.

(s) Sponsor. A public agency or private nonprofit organization that

is responsible for the operation of a Senior Companion project.

(t) Stipend. A payment to Senior Companions to enable them to serve

without cost to themselves. The amount of the stipend is determined by

the Corporation and is payable in regular installments. The minimum

amount of the stipend is set by law and shall be adjusted by the CEO

from time to time.

(u) Trust Act. The National and Community Service Trust Act of

1993, Pub. L. 103-82, Sept. 21, 1993, 107 Stat. 785.

(v) United States and States. Each of the several States, the

District of Columbia, the U.S. Virgin Islands, the Commonwealth of

Puerto Rico, Guam and American Samoa, and Trust Territories of the

Pacific Islands.

(w) Volunteer Station. A public agency, private nonprofit

organization or proprietary health care agency or organization that

accepts the responsibility for assignment and supervision of Senior

Companions in health, 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.

Subpart B--Eligibility and Responsibilities of a Sponsor

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

The Corporation awards grants to public agencies, including Indian

tribes and non-profit private organizations, in the United States that

have the authority to accept and the capability to administer a Senior

Companion project.

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 responsibilities to another entity. The sponsor shall

comply with all program regulations and policies, and grant provisions

prescribed by the Corporation.

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

A sponsor shall:

(a) Focus Senior Companion resources on critical problems affecting

the frail elderly and other adults with special needs within the

project's service area.

(b) Assess on an ongoing basis or collaborate with other community

organizations in the assessment of the needs of the client population

in the community and develop strategies to respond to those needs using

the resources of Senior Companions.

(c) Develop and manage a system of volunteer stations by:

(1) Insuring that a volunteer station is a public or non-profit

private organization, or an eligible proprietary health care agency,

capable of serving as a volunteer station for the placement of Senior

Companions;

(2) Ensuring that the placement of Senior Companions is governed by

a Memorandum of Understanding:

(i) That is negotiated prior to placement;

(ii) That specifies the mutual responsibilities of the station and

sponsor; and

(iii) That is renegotiated at least every three years; and

(3) Reviewing volunteer placements regularly to ensure that clients

are eligible to be served.

(d) Develop service opportunities that consider the skills and

experiences of the Senior Companion.

(e) Consider the demographic make-up of the project service area in

the enrollment of Senior Companions, taking special efforts to recruit

eligible individuals from minority groups, persons with disabilities,

and under-represented groups.

(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. 2551.45; with the opportunity to serve

year-round; with not less than 40 hours of pre-service orientation and

4 hours of monthly 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 Corporation

programs.

(h) Conduct an annual appraisal of volunteers' performance and

annual review of their income eligibility.

(i) Develop, and regularly update, a strategic plan that includes

the sponsor's vision and goals for the project.

(j) Develop, and annually update, a plan for promoting senior

service within the project's service area.

(k) Annually assess the accomplishments and impact of the project

on the identified needs and problems of the client population in the

community.

(l) Establish written service policies for Senior Companions that

include but are not limited to annual and sick leave, holidays, service

schedules, termination, appeal procedures, meal and transportation

reimbursements.

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

community participation?

(a) A sponsor shall secure community participation in local project

operation by establishing an Advisory Council or a similar

organizational structure with a membership that includes people:

(1) Knowledgeable of human and social needs of the community;

(2) Competent in the field of community service and volunteerism;

(3) Capable of helping the sponsor meet its administrative and

program responsibilities including fund-raising, publicity and impact

programming;

(4) With interest in and knowledge of the capability of older

adults; and

(5) Of a diverse composition that reflects the demographics of the

service area.

(b) The sponsor determines how such participation shall be secured,

consistent with the provisions of paragraphs (a)(1) through (a)(5) of

this section.

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

A sponsor shall:

(a) Assume full responsibility for securing maximum and continuing

community financial and in-kind support to operate the project

successfully.

(b) Develop a written delegation of authority that carefully

defines and clearly delineates project roles and responsibilities

retained by the sponsor from those delegated to project staff.

(c) Provide levels of staffing and resources appropriate to

accomplish the

[[Page 46958]]

purposes of the project and carry out those project management

responsibilities outlined in the above mentioned delegation of

authority and provide necessary administrative support to such project

staff.

(d) Employ a full-time project director to accomplish program

objectives and manage the functions and activities delegated to project

staff for NSSC program(s) within its control. A full-time project

director shall not serve concurrently in another capacity, paid or

unpaid, during established working hours. The project director may

participate in activities to coordinate program resources with those of

related local agencies, boards or organizations. A sponsor may

negotiate the employment of a part-time project director with the

Corporation when it can justify that such an arrangement will result in

cost savings applied proportionately to both federal and non-federal

funds without adversely affecting the size, scope, and quality of

project operations.

(e) Consider all project staff as sponsor employees subject to its

personnel policies and procedures.

(f) Compensate project staff at a level that is comparable with

other similar staff positions in the sponsor organization and/or

project service area.

(g) Establish risk management policies and procedures covering

project and Senior Companion activities. This includes provision of

appropriate insurance coverage for Senior Companions, vehicles and

other properties used in the project.

(h) Establish record keeping/reporting systems in compliance with

Corporation requirements that ensure quality of program and fiscal

operations, facilitate timely and accurate submission of required

reports; and cooperate with Corporation evaluation and data collection

efforts.

(i) Comply with and ensure that all volunteer stations comply with,

all applicable civil rights laws and regulations, including providing

reasonable accommodation to qualified individuals with disabilities.

Sec. 2551.26 May a sponsor administer more than one program grant from

the Corporation?

A sponsor may administer more than one Corporation program.

Subpart C--Suspension and Termination of Corporation Assistance

Sec. 2551.31 What are the rules on suspension, termination, and denial

of refunding of grants?

(a) The Chief Executive Officer or designee is authorized to

suspend further payments or to terminate payments under any grant

providing assistance under the Act whenever he/she determines there is

a material failure to comply with applicable terms and conditions of

the grant. The Chief Executive Officer shall prescribe procedures to

insure that:

(1) Assistance under the Act shall not be suspended for failure to

comply with applicable terms and conditions, except in emergency

situations for thirty days;

(2) An application for refunding under the Act may not be denied

unless the recipient has been given:

(i) Notice at least 75 days before the denial of such application

of the possibility of such denial and the grounds for any such denial;

and

(ii) Opportunity to show cause why such action should not be taken;

(3) In any case where an application for refunding is denied for

failure to comply with the terms and conditions of the grant, the

recipient shall be afforded and opportunity for an informal hearing

before an impartial hearing officer, who has been agreed to by the

recipient and the Corporation; and

(4) Assistance under the Act shall not be terminated for failure to

comply with applicable terms and conditions unless the recipient has

been afforded reasonable notice and opportunity for a full and fair

hearing.

(b) In order to assure equal access to all recipients, such

hearings or other meetings as may be necessary to fulfill the

requirements of this section shall be held in locations convenient to

the recipient agency.

(c) The procedures for suspension, termination, and denial of

refunding, that apply to the Senior Companion Program are specified in

45 CFR Part 1206.

Subpart D--Senior Companion Eligibility, Status, and Cost

Reimbursements

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

(a) To be a Senior Companion an individual must:

(1) Be 60 years of age or older;

(2) Be determined by a physical examination to be capable, with or

without reasonable accommodation of serving adults with special needs

without detriment to either themselves or the adults served;

(3) Be able and available to perform service on a year round basis;

(4) Agree to abide by all requirements as set forth in this part;

and

(5) In order to receive a stipend, have an income that is within

the income eligibility guidelines specified in subpart D of this part.

(b) Eligibility to be a Senior Companion shall not be restricted on

the basis of formal education, experience, race, religion, color,

national origin, sex, age, handicap, or political affiliation.

Sec. 2551.42 What income guidelines govern eligibility to serve as a

stipended Senior Companion?

(a) To be enrolled and receive a stipend, a Senior Companion cannot

have an annual income from all sources, after deducting allowable

medical expenses, which exceeds the program's income eligibility

guideline for the state in which he or she resides. The income

eligibility guideline for each state is the higher amount of either:

(1) 125 percent of the poverty line as set forth in 42 U.S.C. 9902

(2); or

(2) 135 percent of the poverty line, in those primary metropolitan

statistical areas (PMSA), metropolitan statistical areas (MSA) and non-

metropolitan counties identified by the Corporation as being higher in

cost of living, as determined by application of the Volunteers in

Service to America (VISTA) subsistence rates. In Alaska the guideline

may be waived by the Corporation State Director if a project

demonstrates that low-income individuals in that location are

participating in the project.

(b) Annual income is counted for the past 12 months and includes

the applicant or enrollee's income and that of his/her spouse, if the

spouse lives in the same residence. Sponsors should also count the

value of shelter, food, and clothing, if provided at no cost by persons

related to the applicant, enrollee, or spouse.

(c) Allowable medical expenses are annual out-of-pocket medical

expenses for health insurance premiums, health care services, and

medications provided to the applicant, enrollee, or spouse which were

not and will not be paid by Medicare, Medicaid, other insurance, or

other third party payor, and which do not exceed 15 percent of the

applicable income guideline.

(d) Applicants whose income is not more than 100 percent of the

poverty line shall be given special consideration for enrollment.

(e) Once enrolled, a Senior Companion shall remain eligible to

serve and to receive a stipend so long as his or her income, does not

exceed the applicable income eligibility guideline by 20 percent.

[[Page 46959]]

Sec. 2551.43 What is considered income for determining volunteer

eligibility?

(a) For determining eligibility, ``income'' refers to total cash

receipts before taxes from all sources including:

(1) Money, wages, and salaries before any deduction, but not

including food or rent in lieu of wages;

(2) Receipts from self-employment or from a farm or business after

deductions for business or farm expenses;

(3) Regular payments for public assistance, Social Security,

Unemployment or Workers Compensation, strike benefits, training

stipends, alimony, child support, 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, and regular

insurance or annuity payments; and

(5) Income from dividends, interest, net rents, royalties, or

income from estates and trusts.

(b) For eligibility purposes, income does not refer to the

following money receipts:

(1) Any assets drawn down as withdrawals from a bank, sale of

property, house or car, tax refunds, gifts, one-time insurance payments

or compensation from injury;

(2) Non-cash income, such as the bonus value of food and fuel

produced and consumed on farms and the imputed value of rent from

owner-occupied farm or non-farm housing.

Sec. 2551.44 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, the Corporation, or the Federal

Government.

Sec. 2551.45 What cost reimbursements are provided to Senior

Companions?

Cost reimbursements include:

(a) Stipend. A Senior Companion who is income eligible will receive

a stipend in an amount determined by the Corporation and payable in

regular installments, to enable them to serve without cost to

themselves. The stipend is paid for the time Senior Companions spend

with their assigned clients, for earned leave, and for attendance at

official project events.

(1) Senior Companions who are income eligible and are related to

each other are entitled to receive a stipend if they live in

independent or separate households. One eligible member of a family

from the same household is entitled to receive a stipend. Additional

members from such families who are income eligible are entitled to

other cost reimbursements payable from grant funds.

(2) Only in cases where Senior Companions or Foster Grandparents

marry after enrollment in the program, may each continue to receive a

stipend, provided that they remain income eligible.

(b) Insurance. A Senior Companion is provided with the Corporation-

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 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.

(2) Personal liability insurance. Protection is provided against

claims in excess of protection provided by other insurance. It does not

include professional liability coverage.

(3) Excess automobile liability insurance. (i) For Senior

Companions who drive in connection with their service, protection is

provided against claims in excess of the greater of either:

(A) Liability insurance volunteers carry on their own automobiles;

or

(B) The limits of applicable state financial responsibility law, or

in its absence, levels of protection to be determined by the

Corporation for each person, each accident, and for property damage.

(ii) Senior Companions who drive their personal vehicles to or on

assignments or project-related activities must maintain personal

automobile liability insurance equal to or exceeding the levels

established by the Corporation.

(c) Transportation. Senior Companions may receive assistance with

the cost of transportation to and from volunteer assignments and

official project activities, including orientation, training, and

recognition events.

(d) Physical examination. Senior Companions are provided a physical

examination prior to assignment and annually thereafter, to ensure that

they will be able to provide supportive service without injury to

themselves or the clients served.

(e) Meals and recognition. Senior Companions are provided the

following within limits of the project's available resources:

(1) Assistance with the cost of meals taken while on assignment;

and

(2) Recognition for their service.

Sec. 2551.46 May the cost reimbursements 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 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 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.

Subpart E--Senior Companion Terms of Service

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

(a) A Senior Companion usually serves a total of twenty hours a

week.

(b) Up to 20 percent of a project's budgeted Volunteer Service

Years (VSYs) may support volunteers serving an average of 20 hours per

week provided that the total for each volunteer is 80 hours for each

four week period served. No volunteer covered by this provision shall

serve less than two or more than eight hours per day.

(c) Senior Companion service shall not be performed in fewer than

three days, or more than five days a week.

(d) A Senior Companion shall not serve more than 1044 hours per

budget year.

Sec. 2551.52 Under what circumstances may a Senior Companion be

allowed to serve a modified service schedule?

Senior Companions who have served at least ten years in the

program, and are determined by a medical examination to have physical

limitations that prevent them from meeting the terms of service

specified in Sec. 2551.51, may be allowed to serve a modified schedule

of not less than 10 hours a week for a period not to exceed two years

from the time such a determination is made.

Sec. 2551.53 What factors are considered in determining a Senior

Companion's service schedule?

(a) Travel time between the Senior Companion's home and place of

assignment is not part of the service schedule and is not stipended.

(b) Travel time between individual assignments is a part of the

service schedule and is stipended.

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

only if it is specified in the care plan as part of the service

activity.

[[Page 46960]]

Sec. 2551.54 Under what circumstances may a Senior Companion's service

be terminated?

(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; inability to perform assignments;

and failure to accept supervision. A Senior Companion may also be

removed from service for having income in excess of the eligibility

level.

(b) The sponsor shall establish appropriate policies on service

termination as well as procedures for appeal from such adverse action.

Sec. 2551.55 Are Senior Companions eligible for leave?

(a) Senior Companions are provided a reasonable amount of stipended

leave which cannot exceed four hours of annual, and two hours of sick

leave, for each month of service under the terms specified in

Sec. 2551.51. Leave amounts should be adjusted for Senior Companions

serving modified service schedules.

(b) Accrued stipended leave must be used within the budget period

in which it was earned.

(c) Senior Companions unable to travel to assignments due to

natural catastrophes or weather emergencies declared by appropriate

authorities in the service area may be granted stipended leave for the

duration of the emergency with proper documentation from the sponsor.

Subpart F--Responsibilities of a Volunteer Station

Sec. 2551.61 When may a sponsor serve as a volunteer station?

(a) A sponsor may function as a volunteer station if it is:

(1) A State organization administering a statewide Senior Companion

project where the volunteer station is part of the State organization;

or

(2) A Federal or State-recognized Indian tribal government.

(b) Other sponsors not included in the categories specified in

paragraphs (a)(1) and (a)(2) of this section, can serve as a volunteer

station provided that no more than 20 percent of its budgeted VSYs can

be placed in programs administered by such sponsors.

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

A volunteer station shall undertake the following responsibilities

in support of Senior Companion volunteers:

(a) Develop volunteer assignments that meet the requirements

specified in Sec. 2551.71 through 2551.73 and regularly assess those

assignments for continued appropriateness.

(b) Select eligible clients for assigned volunteers.

(c) Develop a written care plan for each client specifying the

needs of the client and the role and activities of the Senior Companion

in the delivery of required services.

(d) Obtain a Letter of Agreement for Senior Companions assigned in-

home. In cases where the confidentiality of clients needs to be

protected, a modified document that does not reveal client identities

shall be used.

(e) Provide Senior Companions serving the station with:

(1) Orientation to the station and any in-service training

necessary to enhance performance of assignments;

(2) Resources required for performance of assignments including

reasonable accommodation; and

(3) Appropriate recognition.

(f) Designate a staff member to oversee fulfillment of station

responsibilities and supervision of Senior Companions while on

assignment.

(g) Keep records and prepare reports required by the sponsor.

(h) Provide for the safety of Senior Companions assigned to it.

(i) Comply with all applicable civil rights laws and regulations

including reasonable accommodation for Senior Companions with

disabilities.

(j) Undertake such other responsibilities as may be necessary to

the successful performance of Senior Companions in their assignments or

as agreed to in the Memorandum of Understanding.

Subpart G--Senior Companion Placements and Assignments

Sec. 2551.71 Must all Senior Companion placements be year-round?

Priority shall be given to volunteer stations that can place Senior

Companions year round. If a volunteer station does not operate on a

year-round basis, a sponsor shall develop alternate placements for the

Senior Companions assigned to the volunteer station when it is not in

operation.

Sec. 2551.72 What requirements govern the assignment of Senior

Companions?

Senior Companion assignments shall:

(a) Provide for Senior Companions to give direct services to one or

more eligible adults. Senior Companions cannot provide: services such

as those performed by medical personnel, services to large numbers of

clients, custodial services, handling a client's finances,

administrative support services or other services that would detract

from the person-to-person relationship.

(b) Result in person-to-person supportive relationships with each

client served.

(c) Support the achievement and maintenance of the highest level of

independent living for their clients.

(d) Be meaningful to the Senior Companion.

(e) Be supported by appropriate orientation, training and

supervision.

Sec. 2551.73 Is a written care plan required for each volunteer

station and what purpose does it serve?

(a) All Senior Companions shall receive a written care plan

developed by the volunteer station that:

(1) Is approved by the sponsor and accepted by the Senior

Companion;

(2) Identifies the individual clients to be served;

(3) Identifies each client's needs and the role and activities of

the Senior Companion;

(4) Addresses the period of time each client should receive such

services; and

(5) Is used to review the status of the Senior Companion's services

in working with the assigned adult, as well as the impact of the

assignment on the clients served.

(b) A generic care plan may be used in cases when client turnover

occurs on a daily, or weekly basis, or when clients served suffer from

identical or similar illnesses or disabilities.

Subpart H--Clients Served

Sec. 2551.81 What type of clients are eligible to be served?

Senior Companions serve only adults with special needs including:

older persons requiring long term care, or those receiving home health

care, nursing care, home delivered meals and other nutrition services;

persons deinstitutionalized from mental hospitals, nursing homes and

other institutions; and those having developmental disabilities.

Subpart I--Application and Fiscal Requirements

Sec. 2551.91 Application and award process.

(a) How and when may an eligible organization apply for a grant?

(1) An eligible organization may file an application for a grant at

any time.

(2) Before submitting an application an applicant shall determine

the availability of funds from the Corporation.

(3) The Corporation may also solicit grant applicants. Applicants

solicited under this provision are not assured of selection or approval

and may have to

[[Page 46961]]

compete with other solicited or unsolicited applications.

(b) What must an eligible organization include in a grant

application?

(1) An applicant shall complete standard forms prescribed by the

Corporation.

(2) The applicant shall comply with the provisions of Executive

Order 12372, ``Intergovernmental Review of Federal Programs,'' (3 CFR,

1982 Comp., p.197) in 45 CFR part 1233 and any other applicable

requirements.

(c) Who reviews the merits of an application and how is a grant

awarded?

(1) The Corporation reviews and determines the merit of an

application by its responsiveness to published guidelines and to the

overall purpose and objectives of the program. When funds are

available, the Corporation awards a grant in writing to each applicant

whose grant proposal provides the best potential for serving the

purpose of the program. The award will be documented by Notice of Grant

Award (NGA).

(2) The Corporation 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 the Corporation's obligation to provide

financial support to the sponsor.

(d) What happens if the Corporation rejects an application? The

Corporation will return to the applicant an application that is not

approved for funding, with an explanation of the Corporation's

decision.

(e) For what period of time does the Corporation award a Senior

Companion grant? The Corporation awards a Senior Companion grant for a

specified period that is usually 12 months in duration.

Sec. 2551.92 Project funding requirements.

(a) Is non-Corporation support required? A Corporation 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 the Corporation allow less than

the 10 percent non-Corporation support? The Corporation may allow

exceptions to the 10 percent local support requirement in cases of

demonstrated need such as:

(1) Initial difficulties in the development of local funding

sources during the first three years of operations; or

(2) An economic downturn, the occurrence of a natural disaster, or

similar events in the service area that severely restricts or reduces

sources of local funding support; or

(3) The unexpected discontinuation of local support from one or

more sources that a project has relied on for a period of years.

(c) May the Corporation restrict how a sponsor uses locally

generated contributions in excess of the 10 percent non-Corporation

support required? Whenever locally generated contributions to Senior

Companion projects are in excess of the minimum 10 percent non-

Corporation support required, the Corporation may not restrict the

manner in which such contributions are expended provided such

expenditures are consistent with the provisions of the Act.

(d) Are program expenditures subject to audit? All expenditures by

the grantee of Federal and non-Federal funds, including expenditures

from excess locally generated contributions in support of the grant are

subject to audit by the Corporation, its Inspector General, or their

authorized agents.

(e) How are Senior Companion cost reimbursements budgeted? The

total of cost reimbursements for Senior Companions, including stipends,

insurance, transportation, meals, physical examinations, and

recognition, shall be a sum equal to at least 80 percent of the amount

of the federal share of the grant award. Federal, required non-Federal,

and excess non-federal resources can be used to make up the amount

allotted for cost reimbursements.

(f) May a sponsor pay stipends at a rate different than the rate

established by the Corporation? A sponsor shall pay stipends at the

same rate as that established by the Corporation.

Sec. 2551.93 Grants management requirements.

What rules govern a sponsor's management of grants?

(a) A sponsor shall manage a grant in accordance with:

(1) The Act;

(2) Regulations in this part;

(3) 45 CFR Part 2541, ``Uniform Requirements for Grants and

Cooperative Agreements with State and Local Governments'', or 45 CFR

Part 2543, ``Grants and Agreements with Institutions of Higher

Education, Hospitals, and Other Non-Profit Organizations'';

(4) The following OMB Circulars, as appropriate A-21, ``Cost

Principles for Institutions of Higher Education'', A-87, ``Cost

Principles for State and Local Governments'', A-122, ``Cost Principles

for Non-Profit Organizations'', and A-133, ``Audits of Institutions of

Higher Education and Other Non-Profit Organizations'' (OMB circulars

are available at the following address: Office of Administration,

Publications Office, 725-17th Street, NW, Room 2200, Washington, DC

20503.); and

(5) Other applicable Corporation requirements.

(b) Project support provided under a Corporation grant shall be

furnished at the lowest possible cost consistent with the effective

operation of the project.

(c) Project costs for which Corporation funds are budgeted must be

justified as being necessary and essential to project operation.

(d) Other than reimbursement for meals during a normal meal period,

project funds shall not be used to reimburse volunteers for expenses,

including transportation costs, incurred while performing their

volunteer assignments. Equipment or supplies for volunteers on

assignment are not allowable costs. Assignment-related costs of

transportation, equipment, supplies, etc. are the responsibility of the

volunteer station or a third party, and are not an allowable grant

cost.

(e) Volunteer expense items, including transportation, meals,

recognition activities and items purchased at the volunteers' own

expense and which are not reimbursed, are not allowable as

contributions to the non-Federal share of the budget.

(f) Costs of other insurance not required by program policy, but

maintained by a sponsor for the general conduct of its activities are

allowable with the following limitations:

(1) Types and extent of and cost of coverage are according to sound

institutional and business practices;

(2) Costs of insurance or a contribution to any reserve covering

the risk of loss of or damage to Government-owned property are

unallowable unless the government specifically requires and approves

such costs; and

(3) The cost of insurance on the lives of officers, trustees or

staff is unallowable except where such insurance is part of an employee

plan which is not unduly restricted.

(g) Costs to bring a sponsor into basic compliance with

accessibility requirements for individuals with disabilities are not

allowable costs.

(h) Payments to settle discrimination allegations, either

informally through a settlement agreement or formally as a result of a

decision finding discrimination, are not allowable costs.

(i) Written Corporation approval/concurrence is required for the

[[Page 46962]]

following changes in the approved grant:

(1) Reduction in budgeted volunteer service years.

(2) Change in the service area.

(3) Transfer of budgeted line items from Volunteer Expenses to

Support Expenses. This requirement does not apply if the 80 percent

volunteer cost reimbursement ratio is maintained.

Subpart J--Non-Stipended Senior Companions.

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 without stipends?

Over-income persons, age 60 or over, may be enrolled in SCP

projects as non-stipended volunteers in communities where there is no

RSVP project or where agreement is reached with the RSVP project that

allows for the enrollment of non-stipended volunteers in the SCP

project.

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

Senior Companions?

Non-stipended Senior Companions serve under the following

conditions:

(a) They must not displace or prevent eligible low-income

individuals from becoming Senior Companions.

(b) No special privilege or status is granted or created among

Senior Companions, stipended or non-stipended, and equal treatment is

required.

(c) Training, supervision, and other support services and cost

reimbursements, other than the stipend, are available equally to all

Senior Companions.

(d) All regulations and requirements applicable to the program,

with the exception listed in paragraph (f) of this section, apply to

all Senior Companions.

(e) Non-stipended Senior Companions may be placed in separate

volunteer stations where warranted.

(f) Non-stipended Senior Companions will be encouraged but not

required to serve 20 hours per week and 50 weeks per year. Senior

Companions will maintain a close person-to-person relationship with

their assigned special needs clients on a regular basis.

(g) Non-stipended Senior Companions may contribute the costs they

incur in connection with their participation in the program. Such

contributions are not counted as part of the required non-federal share

of the grant but may be reflected in the budget column for non-federal

resources.

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

Senior Companions?

Enrollment of non-stipended Senior Companions is not a factor in

the award of new or renewal grants.

Sec. 2551.104 May Corporation funds be used for non-stipended Senior

Companions?

Federally appropriated funds for SCP shall not be used to pay any

cost, including any administrative cost, incurred in implementing the

regulations in this part for non-stipended Senior Companions.

Subpart K--Non-Corporation Funded SCP Projects

Sec. 2551.111 Under what conditions can an agency or organization

sponsor a Senior Companion project without Corporation funding?

An eligible agency or organization who wishes to sponsor a Senior

Companion project without Corporation funding, must sign a Memorandum

of Agreement with the Corporation that:

(a) Certifies its intent to comply with all Corporation

requirements for the Senior Companion Program; and

(b) Identifies responsibilities to be carried out by each party.

Sec. 2551.112 What benefits are a non-Corporation funded project

entitled to?

The Memorandum of Agreement entitles the sponsor of a non-

Corporation funded project to:

(a) All technical assistance and materials provided to Corporation-

funded Senior Companion projects; and

(b) The application of the provisions of Section 404(f)(1) and

Section 418 of the Act.

Sec. 2551.113 What financial obligation does the Corporation incur for

non-Corporation funded projects?

Entry into a Memorandum of Agreement with, or issuance of an NGA to

a sponsor of non-Corporation funded project, does not create a

financial obligation on the part of the Corporation for any costs

associated with the project, including increases in required payments

to Senior Companion's that may result from changes in the Act or in

program regulations.

Sec. 2551.114 What happens if a non-Corporation funded sponsor does

not comply with the Memorandum of Agreement?

A non-Corporation funded project sponsor's noncompliance with the

Memorandum of Agreement shall result in suspension or termination of

the Corporation's agreement and all benefits specified in

Sec. 2551.112.

Subpart L--Restrictions and Legal Representation

Sec. 2551.121 What legal limitations apply to the operation of the

Senior Companion Program and to the expenditure of grant funds?

(a) Political activities. (1) No part of any grant shall be used to

finance, directly or indirectly, any activity to influence the outcome

of any election to public office, or any voter registration activity.

(2) No project shall be conducted in a manner involving the use of

funds, the provision of services, or the employment or assignment of

personnel in a matter supporting or resulting in the identification of

such project with:

(i) Any partisan or nonpartisan political activity associated with

a candidate, or contending faction or group, in an election; or

(ii) Any activity to provide voters or prospective voters with

transportation to the polls or similar assistance in connection with

any such election; or

(iii) Any voter registration activity, except that voter

registration applications and nonpartisan voter registration

information shall be made available to the public at the premises of

the sponsor, but, in making such information available, employees of

the sponsor shall not express preferences or seek to influence

decisions concerning any candidate, political party, election issue, or

voting decision.

(3) The sponsor shall not use grant funds in any activity for the

purpose of influencing the passage or defeat of legislation or

proposals by initiative petition, except:

(i) In any case in which a legislative body, a committee of a

legislative body, or a member of a legislative body requests any

volunteer in, or employee of such a program to draft, review or testify

regarding measures or to make representation to such legislative body,

committee or member; or

(ii) In connection with an authorization or appropriations measure

directly affecting the operation of the Senior Companion Program.

(b) Non-displacement of employed workers. A Senior Companion shall

not perform any service or duty or engage in any activity which would

otherwise be performed by an employed worker or which would supplant

the hiring of or result in the displacement of employed workers, or

impair existing contracts for service.

(c) Compensation for service. (1) An agency or organization to

which NSSC volunteers are assigned or which operates or supervises any

NSSC program shall not request or receive any

[[Page 46963]]

compensation from NSSC volunteers or from beneficiaries for services of

NSSC volunteers.

(2) This section does not prohibit a sponsor from soliciting and

accepting voluntary contributions from the community at large to meet

its local support obligations under the grant or from entering into

agreements with parties other than beneficiaries to support additional

volunteers beyond those supported by the Corporation grant.

(3) A Senior Companion volunteer station may contribute to the

financial support of the Senior Companion Program. However, this

support shall not be a required precondition for a potential station to

obtain or retain Senior Companion service. If a volunteer station

agrees to provide funds to support additional Senior Companions or pay

for other Senior Companion support costs, the agreement shall be stated

in a written memorandum of understanding.

(4) The sponsor shall withdraw services if the station's inability

to provide monetary or in-kind support to the project diminishes or

jeopardizes the project's financial capabilities to fulfill its

obligations.

(5) Under no circumstances shall a Senior Companion receive a fee

for service from service recipients, their legal guardian, members of

their family, or friends.

(d) Labor and anti-labor activity. The sponsor shall not use grant

funds directly or indirectly to finance labor or anti-labor

organization or related activity.

(e) Fair labor standards. A sponsor that employs laborers and

mechanics for construction, alteration, or repair of facilities shall

pay wages at prevailing rates as determined by the Secretary of Labor

in accordance with the Davis-Bacon Act, as amended.

(f) Nondiscrimination. A sponsor or sponsor employee shall not

discriminate against a Senior Companion on the basis of race, color,

national origin, sex, age, religion, or political affiliation, or on

the basis of disability, if the Senior Companion with a disability is

qualified to serve.

(g) Religious activities. A Senior Companion or a member of the

project staff funded by the Corporation shall not give religious

instruction, conduct worship services or engage in any form of

proselytization as part of his or her duties.

(h) Nepotism. Persons selected for project staff positions shall

not be related by blood or marriage to other project staff, sponsor

staff or officers, or members of the sponsor Board of Directors, unless

there is written concurrence from the community group established by

the sponsor under Subpart B of this part and with notification to the

Corporation.

Sec. 2551.122 What legal coverage does the Corporation make available

to Senior Companions?

It is within the Corporation's discretion to determine if Counsel

is employed and counsel fees, court costs, bail and other expenses

incidental to the defense of a Senior Companion is paid in a criminal,

civil or administrative proceeding, when such a proceeding arises

directly out of performance of the Senior Companion's activities. The

circumstances under which the Corporation shall pay such expenses are

specified in 45 CFR part 1220.

Dated: August 25, 1998.

Thomas L. Bryant,

Acting General Counsel.

[FR Doc. 98-23300 Filed 9-2-98; 8:45 am]

BILLING CODE 6050-28-P