physical examination to be capable of serving adults with special needs and willing to accept supervision as required.

(b) (1) A Senior Companion shall not have an annual income from all sources, other than stipends received as a volunteer, which exceed the poverty line as set forth in the currently applicable guideline published by the Office of Economic Opportunity pursuant to section 625 of the Economic Opportunity Act of 1964, as amended (42 U.S.C. 2971(a)). However, the Director of ACTION may raise this income level to reflect the higher cost of living in the geographic area to be served by the project. Such determination may be based on other price, costof-living, income or similar indexes.

(2) An enrolled Senior Companion shall lose eligibility for continued service as a consequence of annual income that equals or exceeds 20 percent of the level established by paragraph (b)(1) of this section at the time such determination is made. The sponsor is responsible for an annual review of the income of each Senior Companion and referral of those with increased incomes to the Advisory Council for a final recommendation regarding continued eligibility.

(c) Eligibility to be a Senior Companion may not be based on race, creed, sex, or national origin. Sponsors shall ensure that special efforts are made to recruit and select qualified individuals from minority groups to serve as Senior Companions.

§ 1207.4-2 Recruitment and instruction.

(a) The sponsor is responsible for recruitment of Senior Companions in accordance with the standards of eligibility in § 1207.4-1. Volunteer assignments in identified volunteer stations should be determined before recruitment of Senior Companions begins. The sponsor shall provide each volunteer with a physical examination prior to service to assure that he is physically able to serve without detriment to himself or to the adults served. Physical examinations shall be provided annually thereafter.

(b) The sponsor shall provide or arrange an orientation of not less than 40 hours for each Senior Companion

volunteer before service begins. Thereafter, each volunteer shall be provided group in-service instruction for a minimum of four hours each month.

§ 1207.4-3 Terms of service.

(a) Period of service. Senior Companions serve usually five days a week for a total of twenty hours a week. Transportation time between the volunteer's home and place of assignment, and meal time during volunteer service, shall not be considered part of the service period. However, if it is required that meals are taken with the persons served, such time shall count as volunteer service.

(b) (1) Stipends. Senior Companions will receive an annual stipend for service rendered, payable in regular installments. The amount of such a stipend will be set by ACTION through periodic instructions sent to sponsors. Sponsor shall establish policy and procedures to reduce the stipend to reflect the volunteer's absence from his assignment. Reasonable periods of absence because of sickness or other unusual situations, consistent with policies of the sponsor, shall be allowed.

(2) The sponsor may pay a higher stipend than that established nationally, but this excess payment may not be included in the Federal cost or be counted as part of the non-Federal cost sharing contribution required of the local program.

(3) For Federal, State and local purposes, no stipend shall be subject to any tax or charge or be treated as wages or compensation for the purposes of unemployment, temporary disability, retirement, public assistance, or similar benefit payments, or minimum wage laws. Stipends shall not in any way reduce or eliminate the level of or eligibility for assistance or services any such Senior Companions may be receiving or will receive under any Federal, State or local governmental program.

(c) (1) Transportation and meals. Sponsors shall arrange or assist with the provision of transportation for Senior Companion volunteers, as needed, between their homes and volunteer assignments and for official program activities, including orientation, recognition ceremonies and at

tendance at Advisory Council meetings. Sponsors may also reimburse volunteers for transportation costs to the extent permitted by both grant and local funds and in accordance with local program transportation policy.

(2) The sponsor will arrange for, or assist with, the cost of meals for orientation and volunteer assignments extending through a meal period within the limits of available resources and local program policy.

(d) (1) Insurance and safety. All Senior Companions shall be covered by accident insurance. Where coverage is not provided under the State Workmen's Compensation Law, the sponsor shall furnish accident insurance coverage. Sponsors shall also provide thirdparty liability insurance for injury to third persons and damage to such persons' property resulting from the services of Senior Companions. The extent of coverage shall be detailed in each grant application prior to the making of a grant award. The minimum amounts of accident and third-party liability insurance required are as follows:

(i) Accident insurance. Minimum limits of $10,000 for accident medical expenses, $1,000 for accidental death and dismemberment, and to include coverage to and from the place of assignment, and during the assignment.

(ii) Third-party liability (non-automobile). Minimum limits of $100,000 each person $300,000 each occurrence for bodily injury and $50,000 each occurrence for property damage.

(2) Sponsors shall also be required to make sure that volunteers using their own vehicles have automobile liability insurance equal to the minimum required by State law. If no State minimum coverage exists, then the volunteer must have a policy providing the following coverage ai a minimum: $15,000 each person and $30.000 each Occurrence for bodily injury and $5,000 each occurrence for property damage.

(3) ACTION sponsors should also have liability insurance covering their owned or leased vehicles, and vehicles belonging to Senior Companions, which are used in program activities. Levels of required insurance coverage will be set forth in an ACTION in

struction made available to grant applicants.

(4) Sponsors shall ensure that adequate provisions for safety of Senior Companions are in force at each volunteer station.

(e) (1) Appeal of sponsor's actions and separations. The sponsor shall establish a procedure whereby a Senior Companion may appeal an action or decision by the sponsor or program staff, or the supervisory staff of the volunteer station. The procedure will provide for the review of the Senior Companions request by the Advisory Council, or a committee thereof, which shall recommend to the chief executive of the sponsor what action to take. Final decision on such an appeal shall be made by the chief executive.

(2) The sponsor may separate Senior Companions from the program for cause, including extended absence, chronic illness, misconduct, inability to perform the volunteer assignment and income in excess of the standard set forth in § 1207.4-1(b). The sponsor shall provide a procedure to review appeals from such separations. The procedure shall be the same as that mentioned in the preceding paragraph in connection with appeals of sponsor's actions.

Subpart E-General

§ 1207.5-1 Coordination.

(a) The sponsor of a project under this Part shall coordinate project activities with related groups and individuals, including those representing government, industry, labor, voluntary organizations, programs for the aging, including in particular area Agencies on Aging, and other ACTION programs, to facilitate cooperation with existing community services and develop needed community support.

(b) ACTION will consult and coordinate with national, state and local agencies, the Administration on Aging in particular, and nonprofit private organizations to promote the development of volunteer service opportunities for older persons.

§ 1207.5-2 Grant awards.

ACTION will within funds available award a grant in writing to those applicants whose grant proposals provide the best potential for serving the purpose of the program.

§ 1207.5-3 Grant conditions.

Fiscal and administrative policies and procedures set forth in ACTION instructions and handbooks shall be made available to sponsors at the time they receive a grant award. Grant termination, suspension, and denial of continuation appeal procedures are contained in Part 1206.

§ 1207.5-4 Program changes.

Permissible changes in the approved program plan shall be limited to minor changes which do not substantially alter the substances of the program plan for which the grant was received. The following changes must receive prior written approval of ACTION:

(a) Appointment of the local Program Director.

(b) Placement of Senior Companions with volunteer stations not included in the grant application or in subsequently approved program amendments.

(c) Reassignment of Senior Companions that cause an increase or decrease of 10 percent or more of the Senior Companions assigned to approved volunteer stations.

§ 1207.5-5 Special legal limitations.

(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 Federal office, or any voter registration activity. The term "election" has the same meaning given such terms by section 301(a) of the Federal Election Campaign Act of 1971 (Pub. L. 92-225) and the term "Federal office" has the same meaning given such term by section 301 (c) of such Act.

(2) No local program shall be carried on in a manner involving the use of funds, the provision of services, or the employment or assignment of personnel in a manner supporting or resulting in the identification of such program with (i) any partisan or nonpartisan political activity or any other po

litical activity associated with a candidate, or contending faction or group, in an election for public or party office, (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.

(b) Special limitations. (1) The service of Senior Companion volunteers is limited to activities which would not otherwise be performed by employed workers and which will not supplant the hiring of or result in the displacement of employed workers, or impair existing contracts for service.

(2) All support, including transportation provided to volunteers shall be furnished at the lowest possible costs consistent with the effective operation of volunteer programs.

(3) No sponsor or volunteer station shall request or receive any compensation for services of Senior Companions supervised by it.

(4) No grant funds shall be directly or indirectly utilized to finance labor or antilabor organization or related activity.

(c) Nondiscrimination. (1) No person with responsibilities in the operation of a local program shall discriminate with respect to any activity or program because of race, creed, belief, color, national origin, sex, age, or political affiliation.

(2) No person in the United States shall on the ground of sex be excluded from participation in, be denied the benefits of, be subjected to discrimination under, or be denied employment in connection with any project.

The purpose of this program is to provide meaningful part-time volunteer opportunities for low-income older persons to render supportive person-to-person services to children having special or exceptional needs in health, education, welfare and related settings.

(a) Section 211(a) of the Domestic Volunteer Service Act of 1973, Pub. L. 93-113, 87 Stat. 402, authorizes the Director of ACTION to make grants or contracts to develop and operate a Foster Grandparent Program.

(b) These regulations relate only to grants. The contract format will not be used in the development and operation of local projects.

§ 1208.1-2 Definitions.

As used in this part the terms "ACTION" or "ACTION office" include each Regional office. The local program for which a sponsor receives

grant assistance will be referred to as a project.

Subpart B-Project Sponsors

§ 1208.2-1 Eligibility and funding.

ACTION shall make grants only to public and nonprofit private agencies and organizations which have authority to accept grants for the purposes of this part and have the capability of administering such a project. Volunteer stations, as defined in § 1208.3-2, shall not be sponsors. These grants can be made to pay up to 90 percent of the costs of development and operation of programs designed to carry out the purpose of this part. In exceptional situations, the Director of ACTION may approve assistance for more than 90 percent of such costs. A project must meet one of the following criteria to be eligible to receive grant assistance for more than 90 percent of costs:

(a) The project is located in an area where non-federal resources are too limited to provide 10 percent of the total project cost. This may be due to short or long-term conditions of poverty in an area where there is a serious need for the project, or

(b) The project is located in an area where an emergency situation exists, such as a county or state which has been declared a disaster area and there is a serious need for the project. § 1208.2-2 Grant application.

Any eligible agency or organization may file an application for a grant with ACTION. Grant application forms may be obtained from any ACTION office. The grant application is designed to provide ACTION with information needed to evaluate an applicant's capacity to develop and operate a project. The application will include:

(a) General goals for the proposed project, consistent with the purpose of this part.

(b) Specific objectives to be achieved, activities to be undertaken and methods to be followed during the project budget period in support of the stated goals.

(c) A detailed budget and budget item justification.

(d) Duties of projected staff positions and qualifications required for incumbents of the positions.

(e) Ways in which active coordination is to be established with other aging and volunteer-related organizations, including the State Agency on Aging, if the State agency is not the sponsor.

(f) Type of membership and functions of a Foster Grandparent Advisory Council.

(g) The proposed service area to be served by the project.

(h) Copies of Memoranda of Understanding with proposed volunteer stations.

(i) Available data on the population, age 60 and over, in the proposed service area.

(j) A description of the special efforts the sponsor will make to recruit and to select qualified individuals from minority groups to serve Foster Grandparents.

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§ 1208.2-3 State Agency on Aging and Community Action Participation.

Under certain circumstances, State Agencies on Aging under section 304(a)(1) of the Older Americans Act of 1965, as amended (42 U.S.C. 3024(a)(1)) and Community Action Agencies (CAA's) under Title II of the Economic Opportunity Act, as amended, must be offered a reasonable opportunity to apply for a grant or must be consulted in the development of the project.

(a) State Agencies on Aging. (1) When a project is proposed to be carried out throughout a State or in an area more comprehensive than one community, the appropriate State Agency on Aging must be afforded a reasonable opportunity to apply for and receive the grant and to administer or supervise the administration of the project. The State Agency on Aging will be considered to have received a reasonable opportunity if it has not submitted a grant application to ACTION within 45 days after receiving notice from ACTION that another organization has applied for a project grant, or if it has waived its opportunity in writing.

(2) ACTION shall notify the applicable State Agency in writing or by tele

gram that it is considering awarding a grant. This will enable the agency to consider applying for such an award within the 45-day period. The assurances referred to in paragraph (a)(4) of this section will constitute a written waiver.

(3) If both a State Agency on Aging and another organization apply for grant assistance when available funds are limited, the decision to award a grant to the other organization must be based on a clear written statement that the application and a review of the prospective sponsor's qualifications indicate it will carry out the project more effectively.

(4) Where the State Agency is not the grantee, applications for projects must contain satisfactory written assurances that the project has been developed, and will, to the extent appropriate, be conducted in consultation with or with the participation of the appropriate State Agency on Aging. A letter in the grant application from the appropriate State Agency on Aging containing the following information constitutes such an assurance: (i) The project has been developed with assistance of the State Agency, and (ii) will be, to the extent appropriate, conducted in consultation with it. (b) Community Action Agency. Where a project is proposed to be undertaken entirely in a community served by a Community Action Agency, the procedure described in paragraph (a) of this section shall be followed, except that requirements relating to the State Agency on Aging shall relate instead to the Community Action Agency.

(c) Except for new grant applicants to which paragraph (a) of this section applies, no new grant awards shall be made unless the State Agency on Aging has been afforded at least 45 days in which to review the application and to make recommendations thereon. The applicable State Agency shall state in writing to ACTION tha: (1) It has waived its right to comment on the project, or (2) it supports or cannot recommend the project and its reasons therefor.