allow the filing of briefs and arguments. Pending the decision of the Direct or his designee assistance shall remain suspended under the terms and conditions specified by the responsible ACTION official, unless the responsible ACTION official or the Director or his designee otherwise determines. Every reasonable effort shall be made to complete the review by the Director or his designee within 30 days of receipt by the Director of the recipient's request. The Director or his designee may however extend this period of time if he determines that additional time is necessary for an adequate review.

§ 1206.1-9 Right to counsel; travel ex

penses.

In all proceedings under this subpart, whether formal or informal, the recipient and ACTION shall have the right to be represented by counsel or other authorized representatives. If the recipient and any agency which has a right to participate in an informal meeting pursuant to § 1206.1-4 or a termination hearing pursuant to § 1206.1-7 do not have an attorney acting in that capacity as a regular member of the staff of the organization or a retainer arrangement with an attorney, the Boards of Directors of such recipient and agency will be authorized to designate an attorney to represent their organizations at any such show cause proceeding or termination hearing and to transfer sufficient funds from the Federal grant monies they have received for the project to pay the fees, travel, and per diem expenses of such attorney. The fees for such attorney shall be the reasonable and customary fees for an attorney practicing in the locality of the attorney. However, such fees shall not exceed $100 per day without the prior express written approval of ACTION. Travel and per diem expenses may be paid to such attorney only in accordance with the policies set forth in the Standard Government Travel Regulations and in §§ 1206.3-1 and 1206.3-6 of this chapter. The Boards of Directors of the recipient or any agency which has a right to participate in an informal meeting pursuant to § 1206.1-4 or a termination hearing pursuant to

time of its field preview as to the level of refunding which it intends to furnish a recipient for the recipient's next program year. An ACTION official shall notify the recipient of this tentative decision normally in the letter of understanding and as soon as possible following the field preview.

(b) The procedures set forth in paragraphs (c) through (g) of this section shall apply only where an application for refunding submitted by a current recipient is rejected or is reduced to 80 percent or less of the recipient's current level of operations or where ACTION requires that a program account be eliminated or reduced to 80 percent or less of the current level of operations. These procedures apply only to reductions based on circumstances related to the particular grant or contract, such as ineffective or improper use of Federal funds or noncompliance with ACTION rules, regulations and program guidelines directives. These procedures do not apply to reductions based on legislative requirements, or on general policy or in instances where regardless of a recipient's current level of operations, its application for refunding is not reduced by 20 percent or more.

(c) Before rejecting an application of a recipient for refunding the refunding within the meaning of paragraph (b) of this section, ACTION shall notify the recipient of its intention and shall offer the recipient an opportunity to submit written material and to meet informally with an ACTION official to show cause why its application for refunding should not be rejected or reduced. Written notification of ACTION's intention shall be sent to the recipient as far in advance of the end of the recipient's current program year as possible. The notice shall inform the recipient that a tentative decision has been made to reject or reduce an application for refunding. The notice shall also state the reasons for the tentative decision to which the applicant shall address himself if he wishes to make a presentation.

(d) If the recipient requests an informal meeting with an ACTION official as discussed in paragraph (c) of this section, such a meeting shall be scheduled by ACTION as soon as possible

after the notice is sent to the recipient informing it of ACTION's tentative decision to reject or reduce its application for refunding. However, this meeting may not, without the consent of the recipient, be scheduled sooner than 14 days after ACTION has mailed the notice to the recipient. If without fault on the part of the recipient, the recipient's operating funds have been exhausted before it has been afforded an opportunity to meet with an ACTION official, the recipient shall be furnished sufficient financial assistance by ACTION to maintain its present level of program operations until it has had such opportunity.

(e) The official who shall conduct this meeting shall be an ACTION offiIcial who is authorized to make the grant of assistance in question, or his designee. However, in the case of any grant which may be made by a regional official only with the concurrence of a Headquarters official, and in which the application for refunding is proposed to be rejected or reduced upon the initiative of the Headquarters official, the meeting shall be conducted by such Headquarters official or his designee.

(f) An ACTION official who participated in the tentative decision to reject or reduce the application for new assistance shall wherever possible attend the meeting. The meeting shall be held in Washington, D.C., in the appropriate Regional Office, or in the city or county in which the recipient is located. Within the limits stated in the preceding sentence, the decision as to where the meeting shall be held will be made by ACTION. If the meeting is held in a location other than the city or county in which the recipient is located, ACTION will authorize the Board of Directors of the recipient to transfer sufficient funds from its current operating grant or contract to pay the travel and per diem expenses of a representative of the Board to attend the meeting.

(g) The recommendation of the official who conducts the meeting together with any written material submitted by the recipient shall be forwarded for review to an ACTION official who is authorized to make the grant of assistance in question. This official shall

80-154 0-82--4

inform the recipient of his decision and the basis for the decision.

§ 1206.2-5 Right to counsel.

In all proceedings under this subpart, whether formal or informal, the recipient and ACTION shall have the right to be represented by counsel or other authorized representatives. If the recipient does not have an attorney acting in that capacity as a regular member of the staff of the organization or a retainer arrangement with an attorney, the Board of Directors of the recipient will be authorized to designate an attorney to represent their organization at the meeting described in § 1206.2-4(f) and to transfer sufficient funds from its current operating grant to pay the fees, travel and per diem expenses of such attorney. The fees for such attorney shall be the reasonable and customary fees for an attorney practicing in the locality of the attorney. However, such fees shall not exceed $100 per day without the express written approval of ACTION. Travel and per diem expenses may be paid to such attorney from grant funds only in accordance with the policies set forth in the Standard Government Travel Regulations.

(a) Section 211(b), Part B, 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 Older American Community Service Programs. The purpose of these programs is to create part-time volunteer community service opportunities with stipends for low-income persons, age 60 or over, to provide supportive person-to-person services to persons, other than children, having exceptional needs. Such services are provided in health, education, welfare and related settings.

(b) This program will be referred to throughout these rules and regulations and for all other purposes as the Senior Companion Program.

(c) These regulations concern only grants because the contract format will not be used in the development and operation of local programs.

can be made to pay up to 90 percent of the costs of development and operation of community service 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 local program must meet one or more of the following criteria to be eligible to receive grant assistance for more than 90 percent of costs:

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

(b) The program 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 program.

(c) A demonstration program determined to be of exceptional value, sufficient to warrant Federal support in excess of 90 percent of total project cost.

(d) Volunteer stations as defined in § 1207.3-2 shall not be sponsors.

§ 1207.2-2 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 program. The application must contain a proposed budget in appropriate categories, including necessary administrative and operational costs and such direct benefits to volunteers as stipends, accident insurance, transportation, meals, physical examinations, and other related benefits. The application shall identify the location, objectives and plan of the program and include copies of agreements or contracts related to the program, staff position descriptions, qualifications of principal staff members, and such other pertinent information as the Director may require.

§ 1207.2-3 State Agency on Aging and Community Action Agency 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 local program.

(a) State Agencies on Aging. (1) When a program 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 program. 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 of receiving notice from ACTION that another organization has applied for a grant, or if it has waived its opportunity in writing.

(2) ACTION shall notify the applicable State agency in writing or by telegram 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 the paragraph (a)(4) of this section will constitute a written waiver.

(3) If both a State Agency on Aging and another organization apply for the same grant, the decision to award the 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 program more effectively.

(4) Where the State agency is not the grantee, applications for local programs must contain satisfactory written assurances that the program 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 program 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 program is proposed to be undertaken entirely in a community served by a CAA, the procedure described in paragraph (a) of this section shall be followed except that requirements relating to the State Agency on Aging shall be related instead to the САА.

(c) Except for new grant applicants in connection with paragraph (a) of this section, no new grant application shall be awarded 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 grant application shall include a written statement from the applicable State Agency on Aging to the effect: (1) It has waived its right to comment on the program, or (2) it supports or rejects the program and its reasons therefor.

§ 1207.2-4 Responsibilities.

(a) The Sponsor will be responsible for the programmatic and fiscal aspects of the program. These responsibilities include:

(1) Selection and employment of a Program Director.

(2) Development of opportunities for volunteer service at or through volunteer stations.

(3) Recruitment, selection, and training of Senior Companions.

(4) Orientation of volunteer station staff to the use of volunteers before and, as appropriate, during their period of assignment.

(5) Payment of volunteer stipends and arrangement of transportation and, when possible, meals for volunteers.

(6) Provision of non-Federal cost sharing support of at least 10 percent of the costs of the program.

(7) Submission of such records, including programmatic and fiscal reports to ACTION, as it may require.

(8) Arrangement for appropriate recognition of volunteers for their services to the community.

(9) Adherence to ACTION's regulation, policies, and procedures concerning or affecting the program.

(10) The sponsor may contract, or otherwise arrange, with other organizations for services to help the sponsor carry out its responsibilities such as transportation or accounting services. However, the sponsor has primary responsibility for direct operation and administrative aspects of the project. Such responsibility cannot be tracted or delegated away.

§ 1207.2-5 Local program staff.

con

(a) Program staff are employees of the sponsoring organization. Senior Companion Program volunteers may not serve as staff of the sponsor. Relatives of the sponsor's employees, or of a member of its Board of Directors cannot be employees of the local program, except with the knowledge and concurrence of the program's Advisory Council. The Advisory Council shall concur only in unusual circumstances, which shall include the inability to find in the community another person having the skills required.

(b) ACTION must concur in writing before the sponsor employs a Program Director. The Director shall not be employed, paid, or used in another position while serving as Director of the local program.

Subpart C-Program Description

§ 1207.3-1 Introduction.

Volunteers perform a variety of activities at various kinds of volunteer stations.

§ 1207.3-2 Volunteer stations.

(a) Volunteer stations are public and private nonprofit agencies or organizations, as well as proprietary health care organizations, in or through with volunteers serve in accordance with program policies. The term “proprietary health care organizations" includes proprietary nursing homes, homes for the aged or other private health care facilities. Each health care facility serving as a volunteer station