STATE PLANS.

SEC. 306. STATE PLANS. Section 307(a) of the Older Americans Act of 1965 (42 U.S.C. 3027(a)) is amended— (1) by striking paragraphs (1) through (5) and inserting the following: “(1) The plan shall— “(A) require each area agency on aging designated under section 305(a)(2)(A) to develop and submit to the State agency for approval, in accordance with a uniform 114 STAT. 2243format developed by the State agency, an area plan meeting the requirements of section 306; and “(B) be based on such area plans. “(2) The plan shall provide that the State agency will— “(A) evaluate, using uniform procedures described in section 202(a)(29), the need for supportive services (including legal assistance pursuant to 307(a)(11), information and assistance, and transportation services), nutrition services, and multipurpose senior centers within the State; “(B) develop a standardized process to determine the extent to which public or private programs and resources (including volunteers and programs and services of voluntary organizations) that have the capacity and actually meet such need; and “(C) specify a minimum proportion of the funds received by each area agency on aging in the State to carry out part B that will be expended (in the absence of a waiver under section 306(b) or 316) by such area agency on aging to provide each of the categories of services specified in section 306(a)(2). “(3) The plan shall— “(A) include (and may not be approved unless the Assistant Secretary approves) the statement and demonstration required by paragraphs (2) and (4) of section 305(d) (concerning intrastate distribution of funds); and “(B) with respect to services for older individuals residing in rural areas— “(i) provide assurances that the State agency will spend for each fiscal year, not less than the amount expended for such services for fiscal year 2000; “(ii) identify, for each fiscal year to which the plan applies, the projected costs of providing such services (including the cost of providing access to such services); and “(iii) describe the methods used to meet the needs for such services in the fiscal year preceding the first year to which such plan applies. “(4) The plan shall provide that the State agency will conduct periodic evaluations of, and public hearings on, activities and projects carried out in the State under this title and title VII, including evaluations of the effectiveness of services provided to individuals with greatest economic need, greatest social need, or disabilities, with particular attention to low-income minority individuals and older individuals residing in rural areas. “(5) The plan shall provide that the State agency will— “(A) afford an opportunity for a hearing upon request, in accordance with published procedures, to any area agency on aging submitting a plan under this title, to any provider of (or applicant to provide) services; “(B) issue guidelines applicable to grievance procedures required by section 306(a)( 10); and “(C) afford an opportunity for a public hearing, upon request, by any area agency on aging, by any provider of (or applicant to provide) services, or by any recipient of services under this title regarding any waiver request, including those under section 316.”;114 STAT. 2244 (2) in paragraph (7), by striking subparagraph (C); (3) by striking paragraphs (8) and (9) and inserting the following: “(8)(A) The plan shall provide that no supportive services, nutrition services, or in-home services will be directly provided by the State agency or an area agency on aging in the State, unless, in the judgment of the State agency— “(i) provision of such services by the State agency or the area agency on aging is necessary to assure an adequate supply of such services; “(ii) such services are directly related to such State agency’s or area agency on aging’s administrative functions; or “(iii) such services can be provided more economically, and with comparable quality, by such State agency or area agency on aging. “(B) Regarding case management services, if the State agency or area agency on aging is already providing case management services (as of the date of submission of the plan) under a State program, the plan may specify that such agency is allowed to continue to provide case management services. “(C) The plan may specify that an area agency on aging is allowed to directly provide information and assistance services and outreach. “(9) The plan shall provide assurances that the State agency will carry out, through the Office of the State Long-Term Care Ombudsman, a State Long-Term Care Ombudsman program in accordance with section 712 and this title, and will expend for such purpose an amount that is not less than an amount expended by the State agency with funds received under this title for fiscal year 2000, and an amount that is not less than the amount expended by the State agency with funds received under title VII for fiscal year 2000.”; (4) by striking paragraph (10) and inserting the following: “(10) The plan shall provide assurances that the special needs of older individuals residing in rural areas will be taken into consideration and shall describe how those needs have been met and describe how funds have been allocated to meet those needs.”; (5) by striking paragraphs (11), (12), (13), and (14); (6) by redesignating paragraphs (15) and (16) as paragraphs (11) and (12), respectively; (7) by striking paragraph (17); (8) by redesignating paragraph (18) as paragraph (13); (9) by striking paragraph (19); (10) by redesignating paragraph (20) as paragraph (14); (11) by striking paragraphs (21) and (22); (12) by redesignating paragraphs (23), (24), (25), and (26) as paragraphs (15), (16), (17), and (18), respectively; (13) in paragraph (16) (as redesignated by paragraph (12)), by inserting “and older individuals residing in rural areas” after “low-income minority individuals” each place it appears; (14) in paragraph (17) (as redesignated by paragraph (12)), by inserting “to enhance services” before “and develop collaborative programs”;114 STAT. 2245 (15) in paragraph (18) (as redesignated by paragraph (12)), by striking “section 306(a)(6)(I)” and inserting “section 306(a)(7)”; (16) by striking paragraphs (27), (28), (29), and (31); (17) by redesignating paragraphs (30) and (32) as paragraphs (19) and (20), respectively; (18) by striking paragraphs (33), (34), and (35) and inserting the following: “(21) The plan shall— “(A) provide an assurance that the State agency will coordinate programs under this title and programs under title VI, if applicable; and “(B) provide an assurance that the State agency will pursue activities to increase access by older individuals who are Native Americans to all aging programs and benefits provided by the agency, including programs and benefits provided under this title, if applicable, and specify the ways in which the State agency intends to implement the activities.”; (19) by redesignating paragraph (36) as paragraph (22); (20) by striking paragraphs (37), (38), (39), (40), and (43); (21) by redesignating paragraphs (41), (42), and (44) as paragraphs (23), (24), and (25), respectively; and (22) by adding at the end the following: “(26) The plan shall provide assurances that funds received under this title will not be used to pay any part of a cost (including an administrative cost) incurred by the State agency or an area agency on aging to carry out a contract or commercial relationship that is not carried out to implement this title.”.