§3020c Contracting and Grant Authority; Private Pay Relationships; Appropriate Use of Funds

Summary

Recipients of grants or contracts under this chapter, except those under subchapter IX, may make deals with for‑profit businesses to offer services to people or groups not already served under the chapter if they follow certain rules. If chapter money was used to help create or run the deal, the deal must repay those costs. When the recipient sells services like those it normally provides, customers must pay a fair market price, the recipient must be paid back for any costs not already covered, the recipient must report the rates, and the rates must match the local market as set by the State agency or area agency on aging. Any money received that is more than the cost reimbursement must be used to provide or support services under the chapter. Agreements need prior approval by the State agency; for subchapter X grantees, the Director of the Office for American Indian, Alaska Native, and Native Hawaiian Aging must recommend the deal and the Assistant Secretary must approve it, with all cost documents submitted on time. Deals may not pay more than fair market value, may not replace services for older people with the greatest social or economic need or those at risk of institutional placement, and may not undermine serving older people’s needs as the Assistant Secretary decides. The Assistant Secretary will set uniform monitoring and reporting rules with State and area agencies on aging and will send Congress an annual report with counts by State, summaries, who took part, what services were provided, net proceeds, and records of funds spent and repaid. Reimbursements must be paid promptly under standards set by the Assistant Secretary. "Cost" means any expense, including admin, staff time, equipment, or other contributions used to make or run the deal.