Page:United States Statutes at Large Volume 120.djvu/2567

 120 STAT. 2536

PUBLIC LAW 109–365—OCT. 17, 2006 (1) in subparagraph (B), by striking ‘‘Labor’’ and inserting ‘‘the Workforce’’; and (2) in subparagraph (C), by striking ‘‘Labor and Human Resources’’ and inserting ‘‘Health, Education, Labor, and Pensions’’.

SEC. 207. CONTRACTING AND GRANT AUTHORITY; PRIVATE PAY RELATIONSHIPS; APPROPRIATE USE OF FUNDS.

Section 212 of the Older Americans Act of 1965 (42 U.S.C. 3020c) is amended to read as follows: ‘‘SEC. 212. CONTRACTING AND GRANT AUTHORITY; PRIVATE PAY RELATIONSHIPS; APPROPRIATE USE OF FUNDS.

‘‘(a) IN GENERAL.—Subject to subsection (b), this Act shall not be construed to prevent a recipient of a grant or a contract under this Act (other than title V) from entering into an agreement with a profitmaking organization for the recipient to provide services to individuals or entities not otherwise receiving services under this Act, provided that— ‘‘(1) if funds provided under this Act to such recipient are initially used by the recipient to pay part or all of a cost incurred by the recipient in developing and carrying out such agreement, such agreement guarantees that the cost is reimbursed to the recipient; ‘‘(2) if such agreement provides for the provision of 1 or more services, of the type provided under this Act by or on behalf of such recipient, to an individual or entity seeking to receive such services— ‘‘(A) the individuals and entities may only purchase such services at their fair market rate; ‘‘(B) all costs incurred by the recipient in providing such services (and not otherwise reimbursed under paragraph (1)), are reimbursed to such recipient; and ‘‘(C) the recipient reports the rates for providing such services under such agreement in accordance with subsection (c) and the rates are consistent with the prevailing market rate for provision of such services in the relevant geographic area as determined by the State agency or area agency on aging (as applicable); and ‘‘(3) any amount of payment to the recipient under the agreement that exceeds reimbursement under this subsection of the recipient’s costs is used to provide, or support the provision of, services under this Act. ‘‘(b) ENSURING APPROPRIATE USE OF FUNDS.—An agreement described in subsection (a) may not— ‘‘(1) be made without the prior approval of the State agency (or, in the case of a grantee under title VI, without the prior recommendation of the Director of the Office for American Indian, Alaska Native, and Native Hawaiian Aging and the prior approval of the Assistant Secretary), after timely submission of all relevant documents related to the agreement including information on all costs incurred; ‘‘(2) directly or indirectly provide for, or have the effect of, paying, reimbursing, subsidizing, or otherwise compensating an individual or entity in an amount that exceeds the fair market value of the services subject to such agreement; ‘‘(3) result in the displacement of services otherwise available to an older individual with greatest social need, an older

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