TITLE 45--PUBLIC WELFARE
 
                           CHAPTER XII--ACTION
 
PART 1207--SENIOR COMPANION PROGRAM

                           Subpart A--General

Sec.
1207.1-1  Purpose of the program.
1207.1-2  Definitions.
1207.1-3  Coordination.

               Subpart B--Project Development and Funding

1207.2-1  Inquiries.
1207.2-2  Local support.
1207.2-3  Sponsor eligibility and solicitation of proposals.
1207.2-4  Project proposals.
1207.2-5  Review of project proposals.
1207.2-6  Awards.
1207.2-7  Grand management.
1207.2-8  Suspension, termination and denial of refunding.

                      Subpart C--Project Operations

1207.3-1  Sponsor responsibility.
1207.3-2  Project staff.
1207.3-3  Advisory Council.
1207.3-4  Volunteer station responsibility.
1207.3-5  Senior companions.
1207.3-6  Senior companion assignments.
1207.3-7  Non-stipended volunteers.

                  Subpart D--Non-ACTION Funded Projects

1207.4-1  Memorandum of agreement.

              Subpart E--Sanctions and Legal Representation

1207.5-1  Special limitations.
1207.5-2  Legal representation.

    Authority:  Secs. 211(d), (e); 212, 213, 221, 222, 223, 402(14) and 
420 of Pub. L. 93-113, 87 Stat. 402, 403, 404, 407 and 414, sec. 213 of 
Pub. L. 97-35, 97 Stat. 487, 42 U.S.C. 5011 (b), (d) and (e); 5012, 
5021, 5022, 5023, 5042(14), 5060 and 5013.

    Source:  48 FR 26803, June 10, 1983, unless otherwise noted.

                           Subpart A--General

Sec. 1207.1-1  Purpose of the program.

    The Senior Companion Program (SCP) is authorized under title II, 
part C, of the Domestic Volunteer Service Act of 1973, as amended (Pub. 
L. 93-113). The dual purpose of the program is to create part-time 
stipended volunteer community service opportunities for low-income 
persons aged 60 and over, and to provide supportive person-to-person 
services to assist adults having exceptional needs, developmental 
disabilities or other special needs for companionship.

Sec. 1207.1-2  Definitions.

    Terms used in this part are defined as follows:
    Act is the Domestic Volunteer Service Act of 1973, as amended (Pub. 
L. 93-113, 87 Stat. 394, 42 U.S.C. 4951).
    Adult is any person aged 21 or over.
    Advisory Council is a group of persons formally organized by the 
project sponsor for the purpose of advising and supporting the sponsor 
in operating the project effectively.
    Agency is the federal ACTION agency.
    Allowable medical expenses are annual out-of-pocket expenses for 
health insurance premiums, health care services, and medications 
provided to the applicant, enrollee, or spouse and were not and will not 
be paid for by Medicare, Medicaid, other insurance, or by any other 
third party and, shall not exceed 15 percent of the applicable ACTION 
income guideline.
    Annual income is counted for the past 12 months and includes: The 
applicant or enrollee's income and, the applicant or enrollee's spouse's 
income, if the spouse lives in the same residence.

Project directors may count the value of shelter, food, and clothing, if 
provided at no cost by persons related to the applicant, enrollee, or 
spouse.
    Direct Benefits are stipends, meals, transportation, annual physical 
examinations, volunteer insurance, recognition and uniforms included in 
the budget as Volunteer Expenses.
    Director is the Director of ACTION.
    Exceptional Needs are one or more physical, emotional, or mental 
health limitation(s).
    Federally recognized Indian tribal government means the governing 
body or a governmental agency of any Indian tribe, band, nation, or 
other organized group or community (including any Native village as 
defined in section 3 of the Alaska Native Claims Settlement Act, 85 
Stat. 688) certified by the Secretary of Interior as eligible for the 
special programs and services provided through the Bureau of Indian 
Affairs.
    Handbook is the SCP Handbook No. 4405.91, which contains policies 
for implementing these regulations.
    Handicapped is a person or persons having physical or mental 
impairments that substantially limit one or more major life activities.
    Hard-to-reach individuals are those who are physically or socially 
isolated because of factors such as language, disability, or inadequate 
transportation.
    Letter of Agreement is a written agreement between a volunteer 
station, the project sponsor and the adult served or the person legally 
responsible for the adult. It authorizes the assignment of a Senior 
Companion in the client's home, defines Senior Companion activities and 
delineates the specific arrangements for supervision.
    Memorandum of Understanding is a written statement prepared and 
signed by the Senior Companion sponsor and the volunteer station which 
identifies project requirements, working relationships and mutal 
responsibilities.
    OAVP refers to the Older American Volunteer Programs, which include: 
The Senior Companion Program, the Foster Grandparent Program, and the 
Retired Senior Volunteer Program.
    Project is the locally planned and implemented Senior Companion 
Program activity as agreed upon between ACTION and the sponsor.
    Service Area is a geographically defined area in which Senior 
Companions are recruited, enrolled, and placed on assignments.
    Service Schedule is the 20 hours per week that a Senior Companion 
serves.
    Sponsor is a public agency or private nonprofit organization which 
is responsible for the operation of the Senior Companion project.
    Stipend is a payment to Senior Companions to enable them to serve 
without cost to themselves.
    United States and States means the several states, the District of 
Columbia, the Virgin Islands, Puerto Rico, Guam, American Samoa and the 
Trust Territory of the Pacific Islands.
    Volunteer Station is a public agency, private nonprofit organization 
or proprietary health care agency or organization that accepts the 
responsibility for assignment and supervision of Senior Companions. Each 
volunteer station must be licensed or otherwise certified, when 
required, by the appropriate state or local government. Private homes 
are not volunteer stations.

[48 FR 26803, June 10, 1983, as amended at 59 FR 15122, Mar. 31, 1994]

Sec. 1207.1-3  Coordination.

    The sponsor shall coordinate activities with project-related groups 
and individuals, including those representing government, industry, 
labor, volunteer organizations, programs for the aging, including State 
and Area Agencies on Aging, and other ACTION programs, to facilitate 
cooperation with existing or planned community services and to develop 
community support.

               Subpart B--Project Development and Funding

Sec. 1207.2-1  Inquiries.

    Inquiries regarding the Senior Companion Program application 
process, program criteria, or the availability of funds, should be 
directed to the ACTION State Office serving the inquirer's own state. 
ACTION headquarters office in Washington, DC will assist in directing 
inquiries to the appropriate State office.

Sec. 1207.2-2  Local support.

    An ACTION grant may be awarded to fund up to 90% of the cost of 
development and operation of a Senior Companion project. The sponsor is 
required to contribute at least 10% of the total project cost. Stipend 
payments in excess of the amount established by ACTION may not be 
included as part of the local support commitment. In exceptional 
circumstances the Director may approve assistance for more than 90% of 
the total project costs if:
    (a) The project is located in an area where local resources are too 
limited to provide 10%; or
    (b) A test project is determined to be of exceptional value, 
sufficient to warrant Federal support in excess of 90% of the total 
project cost.

Sec. 1207.2-3  Sponsor eligibility and solicitation of proposals.

    (a) Sponsor eligibility. ACTION will award grants only to public 
agencies and private non-profit organizations in the United States which 
have the authority to accept and the capability to administer such 
grants.
    (b) Solicitation of proposals. Any eligible organization may file an 
application for a grant. Applicants may also be solicited by ACTION 
pursuant to its objective of achieving equitable program resource 
distribution. Solicited applications are not assured of selection or 
approval and may have to compete with other solicited or unsolicited 
applications.

[48 FR 26803, June 10, 1983; 48 FR 44797, Sept. 30, 1983]

Sec. 1207.2-4  Project proposals.

    (a) Applicants shall use standard forms prescribed by ACTION. ACTION 
State Offices will provide applicants with guidance and any additional 
instruction necessary to plan and budget proposed program activities.
    (b) Agencies and organizations submitting grant applications must 
comply with provisions of Executive Order 12372, the ``Intergovernmental 
Review of Federal Programs and Activities,'' as set forth in 45 Code of 
Federal Regulations (CFR) part 1233.
    (c) A potential sponsor must submit one copy of an application for a 
new SCP project to the State Agency on Aging, which has 45 days to 
review the application and make recommendations. The State Agency on 
Aging shall state in writing to ACTION its recommendations and reasons 
within this time period or will be considered to have waived its rights 
under this part.

Sec. 1207.2-5  Review of project proposals.

    (a) The ACTION State Office for the applicant's state will review 
the grant application to ensure that program requirements are complied 
with and that required documentation has been attached.
    (b) If not approved, the application will be returned to the 
applicant with explanation of ACTION's decision. The unsuccessful 
applicant may reapply when the inadequacy, if any, found in the 
application is resolved.

Sec. 1207.2-6  Awards.

    (a) 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. The award will be documented by 
Notice of Grant Award (NGA).
    (b) The parties to the NGA are ACTION and the sponsoring 
organization. The NGA will document the sponsor's commitment to fulfill 
specific programmatic objectives and financial obligations. It will 
document the extent of ACTION's obligation to provide financial support 
to the sponsor.
    (c) A sponsor may receive a grant award for more than one OAVP 
project.

Sec. 1207.2-7  Grant management.

    (a) Sponsors shall manage grants awarded to them in accordance with 
these regulations, ACTION Handbook 2650.2, entitled Grants Management 
Handbook for Grantees, and SCP Handbook No. 4405.91. A copy of each 
document will be furnished the sponsor at the time the initial grant is 
awarded.
    (b) Project support provided under an ACTION grant shall be 
furnished at the lowest possible cost consistent with the effective 
operation of the project.
    (c) Project costs for which ACTION funds are budgeted must be 
justified as being essential to project operation.

Sec. 1207.2-8  Suspension, termination and denial of refunding.

    Grant suspension, termination and denial of refunding procedures are 
set forth in 45 CFR part 1206, chapter XII, and in ACTION Handbook 
2650.2.

                      Subpart C--Project Operations

Sec. 1207.3-1  Sponsor responsibility.

    The sponsor is responsible for all programmatic and fiscal aspects 
of the project and may not delegate or contract this responsibility to 
another entity. The sponsor has the responsibility to:
    (a) Employ, supervise and support a Project Director who will be 
directly responsible to the sponsor for the management of the project, 
including selection, training and supervision of project staff;
    (b) Provide for the recruitment, assignment, supervision and support 
of Senior Companions. Special efforts are to be made to recruit and 
assign persons from minority groups, handicapped and hard-to-reach 
individuals, and groups in the community which are underrepresented in 
the project. The sponsor will stress the recruitment and enrollment of 
persons not already volunteering;
    (c) Provide financial and in-kind support to fulfill the project's 
local share commitment;
    (d) Establish, orient, and support an independent SCP Advisory 
Council;
    (e) Provide the Senior Companions with not less than the minimum 
accident, personal liability, and excess auto liability insurance 
required by ACTION;
    (f) Provide for appropriate recognition of the Senior Companions and 
their activities;
    (g) Establish personnel practices, including provision of position 
descriptions for project staff, and service policies for Senior 
Companions, including grievance and appeal procedures for both 
volunteers and project staff;
    (h) Ensure compliance with ACTION requirements relating to 
nondiscrimination, religious activity, political activity, lobbying, 
patronage toward persons related by blood or marriage, labor or anti-
labor organization or related activities, nondisplacement of employed 
workers, nonimpairment of contracts, and noncompensation for services;
    (i) Maintain project records in accordance with generally accepted 
accounting practice and provide for the accurate and timely preparation 
and submission of reports required by ACTION;
    (j) Develop Senior Companion service opportunities through volunteer 
stations;
    (k) Obtain ACTION concurrence in the selection of volunteer stations 
prior to the placement of Senior Companions;
    (l) Negotiate, prior to placement of Senior Companions; a written 
Memorandum of Understanding with each volunteer station, identifying 
sponsor responsibilities, volunteer station responsibilities, and joint 
responsibilities;
    (m) Orient volunteer station staff to the program and its 
activities;
    (n) Provide not less than 40 hours of pre-service orientation to the 
Senior Companions;
    (o) Arrange group in-service training for Senior Companions for a 
minimum of four hours each month;
    (p) Provide or arrange for direct benefits (insurance, meals, 
physical examinations, recognition, stipends, transportation, and 
uniforms, if needed) for the Senior Companions in a timely manner;
    (q) Ensure provision for volunteer safety;
    (r) Comply with program regulations, policies and procedures 
prescribed by ACTION;
    (s) Ensure that appropriate liability insurance is maintained for 
owned, nonowned, or hired vehicles used in the project;
    (t) Develop a realistic transportation plan for the project based on 
lowest cost transportation modes; and
    (u) Conduct an annual appraisal of volunteers' performance and an 
annual review of volunteers' income eligibility.
    (v) Assure that individuals whose income is at or below 100 percent 
of the poverty level receive special consideration for participation in 
the Program.

[48 FR 26803, June 10, 1983, as amended at 59 FR 15122, Mar. 31, 1994]

Sec. 1207.3-2  Project staff.

    (a) Project staff are employees of the sponsor and are subject to 
its personnel policies and practices.
    (b) ACTION must concur in writing with the sponsor's selection of a 
project director before such person is employed or earns pay from grant 
funds.
    (c) The SCP project director shall serve full time and may not be 
employed or serve concurrently in another capacity, paid or unpaid, 
during established working hours without prior approval from ACTION. 
This does not preclude participation of the project director in 
activities of related local agencies, boards or organizations for the 
purposes of coordination and facilitating achievement of project goals 
and objectives.
    (d) Compensation levels for project staff, including wages, salaries 
and fringe benefits, should be comparable to like or similar positions 
in the sponsor organization and in the community.

Sec. 1207.3-3  Advisory Council.

    An Advisory Council shall be established to advise and assist the 
project sponsor and staff. There shall be a separate Advisory Council 
for each Older American Volunteer project administered by the sponsor. 
When a small number of volunteers is enrolled or other special 
conditions prevail, this requirement may be waived by the Director of 
OAVP. The Advisory Council shall:
    (a) Advise the project director in the formulation of local policy, 
planning, and the development of operational procedures and practices 
consistent with program policies;
    (b) Assist the sponsor by promoting community support for the 
project, advise on personnel actions affecting volunteers and project 
staff, and assist in developing local financial and in-kind resources;
    (c) Include in its membership, when available: Community, business 
and labor leaders, representatives from volunteer stations, public and 
private agencies, and persons specializing in the fields of aging and 
voluntarism. In addition, at least one-fourth of the Advisory Council 
shall be low-income persons aged 60 or over. This group must include 
Senior Companions as voting members. The sponsor's chief executive or 
designee, one member of its governing board, and the project director 
should be members of the Advisory Council but may not be officers of the 
Advisory Council. The sponsor's chief executive and the project director 
may not be voting members. The member representing the sponsor's 
governing board may be a voting member. The provisions of section 
1207.5-1, Nondiscrimination, apply to the Advisory Council;
    (d) Meet on a regular schedule and establish its own procedures, 
including election of officers and terms of office;
    (e) Conduct an annual appraisal of project operation and submit a 
report to the sponsor, which shall be attached to the continuation grant 
application;
    (f) Have an opportunity to advise the sponsor in advance on the 
selection or termination of the project director; and
    (g) Ensure procedures are in effect to hear an appeal to actions 
affecting a Senior Companion adversely.

Sec. 1207.3-4  Volunteer station responsibility.

    (a) Normally the volunteer station is an organization other than the 
sponsoring organization. The sponsor may function as a Senior Companion 
station only if the sponsor is: (1) A state organization administering a 
statewide Senior Companion project where the volunteer station is part 
of the state organization; (2) a federally-recognized Indian tribal 
government; or (3) in a sparsely populated area. In such sparsely 
populated areas, up to 10% of the enrolled volunteers may be placed 
directly by the sponsor.
    (b) Volunteer station responsibilities include:
    (1) Assisting with or arranging for volunteer transportation on or 
between assignments;
    (2) Assisting in the provision of appropriate volunteer recognition;
    (3) Developing and monitoring volunteer assignments, selecting 
adults to be served, supervising the volunteers, assisting the sponsor 
in matching volunteers to assignments and in providing pre-service orientation and 
in-service training for the Senior Companions;
    (4) Providing for volunteer safety;
    (5) Keeping records and preparing reports required by the sponsor; 
and
    (6) Signing, prior to the placement of Senior Companions, a 
Memorandum of Understanding with the sponsor establishing working 
relationships and mutual responsibilities, and detailing the 
responsibilities outlined above as well as other agreed upon 
responsibilities, including the particulars of the volunteers' 
supervision.
    (i) When Senior Companions are to serve in private homes, the 
Memorandum of Understanding shall also require that the volunteer 
station obtain a Letter of Agreement from the person to be served, or 
the person legally responsible for that person, authorizing or 
requesting volunteer service in the home and indicating what specific 
activities are to be performed.
    (ii) The Memorandum of Understanding is to be reviewed and, as 
appropriate, changed annually. The Memorandum may be amended at any time 
by mutual agreement and must be signed and dated annually to indicate 
that review and update, if needed, have been accomplished.

Sec. 1207.3-5  Senior companions.

    (a) Eligibility. (1) Senior Companions shall be 60 years of age or 
older, no longer in the regular work force, determined by a physical 
examination to be capable of serving adults with exceptional or special 
needs without detriment to either themselves or the adult served, and 
willing to accept supervision as required.
    (2) Eligibility to be a Senior Companion may not be restricted on 
the basis of education, experience, citizenship, race, color, creed, 
belief, sex, national origin, handicap, or political affiliation.
    (3) To be enrolled, a Senior Companion cannot have an annual income 
from all sources, after deducting allowable medical expenses, which 
exceeds ACTION's income eligibility guidelines for the state in which he 
or she resides. The ACTION income eligibility guideline for each state 
is 125 percent of the poverty line as set forth in section 625 of the 
Economic Opportunity Act of 1964, as amended by Pub. L. 92-424 (42 
U.S.C. 2971d), except (i) in those primary metropolitan statistical 
areas (PMSA), metropolitan statistical areas (MSA) and nonmetropolitan 
counties identified by the Director as being higher in cost of living, 
as determined by application of the VISTA subsistence rates, in which 
case the guideline shall be 10 percent above that amount; and (ii) in 
Alaska, where the guideline may be waived by the ACTION State Director 
for individual locations if a project demonstrates that low-income 
individuals, in that location, are participating in the project. No 
Senior Companion currently participating in the Program, shall become 
ineligible as a result of this change in guidelines.
    (4) Once enrolled, a Senior Companion shall remain eligible to serve 
and to receive a stipend as long as his or her annual income, after 
deducting allowable medical expenses, does not exceed the prescribed 
ACTION income eligibility guideline by 20 percent. Income eligibility 
shall be reviewed annually by the sponsor.
    (5) Recruitment and selection of a Senior Companion may not be based 
on any requirement of employment experience or formal education.
    (b) Terms of service. (1) Senior Companions serve a total of twenty 
hours a week, usually five days a week. Travel time between the 
volunteer's home and place of assignment may not be considered part of 
the service schedule and is not stipended. Travel time between 
individual assignments is a part of the service schedule. Meal time may 
be part of the service schedule only if meals are taken with the 
individual served, and the taking of meals together is deemed by the 
sponsor and the volunteer station to be beneficial to the person served.
    (2) Senior Companions are volunteers, not employees, of the sponsor.
    (c) Direct benefits. The total of direct benefits for Senior 
Companions, including stipends, insurance, transportation, meals, 
physical examinations, recognition, and uniforms if appropriate, shall 
be a sum equal to at least 90% of the amount of the ACTION Federal share 
of the grant. In exceptional circumstances, the Director may waive this requirement. 
Federal and non-federal resources can be used to make up this sum. Direct 
benefits may not be subject to any tax or charge or be treated as wages or 
compensation for the purposes of unemployment insurance, temporary disability, 
retirement, public assistance, or similar benefit payments or minimum wage laws. 
Direct benefits include:
    (1) Insurance. Senior companions shall be provided with the ACTION 
specified minimum levels of accident insurance, personal liability 
insurance and, when appropriate, excess automobile liability insurance.
    (i) Accident insurance. Accident insurance shall cover Senior 
Companions for personal injury during travel between their homes and 
places of assignment, during their volunteer service, during meal 
periods while serving as a volunteer, and while attending project-
sponsored activities, such as recognition activities, orientation and 
Advisory Council meetings.
    Protection shall be provided against claims in excess of any 
benefits or services for medical care or treatment available to the 
volunteer from other sources including:
    (A) Health insurance coverage;
    (B) Other hospital or medical service plans;
    (C) Any coverage under labor-management trusteed plans, union 
welfare plans, employer organization plans, or employee benefit 
organization plans; and
    (D) Coverage under any governmental programs or coverage provided by 
any statute.

When benefits are provided in the form of services rather than by cash 
payments, the reasonable cash value of each service rendered shall be 
considered in determining the applicability of this provision. The 
benefits payable under a plan shall include the benefits that would have 
been payable had a claim been duly made therefor. The benefits payable 
shall be reduced to the extent necessary so that the sum of such reduced 
benefits and all the benefits provided for by any other plan shall not 
exceed the total expenses incurred by the volunteer.
    (ii) Personal liability insurance. Protection shall be provided 
against claims in excess of protection provided by other insurance.
    (iii) Excess automobile liability insurance. Protection shall be 
provided against claims in excess of the greater of either:
    (A) Liability insurance volunteers carry on their own automobiles, 
or
    (B) The limits of the applicable state financial responsibility law, 
or
    (C) In the absence of a state financial responsibility law, levels 
of protection to be determined by ACTION for each person, each accident, 
and for property damage.

Senior Companions who drive their personal vehicles to or on assignments 
or project related activities must maintain personal automobile 
liability insurance equal to or exceeding the levels established by 
paragraph (c)(1)(iii) (B) or (C) of this section.
    (2) Meals. Within the limits of available resources and project 
policy, Senior Companions will be provided or will receive assistance 
with the cost of meals taken during their service schedule.
    (3) Physical examinations. Senior Companions are required to have a 
physical examination prior to assignment and annually thereafter.
    (4) Appropriate recognition will be provided for Senior Companions.
    (5) Stipends. A Senior Companion will receive a stipend in an amount 
determined by ACTION and payable in regular installments. The minimum 
amount of the stipend is set by law and may be adjusted by the Director 
from time to time. When both the eligible husband and wife serve as a 
Foster Grandparent or Senior Companion, only one spouse shall be 
entitled to receive a stipend. Both spouses in such cases shall be 
entitled to other direct benefits. Only in cases where enrolled Foster 
Grandparents or Senior Companions marry, may each continue to receive a 
stipend.
    (6) Transportation. Senior Companions shall be provided 
transportation or receive assistance with the cost of transportation to 
and from volunteer assignments and official project activities, 
including orientation, training, advisory council meetings and 
recognition events. Reimbursement will be within the limits of available 
resources and project policy. Project funds may not be utilized to reimburse 
Senior Companions for transportation provided for or on behalf of 
clients.

[48 FR 26803, June 10, 1983, as amended at 59 FR 15122, Mar. 31, 1994]

Sec. 1207.3-6  Senior companion assignments.

    (a) Assignments and activities must involve person-to-person 
relationships with the individuals served and may not include service to 
the volunteer station.
    (b) Individuals served by Senior Companions must be adults, 
primarily older adults, who have one or more physical, emotional, or 
mental health limitations and are in need of assistance to achieve and 
maintain their highest level of independent living.

Sec. 1207.3-7  Non-stipended volunteers.

    (a) Purpose: Projects are encouraged to enroll persons aged 60 and 
over, who are not low-income, as non-stipended volunteers in order to:
    (1) Open opportunities for and tap the unused resources of older 
Americans, and
    (2) Expand needed services to unserved and underserved populations.
    (b) Conditions of Service: (1) Over-income persons, age 60 or over, 
may not be enrolled in SCP projects as non-stipended volunteers in 
communities where a Retired Senior Volunteer Program (RSVP) project is 
available and the RSVP project is willing and able to assume the 
management role of placing the volunteer at an SCP volunteer station. 
When a Senior Companion project is contacted by an individual expressing 
an interest in serving as a non-stipended volunteer, the project shall 
contact the ACTION State Office for its determination as to whether:
    (i) Enrollment in the project is appropriate,
    (ii) The volunteer should be referred to an RSVP project that has 
agreed, in writing, to serve in the prescribed management role.
    (2) Non-stipended volunteers serve under the following conditions:
    (i) Their service must not supplant, replace, or displace any 
stipended volunteers.
    (ii) No special privilege or status is granted or created among 
volunteers, stipended or non-stipended, and equal treatment is required.
    (iii) Training, supervision, and other support services and direct 
benefits, other than the stipend, are available equally to all 
volunteers.
    (iv) All regulations and requirements applicable to the program, 
with the exception listed in paragraph (b)(2)(vi) of this section, apply 
to all volunteers.
    (v) Non-stipended volunteers may be placed in separate volunteer 
stations where warranted.
    (vi) Non-stipended volunteers serving in SCP volunteer stations will 
be encouraged but not required to serve 20 hours per week and 50 weeks 
per year. Volunteers will maintain a close one-to-one relationship with 
clients, and will serve a minimum of two clients on a regular basis.
    (vii) Non-stipended volunteers may contribute the cost of direct 
benefits.
    (3) There are no requirements on either SCP or RSVP projects to 
enroll non-stipended volunteers. Implementation of these regulations by 
a local project may not be a factor in awarding new or renewal grants.
    (c) Funding: No appropriated funds for SCP may be used to pay any 
cost, including any administrative cost, incurred in implementing these 
regulations. Such costs may be paid with:
    (1) Funds received by the Director as unrestricted gifts.
    (2) Funds received by the Director as gifts to pay such costs.
    (3) Funds contributed by non-stipended volunteers.
    (4) Locally-generated contributions in excess of the amount required 
by law.

[52 FR 32133, Aug. 26, 1987]

                  Subpart D--Non-ACTION Funded Projects

Sec. 1207.4-1  Memorandum of agreement.

    (a) If an eligible agency or organization wishes to sponsor a 
project without ACTION funding, and wishes to receive technical 
assistance and materials from ACTION, it must sign a Memorandum 
of Agreement with ACTION identifying mutual responsibilities and certifying 
its intent to comply with ACTION regulations.
    (b) A non-ACTION funded project sponsor's noncompliance with the 
Memorandum of Agreement may result in suspension or termination of 
ACTION's technical assistance to the project.
    (c) Termination of the agreement by either the project sponsor or 
ACTION will result in loss of the tax exempt status of volunteer direct 
benefits allowable to Senior Companions and loss of coverage by the 
statutory provision that receipt of the stipend will not affect the 
volunteers' eligibility for any governmental assistance.
    (d) Entry into a Memorandum of Agreement with a sponsoring agency 
which does not receive ACTION funds will not, under any circumstances, 
create a financial obligation on the part of ACTION for costs associated 
with the project including increases in required payments to volunteers 
which may result from changes in the Act or in ACTION regulations.

              Subpart E--Sanctions and Legal Representation

Sec. 1207.5-1  Special 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 public office, or any voter registration activity.
    (2) No project shall be conducted 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 project (i) any partisan or nonpartisan political activity 
associated with a candidate, or contending faction or group, in an 
election or, (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.
    (3) No Senior Companion or employee of a sponsor or volunteer 
station may take any action, when serving in such capacity, with respect 
to a partisan or nonpartisan political activity that would result in the 
identification or apparent identification of the Senior Companion 
Program with such activity.
    (4) No grant funds may be used by the sponsor in any activity for 
the purpose of influencing the passage or defeat of legislation or 
proposals by initiative petition, except
    (i) In any case in which a legislative body, a committee of a 
legislative body, or a member of a legislative body requests a Senior 
Companion, a sponsor chief executive, his or her designee, or project 
staff to draft, review or testify regarding measures or to make 
representation to such legislative body, committee or member, or (ii) In 
connection with an authorization or appropriations measure directly 
affecting the operation of the Senior Companion Program.

Prohibitions on Electoral and Lobbying Activities are fully set forth in 
45 CFR part 1226 and in ACTION Handbook 2650.2.
    (b) Restrictions on State or local government employees. If the 
sponsor is a State or local government agency which received a grant 
from ACTION, certain restrictions contained in chapter 15 of title 5 of 
the United States Code are applicable. They are related to persons who 
are principally employed in activities associated with the project. The 
restrictions are not applicable to employees of educational or research 
institutions. An employee subject to these restrictions may not:
    (1) Use his/her official authority or influence for the purpose of 
interfering with or affecting the result of an election or nomination 
for office; or
    (2) Directly or indirectly coerce, attempt to coerce, command or 
advise a State or local officer or employee to pay, lend, or contribute 
anything of value to a political party, committee, organization, agency, 
or person for a political purpose; or
    (3) Be a candidate for elective office, except in a nonpartisan 
election. ``Nonpartisan election'' means an election at which none of 
the candidates is to be nominated or elected as representing a political 
party any of whose candidates for Presidential elector received votes in 
the last preceding election at which Presidential electors were 
selected.
    (c) Religious activities. Senior Companions and project staff funded 
by ACTION shall not give religious instruction, conduct worship services 
or engage in any form of proselytization as part of their duties.
    (d) Nondiscrimination. For purposes of this subpart, and for 
purposes of Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000 d 
et seq.), section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) 
and the Age Discrimination Act of 1975 (Pub. L. 94-135, title III; 42 
U.S.C. 6101 et seq.), any program, project, or activity to which 
volunteers are assigned under this Act shall be deemed to be receiving 
federal financial assistance.
    (1) No person with responsibility in the operation of a project 
shall discriminate with respect to any activity or program because of 
race, creed, belief, color, national origin, sex, age, handicap, or 
political affiliation.
    (2) Sponsors are required to take affirmative action to overcome the 
effects of prior discrimination. Even in the absence of prior 
discrimination, a sponsor may take affirmative action to overcome 
conditions which resulted in limiting participation.
    (3) 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 a 
Senior Companion project.
    (e) Labor and anti-labor activity. No grant funds shall be directly 
or indirectly utilized to finance labor or anti-labor organization or 
related activity.
    (f) Nondisplacement of employed workers. A Senior Companion may not 
perform any service or duty or engage in any activity which would 
otherwise be performed by an employed worker or which would supplant the 
hiring of employed workers.
    (g) Nonimpairment of contracts. A Senior Companion may not perform 
any service, or duty, or engage in any activity which impairs an 
existing contract for service. The term ``contract for service'' 
includes but is not limited to contracts, understandings, and 
arrangements, either written or oral, to provide professional, 
managerial, technical, or administrative services.
    (h) Noncompensation for services. No person, organization, or agency 
shall request or receive any compensation for services of Senior 
Companions.
    (i) Nepotism. Persons selected for projects staff positions may not 
be related by blood or marriage to other project staff, sponsor staff or 
officers, or members of the sponsor Board of Directors, unless there is 
concurrence by the Advisory Council, with notification to ACTION.
    (j) Volunteer separation. A sponsor may separate a volunteer for 
cause, including, but not limited to, extensive or unauthorized 
absences, misconduct, inability to perform assignments or having income 
in excess of the eligibility level established by ACTION.

Sec. 1207.5-2  Legal representation.

    Counsel may be employed and counsel fees, court costs, bail, and 
other expenses incidental to the defense of a Senior Companion may be 
paid in a criminal, civil or administrative proceeding, when such a 
proceeding arises directly out of the performance of the Senior 
Companion activities. 45 CFR part 1220 establishes the circumstances 
under which ACTION may pay such expenses.