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"(b) Payments under this part pursuant to a grant or contract may be made (after necessary adjustment, in the case of grants, on account of preriously made overpayments or underpayments) in advance or by way of reimbursement, and in such installments and on such conditions, as the Secretary may determine.

"PART C-TRAINING PROJECTS

"PROJECT GRANTS

"Sec. 1721. The Secretary is authorized to make grants to or contracts with any public or nonprofit private agency, organization, or institution for the specialized training of persons employed or preparing for employment in carrying out programs related to the purposes of this title.

"PAYMENT OF GRANTS “SEC. 1722. (a) To the extent he deems it appropriate, the Secretary shall require the recipient of any grant or contract under this part to contribute money, facilities, or services for carrying out the project for which such grant or contract was made.

"(b) Payments under this part pursuant to a grant or contract may be made (after necessary adjustment, in the case of grants, on account of previously made overpayments or underpayments) in advance or by way of reimbursement, and in such installments and on such conditions, as the Secretary may determine. "PART D-CONSTRUCTION OF RECREATIONAL ACTIVITY CENTERS

"AUTHORIZATION OF APPROPRIATIONS "SEC. 1731. There are authorized to be appropriated $2,500,000 for the fiscal year ending June 30, 1964, $4,000,000 for the fiscal year ending June 30, 1965, and $7,500,000 for each of the next three fiscal years, for grants for paying onehalf of the costs of projects for the construction of public or nonprofit private centers providing recreational and other leisure-time activities and informational, counseling, and referral services for older persons and providing assistance to such persons in providing volunteer community or civic services (hereinafter in this part referred to as 'recreational activity centers'). Such grants may be made only for projects for which applications are approved by the Secretary under this section.

"APPLICATIONS "SEC. 1732. To be approved, an application for a grant for a construction project under this part must

“(a) contain or be supported by reasonable assurances that (1) for a period of not less than ten years after completion of construction of the project it will be used as a public or nonprofit private recreational activity center, (2) sufficient funds will be available to meet the non-Federal share of the cost of construction of the project, (3) sufficient funds will be available, when construction of the project is completed, for its effective use as an activity center;

(b) be accompanied or supplemented by plans and specifications which comply with regulations of the Secretary relating to minimum standards of construction and equipment;

"(c) describe the program to be carried on in such center and the staffing contemplated therefor, and show that such program has been approved by the appropriate local public authority on the basis of its determination that such center will make a substantial contribution to provision of services for older persons in the community and will otherwise promote the objectives of this Act;

"(d) contain or be supported by adequate assurance that any laborer or mechanic employed by any contractor or subcontractor in the performance of work on the construction of the project (1) will be paid wages at rates not less than those prevailing on similar construction in the locality as determined by the Secretary of Labor in accordance with the DavisBacon Act, as amended (40 U.S.C. 276a—276a-5), and (2) will receive overtime pay in accordance with and subject to the provisions of the Contract Work Hours Standards Act (Public Law 87–581); and the Secretary of Labor shall have, with respect to the labor standards specified in this para

graph, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 3176; 64 Stat. 1267), and section 2 of the Act of June 13, 1934, as amended (40 U.S.C. 276c).

"RESERVATION OF FUNDS

"Seo. 1733. Upon approval of any application for a grant for a construction project under this part, the Secretary shall reserve, from the appropriation for the fiscal year in which the application is approved (or, in the case of applications approved during the fiscal year ending June 30, 1965, the appropriation for such year or the preceding year), an amount equal to one-half of the cost of such project under section 1731 ; the amount so reserved may be paid in advance or by way of reimbursement, and in such installments consistent with construction progress and on such conditions as the Secretary may determine. The Secretary's reservation of any amount under this section may be amended by him, either upon approval of an amendment of the application or upon revision of the estimated cost of construction; and any resulting increase in such reservation may be paid from the appropriation from which the original reservation was made or the appropriation for the fiscal year in which such amendment is made.

"RECAPTURE OF PAYMENTS "SEC. 1734. If, within ten years after completion of any construction project for which funds have been paid under this part, the facility with respect to which they were paid shall cease to be a public or nonprofit private recreational activity center, the United States shall be entitled to recover from the applicant or other owner of the center the amount bearing the same ratio to the then value (as determined by agreement of the parties or by action brought in the United States district court for the district in which such center is situated) of the center, as the amount of the Federal participation bore to the cost of construction of such center.

"PART E-SPECIAL PROJECTS TO STIMULATE EMPLOYMENT OPPORTUNITIES

"PROJECT GRANTS

"Sec. 1741. (a) For the purpose of demonstrating the employment capacity and utility of older workers, the Secretary of Labor is authorized to make grants to public or nonprofit private agencies and organizations for experimental or demonstration projects which will enlist most effectively the cooperation of such agencies and organizations for this purpose.

"(b) No project shall be approved under this part unless the Secretary of Labor, pursuant to such regulations as he may prescribe, determines

“(1) that the employment to be provided thereby will permit or contribute to a public or community undertaking or service that will not otherwise be provided ;

“(2) that such employment will not result in the displacement of regular workers; and

“(3) that the rates of pay and other conditions of employment are appropriate and reasonably consistent with the rates and conditions applicable with respect to comparable work in the locality.

"AGREEMENTS AND PAYMENTS "SEC. 1742. Whenever a project of a public or nonprofit private agency or organization is approved under this part, the Secretary of Labor may enter into an agreement with such agency or organization for carrying out such project. The Secretary of Labor shall, to the extent practicable, coordinate projects under this part with other community plans for older persons. Up to 50 per centum of the costs of any such project may be paid. Any agreement under this section shall contain such provisions as may be necessary to insure that employees are employed in accordance with the provisions of this part, shall provide for systematic evaluation by the Secretary of Labor of the progress and achievements of the project, and may provide that the Secretary of Labor may, where he deems it essential to accomplishment of the project, furnish tools, clothing, transportation, or similar items, and necessary training or retraining, for employees. Payments with respect to any project under this section may be made in advance or by way of reimbursement, in such installments and on such conditions as the Secretary of Labor finds necessary to carry out the purposes of this part.

"AUTHORIZATION OF APPROPRIATIONS "SEC. 1743. There are authorized to be appropriated for carrying out this title $10,000,000 each for the fiscal year ending June 30, 1964, and the next four fiscal years.

“PABT F-GENERAL

"ADVISORY COMMITTEES

"Sec. 1751. (a) (1) For the purpose of advising the Secretary of Health, Education, and Welfare on matters bearing on his responsibilities under this title and related activities of his Department, there is hereby established in the Department of Health, Education, and Welfare an Advisory Committee on Aging, consisting of the Secretary or his designee, who shall be chairman, and fifteen persons not otherwise in the employ of the United States, appointed by the Secretary without regard to the civil service laws. Members shall be selected from among persons who are experienced in or have demonstrated particular interest in special problems of the aging.

“(2) Each member of the Committee shall hold office for a term of three years except that (A) any member appointed to fill a vacancy occurring prior to the expiration of the term for which his predecessor was appointed shall be appointed for the remainder of such term, and (B) the terms of office of the members first taking office shall expire, as designated by the Secretary of Health, Education, and Welfare at the time of appointment, five at the end of the first Tear, five at the end of the second year, and five at the end of the third year after the date of appointment.

"(b) The Secretary of Health, Education, and Welfare and the Secretary of Labor are each authorized to appoint, without regard to the civil service laws, such technical advisory committees as such Secretary deems appropriate for advising him in carrying out his functions under this title.

"(c) Members of the Advisory Committee on Aging or of any technical advisory committee appointed under this section, who are not regular full-time employees of the United States, shall, while attending meetings or conferences of such committee or otherwise engaged on business of such committee, be entitled to receive compensation at a rate fixed by the Secretary who appointed them, but not exceeding $75 per diem, including travel time, and while so serving away from their homes or regular places of business, they may be allowed travel expenses, including per diem in lieu of subsistence, as authorized by section 5 of the Administrative Expenses Act of 1916 (5 V.S.C. 73b-2) for persons in the Government service employed intermittently.

"ADMINISTRATION “Sec. 1752. (a) In carrying out the purposes of this title, the Secretary of Health, Education, and Welfare and, with respect to employment and employ. ment opportunities for older workers, the Secretary of Labor are each authorized to provide consultative services and technical assistance to public or nonprofit private agencies, organizations, and institutions; to provide short-term training and technical instruction; to conduct research and demonstrations; and to collect, prepare, publish, and disseminate special educational or informational materials, including reports of the projects for which funds are provided under this title.

"(b) In administering their respective functions under this title, the Secretary of Health, Education, and Welfare and the Secretary of Labor are each authorized to utilize the services and facilities of any agency of the Federal Government and of any other public or nonprofit private agency or institution, in accordance with agreements between the Secretary concerned and the head thereof, and to pay therefor, in advance or by way of reimbursement, as may be provided in the agreement.

"AUTHORIZATION OF APPROPRIATIONS

"SEO. 1753. There are authorized to be appropriated $1,500,000 for the fiscal year ending June 30, 1964, $3,000,000 for the fiscal year ending June 30, 1965, and $5,000,000 for each of the next three fiscal years, for carrying out parts B and C of this title.

"DEFINITIONS

“Sec. 1754. For purposes of this title

(1) The term ‘nonprofit' as applied to any agency, organization, or institution means an agency, organization, or institution which is, or is owned by, one or more corporations or associations no part of the net earnings of which inures, or may lawfully inure, to the benefit of any private shareholder or individual.

(2) The term 'State' includes the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guain, and American Samoa.

“(3) The term 'construction', except for purposes of section 1701, includes construction of new buildings and expansion, remodeling, alteration, and renovation of existing buildings, and initial equipment of such new, expanded, remodeled, altered, or renovated buildings.

(4) The 'cost' of construction includes the cost of architects' fees in connection with construction, but does not include the cost of aquisition of land or off-site improvements.”

SEC. 3. As used in the parts B and C of title XVII of the Social Security Act (added by this Act), the term "Secretary” means the Secretary of Health, Education, and Welfare,

LETTER FROM SECRETARY ANTHONY J. CELEBREZZE RELATIVE TO CHANGES IN PUBLIC WELFARE PROGRAMS FOR OLDER PEOPLE

DEPARTMENT OF HEALTH, EDUCATION, AND WELFARE,

Washington, April 22, 1963. Speaker of the House of Representatives, , Washington, D.C.

DEAR MR. SPEAKER: Enclosed is a draft of a bill “To improve the . public assistance provisions of the Social Security Act relating to aged individuals, and for other purposes.”

This bill carries out the President's recommendations for aged recipients of public assistance in his message to Congress relative to the elderly citizens of our Nation. It is intended to help to accomplish more effectively the objectives of the old-age assistance program by providing more adequately for the needy aged. Under the bill five changes would be made in this program.

The bill would improve the States medical care programs for aged recipients. It would insure, after June 30, 1965, availability of medical care for those eligible for old-age assistance, at least equal to that available to persons receiving medical assistance for the aged. In six States at present the recipients of old-age assistance, the most needy of the aged, receive less medical care than recipients of medical assistance for the aged. The bill would require as a condition of approval that the State plan provides that there shall be available to an individual who meets the eligibility standards for old-age assistance medical care and services at least equal to those available as medical assistance for the aged. The proposed change, however, would not prevent a State from offering more extensive medical care under old-age assistance than under medical assistance for the aged.

Under present law, in old-age assistance and medical assistance for the aged, there is Federal financial participation in State payments for medical care made in behalf of aged individuals in general medical institutitions who are there because of a diagnosis of psychosis or tuberculosis, but only for a 42-day period. There is no Federal sharing in money payments to such individuals. In order to help the States finance the care that is needed for such persons in a general medical institution, the bill would delete the 42-day limitation in oldage assistance and medical assistance for the aged and permit Federal financial participation in money, payments in old-age assistance. This would in many instances make treatment available in the home community of the patient rather than in a State institution elsewhere.

There is increasing recognition of the problem aged persons have in obtaining proper housing. In fact, many in the low income group are living in substandard housing, including those meeting their rental payments through old-age assistance. The bill would require as

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