Sec. 106. Contracting
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Section 212 ( 42 U.S.C. 3020c ) is amended— in the section heading, by striking ; and grant authority by striking subsection
(a)and inserting the following: 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 a contract, commercial relationship, or other business arrangement (referred to in this section as 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— in the case funds provided under this Act are used in developing or carrying out the agreement— such agreement guarantees that the cost is reimbursed to the recipient; 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— the individuals and entities may only purchase such services at their fair market rate; all costs incurred by the recipient in providing such services (and not otherwise reimbursed under subparagraph (A)), are reimbursed to such recipient; and except in the case of an agreement with a health plan or health care provider, 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 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; and subject to subsection (e), in the case no funds provided under this Act are used in developing or carrying out the agreement— not later than 45 days after the agreement first goes into effect, and annually thereafter until the termination of such agreement, the recipient of a grant or contract under this Act shall, in writing— notify the State agency of— the existence of the agreement; and the services provided and populations served under the agreement; and provide assurances to the State agency that— nothing in the agreement— undermines— the duties of the recipient under this Act; or the provision of services in accordance with this Act; or violates any other terms and conditions of an award received by the recipient under this Act; and any potential real or perceived conflict of interest with respect to the agreement has been prevented, mitigated, or otherwise addressed, including providing a description of any such conflicts of interest and a description of the actions taken to mitigate such conflicts of interest; and not later than 45 days after the population or services under the agreement substantially change due to an amendment to the agreement, the recipient shall, in writing— notify the State agency of such change; and provide the assurances described in subparagraph (A)(ii) with respect to such change. ; by striking subsection
(b)and inserting the following: An agreement— described in subsection (a)(1) may not— 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, Alaskan 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; or 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; and described in subsection
(a)may not— result in the displacement of services otherwise available to an older individual with greatest social need, an older individual with greatest economic need, or an older individual who is at risk for institutional placement; or in any other way compromise, undermine, or be inconsistent with the objective of serving the needs of older individuals, as determined by the Assistant Secretary. ; by striking subsection
(c)and inserting the following: To ensure that any agreement described in subsection (a)(1) complies with the requirements of this section and other applicable provisions of this Act, the Assistant Secretary shall develop and implement uniform monitoring procedures and reporting requirements consistent with the provisions of subparagraphs
(A)through
(E)of section 306(a)(13) in consultation with the State agencies and area agencies on aging. The Assistant Secretary shall conduct a review on the impact of such agreements on the provision of services under this Act, including the number of agreements per State, summaries of such agreements, and the impact of such agreements on access to services consistent with the goals of this Act. The Assistant Secretary shall annually prepare and submit to the Committee on Health, Education, Labor, and Pensions of the Senate, the Special Committee on Aging of the Senate, and the Committee on Education and Workforce of the House of Representatives the findings of such review. ; and by striking subsection
(e)and inserting the following: In the case of an agreement described in subsection (a)(2), if the State agency has a reasonable belief that an agreement may violate the assurances provided under subsection (a)(2)(A)(ii), the State agency may request additional information from the recipient of funds under this Act that is a party to such agreement, which may include a request for a copy of such agreement. Such recipient shall make a good faith effort to address such request for additional information, except that such recipient shall not provide agreements or other data that are restricted under the terms of a non-disclosure agreement signed by such recipient. If such recipient declines to provide a copy of an agreement to a State agency, such recipient shall provide a justification to the State agency within 30 days of receiving such request. A State agency shall keep confidential, as required by applicable Federal and State law, all information received under this subsection that is— a trade secret; commercial or financial information; and information obtained from an individual that is privileged and confidential. In this section: The term cost means an expense, including an administrative expense, incurred by a recipient in developing or carrying out an agreement described in subsection (a), whether the recipient contributed funds, staff time, or other plant, equipment, or services to meet the expense. The term recipient means an area agency on aging in a State with multiple planning and service areas. . Section 306 ( 42 U.S.C. 3026 ) is amended— in subsection (a)(13)— in subparagraph (B)(i), by striking any service to older individuals and inserting any service under this Act to older individuals or caregivers ; and in subparagraph (E), by inserting or caregivers under this Act after older individuals ; and in subsection (g), by inserting , except as provided under section 212(a)(2), after Nothing in this Act .
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