Area agency on aging capabilities

(a) Organization Section 305(c) (42 U.S.C. 3025(c)) is amended— (1) by redesignating paragraphs (1) through (5) as subparagraphs (A) through (E), respectively, and moving such subparagraphs 2 ems to the right; (2) by striking shall be and inserting the following: “shall— (1) be—; (3) in subparagraph (E), as so redesignated— (A) by striking (b)(5) and inserting (b)(5)(A); and (B) by inserting and after the semicolon; and (4) by striking and shall provide assurance, and all that follows through the area plan. and inserting the following: (2) provide assurance, determined adequate by the State agency, that the area agency on aging will have the ability, and maintain the capabilities necessary, to develop an area plan as required under section 306(a), and carry out, directly or through contractual or other arrangements, and oversee activities in accordance with— (A) the plan within the planning and service area; (B) any other relevant requirements of this Act; (C) other applicable Federal and State laws; and (D) other terms and conditions of awards received under this Act. In designating an area agency on aging within the planning and service area or within any unit of general purpose local government designated as a planning and service area, the State shall give preference to an established office on aging, unless the State agency finds that no such office within the planning and service area will have the capacity to carry out the area plan.. (b) Plans Section 306(f)(1) (42 U.S.C. 3026(f)(1)) is amended— (1) by inserting the assurances required under section 305(c)(2), after of this section,; and (2) by striking the period at the end and inserting, and if the State agency determines, in the discretion of the State agency, that an area agency on aging failed in 2 successive years to comply with the requirements under this title, then the State agency may require the area agency on aging to submit a plan for a 1-year period that meets such requirements, for subsequent years until the State agency determines that the area agency on aging is in compliance with such requirements..