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life of the loan, on the amount borrowed from other sources 2 for the acquisition, alteration, or renovation of such facilities, 3 and (2) the average annual debt service which the insti4 tution would have been required to pay, during the life of 5 the loan, with respect to such amounts if the applicable in6 terest rate were 3 per centum per annum: Provided, That 7 the amount on which such grant is based shall be approved 8 by the Secretary.

9 "(c) (1) There are hereby authorized to be appro10 priated to the Secretary such sums as may be necessary for 11 payment of annual interest grants in accordance with this 12 section.

13 "(2) Contracts for annual interest grants under this 14 section shall not be entered into in an aggregate amount 15 greater than is authorized in appropriation Acts.

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"(d) Not more than 12 per centum of the funds pro17 vided for in this section for grants may be used within any

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one State.".

(2) The heading of title IV is amended to read as 20 follows:

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"TITLE IV-TRAINING, RESEARCH, AND

SECRETARIAL PROGRAMS"

(d) (1) Section 431 is amended to read as follows:

"AUTHORIZATION

"SEC. 441. There are authorized to be appropriated to

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1 carry out the provisions of this title such sums as may be

2 necessary for each fiscal year ending prior to October 1, 3 1980.".

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(2) Section 432 is redesignated as section 442.

COMMUNITY SERVICE EMPLOYMENT PROGRAMS

SEC. 104. Title V is amended to read as follows:

7 "TITLE V-COMMUNITY SERVICE EMPLOYMENT

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FOR OLDER AMERICANS

"SHORT TITLE

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"SEC. 501. This title may be cited as the 'Older Amer

11 ican Community Service Employment Act'.

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"OLDER AMERICAN COMMUNITY SERVICE EMPLOYMENT

PROGRAM

"SEC. 502. (a) In order to foster and promote useful 15 part-time opportunities in community service activities for 16 unemployed low-income persons who are fifty-five years 17 old and who have poor employment prospects, the Secretary 18 of Labor (hereinafter in this title referred to as the 'Secre19 tary') is authorized to establish an older American commu20 nity service employment program.

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"(b) (1) In order to carry out the provisions of this 22 title, the Secretary is authorized to enter into agreements 23 with public or private nonprofit agencies or organizations, 24 including national organizations, agencies of a State govern

25 ment or a political subdivision of a State (having elected or

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1 duly appointed governing officials), or a combination of such 2 political subdivisions, or tribal organizations in order to fur3 ther the purposes and goals of the program. Such agreements 4 may include provisions for the payment of costs, as provided 5 in subsection (c), of projects developed by such organiza6 tions and agencies in cooperation with the Secretary in order 7 to make the program effective or to supplement the program. 8 No payment shall be made by the Secretary toward the cost 9 of any project established or administered by any such orga10 nization or agency unless he determines that such project

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(A) will provide employment only for eligible individuals, except for necessary technical, administrative, and supervisory personnel, but such personnel shall, to the fullest extent possible, be recruited from among eligible individuals;

"(B) will provide employment for eligible individuals in the community in which such individuals reside, or in nearby communities, with special attention to the participation of eligible individuals who are members of

minority groups;

"(C) will employ eligible individuals in service related to publicly owned and operated facilities and projects, or projects sponsored by organizations, other than political parties, exempt from taxation under the

provisions of section 501 (c) (3) of the Internal Rev

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enue Code of 1954, except projects involving the con

struction, operation, or maintenance of any facility used

or to be used as a place for sectarian religious instruction or worship;

"(D) will contribute to the general welfare of the community;

"(E) will provide employment for eligible indi

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viduals whose opportunities for other suitable public or private paid employment are poor;

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"(F) (i) will result in an increase in employment opportunities over those opportunities which would otherwise be available, (ii) will not result in the dis

placement of currently employed workers (including partial displacement, such as a reduction in the hours of nonovertime work or wages or employment benefits),

and (iii) will not impair existing contracts or result

in the substitution of Federal funds for other funds in

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formed;

"(G) will not employ or continue to employ any

eligible individual to perform work the same or sub

stantially the same as that performed by any other

person who is on layoff;

"(H) will utilize methods of recruitment and selec

tion (including listing of job vacancies with the employ

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ment agency operated by any State or political subdivision thereof) which will assure that the maximum number of eligible individuals will have an opportunity

to participate in the project;

"(I) will include such training as may be necessary to make the most effective use of the skills and talents of those individuals who are participating, and will provide for the payment of the reasonable expenses of individuals being trained, including a reasonable subsistence allowance;

"(J) will assure that safe and healthy conditions of work will be provided, and will assure that persons employed in community service jobs assisted under this title shall be paid wages which shall not be lower than whichever is the highest of (i) the minimum

wage which would be applicable to the employee under the Fair Labor Standards Act of 1938, if section 6(a)(1) of such Act applied to the participant and if he were not exempt under section 13 thereof, (ii) the

State or local minimum wage for the most nearly com

21 parable covered employment, or (iii) the prevailing

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rates of pay for persons employed in similar public

occupations by the same employer;

"(K) will be established or administered with

the advice of persons competent in the field of service

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