A bill to amend the Older Americans Act of 1965 to require the Commissioner on Aging to establish a special grant program to enable States to establish community long-term care initiatives to assess the needs of chronically ill or disabled older persons for services and to provide for the efficient delivery of such services to such older persons.

Amends the Older Americans Act of 1965 to establish a program of Community long-term care initiatives for assistance to chronically ill or disabled older persons.

Directs the Commissioner on Aging to establish a special grant program to enable States to establish community long-term care initiatives designed to assess the needs of chronically ill or disabled persons for services and to assist in the efficient operation of a comprehensive and coordinated system for the delivery of services to such older persons.

Requires the grant program to insure that: (1) the needs of older persons for services are identified; (2) older persons are referred to appropriate community based services; and (3) followup and evaluation procedures are established to insure that services are responsive to the needs of older persons.

States that applications shall be made to the Commissioner after consultation with the State agencies responsible for the direct delivery of services to older persons. Requires such applications to: (1) assess the capacity for the establishment and operation of a community long-term care program; (2) show that the State can carry out a comprehensive system for delivery of services to chronically ill or disabled older persons; and (3) include a plan which will facilitate access by older persons to services available in the area to be served. Authorizes the Commissioner to permit any agency of a State, other than those State agencies designated in this Act, to submit an application to deliver such services if the State involved demonstrates that it can meet the requirements of this Act in an alternative manner.

Stipulates that grants made by the Secretary shall be for no more than 90 percent of the cost of the State program established under this Act.

Allows an agency receiving a grant to contract with public or private nonprofit agencies to carry out the program.

Requires that an agency receiving a grant shall: (1) employ a balance of personnel between individuals trained in health care services and social services; (2) involve individual older persons in the development of their appropriate service plans; (3) assess the needs of individual older persons; (4) identify older persons in need of services; and (5) encourage older persons to participate in programs for which they are eligible.

Directs agencies to seek to use existing facilities which are easily accessible by older or disabled persons.